An unprecedented case for the Cypriot data came to light after the decision of the District Court, dated May 30, 2022, to prohibit the transfer of a property sold at auction.
Specifically, from what “P” is informed, a company that specializes in managing non-performing loans proceeded to sell a property worth several million euros, without warning the owner who discovered it afterwards, after receiving a letter to receive the capital tax. It is noted that the first auction of the house failed, however they had not served on the legal owner, as required by law, a new notice M, to conduct an auction, so the process proceeded. , to hold the second auction and sell the property without his knowledge.
Thus, the owner was surprised when he was informed about the sale of his property by the Tax Department, which informed him about his capital gains. According to the announcement of the law firm Spyros Arotis & # 8211; Elena Aroti & amp; D.E.PE associates, through the lawyer Elena Aroti, succeeded with an application, which was addressed by the president of the District Court, the issuance of an Interim Decree which prohibits the specific non-performing loan management company and the Department of Lands and Surveying to any natural or legal person the debtor's property.
“Through this application, the District Court addressed the new legal point (novel point) of a debtor's enforceable right after the sale of the mortgaged property, through auction or direct sale,” the law firm said in a statement. At the same time, in the announcement, the law firm Spyros Arotis & # 8211; Elena Aroti & amp; D.E.P. associates state that the legislation on which the application was based is, among others, the Law on Transfer and Mortgage of Real Estate 9/65.
Problematic procedures
As Mrs. Elena Aroti told us, the law essentially ties the hands of debtors who now have very few options in protecting their property. Ms. Aroti told us that, unfortunately, this process is problematic.
Regarding this case, Ms. Aroti explained to us that the first auction of the house failed, but was not served to the client of her office the notification M, as a result of which the process proceeds, the second auction takes place and the property is sold, while her client was informed by the Tax Department about his capital gains.
It is noted that, at the moment, the procedures have been frozen and the Land Registry has been updated, while the lawyers of the non-performing loan management company are expected to file an objection.
