Among other things, they provide for the amendment of the Law on the Establishment and Operation of the Single Body for the Out-of-Court Resolution of Financial Disputes, so that the decisions of the Financial Commissioner become binding
Series of legislative proposals for the amendment of the Law on the Transfer and Mortgage of Real Estate, which concern, among other things, the procedures for the sale of real estate and the rights of the mortgagor, but also for the amendment of the Law on the Establishment and Operation of the Single Body for the Out-of-Court Resolution of Financial Disputes, so that the decisions of the Financial Commissioner to become binding, includes, among other things, the agenda of the Parliamentary Finance Committee that will meet on Monday, in the morning.
The legislative proposals submitted by a large number of Members of Parliament, either separately or jointly, concern, among other things, the amendment of the Law on the Transfer and Mortgage of Real Estate, in order to give the mortgage debtor the right, as in the process of selling a property by a mortgage lender, to proceed with registration application/appeal to set aside the notice of intended sale when he disputes the amount of debt owed by the lender.
Also, they concern the amendment of the Law on the Transfer and Mortgage of Real Estate, in order to determine that for the purposes of carrying out the sale of a mortgaged property through the auction process, the value of the property shall be considered the initial value that was accepted by the credit institution on time of the conclusion of the original contract.
Furthermore, the amendment of the Real Estate Transfer and Mortgage Law, in order to preserve the debtor's constitutional right of access to justice, in order to challenge the amount of debt shown or the legality of the mortgage or to request the recognition of abusive behavior of the mortgagee.
Another law proposal concerns the enactment of legislation to deal with the financial difficulties that arise due to the extraordinary, exceptional and unforeseeable circumstances created by the COVID-19 pandemic and in particular for the temporary suspension of the obligation to pay debts from persons who have become insolvent payment of debts.
Also included is a proposal for a law concerning the amendment of the Law on the Establishment and Operation of the Single Body for the Out-of-Court Resolution of Financial Disputes, so that borrowers who receive a written notice of type “I” pursuant to the provisions of the Law on the Transfer and Mortgage of Real Estate, by which they are called to pay off the mortgage debt, including interest and collection costs thereof, to have the right to submit an application to the Financial Commissioner for referral to arbitration of a financial dispute arising from said performance.
In addition, a law proposal concerns the amendment of the Law on the Transfer and Mortgage of Real Estate, in order to suspend the process of selling mortgaged real estate until June 30, 2021, due to the economic and social effects caused by the outbreak of the COVID-19 pandemic.
Another proposal concerns the amendment of the Transfer and Mortgage of Real Estate Law, in order to restore the right of mortgage debtors to access justice in specific cases and to give the right to invoke abusive clauses in loan or mortgage contracts as a reason for suspending property sale procedures, such as this protected by European directives.
Also, a law proposal concerns the amendment of the Transfer and Mortgage of Immovable Property Law, so that from the provisions relating to the sale of mortgaged property by the mortgage lender, mortgage contracts relating to- (a) immovable property in which the main residence or residence is located are excluded which is the habitual residence of the mortgagor or co-debtor or guarantor or their family, the estimated value of which does not exceed three hundred and fifty thousand euros (€350,000) and (b) business premises or immovable property in which the work is carried out, the or which is used for any other professional purpose of the mortgage debtor or co-debtor or guarantor, as the case may be, the estimated value of which does not exceed one hundred and fifty thousand euros (€150,000), (c) immovable property of the mortgage debtor or co-debtor or guarantor which is used for agricultural purposes and includes gardening, fruit growing, dairying and animal husbandry, the estimated value of which does not exceed two hundred thousand euros (€200,000).
In addition, a proposal for a law concerns the enactment of legislation for the suspension of sales of all mortgaged real estate carried out under the provisions of part VIA of the Transfer and Mortgages of Real Estate Law, until the end of the prevailing conditions resulting from the COVID19 pandemic and the restrictive measures taken based on decrees of the Minister of Health, while a separate proposal of law concerns the amendment of the Transfer and Mortgage of Real Estate Law, in order to ensure the right of the mortgage debtor to go to court and file an appeal for the setting aside of the notice of intended sale of a property, challenging either the amount of debt or the legality of the contract.
Also, a law proposal concerns the amendment of the Law on the Transfer and Mortgage of Immovable Property, in order to ensure the right of the mortgage debtor to appeal to a competent court and to submit an application for the issuance of a special prohibitory order to suspend the intended sale of a mortgaged property or to set aside the notice of sale, challenging either the existence of the debt, or the amount of the debt, or the legality of the contract or the legality of the mortgage.
In addition, another law proposal provides for the amendment of the Law on the Transfer and Mortgage of Real Estate, so that the procedures for the sale of mortgaged properties are suspended until May 31, 2023, while the proposal of law concerns the amendment of the Law on Transfer and Mortgage of Real Estate, so that the targeted suspension of the foreclosure process until December 31, 2022, due to the ongoing and intensifying economic and social impacts caused by the COVID-19 pandemic, as well as the war in Ukraine.
Also, proposed law provides the amendment of the Law on the Transfer and Mortgage of Real Estate, so that together with the notice sent by the mortgage lender, in the event of default or demand for payment of mortgage debt, standardized information is also sent to the borrowers, guarantors and security providers.
In addition, a law proposal concerns the amendment of the Law on the Transfer and Mortgage of Real Estate, in order to apply a targeted suspension of the mortgaged property sale process until June 30, 2023.
Another law proposal concerns the amendment of the Law on Establishment and Operation of the Unified Body for the Out-of-Court Resolution of Financial Disputes Law, so that the decisions of the Financial Commissioner become binding for the parties, in any case where the consumer accepts the binding nature of the issued decision of the Financial Commissioner.
Besides, the Committee is also expected to discuss a law proposal regarding the amendment of the Income Tax Law, so that in case a person who has taken out a serviceable loan or is judged as such based on the instructions of the Central Bank of Cyprus and if the total amount of the loan, as stated in the concluded contract, does not exceed a maximum of €300,000 and the total value of the main residence does not exceed a maximum of €250,000, to deduct the amount of interest from the total taxable income of the family , which does not exceed €5,000.
Also, the purpose of another law proposal is to amend the Law on the Transfer and Mortgage of Real Estate, so that, in the event that a mortgage debtor chooses to proceed with the exchange of mortgaged property in return for debt repayment to a mortgage lender and the property constitutes a main residence or business premises, the exchange value should be defined as the market value resulting from the existing property appraisal process.
Finally, a proposed law concerns the amendment of the Consumer Credit Agreements in relation to Real Estate intended for Legal Residence, with the addition of a new article prohibiting a licensed credit institution (AI), credit acquisition company and credit facility manager from requiring additional collateral from the borrower, when the loan amount is exceeded by the mortgage of the property.
source: KYPE
