NEWLAND REAL ESTATE - Advice

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There are a number of steps and required checks that have to be carried out before a property purchase can be successfully completed. A presentation of you what you should know and do follows:

 

 

 

  • EU citizens are authorised by law to own properties in all areas of Greece. Restrictions apply only to non-EU citizens who wish to purchase property in border areas. Crete is one such area, and any non-EU citizens should apply first to the Council of Local Prefecture to be granted authorisation. In addition, for EU citizens a temporary residence permit, called the Blue Card ( you may apply for it at the local police station ) is required, if they wish to purchase property in an area near the national border areas (including some islands such as Rhodes and Crete and islands of the Eastern Aegean). If they are interested to purchase property in all other regions of Greece, they do not need a residence permit. Non-EU citizens, who wish to purchase a property in border areas (such us Crete and Rhodes, and islands of the Eastern Aegean) must apply for a special permit issued by the Ministry of Defence in Athens. An alternate way, (for non-EU citizens) is through an offshore company in your name, based in an EU country. In all other regions of Greece, you do not need a residence permit in order to purchase property.
  • Specify the amount of money that you can afford to spend for the area that you are interested in. Make sure the property you are interested in reflexes to your needs.
  • Make sure you get a prospect of the area that you wish to purchase your property in. If there are any changes in reformation or developments, then your property will acquire a surplus value. But there can be interventions that may downgrade the area, therefore influence negatively the after sale price of your property. NEW LAND can help you on that matter.
  • Ask for the advice of a Professional Estate Agent, stating precisely what you want and need. According to your request NEW LAND will inform you of the properties that are for sale (area, position, dimensions, use, transportation, outline of developments, e.t.c), we will offer recommendations and introduce you to the seller of the property that you have chosen for the final price opinion. Your co-operation with a legal Real Estate office is a must as it insures you discretion in sale or rent of the purchase of a property.
  • Make sure you are informed of the Rights of Ownership, meaning that the seller is the legal owner of the property. This is a very important factor in purchasing as this will overcome any future problems that might arise. The search of information must be done by a solicitor.
  • The solicitor is necessary for the buying and selling of any property, too ensure the deeds are owned solely by the person selling and that it is not mortgaged or has any other legal problems. The use of a solicitor is for your own safety. This is why the law obligates the two parties to have solicitor when a contract of transfer in real estate takes place.
  • You will also need a Notary Public because this certifies all the transactions of properties, included the syntax and the revision of all official documents, in order to be ensured the legal transfer of property. A Notary Public always executes the contract for the property transaction.
  • The purchase is burden other than the market price with extra expenses (solicitors, notary expenses and tax transfer) and are calculated as follows:

         Purchase Tax: 3.3%

         Notary fees: 1.50-2.00% of the 'assessed value'.

         Lawyer fees: 1.00-1.5% of the 'assessed value'.

         There is also a small fee to register the new owner at the Land Registry Bureau.

         Agent Fee 2%

         In general a figure approx 10 % should be allowed for all fees and costs, on top of the purchase price.

         

  • Is advised to ask for a technical survey of the property by a qualified Civil Engineer, who is going to inform you about the construction and condition of the property, the topographical plan, the building factor, the coverage factor e.t.c. As part of our service, NEW LAND can introduce you to experienced local English-speaking architects who will give you advice, complete the drawings and obtain planning permission, and complete the whole process for you.
  • To purchase a property in Greece you are required to have a Tax Number which is given by the local tax office. To obtain this Tax number you will need to provide your passport and a full birth certificate. The full birth certificate must show the names of both your parents. As a property owner you will have to complete a tax declaration form each year, this does not necessarily mean that you will have to pay Greek taxes.
  • Grecian authorities are very concerned about where a foreign national is obtaining money to purchase a property in Greece. A person from another country interested in buying property in Greece will need to obtain what is known as a "pink slip" (or bank letter stating when the money originated) for wire transfers of money from abroad. The purchaser has to be able to demonstrate where the money is coming from and if he or she cannot, Grecian governmental authorities will consider any money wired into the country as income and will tax it accordingly. In addition, money to purchase must come directly from a Grecian bank and bank account. Therefore, before a person can actually make a purchase of a property he or she will need to have a bank account. To open a bank account in Greece you need a Tax Number (A.F.M.) your passport and you full birth certificate.
  • If you are interested in purchasing a property which is near to a Historical area or if you suspect the existence of archaeological discoveries, ask for permission from the Archaeological Department. In order to avoid problems in development if archaeological discoveries are found when building work has commenced it would stop construction and would involve a long period of waiting and possible loss of money. If you are interested in purchasing a property which is outside of the town planning zone, the owner of the property must get permission from the Forestry Department so as to allow construction.
  • If you are interested in a property outside of the town planning zone, ask more information from the Planning Department. According to the Greek Laws if you want to build on a plot which is outside of the town planning zone, the plot must be at least 4000m2 and on that plot you have the permission to build a 200m2 house in two floors plus basements, balconies-terraces. Permission can be generally be granted  for land plots which are less than 2.000 m2 or less, if they are located within the planning zone or with frontage to principle  municipal road. For property located within the town planning zone or in a build-up area the coverage depends on area that the property is located on. For commercial properties the regulations are different.
  • As a property owner in Greece you are obliged to complete a Tax Declaration Form, which a local Accountant will do for you and submit to the local Tax Office.
  • When you are ready to commence building it will be better to ask and compare estimates and opinions from experts in each profession. Manufacturing cost depends on the quality of the material, the size and the location of the property (if the property is located within narrow roads e.t.c.). Renovating costs starts from 750€/m2, new build costs starts from 1300€/m2 and prefabricated costs starts from 750€/m2.
  • According to the Greek Tax System the tax office specify an objective value for a property. The property tax is calculated on this value, which is lower from the real value   that the buyer pays for that property.
  • No payment is necessary to view any property.
  • A 10% deposit on the purchase price is usually required to secure a property. This is payable on signing the first agreement, containing the names and details of the parties, the description of the property, the price, method of payment, and any general conditions negotiated by either party. After signing, if the Purchaser subsequently declines to proceed, he or she will lose their deposit. As indemnity to the Purchaser, should the Vendor subsequently decline to sell the property, he or she is obliged to pay a sum equal to the deposit to the Purchaser, who will in addition receive back the original deposit paid. In the case of a very cheap property this agreement is sometimes foregone in favour of proceeding straight to an exchange of contract. When the appointed Lawyer has received the deposit, he will hold the deposit in a customer account until a land title search has been completed and a positive result reported to the Real Estate Agency office.
  • If the client is not able to be present in Crete at any stage, he/she can agree to a power of attorney, giving the Lawyer authorization to act on his behalf. This power of attorney is arranged in front of a Notary Public. It can also be arranged via the Greek Consulate. Power of attorney can be cancelled at any time upon request, by the client, at any Notary Public in Greece or via the Greek Consulate.
  • Prefer the indication or entrusting of a property can be done with written command agreement in which they will be reported the complete elements of the property, the owner and the full payment which has been agreed. The written agreements are separated to Simple and Exclusive.

           The Simple agreement does not have time restriction and the householder is able to sign as many as he wants in various real estate agency offices. The full payment is overwhelmed in whichever real estate agency office brings to an end the sale/renting.

            The Exclusive agreement is more usual and most efficient in as they have predefined time duration. The real estate agency office provides that it ensures the exclusivity, and then undertakes the dynamic projection and promotion of the particular property, by any necessary means, without any further additional cost to the householder, except the initially agreed payment.

 

 

   

 

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