Buying and selling property in Greece: a complete and useful guide.

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Lately there has been increased activity in the Greek real estate market. And although considerable efforts are being made to facilitate and speed up the process, there are important points that an interested buyer should take into serious consideration before buying a property. After all, there are many times when issues arise after the sale has been completed that could have been avoided if a full inspection had been carried out.

Ms. Anna S. Ignatenko, Head of Legal Dept. of STAMOS & ASSOCIATES LAW FIRM specializing in Real Estate Law, has created a concise, but complete and useful guide for every interested buyer.

Ι. Choosing the right property

When choosing the right property among properties located in the same or different areas, the interested party can compare the potential performance of the properties and thus arrive at the most advantageous solution. Therefore, the comparison can be made on the basis of the following elements:

(a) the actual area of the property as well as the area of the property as indicated in the contract, in the declaration to the tax office and in the PPC bill, since the latter is the basis for determining taxes and fees charged on the property.

b) technical condition of the property.

(c) the building capacity and the building capacity of neighbouring plots.

(d) the possibility and price of renting the property.

II. The assignment of a lawyer to carry out the legal control of the property

The purchase of a property hides certain pitfalls and requires caution on the part of the buyer. One of the main points is the prior legal control of the property, which consists of checking the Transfer Books of the relevant Land Registry (or the cadastral sheets of the relevant Land Registry Office) to establish the existence of the rights in rem, as well as checking the Mortgage, Seizure and Claims Books of the competent Land Registry (or the cadastral sheets of the relevant Land Registry Office) to ascertain the existence or otherwise of encumbrances or claims on the property.

III. Checking the urban planning legality of the property

Essentially, this is the first check to be made on the property, because non-compliance with the building permit can certainly create serious problems in the future. If the planning infringements are significant, they can lead to a ban on the transfer (donation/reconstitution/modification) of horizontal property, as well as a ban on the issue of a licence to establish and operate (for commercial properties), resulting in the complete devaluation of the property.

IV. Signing of the Private Agreement or the Notarial Preliminary Agreement

The drafting and signing of a private agreement or notarial preliminary agreement is usually intended to secure the amount of the advance payment. However, it does not mean that signing one of the above documents will prevent the seller from eventually selling the property to a third party. Indeed, if this happens, the only possibility for the buyer is that of a refund of the deposit. Therefore, the signing of a private agreement or the Notarial Deed of Intent does not fully cover the prospective buyer.

V. The assignment to a notary, who will collect the necessary documents and draw up the final contract

The notary will precisely specify to the seller the documents required for the drafting of the purchase and sale contract, such as tax information, insurance information, the certificate of the Municipality in which the property is located, the Electronic Building Identity which includes the Energy Performance Certificate (EPC), the engineer's certificate of no arbitrary acts in the property, etc.

VI. Payment of Property Transfer Tax

Before signing the final contract, the transfer tax return is submitted to the Tax Office. This declaration is prepared by the Notary and signed by the buyer and the seller. It is submitted by the buyer or an authorised person to the Capital Department of the Tax Office where the property is located.

The transfer tax is paid by the buyer in one lump sum, and is calculated on the objective value of the property, as officially determined by the annual tables of the tax authorities for each region.

VII. Signing of the final contract before the notary

The final contract is signed before the notary between the buyer and the seller in the presence of their lawyers and a real estate agent (if he has mediated the property). The notary will then provide the buyer with a copy of the contract and other documents required for the transfer or registration of the contract at the Land Registry or the Land Registry (if there is one) in the area of the property.

VIII. Registration in the Land Registry or registration in the Land Register of the contract

The registration of the definitive contract in the transfer books of the competent mortgage office or the registration in the Land Registry of the competent Land Registry office completes the process of purchase of the property on behalf of the buyer.

IX. Declaration of property status to the Public Financial Service (PFS)

The last obligation of the buyer and seller after the completion of the purchase and sale contract is to declare the transaction in their E9 Form within one month of the signing of the contracts. The seller deletes the property from his property register and the buyer adds it to it.

Stamos & Associates Law Firm, Ignatenko S. Anna, Lawyer specialized in Real Estate Law.

In STAMOS & ASSOCIATES LAW FIRM we cooperate with specialized Engineers - Architects and Notaries in order to provide both our domestic and international Clients with comprehensive and high quality services.