The Court of Appeal has ruled that certain provisions of the law aimed at protecting property buyers are unconstitutional, as they violate the rights of banks and lenders with registered mortgages. These provisions allowed for the removal or discharge of encumbrances without compensation, negatively affecting the banks' securities.

The court decided that these provisions violate the right to property (Article 23) and the right to freely contract (Article 26) of the Constitution. Specifically, the removal of mortgages without fair compensation and the authority given to the Director of the Land Registry to decide on property rights without a court order were deemed unconstitutional.

This decision highlights the need for a balance between protecting buyers' rights and safeguarding lenders' rights.