Establishment of Horizontal Property Ownership in Greece: What It Is and How It Is Created

Whenever a building is legally divided into apartments or other self-contained premises intended to belong to different owners, a specific legal instrument is required. This instrument is known as the establishment of horizontal property ownership, or condominium ownership, and allows each unit to be held under separate ownership while the land and the common parts of the building remain under compulsory co-ownership.

What Is Horizontal Property Ownership?

Horizontal property ownership in Greece is the separate and exclusive ownership of a floor or an apartment forming part of a floor. This ownership is necessarily and inseparably accompanied by an undivided co-ownership share in the land and in those parts of the property serving the common use of the owners.

It is therefore a composite but legally indivisible property right comprising:

• Exclusive ownership of the self-contained unit, such as an apartment.
• Compulsory co-ownership of the land and the common parts of the building.

The institution is principally governed by Law 3741/1929 on ownership by floors, in conjunction with Articles 1002 and 1117 of the Greek Civil Code. It constitutes a specific exception to the general principle of unity between land and building, allowing several independent rights in rem to exist within the same building.

Common-Owned and Common-Use Parts

Parts that are compulsorily owned by all unit owners in proportion to their respective shares include, indicatively, the land, foundations, structural walls, roof, courtyard and, more generally, anything serving the common use or the structural and functional unity of the building.

The concepts of “common-owned” and “common-use” are not entirely identical. Common ownership concerns the legal ownership status of an area or structure, while common use concerns the manner in which it is used. A common-owned area may, under certain conditions, be allocated for the exclusive use of a particular horizontal property. However, an exclusive right of use does not convert that area into a separate property unit.

Horizontal Ownership and Vertical Ownership

Horizontal ownership concerns separate ownership of a floor, apartment or other legally self-contained part of a building.

Vertical ownership concerns two or more independent buildings, or sections of buildings, situated on the same undivided land parcel. The owner of each vertical property has separate ownership of the relevant building but remains an undivided co-owner of the entire land parcel. Any allocation of exclusive use over a specified part of the land does not amount to a physical or legal subdivision of the plot into separate land parcels.

Vertical ownership is principally governed by Legislative Decree 1024/1971, in conjunction with Law 3741/1929 and Articles 1002 and 1117 of the Greek Civil Code, subject to the applicable planning legislation.

How Is Horizontal Property Ownership Established?

Horizontal property ownership may be created in several ways:

• By a unilateral notarial deed executed by the sole owner of the entire property. The deed may be executed before the individual units are sold and even while the building is under construction.
• By a notarial agreement between all co-owners of the property.
• By a testamentary disposition, subject to the applicable succession rules and completion of the required acceptance and registration formalities.
• By a court judgment issued in partition proceedings under Article 480A of the Greek Code of Civil Procedure, provided that partition through the creation of separate units is feasible, does not prejudice the interests of the other co-owners and complies with planning legislation.

An inter vivos legal transaction establishing horizontal ownership must be executed in notarial form. Registration of the deed with the competent Cadastral Office is required for it to produce effects in rem. Corresponding registration is required for a final court judgment ordering partition through the creation of separate units and for the relevant instruments required in cases of succession.

Without the required registration, the deed does not produce the intended proprietary effects.

What Must the Deed of Establishment Contain?

The deed establishing horizontal ownership must clearly record the legal and technical identity of the property. It normally includes:

• The full particulars of the parties.
• An accurate description of the land and the existing or planned building.
• The cadastral, planning and other identifying details of the property.
• A precise description of each separate unit, including its floor, position, surface area, boundaries and use.
• The undivided co-ownership share allocated to each unit in the land and common parts.
• The identification of any appurtenances, such as storage rooms, and any exclusive-use areas.
• The designation of the common-owned and common-use parts of the building.
• Any separate coefficients governing participation in common expenses.
• Voting, management and use rules, where the deed also incorporates the condominium regulations.
• Any specific use restrictions or building-extension rights.
• The required plans, allocation tables and technical documents.

The deed must correspond to the actual and lawful condition of the property and to the relevant building permit, approved plans and Electronic Building Identity or Electronic Identity of the Independent Divided Property, where applicable.

What Are Co-ownership Shares?

Co-ownership shares, commonly expressed in thousandths, represent the undivided share attached to each horizontal property in the land and the common parts of the building. This share is inseparably linked to the relevant unit and cannot be transferred independently from it.

The co-ownership share in the land should not automatically be confused with:

• The percentage of participation in common expenses.
• The allocation applicable to heating or lift expenses.
• The number or weight of votes at a general meeting.

These matters may be regulated differently by the deed or the condominium regulations. In the absence of a specific agreement governing common expenses, the rules of Law 3741/1929 apply, based on the value of each floor or apartment.

Particular Attention to Storage Rooms and Parking Spaces

Not every space shown on a floor plan can automatically constitute a separate horizontal property. It must be determined whether the space is legally and technically capable of constituting a separate ownership unit and how it is described in the deed.

A storage room or covered parking area may, subject to the applicable requirements, constitute either a separate horizontal property or an appurtenance attached to a principal unit.

By contrast, an open parking space in a pilotis or an uncovered area cannot, as a general rule, constitute a separate horizontal property. It may constitute an exclusive-use area attached to a specified principal horizontal property.

