The Chairman of the Parliamentary Committee on Legal Affairs, Justice and Public Order, Mr Nicos Tornaritis, has written to the heads of the Association of Cyprus Banks and the Association of Credit Acquiring Companies (Vulture Funds), asking them to immediately stop property repossessions, auctions, and recoveries involving so-called “Trapped Buyers.”
This comes after a Court of Appeal decision in July last year, which ruled that the current law protecting these buyers is unconstitutional. Thousands of people are affected – buyers who paid for their properties in full but never received the Title Deeds, often because the sellers had taken out mortgages on the same properties.
Mr Tornaritis stated that the Committee is already reviewing the matter and working urgently on a new law that will offer a fair and legal solution. Until the new law is ready, he is asking banks and credit companies not to take any forceful action, so that vulnerable buyers are not further harmed.
“This is a very serious issue and must be handled quickly and responsibly,” Mr Tornaritis said, adding that he expects a written reply from the organisations involved as soon as possible.
These buyers are stuck in a difficult situation through no fault of their own. They have paid in full for their homes but do not legally own them, and now risk losing them due to legal and financial problems they didn’t create.
The request to stop property repossessions is a temporary but necessary step to protect these people while a proper legal fix is being prepared. It is also a reminder of the need for bigger changes in Cyprus’s property laws to make sure similar problems don’t happen again.
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I’m pleased to hear that the Cyprus government has listened to my call to stop banks and vulture funds attacking trapped buyers.
Better late than never! The ‘trapped buyers’ scandal has been running for well over a decade and the underlying causes for over two decades. You, I and others began campaigning on the overall scandal back in 2004 I recall. Your sustained efforts in keeping the issues alive have undoubtedly helped the trapped buyers’ cause.