At first, taking the decision to sell our property, we have to define the «requested price», i.e. the considered amount to be catchy. Defining the sale price of our property at the market, we have to take into account the following: In fact, the sale price of a property depends on many factors. These factors are:

• Its location (location).
• Its age (year built)
• The construction quality (from the statistics and the concrete quality until the final finishing).
• The property’s condition (last renewal or required renewal)
• Its floor (there are prices differences depending on the floor).
• The service spaces that the property has such as parking and warehouse.
• The sale price of corresponding properties around the area.
• The development perspectives and the infrastructure projects at the area.
• The rateable value of the property.
• Securing the service and semi-open spaces.
• The real structuring to conform to the building permit.
• The main law market (Supply- Demand).
• The time margin you want to sell. Rush decreases property value.

The property is one of the most expensive and difficult products at the market. Addressing to RealBrokers, you have a professional next to you. We will evaluate the true value of your residence and promote your property through our network while we will take care for the reliable promotion on the daily news and through internet. In that way, you multiply the sale probabilities and decrease the result time.

You can address to many real estate agencies, but you should know that the less brokers deal with your property the best for you. You should address to reliable professionals of the real estate area with specific proposals of your property’s promotion in order to reach the desirable results. In no way, the property should be saturated during the selling process.

Take care of your property’s conditions without spending much money. Repair possible damages in hydraulics, electricity, humidity, cabinets. Paint all spaces with bright colors, if you think it is necessary. Do general housekeeping and remove any useless items and furniture that may disturb the image. Light up all spaces, in case property’s presentation takes place without sunlight. A well-appeared result always makes good impression to the applicants-buyers.

Prepare your property’s file with the purchase contract, property recommendations, topographical plan, building permit, cadastral documents, floor plan and static studies.

Address to your lawyer for further assistance from the beginning of the process. Besides, your lawyer should be present at the editing and signing contracts process.

Sell Documents

The Seller, before signing the Contract, must produce to the Solicitor who will edit the contract, the following documents:

• Purchase Contracts of the property regarding older conveyances.
• Copy of Building Permit.
• Topographical plan of the property.
• Property’s plans (static plans, floor plans, block plans).
• Establishment of horizontal property (where necessary).
• Identity – VAT Registration number – Excise Tax Offices of all sellers-owners. Copies should refer recent addresses and professions.
• Tax Clearance.
• Insurance Clearance if the seller is a natural person that performs business activities or is Headmaster or Manager or Managing Director or member of a Syndicate or Union of Syndicates. Also, if the building is new or has been built within the last 10 years.
• Ε9 that shows the property has been declared.
• Certificate that the property income has been declared within the last 2 years in the income declaration Ε2, otherwise formal declaration that the property does not result to income for the owner.
• Certificate that the proportion tax that corresponds to the transferred property has been paid, when the property is liable to the Large Property Holding Tax (Acceptance of the Succession) and certificate that the tax of Donation, Parental Donation and Inheritance has been deposited, when the property has been obtained by one of the above ways.
• Certificate from the appointed municipality that you do not owe Real Estate Tax.
• Land Registry (certificate that there is no mortgage-seizure-claiming against owner’s property).
• Cadastral Extract from the Cadastral Office where the Seller has submitted declaration of the L. 2308/85, when the area property is subscribed to the National Cadastral.
• Energy Performance Certificate Every Solicitor in order to edit the buying and selling deed of the property must refer to the protocol number of the EPC at the contract and attach an official copy of the EPC regarding buildings of total surface over than 50 m2.
• Engineering Certificate certifying the identity of the actual image of the property with the one which is depicted in the contracts and the official urban plans of the property and also that it is in no need for further settlements (legalize illegal, augmentative and semi-open spaces.
• ENFIA Certificate (United Property Tax). The owner from 01.01.2015 should submit this certificate which can be obtained from the TAXIS System (Electronically). Responsible to ensure this certificate is the accountant.

Additionally:

• Death certificates if those referred at the contracts had died after 1985.
• Certificate that the tax of Donation, Parental Donation and Inheritance has been deposited, when the property has been obtained by one of the above ways.

For outlying plots & areas – forest lands:

• Characterization deed (article 14 of L.998(1979).
• Notification & Publication of the Characterization Deed.
• Forestry Certificate.
• In many cases Archeology Certificate.
• Certificate of Seaboard Alignment, if the plot is near the coastal.
• Certificate of Buildable Plot is suggested to be submitted.
• Certificate of the appointed Local Organization of Land Improvements regarding plots in areas where Organization of Land Improvements operates, that there are no levies from irrigation fees.
• Certificate by an appointed Municipality regarding non overdue debts of the property for levies to land and money, if the property is in area subscribed to the Urban Planning, according to L. 1337/8 and the Application Deed has been validated. If the Application Deed has been validated after 25/11/1994 or it has not been validated yet, then a Certificate from the appointed Municipality is necessary showing that a Property Declaration has been submitted by the Seller.
• Permission by the Committee according to L. 1892/1990, if the property is in frontier area.

