The Ministry of Finance is intensely concerned about what is to follow after the recent decision of the Court of Appeal – following a bank's appeal – that the legislation allowing trapped buyers to obtain a title deed is ultimately unconstitutional.

Essentially, with this decision, thousands of buyers who cannot obtain a title deed due to the developers' debts will be unprotected against banks' decisions for foreclosures, even though they are regularly paying their loan installments for the house.

Moreover, the approximately 10,000 trapped buyers, even if they pay off their debts for the house, will never be able – based on the existing legislation – to obtain a title deed since their house belongs to the bank from the moment it was mortgaged by the developer to secure a loan and subsequently the developer never paid the owed amounts.

Affected buyers who contacted the media express frustration and are ready to stop paying their housing loan installments, as they state they will essentially never receive a title deed and their property can be foreclosed at any moment.

The issue takes on even greater proportions since the number of trapped buyers exceeds 10,000, and if this trend prevails among the affected, a new wave of non-performing loans could emerge.

At the same time, beyond the fact that legally they are not the owners of the houses, they still pay property tax. Essentially, these buyers are paying off their housing loan and property tax, yet at any moment they can find themselves homeless and with a loan debt.c

These developments particularly concern the Ministry of Finance, and as it is learned, the Ministry is already in contact with the Ministry of the Interior to find a solution.

Although it is considered very difficult to find a solution, efforts are being made to prepare a related bill from the Ministry of the Interior.