From Foundation to Finish: The Zimbabwean due diligence checklist for homebuyers

MATTERS OF THE LAW: A house is always a big investment.

Many tragedies have befallen purchasers especially. Its important to carry out DUE DILIGENCE. This particularly given the high levels of dishonesty along the entire value chain in this process.

The purpose of this thread is enlighten buyers especially. You could get into serious grief if you accept documents or even people at face value. There are wicked people in this world. Uno VHARWA kana KUVHAGWA! (You will get conned!)

Sometimes the process of buying a hse may start with engagement of an estate agent. It is illegal for one to operate as such unless they are so licensed. Don’t just take their word. See the licence. But don’t end there check with the authorities too.

Go beyond the ordinary. No one will be there to wipe the tears for you. Demand all manner of proof. ID, passport, bills. But remember these are not enough. The idea is to make it very difficult for the crook to transact with you. Don’t accept excuses.

Above all remember that even these documents can be manufactured. Thats why lots of effort is necessary to check everything.

In short DUE DILIGENCE can be defined as an investigation, audit, or review performed which is performed to check the facts &/ or details of a matter you are dealing with.

This is especially important if you are in the diaspora. You need to engage a crediable agent, lawyer/ conveyancer. Even your relative cannot be trusted.

You may choose to give power to a trusted relative or friend. You must have reason to trust them. In that case u issue them with a POWER OF ATTORNEY. There r basically 2 types: SPECIAL & GENERAL. Its best that this be drawn up by a lawyer – credible one.

A special power of attorney allows a person (the principal) to authorize another individual (the agent) to make legal decisions on their behalf. The agent can act on behalf of the principal only under specific, clearly defined circumstances. So be very clear.

On the other hand, a general power of attorney gives authority to an agent to do all and any acts which the principal could do if personally present. In other words they can do literally anything including buying that house & even selling it. BE WARNED!

So once you have issued your power of attorney, the person may approach a real estate agent. If so, they must ensure that that agent is licensed & operating legally. You should verify that this is so by checking their identity as discussed previously etc.

In a addition also check with the estate agency council that they are in fact allowed to practice. Satisfy yourself as much as possible.

But what are the responsibilities of an ESTATE AGENT? The Estate Agents Council reports to the Minister of Justice. In 2016 the Minister issued Statutory Instrument 89 of 2016 (SI 69). It is titled, “Estate Agents (Professional Conduct) (Amendment) Rules, 2016 (No.6).

These Rules cover, amongst other things, the issue of fees. In this respect it states that In instances where the scale of fees agreed is higher than the minimum Estate Agents Council scale the member must follow the provisions of section 14( 1) SI 200 of 1987.

SI 200/87 can be found here. You can read it for yourself.

by @fortunechasi on X

Fortune Chasi is a practicing lawyer and former Minister of Energy and Power Development in the government of Zimbabwe

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