Saturday, 25 June 2016

‘Loan shark’ Buyanga’s house auctioned

Property mogul Frank Buyanga, yesterday lost his Greendale house which was put up for sale by the Sherriff in a bid to recover $535 000 after he failed to reimburse a local couple $132 000 following a botched deal.


Efforts by Buyanga to stop the sale of house number 2 Cheetham Road in Greendale, hit a snag after his chamber applications seeking stay of execution were dismissed by the High Court.

According to the court papers, sometime in February 2010, Buyanga purportedly represented Rivin Venam Trading, and entered into an agreement of sale of shares with Tawanda and Winnie Jakachira.

Implicit within the agreement of sale, the court heard, was the fact that Jakachira and his wife would acquire immovable property registered in the name of the company and known as stand 2308 Glen Lorne Township of Lot 40 A measuring 5 280 square metres.
‘Loan shark’ Buyanga’s house auctioned
The court further heard in terms of the agreement, the purchase price was $120 000, which Buyanga allegedly acknowledged receiving on February 3, 2010 and the couple paid commission in the sum of $10 000 to Buyanga’s estate agents.

The court also heard that Buyanga undertook to give vacant possession of the property to the couple upon signing of the memorandum of agreement (MoU), but later sought to amend the terms of the contract by unilaterally endorsing on the agreement that the couple had an obligation to issue a three-month notice on the tenants occupying the property.

This position was, however, rejected by the couple.

In a letter written to Buyanga by Jakachira’s lawyers, the latter said: “You gave the warranty that no law suits arbitration proceedings and criminal prosecutions were pending or threatened against the company and that no circumstances were in existence which would give rise to any such suit, hearing or prosecution.”

They added: “Upon the consummation of the agreement, our client (Jakachira) learnt, to his dismay that the immovable property in question was claimed by Vimbai Chidavaenzi and Denzel Colin Takudzwa Mackenzie, who claimed to be the shareholders of the company.

“The latter claimed to have given the deed of transfer of the property as security part of the loan which they had repaid. They also claimed the agreement between you (Buyanga) and them was an illegal agreement of a loan that was simulated to read as an agreement of sale.”

The lawyers said legal proceedings were instituted against Buyanga in the High Court in case HC1707/10 seeking the cancellation of the agreement entered between him and Chidavaenzi and Mackenzie, restraining him from transferring the property.

As a result, Jakachira and his wife also sought to have the agreement between them and Buyanga cancelled, giving rise to the court processes that led to Buyanga’s house being auctioned. www.newsday.co.zw


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