Seller’s Expenses for Conveyance

1) Stamp Fee for the Bar. It is calculated upon the shown fee as following:

• 1% up to 44.000€
• 0,5% for the rest amount.

2) Lawyer’s remuneration for presenting at the contract.

3) Broker’s remuneration 2 % upon the final, agreed price of the property.

VAT 23% is including in Lawyer’s, Solicitor’s and Broker’s remuneration.

4) Capital Gains Tax 15%   (* Suspended from 01/01/2015 until 31/12/2016)

From the 1 st of January 2014 the conveyance tax has declined for buyers from 10% to 3% of the " objective value " , but now a tax has been imposed to the seller of the property , on the " accretion " , ie the difference between the ( objective ) value at the time it was acquired and the (actual = declared ) value which collects when sold . The difference, after some reduction, depending on the years that the seller owned the property, is taxed at 15%.

With the latest adjustment of Law 4254/2013 (Government Gazette 85/7.4.2104 T. A ) the surcharge of the capital gains tax is significantly decreased compared to the previous and inapplicable rules ,for any kind of property transaction , while property sales that are possessed by the seller BEFORE 1.1.1995 are fully exempt. Especially the multi-Bill provided for capital gains tax includes the following:

1. According to the law, all properties acquired before321/12/1994 are totally exempt from the capital gains tax. Also in practice all properties acquired from 2007 onwards are also exempt, when these are sold at a price equal or less than the objective value, only if the objective value ​​from 2007 until today remains unchanged.

2. The sale price is the one that is declared by the parties to the sale contract. The acquisition price is shown on the acquisition contract of the property, while on inheritances, gifts, etc. the acquisition price is the value on which the relevant tax is calculated.

3. For properties that do not have a purchase price, the sale price is deflated by the index of housing prices for the years it was retained, and is published by the Bank of Greece.

4. The amount of "accretion" resulting from the difference between the purchase price and the selling price is reduced in up to 40%. Especially for properties acquired between 1995 and 2002 the percentage of impairment is increased by 20% more. 

5. In the case that adverse possession was completed before 31.12.1994, as acquisition price is considered to be then one at 1.1.1995. 

6. In the case that the construction of the property was done with self- supervision as acquisition time is considered the time after five (5) years from the date of issue or two (2) years from the date of the planning permission renewal, unless the property transfer is made within these deadlines.

7. From the amount of accretion arised, 25,000 euros are deducted, and the remaining amount is taxed, provided that the property had been retained for at least 5 years.

8. Notaries are required to check the accuracy of all characteristics of the transferred property (retention time, etc.) but they are not responsible for items that were not required to check.

9. The capital gains tax is collected and retained by notaries and is delivered within five days to the public.

For a brief understanding of how the relevant provisions have shaped (Articles 41 and 43 of Law 4172/2013 Income Tax Code, as already amended WAS ADOPTED with the Ministry of Finance), we publish below a rough "coding", without any responsibility for any Article and provisions mismatches.

Article 41 . Transfer of property

1. Any income arising from accretion with pecuniary or property ideals that shares or rights in rem in immovable property or ideal that share or holding companies which derive more than 50 % of their value directly or indirectly from property and not a business activity , subject to personal income tax . In the concept of income of the previous section also falls to the market value of the building that is erected on land owned by third cost of the tenant and received by the third party at the expiration or termination of the lease agreement. As a transfer in accordance with this paragraph shall also include the contribution of real estate to cover and the recapitalization of a legal person or legal entity.

2. Accretion is the difference between the purchase price paid by the taxpayer and the selling price and is paid to him deflated according to paragraph 5. 

Acquisition cost is determined as :

α) In the case of ownership due to consideration is the price or value of the consideration, as is clear from the relevant contract,

b) In the case of acquisition through an inheritance or transfer with gratis, the value of which  was calculated based on inheritance tax, gift or parental benefit or exemption granted by him, as that value is clear from the relevant contract or any other public document.

c) In any other case , it is calculated as follows : Acquisition cost equals the conveyance price multiplied by the the house price index ( DTKat ) year of acquisition by the DTKat the previous year of the conveyance .DTKat means the average price index for urban areas for the period January - December of each year , as quoted by the Bank of Greece . If at the time of the conveyance an average DTKat has not been published, it is taken into account, the ratio of the immediately preceding year. The selling price is the amount stated in the contract price at the time of the conveyance, in the case of exchange, the assessed value of real property constituting the consideration for each party and if it does not exist , the taxable value . Any costs directly associated with the purchase or sale of the property are not included in the purchase price and the selling price. In the case that it is acquired by a third party building that has been erected in its territory at the expense of the lessee in accordance with the second sentence of the previous paragraph, goodwill is considered the objective value of the building. If the acquisition price cannot be determined shall be deemed to be zero.

