On 11 January 2000, the first and second respondents (the Madorobas) concluded an agreement of sale to purchase immovable property in Bluff Hill, Harare, from the fourth respondent (Parirenyatwa). On 8 March 2000, the respondents obtained a provisional order in the form of an interim interdict restraining Parirenyatwa from transferring the property to anyone except themselves. A copy of the interdict was served on the Registrar of Deeds, who was supposed to endorse a caveat on the title deeds. Despite the interim interdict, on 22 March 2000, Parirenyatwa entered into another written agreement of sale for the same property with the appellant (Mwayipaida Family Trust). The property was subsequently transferred to and registered in the appellant's name. There was no evidence that a caveat had actually been endorsed on the title deeds. The respondents successfully applied to the High Court to set aside the transfer to the appellant.
The appeal was dismissed with costs. The High Court order setting aside the transfer to the appellant and ordering the Registrar of Deeds to cancel the Deed of Transfer was upheld.
In cases of double sales of immovable property, where both the first and second purchasers acted diligently and in good faith, and where the second purchaser's ignorance of the first sale was due to the failure of a public official (the Registrar of Deeds) to register a caveat, the law will prefer the first contract in the absence of special circumstances. The policy of upholding the sanctity of contracts requires that courts adopt an approach that discourages sellers from entering into second contracts that necessarily involve breach of earlier contracts. The failure by the Deeds Office to register a caveat does not have the effect of nullifying the first purchaser's prior claim to the property.
The Court noted that cases of double sales do not always fall neatly into the two traditional categories (innocent second purchaser versus knowing and fraudulent second purchaser), as some cases fall in between. The Court observed that both parties in this case were victims of the neglect by the Deeds Office to register the caveat in question. The Court expressed that while the prospects for success of both parties were almost evenly balanced, what tilted the scale in favour of the respondents was the fact that theirs was the first contract and that, but for the omission to register the caveat, it would have been the only contract.
This case is significant in Zimbabwean property law (with persuasive value in South African jurisprudence) for clarifying the legal approach to double sales of immovable property. It reinforces the principle that courts will generally prefer the first contract except in special circumstances, even where the second purchaser acted in good faith. The case establishes that the failure of a public official (Registrar of Deeds) to register a caveat does not nullify the first purchaser's prior claim. It emphasizes the policy of upholding the sanctity of contracts and discouraging sellers from entering into second contracts that would breach earlier obligations. The judgment provides guidance on balancing the interests of equally diligent innocent purchasers in double sale scenarios.