Understanding Greek Property Contracts

Buying property in Greece can be an exciting opportunity, but navigating the legal and contractual processes can be challenging, especially for foreign buyers. Greek property contracts are essential documents that outline the terms of the sale and protect both buyers and sellers. Whether you are purchasing a holiday home, a luxury apartment, or an investment property, it’s crucial to understand the key points in the Greek property contract to ensure a smooth and legally sound transaction. In this article, we will break down the most important aspects of Greek property contracts and provide essential tips for foreign buyers.

Key Points of Greek Property Contracts for Foreign Buyers

When buying property in Greece, foreign buyers should pay attention to the following elements of the property contract:

1. The Preliminary Agreement (Protokollo)

The first step in purchasing property in Greece is signing a preliminary agreement, often referred to as the “Protokollo.” This agreement outlines the main terms and conditions of the sale, including:

• The agreed-upon purchase price

• Payment terms and deadlines

• The buyer’s intention to proceed with the purchase

• A timeframe for completing the final deed (the transfer of ownership)

The preliminary agreement usually requires a deposit (typically 10% of the sale price) to secure the property.

2. The Sale Agreement (Symvolaio)

The sale agreement is the formal contract that transfers ownership of the property from the seller to the buyer. This agreement must be signed in front of a notary and contains the following key details:

• The full purchase price and payment schedule

• The seller’s confirmation of property ownership and legal standing

• The buyer’s acknowledgment of any existing liens or mortgages on the property

• The specific terms of the property handover, including when and where the keys will be delivered

Foreign buyers must ensure that the sale agreement is fully translated into their language and reviewed by a legal professional to ensure that the terms align with their expectations.

3. Property Due Diligence

Before signing any property contract, it is crucial to perform thorough due diligence on the property. This process includes:

• Title Deed Search: Verifying that the seller is the legal owner of the property and that there are no encumbrances, such as unpaid taxes or unresolved legal disputes.

• Building Permits: Ensuring that the property has all the necessary permits, particularly for newly built properties or properties undergoing renovation.

• Property Boundary Check: Confirming that the boundaries of the property are clearly defined and not in dispute.

Foreign buyers should work with a local lawyer or real estate agent to help conduct these checks. If you’re considering real estate in Corfu, Chase Real Estate Corfu can guide you through the process.

4. The Notary’s Role in Greek Property Contracts

In Greece, the final sale of the property is executed in the presence of a notary. The notary is responsible for verifying that all legal documents are in order, including:

• The property title deed

• Identification documents of both buyer and seller

• Proof of payment of any taxes or fees associated with the transaction

It’s essential to have the notary review the entire contract, ensuring that all legal obligations are met before signing the final deed of transfer.

5. Payment Structure and Taxes

The payment structure for purchasing property in Greece generally involves several installments. The first installment is paid at the signing of the preliminary agreement (usually 10% of the purchase price), followed by further payments before the final deed is signed. The remaining balance is paid upon completion of the sale.

Additionally, foreign buyers should be aware of the following taxes and fees associated with purchasing property in Greece:

• Property Transfer Tax: A tax on the transfer of property, which is generally 3% of the purchase price or the tax-assessed value (whichever is higher).

• Notary Fees: The notary fees are typically around 1-2% of the property price.

• Legal Fees: Fees for the services of a lawyer are typically around 1-2% of the sale price.

Foreign buyers should also factor in other costs, such as registration fees, real estate agent commissions, and any renovation or maintenance expenses.

6. Foreign Ownership Regulations in Greece

Foreigners can buy property in Greece, but there are certain regulations to consider. In general, non-EU buyers can purchase property without restrictions, but in some cases, property in certain border areas may be subject to additional regulations. It’s also important to note that buyers may need to establish a Greek tax identification number (AFM) to complete the purchase.

For those interested in buying property on Corfu, Chase Real Estate Corfu provides assistance to foreign buyers, ensuring compliance with all legal requirements and offering expert advice on navigating the purchasing process.

Common Mistakes Foreign Buyers Make in Greek Property Contracts

While Greek property contracts are straightforward, foreign buyers may encounter common pitfalls. To avoid complications, here are some mistakes to be aware of:

1. Not Seeking Legal Assistance: Always consult a local lawyer who is experienced in Greek property law. They will ensure that the contract is legally sound, protecting your rights throughout the process.

2. Overlooking Due Diligence: Failing to conduct proper due diligence on the property can lead to unforeseen legal issues down the road. Always verify the property’s legal status, permits, and boundaries.

3. Ignoring Additional Costs: Foreign buyers often focus solely on the property price and overlook the taxes, fees, and other costs involved in the transaction.

4. Not Reviewing the Contract Thoroughly: It’s essential to read and understand all the terms of the contract, particularly when dealing with foreign languages and legal jargon. Ensure the sale agreement aligns with your expectations and legal protections.

Final Thoughts on Greek Property Contracts for Foreign Buyers

Purchasing property in Greece can be a highly rewarding experience, but it’s essential to understand the ins and outs of Greek property contracts. By familiarizing yourself with the process, consulting with legal experts, and carefully reviewing every document, you can avoid potential issues and ensure that your property purchase goes smoothly.

For those interested in buying property in Corfu or seeking more guidance on the real estate process in Greece, Chase Real Estate Corfu offers expert advice and assistance.