Special statutory rules apply to older deeds that treated open pilotis parking spaces as separate horizontal properties or created independent exclusive-use rights without attaching them to a principal unit. Under certain conditions, such deeds may be amended unilaterally so that the parking space is attached to a principal horizontal property in the same building. Each case requires an examination of the original deed and all subsequent instruments.

The Relationship with Condominium Regulations

The deed establishing horizontal ownership and the condominium regulations serve different legal purposes.

The deed creates the separate property units and determines their co-ownership shares. The regulations govern the use of the individual and common areas, the allocation of expenses, building management, general meetings and the mutual rights and obligations of the owners.

The regulations may be incorporated into the original deed or executed under a subsequent instrument. Condominium regulations in Greece are not mandatory in every building. Where they regulate or modify the mutual rights and obligations of the owners and are intended to bind subsequent purchasers, they must be executed in notarial form and registered.

The regulations do not, by themselves, create separate horizontal property units unless the same notarial deed also contains a valid establishment of horizontal ownership.

Can the Deed Be Amended?

As a general rule, an amendment of a horizontal ownership deed requires a notarial instrument, cadastral registration and the consent of all owners where co-ownership shares, common parts or the mutual rights and obligations of the owners are affected.

A power granted to a majority under the condominium regulations to make certain management, maintenance or use decisions does not necessarily permit substantial changes to registered property titles or to the rights in rem of the owners.

Greek law nevertheless provides specific exceptions. Subject to strict conditions, the owner of a horizontal or vertical property may execute a unilateral notarial amendment concerning its surface area, outline or use where the existing condition has been in place since the building was constructed, is recorded in the Electronic Building Identity, is lawful or has been regularised and does not affect the overall co-ownership shares, the allocation of common expenses or the rights and obligations of the other units.

In addition, surface-area discrepancies of up to two per cent (2%) from the measurements stated in the deed are, subject to the statutory conditions, considered acceptable. An amendment is not required solely because of such a discrepancy for the transfer of the property or the establishment of a right in rem over it.

These exceptions do not create a general right to amend a deed unilaterally. Every case must be assessed by reference to the title, the regulations, the actual condition of the property and the specific statutory requirements.

Why Is the Deed Essential for the Transfer of an Apartment?

For an apartment to be transferred as an independent property, a valid establishment of horizontal ownership must already exist or must be completed through the same notarial deed.

Without a valid deed, separate ownership of a specific apartment cannot generally be transferred. Depending on the wording and legal effect of the instrument, the purchaser may acquire only an undivided share in the entire property, which is fundamentally different from acquiring a separate horizontal property.

Practical Considerations

1. Examine the original deed, the condominium regulations and all subsequent amendments.
2. Confirm that the deed has been properly registered with the competent Greek Land Registry or Cadastre.
3. Compare the title description, plans, allocation table and Electronic Building Identity with the property’s actual condition.
4. Examine separately the land co-ownership shares, common-expense coefficients and voting rights.
5. Determine whether storage rooms, parking spaces and other areas constitute separate units, appurtenances or exclusive-use areas.
6. Review any encumbrances, use restrictions, building-extension rights and discrepancies from the approved plans before completing a transaction.

Frequently Asked Questions (FAQ)

What is condominium or horizontal property ownership?

It is the separate ownership of a floor, apartment or other space that may legally constitute an independent unit, combined with compulsory co-ownership of the land and the common parts of the building.

Who may establish horizontal property ownership?

The sole owner may do so by a unilateral deed, or all co-owners may do so by agreement. Horizontal ownership may also arise under a testamentary disposition or a court judgment ordering partition under Article 480A of the Greek Code of Civil Procedure.

Is a notary required?

An inter vivos establishment requires a notarial deed and registration with the Cadastre. Establishment under a testamentary disposition or court judgment follows the specific formalities applicable to that method and requires the relevant registration instruments.

What are co-ownership shares?

They represent each unit’s undivided ownership share in the land and common parts. They do not necessarily correspond to common-expense percentages or voting rights at the owners’ general meeting.

What is the difference between horizontal and vertical ownership?

Horizontal ownership concerns separate units within a building. Vertical ownership concerns independent buildings or sections of buildings situated on the same undivided land parcel, without terminating the owners’ undivided co-ownership of the land.

Are condominium regulations compulsory?

Not in every case. They are nevertheless particularly important for regulating use, expenses, management and relations between the owners.

Can horizontal ownership be established in an existing building?

Yes, provided that the building’s actual condition is lawful or has been regularised and can be validly reflected in the titles, plans and Electronic Building Identity.

Can an open pilotis parking space be a separate property?

As a general rule, no. It will ordinarily constitute an exclusive-use area attached to a principal horizontal property. Special statutory provisions apply to older deeds that describe such spaces differently.

Can the deed be amended unilaterally?

Only in specific circumstances provided by law or by a valid title and where all applicable conditions are satisfied. The general rule remains that substantial changes affecting the rights of the other owners require their consent.

What is the risk of purchasing without a valid deed of establishment?

Without a valid deed, the purchaser will not generally acquire separate ownership of a specified apartment. The purchaser may instead acquire only an undivided share in the entire property, with substantially different legal consequences.

This article is intended solely for informational purposes and does not constitute legal advice. Each case requires an individual assessment based on its specific facts and the applicable legal framework. For specialised legal advice, please contact our law firm.