Cyprus Law | TRNC PM Promises to Outlaw Stealth Mortgages


“Prime Minister Ozkan Yorgancioglu met with a Making North Cyprus Better (MNCB) delegation recently, and promised them early action on enacting law amendments outlawing Stealth Mortgages and introducing Specific Performance for property contracts.

Included in the delegation were leading businessman Mustafa Toros, and MNCB members: former Chief Justice Taner Erginel, former President of the Chamber of Commerce, Erdil Nami, and MNCB Joint Secretary Malcolm Mitchieson.

The delegates explained to the Prime Minister that serious injustices towards many home buyers, Expatriate & Cypriot, were still going on.

Until these issues were resolved the depressing impact on the Property Market for North European buyers would continue. This
problem continues to have a serious effect on the TRNC economy and job opportunities.

Mr Yorgancioglu was advised that unless these historical problems were resolved there would be a continuing lack of confidence to invest in TRNC housing by overseas buyers. The Prime Minister agreed that restoring confidence in the overseas House Buying Market was an essential driver towards economic prosperity in the TRNC.
The delegates drew the Mr Yorgancioglu’s attention to the current injustice that was due to some Banks, Developers and Landowners exploiting the present law & property process anomalies that allows them to damage home buyers.

New legislation has already been enacted with better safeguards for new buyers, but the historical tragedies to so many home buyers had been ignored by Government up until now. This is still a big issue here and internationally, by depressing the local economy and being damaging to the TRNC’s overseas investment reputation.

MNCB contention is that some Developers, Landowners and Banks are exploiting home buying victims due to wrong interpretation of or are using loopholes in the present law. The purpose of the simple amendments proposed is to clarify buyers rights and bring things into line with good practice.

A report detailing the simple law amendments was handed to the Prime Minister by Taner Erginel, who explained in detail how these injustices had occurred. Mr Yorgancioglu agreed to implement these essential changes in Law as quickly as possible and to keep MNCB informed of progress towards this. Taner Erginel agreed to assist any re-drafting and suggested that specialist legal advice should be sought to help.

The changes sought will mean that any mortgage granted on land without the specific approval of contracted property buyers will be considered illegal. The Specific Performance law will ensure that contracts are honoured and make it illegal to mortgage land already under contract. These elements are already enshrined in TRNC Mortgage & Equity Law but have been virtually ignored.

The changes to the Law envisaged will make the position clear on these points. When enacted these simple changes to the law will enable thousands of home buyers to be free of the threat of repossession or additional Stealth charges.When Mr Yorgancioglu delivers the promised amendments, in line with Mr Erginel’s advice, it will be a breakthrough celebrated by many Cypriot & Expatriate home buyers.

Mr Yorgancioglu will also have delivered a great boost to restoring the attractiveness of the TRNC property market. North Cyprus will then be well positioned to take advantage of any recovery in the European property market with a resulting increase in job opportunities.”

I met with Mr Yorgancioglu when he was in opposition to the then Government and he was very sympathetic to the K5’s plight, so let us hope that now he is in power he will help all victims of stealth mortgages. Ensuring it cannot happen again is very important but of little or no use to existing victims.

Let us hope that since so much time has passed, this will not go on the back burner, like the changes in the Citizenship law.

Never give in never give up.

Pauline Read



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5 comments to Cyprus Law | TRNC PM Promises to Outlaw Stealth Mortgages

  • Polly Marples

    Well all the words are there….the right words. Now let’s see some action…the right action.

    If I had a £ for every time someone has promised to act, then failed to. Well I would give it to Pauline to help pay all the new legal bills she is now facing.

  • fluter

    Lovely to read a fairy-story at Christmastime.

    Of course, none of this will apply to you, my Cousin.

  • Here here, Polly – you never know, he MAY take some action – we can but live in hope.
    Very happy Christmas to you both,

  • The Prime Minister, you or I cannot wilfully alter anything. Evolution does, however, change the way things are and this could be for the better. I trust Pauline, Malcolm and the rest of you good people will enjoy Peace and a share of prosperity in 2015.

  • Polly Marples

    All good wishes to you too Mike, may 2015 bring you health, wealth and happiness.