CPAG: Demonstrations against the Cyprus banks

Discussion in 'Cyprus Property' started by Nigel Howarth, Nov 21, 2009.

  1. Nigel Howarth

    Nigel Howarth Member

    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.

    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.

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

    There is no doubt that the banks and their unethical practices are at the root of the major risks buyers in Cyprus currently face. Just as the behaviour of banks worldwide have been the cause of so much damage to the economies of many countries the banks in Cyprus have set up a scenario that will do so much damage unless the Government acts quickly and decisively.

    Unfortunately, the risks taken are now coming home to roost due to the current global financial crisis. The Central Bank has recently accused the banks of attempting to hide the problematic debts of hundreds of developers by restructuring the loans instead of properly reporting these bad debts; which if properly reported could affect the share price and credit ratings of the banks.

    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.

    Accordingly, 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 the 27th of November at 10:00hrs – full details on CPAG’s website Cyprus Property Action Group
     
  2. Cornholio

    Cornholio New Member

    Confirmation.

    CPAG to rally against the banks
    (archive article - Tuesday, November 24, 2009)

    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 Cyprus Property Action Group

    Copyright © Cyprus Mail 2009

    http://www.cyprus-mail.com/cyprus/cpag-rally-against-banks
     
    Last edited: Dec 11, 2009
  3. Nigel Howarth

    Nigel Howarth Member

    The newspapers can be slow off the mark :)
     
  4. Cornholio

    Cornholio New Member

    On this occasion, I'd have to agree!! :wink:

    Cornholio
     
  5. Nigel Howarth

    Nigel Howarth Member

    The demonstration will take place outside the International Business Unit and Regional Branch of the Bank of Cyprus in Paphos. The bank is located at 13 Evagora Palikaridi, which is in the centre of Paphos – at the first traffic lights on the Polis road up from the main Police Station.
     
  6. Nigel Howarth

    Nigel Howarth Member

    You can read a report on today's protest, including photographs, by clicking here.

    There should be more reports in tomorrow's newspapers.

    Regards,
     
  7. Cornholio

    Cornholio New Member

    Press report as follows............

    SIDEBAR

    THE FIRST of a planned series of demonstrations against the banks’ lack of transparency over property developers’ mortgages took place yesterday morning outside the main branch of Bank of Cyprus (BoC) in Paphos.

    CPAG President Denis O’Hare said: “The issue is a lack of transparency. People who have bought properties from developers now know that there are mortgages attached to them, but have no way of knowing what the balance is. The sooner they know this, the sooner they would have the option of paying off the mortgage in order to get their title deeds. Besides, if you find out that you are the ultimate guarantor of a loan, you need to know what your liability might be.”

    The demonstration, which was organised by the Cyprus Property Action Group (CPAG), involved over 100 property-buyers who are still without title deeds. At least some of them have discovered that despite paying in full the amounts stipulated in their purchase agreement, they now risk losing their homes due to outstanding mortgages taken out by the builders of their properties.

    The demonstrators were mainly British, but also included Russians and Greek Cypriots. The good-humoured event started around 9.45am and ended some 45 minutes later. There were 10 police officers present, and private security staff were stationed in the bank’s entrance, but CPAG stewards ensured that the demonstration passed off without incident.

    O’Hare said: “BoC was only the first bank. We’ll demonstrate against other banks in other areas in the coming months. We won’t stop until we get transparency from the banks over the loans they have given to developers.”

    Copyright © Cyprus Mail 2009

    http://www.cyprus-mail.com/cyprus/buyers-rights-centre-new-law
     
    Last edited: Dec 11, 2009
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