The Greek Property Buying Process
(excerpt taken from the Greece Buying Guide)

A number of people I spoke to in the property business reinforced this. In fact only lawyers are entitled to conduct a search in the Real Estate Office AND an attorney's participation in the the conclusion of a property transfer (through to the signing of the contract deed) is obligatory for both purchaser and vendor if the value of the transaction amounts to approximately €29,137 for property located in the area of Athens/Piraeus, and €1l, 739 for all other parts of Greece. The sale agreement is usually prepared by the notary and then reviewed by the seller's and the buyer's lawyers. The obligation applies to both, or all, contracting parties.

Most importantly, you will need their help understanding complicated legal documents in Greek (as in “It’s all Greek to me…”!!). When dealing with such large purchases, many people fail to take absolute responsibility for their actions. You must keep in mind that the legal system overseas may not work in your favour if trouble strikes – so it’s of paramount importance that you hire qualified people who can you ensure that you do not have to take legal action. Do not put yourself in the position of needing legal redress – you may have the law on your side but while I was in Greece last I was told more than once that the Greek legal system can keep you tied up for years…Make sure you get it right from the start.

Side Note: We have an excellent solicitor that we receommend to all people buying in Greece. This is a recent eMail received from a Greece Buying Guide reader:

If you need a solicitor, fill out our resources form.

2. Appoint a ‘mechanikos politikos’ or an architect licenced to survey.
There is no tradition of surveying in Greece; it’s particularly unusual to have a survey carried out on a building less than 20 years old. However, for your peace of mind (and to save you money on potential repairs) it is worth getting an independent survey done.

Always establish what they will be checking for. They must make sure the house is structurally sound - this is very important as Greece is prone to earthquakes. Do not trust the ‘survey’ carried out by the mortgage company – it is not an in-depth study and is not good enough to give you the assurances that you need.

3. Appoint a Public Notary.
A public notary must be appointed since any property purchase agreement, in order to be valid, must be done in the presence of a public notary. He will execute the contract for the property transaction and calculate the assessed value of the property. The assessed value is usually lower than the actual purchase price.

Do note here that the public notary does not represent the interests of either the buyer or vendor.
They are public officials in the presence of whom the contract is read, understood by both parities and signed. The notary drafts the contract and is responsible for the verification and registration of the transaction in the public records, so that the buyer can acquire the official title of the property.

4. Obtain permission to own property in Greece.
All EU citizens can buy property in most areas of Greece. However, if the property is in an area near national borders, you’ll need a temporary residence permit (the Blue Card). These take around two weeks to be issued, from the local police station. If your lawyer has Power of Attorney, he can collect it for you.

5. Power of Attorney
If for any reason you’re unable to sign the final purchase contract in person, you may wish to give power of attorney to your lawyer beforehand. The power of attorney document can be as extensive or as limited you wish, but it should include authorisation to act on your behalf at completion and at tax offices (e.g. to obtain your tax file number and pay taxes).

It is quite normal for people purchasing land or property in a foreign country to give a ‘Power of Attorney’ to a lawyer in the country where the purchase is being made. In this document the individual gives the lawyer permission to act on their behalf and to communicate with third parties, and/ or authorise the transfer of funds on behalf of the individuals.

This is a legal document drawn up between the lawyer, and the individual which is signed by both parties and witnessed by a Notary Public in their presence. You need to make quite sure that your lawyer speaks and understands English perfectly and that you have done due diligence as to the fact that you are using a reliable and trustworthy person. Incidentally, I do have such a person - please contact me if you need his help.

The document can be drawn up in one of two ways: your lawyer sends you a power of attorney in Greek, which you take to the Greek embassy or consulate in your home country where it is legalised by the authorities; or your lawyer in your home country draws up a power of attorney, which is legalised by a public notary and authenticated with an official stamp (apostille). The document must then be officially translated into Greek. If you choose to sign a power of attorney in Greek, make sure you know exactly what you’re signing.

6. Get a Tax Registry Number.
Every foreigner buying property in Greece needs a Tax Registry Number – an AFM (pronounced Ah-Fi-Me) to be able to proceed with the purchase transaction. This is the Greek tax roll number and everybody, foreigner and Greek, must have one for purchasing or renting a property, opening a bank account, buying a car and for many other transactions.

To apply for a the AFM you need usually only a copy of your passport, but some tax offices may ask you for a copy of your birth certificate as well, so have it with you. This can be also done in your absence by a person who has a simple power of attorney from you. You don’t need to be living in Greece or to have a residence permit to have the AFM.

7. Greek bank account.
You need to have a Greek bank account – all necessary payments will go through this account, and it will also prove that the funds used for the property purchase have come into Greece from another country, via an official import document, or ‘pink slip’. To open an account, you need your passport and the AFM.

8. Preliminary sale agreement.
This sets out various details including the agreed price, the deposit amount, payment method and any conditions that have been agreed on, such as the sale being dependent on the buyer getting a residence permit, obtaining planning permission or getting a mortgage.

9. Title search.
Your lawyer will carry this out as part of the legal survey, also making sure that there are no outstanding charges or taxes on the property. The ownership of property in Greece is secured by a state authority called Registry of mortgages. Not all regions of the country have a Land Registry, as Greece is currently undergoing the process of establishing this. In areas that do not yet have a Land Registry, ownership of property is based on, and secured by, the local Registry of Mortgages. The buyer must obtain the contract or title deed held by the vendor. This can be done with the help of the lawyer. It is then the lawyer's duty to search the title deed at the registry of mortgages. The search must be carried out in order to ensure that:

The property is filed under the names of the owners and lawyers are entitled to check property belonging to any individual or company. A title search is performed in order to find out if there are any claims, liens and encumbrances on the property. Only if the title deed is secure should the buyer proceed to contract.

10. Pay the transfer tax.
They need proof of payment of the transfer tax (this is the equivalent of stamp duty and is paid just before completion). The transfer tax must be paid to the local Inland Revenue Service by the buyer prior to signing the contract. This can be done with the aid of the attorney.

11.Currency regulations.
You need proof in the form of a pink slip from the receiving bank in Greece that the money imported to make the purchase has been declared and is legally acquired.

12. Completion.
This takes place at the office of a public notary, usually six to eight weeks after the preliminary sale agreement. The notary draws up and reviews all the official documents relating to the legal transfer of property.