South Africa 5.12.2014 03:08 pm

Home owner’s house returned

Picture: Thinkstock

Picture: Thinkstock

A home owner’s house was returned to him after the Brusson Finance scheme resulted in its unlawful transfer, the Legal Resources Centre (LRC) said on Friday.

The High Court in Johannesburg ruled on Thursday that his home was unlawfully transferred to Brusson investors without his knowledge.

The LRC said it was approached by a number of people after their homes were attached as security for loans they applied for and received from Brusson Finance.

“Brusson Finance deceived the applicants into believing that they were entering a loan agreement. In reality, the documents they signed authorised the sale of their family home to a third party (the Brusson investors),” LRC said in a statement.

“Regarding the documents that Brusson used to deceive their victims, the judge stated that: ‘They are drawn in such a way that they cause serious confusion. In my view, this is not a mistake but a part of the grand scheme.'”

LRC said the scheme was a “well-designed process to deceive and defraud”.

Brusson transferred the property to an investor who then approached a bank for a mortgage over the property.

If the investor defaulted on the mortgage payments, the bank would obtain a judgment declaring the property executable, and it would be sold to repay the mortgage.

In September 2011, a default judgment was handed down against the homeowner’s property in his absence.

“Brusson Finance has subsequently been liquidated, leaving the clients of the scheme in a precarious position. The properties are in the investors’ names and the banks are executing against the properties while the clients still reside on the properties.

“The clients therefore stand to be evicted from their homes if these sales in executions proceed,” LRC said.

On Thursday, the judge restored ownership to the homeowner, and ordered the registrar of deeds to re-register the property and set aside the agreements made between all the parties involved, including the investors and bank.

Sapa

 

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