Buying Property in Greece
Caveat emptor - let the buyer beware! This can be a complex legal process which should not be undertaken lightly. Expert legal advice should always be sought before entering into contractual terms. Having said that, the whole operation can work remarkably smoothly once you know the ropes.
Foreigners may purchase property in Greece. Recent changes in Greek law now permit foreign ownership of property in previously sensitive areas such as Crete and Corfu. There are few UK type estate agents, but a growing number of property consultants. The best people to approach for advice and assistance on this subject are multi-lingual lawyers. The British Embassy has a list of Greek lawyers who correspond in English. UK publications such as International Property Times, Homes Abroad and the overseas property section of the leading national broadsheets, e.g. the Sunday Times, have specialist sections advertising overseas property.
A few specialist agencies in the UK and Greece have sprung up over the last few years offering very good advice and introductory services.
Understanding the Regulations for Acquisition
Generally, as previously stated, there are no restrictions on non-residents acquiring real estate in Greece even in the border areas. However, both EU and non EU residents must obtain permission from the appropriate authorities before purchasing real estate in border areas. Once you have purchased your property, you become the freehold owner in perpetuity.
Following the System
Bearing in mind that property is expensive, largely due to its limited availability, you really should start off by finding a bi-lingual agent who knows the area well. In the past, when Greece suffered from spiralling inflation, mortgages were rare with rates commonly charged at around 30 per cent. Nowadays, since Greece joined the EMU and headline inflation needed to be governed, loans to buy property are available in the region of 5.25-7.5 per cent depending on the bank.
Getting Involved with the Purchasing Procedures
The first stage in the conveyancing is to sign a Sales Agreement and pay a deposit - usually 10 per cent. This agreement contains the names of the parties, a description of the property, the price, the method of payment and any special conditions negotiable in the purchase process.
The vendor will then be instructed to take the property off the market whilst your appointed lawyer completes the purchase transaction. Under Greek law, no contract is enforceable unless it is in writing, It is important therefore that once an offer has been made and accepted all purchase documents are checked by a lawyer before signing to ensure that the vendor has rightful title to the property.
Losing your deposit
If you do not go ahead with buying the property after you have paid your deposit, you will forfeit it and face potential legal action from the vendor. However, if the vendor pulls out of the deal after receiving your deposit, you are entitled to claim a return of double the deposit in compensation. The compensation will not affect your statutory rights to legal action against the vendor for breach of contract.
Finding the Experts
You will undoubtedly need a good team of four and a fair amount of patience. You will need a:
- bi-lingual agent
- notary public
- lawyer
- banker.
Liaising with an agent
The agent will normally barter the purchase consideration on your behalf. If you choose to attend this ritual, be prepared for a long duration as the relevant merits of the family, the property, the village/town, etc. are proudly promoted by the seller. When the shenanigans are finally over, and a price is agreed upon, the ouzo and mezedhes will appear and suddenly everyone will be part of one large happy family, with promises of much merriment and rejoicing. The agent, in coordinating the purchase process, is also likely to establish via the lawyer who the owners are of the adjoining properties. The boundaries are then fixed by topographical survey. Such a survey carried out by an expert could cost in the region of €150.
Appointing a notary public
Your first experience of this official will be the visit together with your agent to sign your Sale Agreement using the Greek bible as the swearing oath. The notary public works with your lawyer to ensure that the contracts are drawn up in an orderly fashion and presented to the taxation authorities on time. Before any transaction takes place, your lawyer will carry out searches with the Land Registry. The notary public will not proceed with a contract concerning a property which does not have a clean title, free of mortgage obligations, etc. You will normally be expected to pay a fee of up to 1.6 per cent of the 'notional value' of the property as recorded in the Contract of Sale.
Finding a lawyer
A good, English speaking, well-qualified conveyance solicitor is absolutely essential. The lawyer will draw up the Contract of Sale on your behalf, in Greek, arrange the signing ceremony with the vendors, normally at the office of the local notary public, and also negotiate the purchase tax with the local taxation office. You should allow 1-1.5 per cent of the purchase price for this service.
Getting a banker
The vendor will probably require payment in euros. You will have opened a euro account in preparation at either a private or national bank. Normally, your bank will arrange to pay the vendor a ten per cent deposit at point of signing contracts and allow a further 30 days for the remaining consideration to be settled, although the settlement period can vary per transaction. Your choice of banker will depend on day to day considerations such as location, connection with UK banks, opening hours, etc.
