The Sunday News
Noble Ncube, Business Reporter
OVER the past few years, a number of people and companies that have been losing their properties after failing to service their loans has been on the rise.
This has also seen an increase in the number of goods that are being auctioned. However, officials have now raised alarm claiming that there were now cartels taking advantage of the auctions to loot goods at giveaway prices leaving the owners stranded. In some cases some of the goods are sold at prices way below their market value.
The Directors Protection Council of Zimbabwe (DPCZ) is among some of the organisations that are of the view that most of the auctions are unprocedural and estate agents tasked with selling the properties and goods allegedly work with the deputy sheriff to fast-track processes of selling the property.
DPCZ chief executive officer Mr Reggies Sibanda said it was a shame that the judicial system was being abused by corrupt individuals who want to gain riches at the expense of the people. He said his organisation was receiving continuous calls from residents and businesses complaining over the alleged conduct of estate agents when dealing with auctioning of properties for loan defaulters.
“We are getting calls from different people concerned about how their property is sold by the deputy sheriff and estate agents. They are questioning estate agents who are working with the judicial officers who then fast-track process of selling their houses. If a house is not sold at public auctions, it goes to private treaty, a platform which allows both the judgment creditor and judgment debtor to secure potential buyers who will offer very good prices better than what was offered at the auction. But that is not being done by some estate agents,” he said.
He said since improper processes were being employed to sell properties and loan defaulters also are not aware of the laws governing sell of their properties, both estate agents and judicial officers were using their authority to rob innocent people of their properties.
He said what has been worrying was that even after the sale, some defaulters are still ordered to pay a balance because their property would have been sold at a lower price.
“The judicial officers and estate agents do not follow High Court rules. They conceal the information because they are aware that people do not know about these rules so they take advantage of that. The sell by private treaty is not conducted in a fair manner because the deputy sheriff and the estate agent do not notify the owner of the property,” said Mr Sibanda.
The sale of property other than public auction is endorsed by High Court rules.
Rule 358 (1) states that where all persons interested including the judgment debtor consent thereto, or otherwise with the consent of a judge, the sheriff, may sell immovable property attached in execution otherwise than by public auction, if he is satisfied that the price offered is fair and reasonable and that the property is unlikely to realise a larger sum by a sale at public auction.
In addition, High Court rule 358 (2) states that if, after a sale by public auction has taken place and the sheriff is not satisfied that the highest price offered is reasonable as provided by rule 356, the sheriff may sell the property by private treaty subject to the conditions of sale for such price, being greater than the highest offer made in at the public auction, as he deems fair and reasonable.
If the sheriff is unable to sell the property by private treaty at such price, it may again be offered for sale by public auction.
Mr Sibanda said some estate agents were using shadowy people who come for bidding. He said these people disappear after winning a bid. As a result, people lose their houses at cheap prices and are left still owing.
However, Estate Agents Council (EAC) chairman Mr Oswald Nyakunika defended estate agents and said sale of properties was guided by High Court rules. He said estate agents do not have the authority to sell property independently.
“Sale of properties belonging to defaulting property owners is under the control and supervision of the Master of High Court and not estate agents. The High Court determines whether or not the bid meets an acceptable minimum forced sale value. I think the creditors are also consulted in the process. They may decide that property be sold at the bid price or decide it be sold by private treaty,” said Mr Nyakunika.
Affirmative Action Group Matabeleland regional president Mr Reginald Shoko said people were indeed being robbed of their properties. He said the Government must put in place a system that caters for non-performing loans.
“It is not fair how the auctions are held because people are being fleeced of their properties and at the same time they are left with a balance to pay. The Government through the Reserve Bank of Zimbabwe has a scheme of paying for the remaining balance for non-performing loans.”
He also said when a house is sold there should be a certificate from the department of works, in most cases but the deputy sheriff and some estate agents were proceeding with the sale without the certificates.
“The certificate protects the owners of the house,” said Mr Shoko.
