The relationship between a real estate developer and hundreds of homebuyers has not been warm and sunny of late. Embroiled in a series of issues from title deed issuance to manners in which shared properties are managed and the absence of commercial units as initially promised, managers of Tsehay Real Estate Plc are at odds with leaders of the Homeowners Association.

Delays in issuing title deeds to homeowners at Tsehay Real Estate have caused a dispute driving Association leaders to press charges at the Federal High Court.

Buyers and the real estate company signed contracts stating that lease ownership of the housing would be provided within "a reasonable" period of time. Even though most contracts were signed seven years ago and homeowners have moved in, transfers of ownership have yet to occur. The Homeowners Association, founded in 2017 with 105 members, has its legal standing challenged by the real estate company, however.

Tsehay, a China-based real estate developer, has yet to transfer lease holding rights to homeowners who bought apartment units at a Yeka District site near CMC. The real estate company claims to have invested three billion Birr in developing an upscale neighborhood that lies on a 30,000Sqm plot with more than 630 units in 13 apartment blocs; 55 units remain unsold.

The company took loans from banks, including Bunna International Bank, which advanced 240 million Br between 2018 and 2019. The Bank was close to pursuing foreclosure in February of this year after the real estate company defaulted on its loans, putting homebuyers' property security at risk. Bunna's move to auction the property caused anxiety to the 306 current members of the Association, according to Tewodros Yilma, the chairperson.

Tsehay Real Estate requested loan rescheduling in February 2021. Managers at Bunna are considering the request, looking into whether the real estate firm fulfills requirements set by the central bank. Bunna Bank has also agreed to hold the 55 unsold units as collateral instead of the entire property, where 575 people have bought units.

Managers at Bunna have declined to comment on the matter, despite repeated inquiries from Fortune.

However, Bunna is not the only bank in the saga.

Close to 29 homeowners have taken loans from Bank of Abyssinia against their respective units held as collateral.

The real estate company was supposed to start the process of seeing title deeds issued through the District office but has yet to do so.