making North Cyprus better...


Tide on House Repossessions due to Stealth Mortgages stopped.
Summary of Appeal Court Decision, Harmony Site. Dated  18th October 2012.
The following Decision of the Appeal Court, issued in Turkish was released yesterday. 
These are my interpretations in English after discussing implications with eminent Turkish speaking Lawyers. One must refer to the original Turkish attached for definitive interpretation.
Boysan Boyra was successful in their appeal to have action stayed with regard to the Harmony Estate repossessions. This decision has wide implications for others facing litigation due to stealth mortgages. 
The judge has ruled that in excluding them and not allowing the house buyers to be heard in Court their natural justice has been breached. Consequently the lower court judgement should be stayed. Effectively ordering a full retrial or an opportunity for an out of Court settlement to be made.
The Judge found in this case no fault with the Lower Court decision because it only acted on the evidence as presented to it. That evidence was deficient, the homebuyers existence was not  declared. 
The decision confirms that under Law 11/78 Section 21 a thorough search needs to be conducted and all interests noted and informed before granting a mortgage.
The Judge said there was no evidence presented in the Harmony case that proved that the Bank (mortgagee) was aware of the homebuyers but the Landowner and the Developer were. The Judge also agreed said that under TRNC Law 11/78 the District Land Officer had wide powers of enquiry prior to granting a mortgage, but in this case had not used them. 
This is great progress and should make some Banks or Mortgagees think very carefully about whether they are acting illegally or negligently in rushing to grab other people's houses in the TRNC. 
We hope you will join us in congratulating Boyra  Law and the TRNC Appeal Court for this momentous decision. 
The Kulaksiz 5 Appeal Court Judgement following the 19th September 2012 hearing is still awaited.
Malcolm Mitcheson 
Joint Secretary
Making North Cyprus Better Movement.