Unauthorised constructions and unauthorised changes of use are among the most common issues encountered in real estate transactions in Greece. A property may have title deeds, appear properly registered with the Cadastre and still present technical or planning irregularities that directly affect its transferability, financing, value and the buyer’s legal security.
For the owner, the existence of an unauthorised construction may delay or prevent a sale, parental gift or donation. For the buyer, it may mean acquiring a property with issues that were not identified in time. For the lawyer, the issue is not to replace the engineer, but to identify the legal risks and ensure that the transaction does not proceed without the necessary technical and legal review.
The Basic Legal Framework
The main legal framework governing unauthorised constructions and their consequences in real estate transactions is primarily found in Law 4495/2017, as amended and currently in force.
Under the applicable framework, the transfer or creation of a real right over a property where an unauthorised construction has been built or an unauthorised change of use has been established is prohibited, unless the legal requirements are met. This prohibition is critical, as it is connected with the validity of the transaction and the ability to execute a notarial deed.
In addition, for inter vivos legal acts involving the transfer or creation of a real right over real estate, the required owner’s declaration and engineer’s certificate, or the corresponding documents under the current Electronic Building Identity system, must be provided.
The more recent Law 5106/2024 has mainly strengthened the framework of inspections, sanctions and enforcement against unauthorised construction. It should not, however, be presented as a simple “new law for legalising unauthorised buildings”. The classification of an irregularity, the possibility of regularisation and the relevant technical requirements are matters to be assessed by an engineer, based on the actual and planning data of each property.
What the Lawyer Reviews and What the Engineer Reviews
In cases involving unauthorised constructions, there is often confusion as to the role of each professional.
The engineer is responsible for reviewing the technical and planning status of the property. The engineer examines the building permit, approved plans, actual condition of the property, any unauthorised constructions or changes of use, the possibility of regularisation and the required technical documentation.
The lawyer reviews the legal side of the matter. The lawyer examines the title deeds, Cadastre records, encumbrances, pending claims, transaction terms, representations and warranties of the parties, and the legal consequences that an irregularity may have on the transfer or future use of the property.
Proper handling requires cooperation. The lawyer does not replace the engineer, and the engineer does not replace the legal review of the transaction.
Unauthorised Constructions and Sale of Real Estate
In a real estate sale, the existence of an unauthorised construction or unauthorised change of use may significantly affect the transaction. Before signing a preliminary agreement or paying a deposit, the buyer must know whether the property can actually be transferred, whether there are technical issues and whether regularisation steps are required.
An irregularity is not always a reason to cancel a purchase. It may, however, affect the value of the property, the timeline of the transaction, the seller’s liability, the content of the deed and the protections that the buyer should request.
In such cases, the private agreement or preliminary agreement must be drafted with particular care. It should specify who undertakes the regularisation, who bears the relevant costs, the applicable deadline, what happens if regularisation is not possible and under what conditions any deposit is returned.
Unauthorised Constructions and Parental Gifts or Donations
Unauthorised constructions are also frequently encountered in parental gifts or donations. Older family homes, additions, enclosed semi-open spaces, storage areas, changes of use or deviations from the building permit may create issues during the preparation of the notarial deed.
In such cases, the legal review is not limited to whether the property can be transferred. It must also examine issues relating to title deeds, co-ownership, inheritance origin, third-party rights or future disputes between family members.
Technical regularisation, where required, is carried out by an engineer. The lawyer reviews the legal consequences, the connection with the title deeds, the proper structuring of the transaction and the protection of the parties.
Unauthorised Constructions and Inherited Properties
Inherited properties often present issues relating to unauthorised constructions. An heir may discover after the death of the deceased that the property has technical irregularities, unauthorised structures or deviations that were previously unknown.
The existence of an unauthorised construction does not automatically prevent acceptance of inheritance. It may, however, create issues in the subsequent transfer, use or distribution of the property. Also, where there are several co-heirs, it must be examined who has the right to initiate the relevant procedure, what consent is required and how related costs will be handled.
Such cases require a combination of legal review and technical assessment by an engineer.
The Importance of the Electronic Building Identity
The Electronic Building Identity is now a key tool in real estate transfers. It gathers important information about the property, such as the building permit, plans, declarations under laws on unauthorised constructions, where applicable, and other technical data.
