Property Purchase Process – All Steps from Offer to Contract

A comprehensive guide for a safe and well-organized purchase

Purchasing property is one of the most significant financial decisions in a person’s life. Whether it concerns a primary residence or an investment property, a proper understanding of the process is crucial in order to avoid legal or financial complications.

The property purchase process in Greece consists of specific stages that must be followed carefully. Below, all the steps are presented in detail, in the correct order.

Assessment of Financial Capacity

The first step is determining the available budget.
The prospective buyer should have a clear picture of the total cost of the transaction, with the assistance of the relevant professionals (notary public, accountant and/or bank).

If a mortgage loan is to be obtained, prior approval from the bank is required so that the maximum financing amount is clear.

1. Legal Due Diligence of the Property

The first and most important step is the legal due diligence.
Before any deposit is paid, the buyer must be fully aware of the legal status of the property. In practice, it is often observed that money is paid without prior legal review, which can lead to serious problems (mortgages, seizures, defects in title, etc.).

What does the legal due diligence include?
The seller provides the buyer with:
• Title deeds
• Deed of establishment of horizontal or vertical ownership
• Any acts relating to the legalization/regularization of unauthorized constructions
• The building’s regulations (if applicable)

The buyer’s lawyer:
• Reviews the title deeds at the Land Registry / Cadastre for at least the last 20 years and, where necessary, for a longer period, depending on the origin of ownership and the particular characteristics of the property
• Confirms that the seller is the lawful owner
• Checks for any encumbrances (mortgages, prenotations, seizures)
• Verifies the correct registration in the Cadastre

Especially if the property is intended for professional/commercial use, the building regulations are also reviewed in order to confirm that the intended use is permitted.

In many cases, particularly with newly built properties, a technical inspection by an engineer is also recommended.

Legal due diligence must always precede any agreement.

Deposit (Earnest Money)

Provided that the legal due diligence is clear, a deposit is usually paid.
The deposit may be given in two ways:

Private Agreement

This is drafted by the lawyers of both parties and includes:
• The total purchase price
• The method of payment
• The amount of the deposit
• The deadline for signing the final contract
• Withdrawal / default clauses

It is usually provided that if the seller unjustifiably withdraws, they must return the deposit in double.

2. Notarial Preliminary Agreement (Pre-contract)

This is a stronger form of agreement, as it constitutes a notarial deed.
It includes all the elements of the private agreement but has greater legal force.

In case the seller refuses to proceed:
• The buyer may seek a court judgment ordering a declaration of intent, or
• If there is a relevant clause, proceed with self-contracting

1. Collection of Supporting Documents

The collection of documents is mainly carried out by the seller.
Indicatively, the following are required:
• Title deed
• Tax clearance certificate
• Social security clearance certificate (where required)
• Engineer’s certificate regarding the absence of illegal constructions
• Energy Performance Certificate
• Topographical diagram
• Building permit
• ENFIA (property tax) certificate
• Certificate of no municipal property tax (TAP) debts
• Extract of the cadastral sheet or certificate of registration, where the Cadastre is in operation

Without these, a contract cannot be executed.

Property Transfer Tax

Before signing the contract, the property transfer tax is paid by the buyer.

1. Signing of the Final Contract

The notary public prepares a draft, which is reviewed by the buyer’s lawyer.
On the day of signing:
• A second check is carried out at the Land Registry / Cadastre
• The remaining purchase price is paid
• The final contract is signed

1. Registration at the Land Registry or Entry in the Cadastre

The transfer is completed only upon registration.
Without registration:
• Ownership is not secured against third parties.

Registration/entry fees are calculated in accordance with the applicable provisions and vary depending on the value and the competent office.

After registration:
• A certificate of registration is issued
• The buyer declares the property in the E9 property tax registry

Finalization of the Agreement – Tax – Signing and Completion of the Transfer

At the stage of the final agreement between buyer and seller, all essential elements of the sale are clearly determined. Specifically:
• The final purchase price.
• The method and time of payment (in full upon signing or in installments, via bank transfer, cheque, etc.).
• Any construction pending issues or irregularities that must be settled before completion of the transfer.
• The obligation to deliver title deeds, planning permits, deeds of establishment and building regulations, as well as Cadastre documents for full legal review.
• The specific date for signing the final contract or the relevant deadline.
• The clauses that apply in case of withdrawal or breach of the agreement by either party.

If one of the parties resides abroad or is unable to attend, they may grant a special notarial power of attorney to their lawyer. The power of attorney is executed before a notary public or, if the person is abroad, before the competent Greek Consular Authority.

The presence of a lawyer for both the buyer and the seller is considered particularly important, as it ensures the legality of the process and prevents future disputes. The notary public is chosen by the buyer, who usually also bears the relevant fee.

Submission of the Property Transfer Tax Declaration

Before signing the final contract, the property transfer tax declaration is submitted. The declaration is prepared by the notary public, signed by both parties and submitted to the competent Tax Office (DOY) by the buyer or an authorized person.

The transfer tax is paid by the buyer, in accordance with the applicable provisions. Payment of the tax is a necessary prerequisite for signing the contract.

Signing of the Final Contract and Registration

After all required documents have been collected and the tax has been paid, the final contract is signed before a notary public, in the presence of the parties and their lawyers.

Following the signing, the notary public provides the necessary copies for registration or entry of the deed at the competent Land Registry or Cadastral Office.

Registration or entry is the final and decisive stage of the process. Only with this step is the transfer legally completed and the buyer’s ownership secured against third parties.

Frequently Asked Questions (FAQ) on Property Purchase

1. When is the purchase of the property considered completed?
   The purchase is legally completed upon registration of the final contract at the Land Registry or its entry in the Cadastre. The signature alone is not sufficient without registration.
2. Can I pay a deposit without legal due diligence?
   This is not recommended. Legal due diligence should always precede any payment of money, in order to ensure that the property is free from encumbrances and legal issues.
3. Who pays the property transfer tax?
   The transfer tax is paid by the buyer, in accordance with the applicable provisions.
4. What is the first-time home exemption?
   It is the possibility of exemption from property transfer tax for the purchase of a primary residence, provided that specific conditions are met regarding the family status and the value of the property.
5. Is the presence of a lawyer mandatory?
   Although, under current legislation, it is not always formally mandatory, the presence of a lawyer is particularly important for the protection of the buyer and for carrying out full legal due diligence.
6. What happens if an encumbrance appears on the property before signing?
   If an encumbrance (e.g. mortgage or seizure) is discovered, the transfer should not be completed until it is lifted. For this reason, a second check is carried out before signing.
7. Can I buy property if the seller is abroad?
   Yes, provided that they have granted a special notarial power of attorney, either through a notary public or through the Greek Consular Authority.
8. Who chooses the notary public?
   The notary public is chosen by the buyer and is usually also borne by them as to the relevant fee.
9. What happens if one of the parties withdraws?
   Depending on the clauses agreed in the private agreement or the preliminary contract, forfeiture of the deposit or its return in double may be provided.

Conclusion

Purchasing property is not a simple transaction. It includes:
• Legal due diligence
• Possible payment of a deposit
• Collection of documents
• Payment of tax
• Signing of the contract
• Registration

The most critical stage is the legal due diligence. No amount should be paid before the legal status of the property is fully secured.

Cooperation with a lawyer and an engineer protects the buyer and ensures that the investment is carried out safely and transparently.

This article is for informational purposes only and does not constitute legal advice. Each case requires individual assessment, based on the specific facts and the applicable legal framework. For specialized advice, please contact our firm.