Question:
A year ago, I purchased a property from a developer through 10-year bank financing. Two months ago, I was dismissed from work, and the bank forfeited all of my end-of-service entitlements in exchange for the property installments, noting that I did not stop paying the monthly installment, and the bank also asked to sell the property and pay the price to the bank.
My question is: Does the bank have the legal right to take this procedure against me, given that I told the bank that I am able to pay the monthly installments while I am without work? However, the bank refuses. What is the appropriate action to take against the bank? Please advise.
Answer:
I would advise the following:
The bank does not have the right to forfeit your end of service dues or sell the property without a previous agreement or a permission signed by you. You have to check the agreement signed with the bank, in case such provisions are stated in the agreement, then the bank has the right. In case they are not, then regarding your end of service dues, you have to file a case in the civil court against the bank to return your end of service money.
Regarding the selling of the property, you have to wait for the next step from the bank, because the bank will not sell the property without filing a case in the court to do so, following Article (267) of the Civil Transactions Law which states that “If a contract is valid and binding, none of the contracting parties may revoke, modify or rescind it except by mutual consent, order of the court or a law provision.”
In case the bank took the procedure of selling the property without attending the court, then you have to file a case against the bank to return the property back and compensate you for all the losses you suffered.
