Based on press reports it appears to me that cases of alleged fraud over title deeds is on the
increase. From those reported cases my understanding is that such cases involve the following:
• Use of fraudulent identity documents such as national identity cards bearing details of
the legitimate registered owner of the property but with the picture of the fraudster.
• Use of fake title deeds to sell to unsuspecting purchasers or to effect transfer at the
Deeds office.
Possible measures to counter title deeds fraud
I am encouraged by the Government’s concerns and current efforts to address the problems at
the Deeds Registry including alleged corruption. I do not have intricate details of some of the
alleged cases. Some of the cases are pending in courts so I will not be able to refer to them.
However, in general, I wish to give some suggestions on some of the safeguards or controls
that can be implemented or enhanced around title deeds or during the process of transfer of
properties from sellers to purchasers.
Identity documents
It appears to me that most of the time when there are allegations of actual or attempted fraud
on title deeds there will be use or intended use of fake or counterfeit national identity
documents. If it is true, I recommend extra safeguards around identity cards presented by sellers
during sale of properties by estate agencies and transfer of the sold properties. During transfer
the conveyancer works closely with ZIMRA for capital gains tax clearance certificate and then
the Deeds Registry for the actual transfer of the properties. During that transfer process identity
documents are used.
It may be necessary for the key parties involved in the sale and the chain of transfer, that is
estate agency, the conveyancer, ZIMRA and the Deeds Registry to have access to the office of
the Registrar General (“RG”) for purposes of authenticating or vetting identity documents. For
example any of those parties can write to the RG, through for example specially designed
forms, attach the identity document provided by the seller, requesting the RG’s office to
authenticate or confirm the identity document by stamping it. I am sure through that verification
process it should be possible to pick any anomalies such as differences in pictures between any
fake and genuine identity documents.
Godknows Hofisi
Legal Practitioner &
Chartered AccountantFor convenience the RG’s office can set up a special desk at the RG’s offices or at the Deeds
Office. In this age of technology such verification may also be done electronically. I am not
sure of the security of personal information if estate agents or conveyancers are allowed limited
on-line access into the RG’s records for purposes of the verification.
Estate agency and conveyancers may also ask for passports of the seller to check if such
passports have been used to travel.
Security over title deeds
Due diligence over title deeds
It is standard procedure that when a seller presents a copy title deed intending to sell a property
a due diligence on the title deed is carried out at the Deeds Registry. This is normally done by
the estate agency, legal practitioner for the purchaser or appointed conveyancer. This is a basic
process which must always be done. It is basically comparing the title deed presented by the
seller to the one kept at the Deeds Registry.
Internal controls at the Deeds Registry
I do not know the finer details of how title deeds are filed or kept at the Deeds Registry.
However, like in most security environments, unauthorised access, including pulling out of
original documents, ought to be restricted or prohibited. All I can say is that there might be
need to review internal controls at the Deeds Office.
Scanning of documents
Another control may include the scanning of all original title deeds and identity documents of
the registered owners and having them stored online in the system. During transfer the
examiners or registrars can then compare the physical copies lodged by a conveyancer versus
the title deed and identity documents in the Deeds Registry system. That may also help expose
any inconsistencies.
Conclusion
The above are a small part of improvements that may be made.
Disclaimer
This simplified article is for general information purposes only and does not constitute the
writer’s professional advice.
Godknows (GK) Hofisi, LLB(UNISA), B.Acc(UZ), Hons B.Compt (UNISA), CA(Z),
MBA(EBS, Heriot- Watt, UK) is the Managing Partner of Hofisi & Partners Commercial
Attorneys, chartered accountant, insolvency practitioner, registered tax accountant and
advises on deal and transactions. He has extensive experience from industry and commerce
and is a former World Bank staffer in the Resource Management Unit. He writes in his
personal capacity. He can be contacted on +263 772 246 900 or gohofisi@gmail.com
