I. DOWN PAYMENT – PRIVATE AGREEMENT / NOTARIAL PRELIMINARY AGREEMENT

During the negotiation stage of a real estate sale, the prospective buyer usually pays a down payment proportionate to the value of the property. The down payment is made in order to formalize the buyer’s interest, to withdraw the property from the market, and to finalize the agreed purchase price. The down payment is paid either upon the signing of a private agreement or upon the signing of a notarial preliminary agreement, which provides greater legal security for both the buyer and the seller.

The following are clearly defined therein:

  1. The agreed purchase price of the property.
  2. The method of payment (e.g. lump sum upon execution of the final contract, payment in instalments, bank transfer, bank cheque, etc.).
  3. Construction works, in case the property is under construction, or any irregularities that must be regularized, as well as any legal or actual defects of the property.
  4. Delivery of title deeds and building permits, the deed of establishment and regulation of the condominium, and land registry documents for the legal due diligence to be conducted by the buyer’s lawyer.
  5. A specific date for the execution of the final contract or a deadline after the lapse of which the parties may withdraw.
  6. Any clauses concerning the buyer and the seller in case of withdrawal due to reconsideration or culpable withdrawal by either party.

If either the seller or the buyer resides abroad or is otherwise unable to carry out the necessary procedures and collect the required documents, they may grant a special power of attorney to their lawyer in order to undertake the entire process. The power of attorney must be executed before a notary public and, if the person resides abroad, it may be executed before the nearest Greek Consular Authority.

It is recommended that both the buyer and the seller be represented by a lawyer in order to avoid any legal and/or factual issues. The notary public is chosen by the buyer, who also bears the cost for the drafting of the sale contract.

II. SUBMISSION OF REAL ESTATE TRANSFER TAX DECLARATION

Prior to the signing of the final contract, a real estate transfer tax declaration is submitted to the tax authority. This declaration is prepared by the notary public and is accompanied by the calculation sheets of the objective value of the property. It is signed by both the buyer and the seller and submitted by the buyer or an authorized person to the competent Tax Office (DOY) where the property is located.

The transfer tax is paid in full by the buyer and is calculated based on the objective value of the property, as officially determined by the annual tax authority tables for each area.

III. EXECUTION OF THE FINAL SALE CONTRACT – REGISTRATION / RECORDING

Following the completion of the collection of all required documents by the seller, as specified by the notary public, and the submission of the transfer tax declaration to the competent Tax Office, the final contract is signed before the notary public between the buyer and the seller, in the presence of their lawyers and a real estate agent (if one has been involved in the transaction).

Subsequently, the notary public delivers to the buyer a copy of the contract and the necessary documents for the registration or recording of the contract with the Land Registry Office or the Cadastre Office (where applicable) of the area where the property is located.

The process of acquisition of the property by the buyer is completed upon the registration of the final contract in the books of the competent Land Registry or its entry in the cadastral records of the competent Cadastral Office.