Court Delivers Blow to Homebuyer Who Refused to Pay Balance After Getting Title Deed

The Court of Appeal has ruled that a buyer cannot avoid paying the balance of the property purchase price after taking ownership by later claiming defects that were not properly raised before the transaction was completed.

In the case of Mercy Cassandra M’Mboga v Said Ahmed Mahmud, the court stated the importance of honouring contractual obligations and professional undertakings in property transactions.

The dispute arose after a buyer purchased a house, took possession, and paid a substantial portion of the agreed purchase price.

The seller later transferred the property title to the buyer after her advocate issued a professional undertaking guaranteeing payment of the remaining balance.

However, after the title had been transferred into her name, the buyer claimed that the house had structural defects.

She sought to withhold part of the outstanding payment, arguing that the money would cover repair costs.

The seller rejected the claim, maintaining that the balance remained due because the transfer process had already been completed.

The disagreement eventually reached the Court of Appeal.

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Court Finds Complaints Were Raised Too Late

The Court of Appeal ruled in favour of the seller.

Although the judges acknowledged that the sale agreement contained obligations regarding the condition of the property, they noted that the buyer had occupied the house for more than four years before raising concerns about structural defects.

The court also found little evidence showing how the alleged repair costs had been calculated or incurred.

According to the judges, the complaints appeared only after ownership of the property had already changed hands.

“The complaints appeared to have surfaced only after ownership had already changed hands,” the court observed.

The judges, therefore, treated the claim as an afterthought and held that it could not be used to defeat the advocate’s professional undertaking.

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Transfer of Title Triggered Payment Obligation

The court emphasized that once the title transfer was successfully registered, the obligation to pay the outstanding balance became enforceable.

The judges stated that a professional undertaking cannot be frustrated by disputes that arise after the condition triggering payment has already been fulfilled.

“Once the transfer was successfully registered, the obligation to pay crystallized and had to be honoured,” the court held.

As a result, the buyer remained liable to pay the outstanding balance.

Important Lesson for Property Buyers and Sellers

The decision sends a strong message to parties involved in property transactions.

The court made it clear that a party cannot enjoy the benefits of a contract and later search for reasons to avoid performing their own obligations.

“The law will not readily allow someone to keep the title, keep possession, keep the benefit of the transaction, and at the same time withhold payment on the basis of complaints that were never properly raised beforehand,” the judges stated.

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Court Rules Property Buyers Must Pay Balance After Receiving Title Deeds
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