CESSION: As used in buying and selling of stands and other properties in Zimbabwe.
WHAT IT IS
A cession agreement is a legal contract where one party (the cedent) transfers their rights, title, or interest in a property or asset to another party (the cessionary).
Key aspects of a cession agreement include
– Transfer of ownership rights
– Identification of the property or asset being transferred
– Terms and conditions of the transfer
– Consideration (payment or other compensation) for the transfer
– Signatures of both parties (cedent and cessionary)
It is thus imperative that you verify if the property you intend to purchase is approved and compliant with relevant laws.
A Council Cession
is when a local council transfers ownership rights to a buyer. It’s like “Council giving up ownership of a property to someone (obviously the terms of each Cession vary and will be outlined within the Agreement).
Key points:
Transfer of ownership rights from council to buyer
Done through a Cession Agreement or an Agreement of Sale
Part of stand/property disposal (usually to individuals on a waiting list) or development agreements (where Council enters into an Agreement with a Service Provider or Developer, who in turn gets allocated stands for such Service and holds them under a Council Cession
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A Local Government Cession
is when the State, through THE MINISTRY OF LOCAL GOVERNMENT, PUBLIC WORKS, AND NATIONAL HOUSING transfers ownership rights to a buyer. It’s like “the State giving up ownership of a property to someone (obviously the terms of each Cession vary and will be outlined within the Agreement).”
Key points:
The state is the principal owner of the subject property, and they cede to the purchaser
At individual level, the Ministry of Local Government first leases a property to an individual and stipulates conditions that the purchaser has to comply with before Transfer is effected into their name.
The Ministry of Local Government, in some instances, enters into a Memorandum of Agreement with private developers and cedes them stand/property/stand…
Developer’s Cession
A developer’s cession refers to the transfer of ownership rights from the developer to the buyer. In other words, the developer cedes their rights to the purchaser. Cession comes from ceding… which in simple words means giving up ownership of something to someone.
Here’s a breakdown of the process of A DEVELOPER’S CESSION !!
- The developer initially owns the property or stand.
- The buyer purchases the property or a stand from the developer.
- The developer cedes (transfers) their ownership rights to the buyer through a legal agreement called a Deed of Cession.
- The Deed of Cession is registered with the relevant authorities.
- Once registered, the buyer becomes the rightful owner of the property or stand, and the developer relinquishes all claims and interests in the property.
In essence, a developer’s cession in this context is the legal process by which the developer transfers ownership of the property to the buyer, ensuring a secure and legally binding transaction.
RISKS ASSOCIATED WITH PURCHASING A PROPERTY (STAND/HOUSE) HELD UNDER CESSION
Purchasing a property under a cession can be risky !! if not done properly.
Without proper verification, you may face:
– Fraudulent activities:
– Fake or forged documents, or hidden clauses that benefit the developer.
– Ownership disputes:
– Unclear or contested ownership rights, leading to legal battles.
– Unpaid debts:
– Outstanding debts or liabilities attached to the property, becoming your responsibility.
– Breach of contract:
– Developers failing to meet obligations, leaving you with an unfinished or defective property.
– Loss of investment:
– Invalidation of the cession agreement due to technicalities or legal issues.
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