The preparation and technical review of the Electronic Building Identity fall within the engineer’s field of responsibility. For the lawyer, however, this information is highly significant, because it is connected with the security of the transaction, the declarations of the parties and the content of the deed.
If the technical condition of the property does not correspond with the title deeds, Cadastre records or actual situation, the transaction must be examined carefully before proceeding.
What the Buyer Should Check before Becoming Committed
The buyer should not rely solely on a general assurance that “the property has been regularised”. A full review by an engineer and a legal review by a lawyer should be requested before any substantive commitment is made.
In particular, it should be examined:
- whether there is a building permit and whether the actual condition corresponds to it,
- whether declarations under laws on unauthorised constructions exist,
- whether the regularisation concerns the entire property or only specific irregularities,
- whether there are pending issues in the Electronic Building Identity,
- whether the irregularity affects transferability,
- whether additional steps are required before the deed is signed,
- whether specific clauses should be included in a preliminary or private agreement.
These are not minor details. They may determine whether the purchase is completed safely or whether the buyer faces problems after signing.
What the Owner Should Check before Selling
An owner who knows or suspects that there is an unauthorised construction or change of use should review the matter in good time. Postponing the review until a buyer has been found may lead to delays, negotiation pressure or cancellation of the transaction.
Preparation before the sale includes a technical review by an engineer and a legal review by a lawyer. This allows the owner to know in advance whether there are pending issues, what steps are required and how the condition of the property should be accurately presented to the prospective buyer.
The Role of the Lawyer
The lawyer does not undertake the technical regularisation of unauthorised constructions. This is the engineer’s task. The lawyer’s role is to protect the client from the legal consequences that an irregularity may have.
In particular, the lawyer:
- reviews the title deeds and cadastral status,
- checks for encumbrances, claims or pending issues,
- connects the engineer’s technical findings with the legal security of the transaction,
- reviews preliminary agreements, private agreements and notarial deeds,
- provides protective clauses for the buyer or seller,
- assesses whether there is a risk of invalidity, inability to transfer or future dispute.
Where technical assessment is required, our office cooperates with engineers, so that the legal and technical review are coordinated, without confusing the role of each professional.
Frequently Asked Questions (FAQ)
Can I sell a property with an unauthorised construction?
It depends on the type of irregularity, whether it has been included in a lawful regularisation framework and whether the requirements for executing a notarial deed are met. The matter must be reviewed by an engineer and a lawyer before any commitment is made.
Is it enough for the seller to say that the property has been regularised?
No. The buyer should request a review of the relevant documents by an engineer and a legal review by a lawyer. A general assurance by the seller is not enough for a safe transaction.
Who checks whether an unauthorised construction can be regularised?
The technical possibility of regularisation is assessed by an engineer. The lawyer reviews the legal consequences of the irregularity on the transaction, the title deeds and the obligations of the parties.
Can an unauthorised construction block a transfer?
Yes. If the legal requirements are not met, the existence of an unauthorised construction or unauthorised change of use may prevent the transfer or creation of a real right over the property.
What should a preliminary agreement provide when there is an unauthorised construction issue?
It should clearly provide what the pending issue is, who undertakes to resolve it, who bears the relevant cost, within what deadline, and what happens if regularisation is not possible or is not completed in time.
What happens if I discover an unauthorised construction after the purchase?
The answer depends on the facts, the content of the deed, the seller’s declarations, the due diligence carried out before the purchase and the type of irregularity. Issues of liability, compensation or other claims may arise and must be legally assessed.
Do I need a lawyer or is an engineer sufficient?
The engineer is necessary for the technical review. The lawyer is necessary for title due diligence, review of transaction terms and assessment of legal risks. In serious real estate transactions, the two reviews should operate in a complementary manner.
Conclusion
Unauthorised constructions are not only a technical or planning issue. In many cases, they directly affect transferability, buyer protection, seller liability and the legal security of the transaction.
The key is not to treat every irregularity with fear, but to review it in time and properly. Technical review belongs to the engineer. Legal review belongs to the lawyer. Only the combination of both can provide a complete picture of whether a transaction can proceed safely.
Our office undertakes legal title review, assessment of transaction terms and legal support in sales, parental gifts, donations and other real estate transactions involving technical or planning issues, in cooperation with engineers where required.
This article is for informational purposes only and does not constitute legal advice. Each case requires an individual assessment, based on its specific facts and the applicable legal framework. For tailored legal advice, please contact our office.
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