"Trapped buyers continue to bear developers’ debts, says borrowers association," 17 September 2024

...Trapped buyers, despite fulfilling their financial obligations and paying the full purchase price for their properties, have not received full ownership due to delays in obtaining title deeds. Without these deeds, buyers remain vulnerable, as developers’ unresolved loan obligations could result in the foreclosure of the properties in question.

According to the [Cyprus Borrowers A]ssociation, “many buyers have already fully repaid their loans but remain burdened by the developers’ financial obligations”.

...The association said that rather than ensuring developers used the funds received from property buyers to pay off loans taken for constructing buildings, banks have allowed developers to use the money for other purposes. “This raises questions of responsibility for the banks involved in this behaviour,” the association said...

The borrowers association called on the government, in collaboration with banks and credit acquisition companies, to urgently address the issue through appropriate legislative action...

This followed statements by Interior Minister Constantinos Ioannou, who noted ongoing efforts to find a legislative solution. The government is “determined to make every effort to find a solution for trapped property buyers, who are now at risk of losing their properties,” Ioannou said.

These efforts have recently taken on new urgency after a court of appeal decision deemed certain provisions, which allowed trapped buyers to obtain ownership titles, unconstitutional...