…and demands M700k refund from financial consultant who allegedly sold him a house belonging to a bank
Moorosi Tsiane
A bitter dispute over a M1.5 million mansion in Maseru East between Democratic Congress (DC) Member of Parliament, Mokherane Tsatsanyane, and renowned financial consultant, Limpho Tšenoli, has landed in the Commercial Division of the High Court.
Mr Tsatsanyane is demanding a refund of M700 000 he says he paid towards the purchase of the property after allegedly discovering that the house was mortgaged to a bank and had already been declared specially executable.
He has approached the court seeking an order compelling Ms Tšenoli to repay the M700 000, which he says the parties agreed she would refund after cancelling their sale agreement.
According to court papers filed by Mr Tsatsanyane, the parties entered into an agreement for the sale of developed landed property registered in Ms Tšenoli’s name under Plot No. 13281-246 in Maseru East.
The property, comprising a residential house, was allegedly sold to Mr Tsatsanyane for M1.5 million.
The dispute dates back to 2017, when Mr Tsatsanyane says he entered into an oral agreement with Ms Tšenoli for the purchase of the property.
He says he paid M700 000 in instalments before discovering that the property was mortgaged to a bank.
“During or about late November 2017, the respondent (Tšenoli) and applicant (Tsatsanyane) entered into an oral agreement for the sale of developed landed property registered in the names of the Respondent under Plot No. 13281-246. This Property is situated at Maseru East in the district of Maseru. This is developed property with a residential house.
“Around 27th November 2017, and in line with what was agreed between the Parties, the applicant made payment of the sum of M220,000 by way of electronic funds transfer into the account of the respondent as a deposit for the sale agreement that was contemplated. The applicant further on 28th November 2017, made an electronic funds transfer of a sum of M230,000. These payments were made as an agreed deposit sum of M450,000 towards the purchase price.
“Around February 2018, the applicant made further payment of M250,000 to the respondent in pursuit of the verbally concluded sale contract that was entered into by and between the Parties,” Mr Tsatsanyane says.
After paying M700 000, Mr Tsatsanyane says he insisted that the agreement be reduced to writing and that Ms Tšenoli acknowledge the money she had received.
“The applicant, having parted with a sizeable sum of money towards the contemplated sale contract, insisted that he and the respondent reduce their terms and conditions in writing and that the respondent sign an acknowledgement speaking to the sums of money she had received from the applicant.
“It was on the basis of this that around February 2018, the applicant and respondent reduced their agreement in writing wherein it stated that the purchase price for the property at the core of the business transaction was a sum of M1,500,000.
“Article 1.2 of the Agreement outlined that the applicant had already made payment of M700,000 towards the purchase of the property. A further term of the contract outlined that following the respondent having been in receipt of the M700,000, the applicant would be making monthly instalments towards settlement of the balance of the purchase price so agreed between the Parties.”
The first instalment was due by 31 March 2018, according to Mr Tsatsanyane, but he says he could not make the payment because Ms Tšenoli allegedly failed to provide him with bank details or demand payment.
It was around the middle of 2018 that he allegedly discovered that the property was mortgaged to Standard Lesotho Bank.
“At or around mid 2018, it came to the attention of the applicant that the property he purchased from the Respondent was mortgaged by the bank. With this discovery, around May 2018, the applicant initiated a conversation with Standard Lesotho Bank with hopes of taking over the repayment of the loan that was owed by the respondent as he had been of the view that the house so purchased would be his family home.”
The property saga, however, took another turn when Mr Tsatsanyane says he discovered that the bank had already declared the property specially executable.
He says this happened around December 2018, when he discovered that the declaration had been made as far back as May 2016.
“With this discovery, the applicant reappeared with an undertaking that she would refund the applicant the M700,000,” the court papers state.
Despite the alleged undertaking, Mr Tsatsanyane says Ms Tšenoli failed to refund his money.
He says he spent several years pursuing Standard Lesotho Bank in an effort to have the property sold to him, but the house was eventually auctioned to another buyer.
Mr Tsatsanyane says he was subsequently forced to vacate the premises.
“The applicant proceeded for several years with pursuing the bank to sell the property to him up until it was finally auctioned off to a different buyer and the applicant found himself forced to vacate the property and/or premises.
“The Parties, indeed, verbally cancelled the written contract around September 2024, on a condition that the respondent shall reimburse the applicant the M700,000. However, the respondent has failed and/or refused to repay the applicant the M700,000.
“To date, the respondent has failed and/or refuses to pay the applicant the M700,000 following the agreed cancellation of the initially contemplated land sale agreement. It is on the basis of the foregoing that the applicant is left with no other option save to approach the Honourable Court for relief.”
Mr Tsatsanyane is therefore asking the court to order Ms Tšenoli to refund the M700 000 he allegedly paid towards the property following the cancellation of the sale agreement.
He is also seeking interest at a rate of 12.5 percent per annum tempore morae (from the time of default), calculated from September 2024.
Mr Tsatsanyane was evicted from the Maseru East property around September 2024 after the bank asserted its rights over the house.
His belongings were scattered outside the premises.
He was later charged before the Maseru Magistrates Court, accused of making death threats against Ms Tšenoli. He was released on M2000 bail. The outcome of that case was not available at the time of going to press.
