Sale Agreement and Deposit
A 10% deposit of the purchase price is usually required to secure a property. This is payable on signing the first pre contract 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 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 a completion 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 CRETAN RESIDENCES.
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 in the clients' country of residence.
Power of Attorney can be cancelled at any time upon request in writing by the client, at any Notary Public in Greece or via the Greek Consulate.
Completion of Contract
This is executed before a Public Notary with a lawyer representing each party. All appropriate tax papers and deeds must first be in order for the Public Notary to authorise the sale and prepare the contract for signature.
The lawyer acting for the Purchaser will carry out searches with the Land Registry beforehand to ensure that a clean title to the property will be obtained, and will assist the Notary Public in fixing the 'assessed' value of the property.
CRETAN RESIDENCES will also oversee this process - an important factor, as the 'assessed' value is written into the purchase contract and is the value upon which purchase tax is levied. Registration at the Land Registry immediately after completion of contracts, is the definite and irrevocable proof that the Purchaser now owns the property.
Fees & Expenses
The following costs and fees are all paid by the purchaser:
Lawyer fees including a search fee.
Real Estate Agent fee.
Land registry fee.
In general a figure of approx 10-12 % should be allowed for all fees and costs, on top of the purchase price, for property E50,000 and above.
Transfer of Funds
When you have transferred funds from your bank account to Greece, it is necessary to retain the bank transfer documentation, sometimes referred to as the "pink slip", in order to ensure that you are exempt from local taxes.
Sale Agreement and Deposit