Supreme Court rules against borrower in Deryneia housing loan dispute

The Supreme Court of Cyprus dismissed an appeal by a borrower, A.K., who contested a court ruling requiring the repayment of €70,630.15 plus interest to the Bank of Cyprus. The dispute concerned a 2008 mortgage loan of €95,680 intended for the purchase of an unfinished two-bedroom maisonette in the "Famagusta Gardens No.28" project in Deryneia. The borrower argued that the property was never completed or delivered and contended that the bank failed to monitor construction progress before releasing funds to the developer. However, the court found that the borrower had signed a loan agreement, an assignment of rights for the contract of sale, and an authorization letter. The court ruled that the bank had no obligation to verify the work progress itself, as it was authorized to release payments based on certificates issued by the project's supervising engineer. Consequently, the court held that the borrower remains contractually bound to the bank despite the developer's failure to complete the house.