Legal Update for Immovable Property Transactions
Dear Clients and Business Partners,
We would like to share a crucial legal update impacting immovable property transactions! Amendments to the Sale of Property (Specific Performance) Law, enacted as Law N. 132(I)/2023, have recently come into effect dated 12.12.2023. These changes signify a proactive step in refining the legal framework for property transactions.
Key Highlights
- Objective: The amendments aim to protect buyers in real estate transactions, facilitating secure Title Deed transfers for full legal certainty.
- Applicability: Effective for contracts signed on or after December 12th, 2023.
- Mandatory Search Certificate: Sellers must now include an Immovable Property Search Certificate issued by the Land Registry Office in contracts. This certificate, listing encumbrances, must be dated no later than 5 working days from the contract signing.
- Fine for Non-Compliance with Search Certificate Requirement: In case of non-compliance with the requirement to submit a Search Certificate the Director of the Department of Land and Surveys is empowered to impose Administrative Fines on the Seller and Mortgagee in case of refusal to comply with specific provisions of the Legislation.
- Mortgaged Properties: In the case of properties encumbered by mortgages or liens, there are new submission requirements.
Type A Declaration
Requirement: Both the Mortgagee and the Seller are obligated to sign a Type A Declaration.
Purpose: This written declaration serves as a formal acknowledgment by both the Mortgagee and the Seller. The Buyer is informed of specific details, and their signature is required to validate the document.
Type B Declaration (95% Payment)
Activation Condition: Once the Buyer makes a payment equivalent to 95% of the agreed-upon amount. Authorization: The Type B Declaration empowers the Buyer to proceed with the property transfer, even in the scenario where the Mortgagee fails to release the property.
Procedure: Issued by the Mortgagee, the Type B Declaration specifies a predetermined amount. Upon the Buyer's payment of this specified sum to the Seller's designated bank account, the Mortgagee is obliged to promptly issue a payment certificate ("Type B"). This allows the property transfer to proceed unhindered, regardless of the Mortgagee's release status.
Type C Declaration
Type C is the Buyer's Written Confirmation, according to which he confirms that he wishes to proceed with the deposit of the Contract, in the competent Provincial Land Office, without it being accompanied by Type A.
Legal Assistance: Detailed instructions and forms are available in Greek on the Department of Lands and Surveys’ Portal. Our dedicated Property Law professionals are ready to assist you in navigating these changes.
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