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North Cyprus Property Market In Crisis

The property market in North Cyprus cannot help but continue on its downward spiral whilst Banks like Akfinans continue to flex their financial muscles at every opportunity. Its actions have forced the elderly, frail and ill pensioners of Kulaksiz 5 to dip into their pockets to fund the launching of an extensive advertising campaign which kicked off with an article in the only North Cyprus newspaper that would carry it – Volkan. This leading article expresses the views of Boysun Boyra Law Firm concerning the allegedly law breaking tactics of Akfinans Bank in an effort to manipulate a £40,000 mortgage so that it allowed them to take possession of £800,000 worth of already contracted and paid for properties. Whilst Volkan is not the most widely read of newspapers, they experienced an unprecedented response to the article by its readers, most of whom were unaware of the situation; many even phoned in to ask it whether it was possibly true.

My opinion of the other media is well known. That they should kow-tow to the Bank is unconscionable. In my opinion the abuse of the Banking law brought in to protect the Banking Industry is a disgrace. The only entity bringing the Banking Industry into disrepute and undermining confidence in the whole of the Banking Industry is in my opinion Akfinans Bank Limited by their alleged use of intimidation against both Kulaksiz 5 and the press. In any other civilised country they would be laughed at, here unfortunately the media appear to have caved in to their threats. This, in my opinion, will be looked back on as the time the media became craven cowards.

The property industry here in North Cyprus will continue to be affected by the actions of a few against many. How can a future purchaser buy here with confidence? We have the Estate Agents Law of 2007 which allowed foreigners to register their Contracts with the Land Registry and was heralded as a step forward to protect new home buyers. Ironically the act of introducing this law, and buyers registering their contracts, unlocked Pandora’s Box and out popped all the evidence of mortgages taken by unscrupulous builders and landowners on property legally bought and paid for by their innocent victims.

This law, brought in to instil confidence, instead revealed to the victims complying with that law an unprecedented level of evidence of contract breaking and, in my opinion, corrupt practices by the construction industry. Remarkably, few Advocates paid to protect their clients would admit to knowing the contracts they had established had been compromised in such a way. Even more shocking, few believed they were at fault or had a duty of care to their clients.

We now have the Flat Ownership Law of 2010, also designed to protect purchasers and instil confidence in the property market. In my opinion it is too little, too late. Confidence in the North Cyprus property market has been lost and until the Government gets to grips with past problems and enforces the internationally recognised property related laws outlined in Boysun Boyra Law Firm’s document then no number of new laws is going to stem this haemorrhage. It is like applying an Elastoplast to a gaping self-inflicted wound.

Kulaksiz 5 have achieved notoriety by being the first whose properties have been auctioned, the first to have some owners illegally evicted and the first to take Turkey to the ECHR. Kulaksiz 5 never sought for this, all they wanted was their Title Deeds and to be allowed to live in peace for the rest of their days. Akfinans Bank Limited would not allow that.

There are said to be a minimum of 1400 other such victims who will be affected by the outcome of the Kulaksiz 5 case. Many of these are unaware of the extent of the problem affecting them because they are still waiting for their hopefully unencumbered Title Deeds to be transferred to them. Banks are awaiting the outcome of K5’s case and if thesse property victims fail then I have no doubt the Banks will rush to take advantage of a loophole that means the day after the case fails a struggling developer holding the property purchasers’ Title Deeds could use them to apply to a Bank for a small mortgage they have no intention of repaying. That mortgage too may carry a 250% pa interest rate and by the time transfer of deeds reveals the mortgage, just like in K5’s case, it may have increased to the value of the property. You too may have trusted your Advocate who said you were safe. That’s why the North Cyprus property market is in crisis, it is a crisis of confidence in trust that those you expect to protect you will fail in that duty.

I wonder which Russian language media Russian buyers read?


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