Home owner’s house returned after ‘unlawful’ scheme

2014-12-05 22:30


Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

Johannesburg - 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 South Gauteng High Court 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.

Read more on:    lrc  |  johannesburg  |  crime

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Inside News24

Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.