North Cyprus Property | The Day of Reckoning

North Cyprus Property | The Day of ReckoningWithout Prejudice

North Cyprus Property | The Day of Reckoning

The day of reckoning is upon them. On Tuesday 6th August 2013 the Kulaksiz 5’s legal team will be told whether the amendment they have requested to be added to the main case (due to start on Monday 14th October 2013) will be allowed to be entered into this case. It is an important part of the case and if not allowed will be a blow to the Kulaksiz 5’s main case.

This case, as is right and proper, will be heard and the outcome decided on its legal merits. Sometimes we all find it frustrating to have to wait and the stress level amongst the Kulaksiz 5 is ‘off the scale’ of measurement. However the laws are there, we can only hope and pray they give us all the protection we need and have waited so long for.

Those who are not familiar with the case:

K5 litigants Contracted to buy their properties and paid as per that Contract. The small amount (final payment) outstanding was due to be paid on transfer/completion of the site. Neither of these events happened. Instead, whilst registering their Contracts, in line with the new Estate Agents Law, the purchasers found out about a stealth mortgage on their property/land. In some cases this was 3 to 4 years after signing their Contracts, the least amount of time being just over 2 years. The interest rate of 250% applied by the lending source came as another ‘body blow’ to the owners.

In November 2008 the bank were given a Repossession Order in which the interest rate was changed to 80% per quarter compound.

In June 2010 the Bank were allowed to Auction the land/property and bought them, themselves. The debt at this time had increased from approximately 100,000 lira to 2,077,000 lira, this excessive total being entirely due to the usurious rate of interest.

The Bank would have you believe it actually cost the amount they wrote on the cheque to the Tapu, but sensible folk realise that as the buyer and the seller, the capital outlay was only ever 100,000 lira plus costs. Did they ever expect the borrower to repay? That is up to the court to decide. It is now known they’d had a survey carried out on the site and had been made aware of the existence of properties in various stages of build before advancing the major part of the mortgage.

Attempts to evict the remaining residents and owners were halted by the Interim Injunction granted by the High Court on February 14th 2013, although they had already taken two villas by highly questionable means, certainly no court order had been applied for or given for the repossession of these two villas.

This is a very important case and as many as 1400 other people with mortgages on their property without their knowledge or consent are awaiting the outcome, as indeed I suspect are the Banks who allowed such questionable borrowing.

Little by little we are finding out that indeed the laws in the TRNC are there, just the interpretation of them needs to be clarified. Mortgage Law 11/78 being one of these laws.

The memorandum situation is also being called into question. For instance how can a memorandum be given on properties with Contracts Registered by the owners and on record at the Tapu? The Estate Agents Act of 2007/8 was supposed to give protection to those who had bought and registered their Contract whilst waiting for Permission to Purchase. We also find that many Turkish Cypriots are suffering the same fate, how is this possible since they should be able to transfer title immediately on purchase?

Clearly the property sector needs its act ‘cleaning up’ and this is the reason we want you all to sign this petition.

Sign the Avaaz TRNC Property Petition NOW!

Together we can make a difference, together, we will be heard.

Never give in never give up


Print Friendly, PDF & Email

Comments are closed.