A recent Court of Appeal decision in Cyprus sheds light on a past practice that left some homeowners vulnerable. The ruling clarifies that banks can potentially foreclose on properties previously mortgaged by developers, impacting “trapped buyers” who haven’t received full ownership despite paying for the property.
While this is a significant concern for affected homeowners, it’s important to note that this issue primarily stems from situations where developers mortgaged properties before selling them – a practice that has become much less common due to recent regulatory changes.
The article offers valuable guidance for future homebuyers to avoid similar situations. This includes obtaining a property title search, seeking legal counsel, and ensuring purchase payments go directly to the bank. These measures, implemented to protect future transactions, significantly reduce the risk of encountering similar issues.
Source: Economy Today | Sigmalive (Real Estate: Zero Hour for “Trapped Buyers” – How to Protect Yourself) (Greek)