Judge finds Akfinans Bank’s action on K5 Fraudulent.

A Judgement was given on a case concerning the confiscating of buyer’s homes on a site known as Kolatsiz 5, without their knowledge by a bank.  The bank had granted a mortgage to a landowner who had already sold the land and had granted permission to build and sell villas. Both the bank and the landowner knew that the villas had been sold and were occupied at the time the mortgage was granted.

The Making North Cyprus Better (MNCB) organisation which has been supporting the K5 group issued this press release:

The following Judgement was given in Girne District Court by Judge Talat on Thursday 4th December 2014.

Judge Talat gave Judgement for the K5 home buyers (above) when he found the Akfinans Bank’s Mortgage and an application to the District Land Registry for a Sales Order were both fraudulent.

In his Judgement, Judge Talat Usar also stated that the law was in need of revision for it had certain anomalies making it necessary for him to clarify certain points. However he was satisfied that the original Mortgage documents and sales order documents, which referred only to “bare Land”, when the Bank knew that there were houses built and people living in them, were fraudulent.

The group believe that any home buyer victims, Cypriot and Expatriate will now be emboldened and seek redress through the Courts.

The K5 buyers have endured 6 years of harassment by Akfinans Bank, and were delighted with this judgement. It has been a long road to Justice.

K5 Group have expressed their appreciation to the lawyer team of Boysan Boyra and Hasan Alkan and the support of MNCB and a host of others who have campaigned alongside them throughout this ordeal.

“The knock on effect of this judgement will reverberate around the TRNC for some time.

There will now be wide media publicity about these illegal practices of some Banks. Up until today media coverage had been suppressed.

Many home buyer victims, Cypriot and Expatriate will now be emboldened and seek redress through the Courts.

Some Banks will have to review their procedures as this ruling effectively outlaws the practice of Stealth Mortgages. This process involves Mortgages being granted without full agreement of all contracted parties.

Judge Talat’s remarks should prompt the Government to speed up the enactment of Specific Performance and Mortgage Law amendments.

The Police and Attorney General’s Office may well have grounds for criminal proceedings against some errant Banks.

The Central Bank could censure offending Banks, and it has the power to withdraw Banking Licenses.

When all these actions are completed the process of re-building the TRNC’s reputation with home buyers can begin. We will then begin to attract new investors from Northern Europe and start to restore local prosperity again.”

For more information on the property issues in North Cyprus you may learn more from the video documentary produced by MNCB and for further information contact:

Malcolm Mitcheson at [email protected] or Gultac Oszan at [email protected]

Joint Secretaries MNCB

Editor’s Note

The opinions, advice or proposals within the article are purely those of the author and do not, in any way, represent those of LGC News.




Other Stories