CPAG to rally against the banks

THE CYPRUS Property Action Group (CPAG) is starting a series of demonstrations against banks to press for full disclosure to buyers of developer account balances on loans encumbering their homes.

The first of these will be held against Bank of Cyprus in Paphos on November 27 at 10am.

“Many buyers in Cyprus have been deceived into buying properties by developers who have withheld the vital fact that there are mortgages on the land on which these properties are built,” said a statement from CPAG.

“If buyers had been informed of the presence of these mortgages then most, if not all, would not have purchased these properties.  This deception has only been possible due to the buyers’ own lawyers failing to provide a duty of care to their clients by not even warning them of the risks of this situation.”

The organisation said the banks involved had effectively made these buyers the ultimate guarantors of these developer mortgages without their permission or even knowledge.

Should the developer go bust the buyers will be faced with paying off these mortgages, CPAG said.

“If a buyer is unable, the banks can repossess their property and auction it to recover their loan to the developer.”

It added that many worried buyers have now found out from the Land Registry that their developers have mortgages on their homes and as a result cannot transfer the Title Deed.  “What they don’t know is the current extent of these loans as banks mostly refuse to discuss this, claiming client confidentially, unless of course the developer is in real trouble and the bank is looking to the buyers for reimbursement.”

 

Full details on CPAG’s website  www.cyprus-property-action-group.net

 

The Cyprus Mail is the only English-language daily newspaper published in Cyprus. It was established in 1945 and today, with its popular and widely-read website, the Cyprus Mail is among the most trusted news sites in Cyprus. The newspaper is not affiliated with any political parties and has always striven to maintain its independence. Over the past 70-plus years, the Cyprus Mail, with a small dedicated team, has covered momentous events in Cyprus’ modern history, chronicling the last gasps of British colonial rule, Cyprus’ truncated independence, the coup and Turkish invasion, and the decades of negotiations to stitch the divided island back together, plus a myriad of scandals, murders, and human interests stories that capture the island and its -people. Observers describe it as politically conservative.