LEGAL PROCEDURE
Greek laws authorise foreigners to own properties in most areas of Greece. Restrictions apply for Non European Union citizens who wish to purchase property in border areas (East Aegean, Dodecanese islands, regions of Northern Greece, Crete, Rhodes) Non European Union citizens who wish to purchase property in border areas should apply to the Council of local Prefecture which grants authorisation.
Deposit
To secure a chosen property, a 10% deposit on the purchase price is usually required on signing the agreement. This agreement contains the names and description of the parties, the description of the property, the price, the methods of payment and any general conditions negotiated by the parties. Sometimes in the case of a very cheap property this agreement does not take place and the parties move straight to an exchange of contract phase executed before a Notary Public with the two lawyers representing the parties. The Notary Public will not authorise any sale without making sure that all the appropriate tax papers and deeds are in order.
The purchaser will lose the deposit if he backs out of the deal. If the vendor backs out and a pre contract has been signed, he will have to pay a sum equal to the deposit, as an indemnity to the purchaser, who, of course, gets the original deposit back.
Purchase
The property transaction is always executed before a Notary and in the presence of lawyers representing the seller and the purchaser. A purchaser needs a lawyer to act on his/her behalf in order to assist with the Local Regulations to fix the "assessed value" and ensure that he/she obtain a clean property title. Before the transaction takes place, the lawyer representing the purchaser carries out searches with the Land Registry and assures that the property has a clean title. Legal procedures in Greece are simple and if all the papers are ready and in order a sale can be completed quite quickly by signing an official contract prepared by the Notary.
Expenses
The Purchase tax, Notary and legal fees, in Greece, are always paid by the purchaser and they are calculated on the "officially estimated price" of the property, which is usually lower than the true purchase price.
The purchase tax is between 9%-13%. Isome cases where there is no fire station in the area the tax begins lower at 7%.
The Notary’s fee is 2%.The lawyer has to do a search, the price of which is approximately 400€. It is useful to have a new topographical plan made, prices range from 210€ to 425€ depending on the size and location of the property.If you wish to make a power of attorney for your lawyer to sign the contact the cost of this is approximately 65€ but the lawyer will charge for the extra work (arranging water and electricity to be put in your name etc.) and this will be approximately 600€. However, this will save you considerable airfare and hotel bill expenses for return visits to Crete.
Law Offices of Savvas Zannetos
Igumenu Gavriil 103-105
74100 Rethimno, Crete
Greece
Tel: (30) 28310-26-258
Fax: (30) 28310-52-263
Please Contact Us today via-
Email: zannetos@creteattorney.com
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