3. Acquisition time is the time of acquisition of at least seventy-five percent (75%) of the transferred right to the property. If there is no clear acquisition time according to the first paragraph, the following shall apply:

a) The conveyance of a building erected by direct labor or under the system of compensation, as acquisition time is considered the time after five (5) years from the date of issue or two (2) years from the date of renewal of the building license, unless the conveyance is within the above limits.

b) In the case of an urban settlement of an entirely arbitrary construction, acquisition time is considered as the time shown as time of the erection and it is certified by the engineer at the relevant settlement request.

c) In the case of an urban settlement of a partially arbitrary construction, acquisition time is considered as the acquisition time of the statutory building.

d)In the case of an adverse possession, acquisition time is considered as the corresponding date of the twenty-first year, before the time of conveyance.

e) In the event that the conveyance of Article 41 Income Tax Code concerns a right which was acquired until the 31 December 1994, goodwill is considered to be zero. Especially in the case of adverse possession, if the relative time was filled before December 31, 1994, as acquisition time is considered the 1^st January of 1995.

4. In cases where the determination of goodwill in accordance with the above paragraphs results in a negative amount, that goodwill will be equal to zero.

5. Goodwill in accordance with the above paragraphs degressive obtained by applying the following rates of impairment:

TABLE 1

6. Within the definition of the term conveyance for the purposes of this include:

a) The conveyance of full or high ownership, including real work, whether there is a conveyance under a suspensive or resolutive condition or with the condition of repurchase.

b) the establishment of an usufruct, habitation or other slavery

c) the waiver of property ownership or right in immovable property

d) the conveyance of title transfer coefficient,

e) transcription judgment in accordance with Article 949 of the Code of Civil Procedure, due to failure to give preliminary transfer or acquire any right for the cases a, b ​​and d of this paragraph with a legal document binding only one party.

f) the disposal of property as a result of voluntary auction.

7. For the purposes of this Article, the following cases shall not be considered a conveyance of property:

a) transcription of a final court decision recognizing the right of ownership over the property to the client for exceeding the mandate of the trustee

b) transcription judgment of a court annulling a contract due to virtual conveyance of property,

c) validation of anomalous transactions which have already been included in taxable conveyances of paragraph 1,

d) the physical distribution or pooling of property or instrument of incorporation of horizontal or vertical property, if the ownership rates per co-owner are not changed.

e) exchange rates on properties acquired through an inheritance or parental benefit or spouses during the marriage

8. Fixing the value of the bare ownership, usufruct, adverse possession, personal bondage or other slavery on the property, the provisions of Articles 15, 16 and d of paragraph 1 of Article 40 of the Inheritance Tax Code , Grant, Parental Benefits, dowry and profit from gambling.

9. Since goodwill as occurs after impairment in accordance with paragraph 5, an amount is deducted, max, twenty-five thousand (25,000) Euros, where the taxpayer holded that property for five (5) years at least and capital gains tax is imposed on any remaining balance.

10. The Minister of Finance determined the purchase prices in special cases where it is not possible to determine in accordance with paragraph 2, as well as any other matter on the implementation of this article.

11. The natural person who acquires capital gain from the conveyance of property, according to the Article 41 he should pay to the notary when signing the contract transfer the amount of tax which corresponds to the goodwill in accordance with the Article 43.

Article 43. Tax rate

Income from goodwill conveyance of capital surplus is taxed at fifteen percent (15%).

Article 67 Submission of the declaration that calculates the capital gains tax from property conveyance.

1. The taxpayer who conveys property, he is obliged to declare all the details pertaining to the determination of capital gains tax, in accordance with provisions of Article 41, as applicable. 

2. The notary has to verify and certify the accuracy of the statement in paragraph 1, in terms of time and possession cost and or shares of this or years of retention, and rates, sizes of DTKat and calculate the tax, and to endorse the declaration , which , under penalty of nullity of the contract attached to it . The notary is not responsible for those items is not been aware of and are not included in the contract.

3. As deadline of the declaration in accordance to Article 31 of the Tax Code is the time the conveyance contract is edited at which it is attached.

4. The tenant of the second subparagraph of paragraph 1 of article 41 should declare all the data that relate to the determination of capital gains tax of the building that is received by the third party. The statement of the previous paragraph constitutes direct determination of tax. Person liable for the tax is the third party.

5. For conveyances within the case e of paragraph 6 of Article 41, the acquirer shall declare the data that have to do with the determination of capital gains tax of the property. The statement of the previous paragraph constitutes direct determination of tax. Person liable for the tax is the acquirer.

6. The Minister of Finance determines the efficiency of the tax year and any other necessary for the application of paragraphs 4 and 5 hereof.

DECLARATION OF GOODWILL TAX CALCULATION FROM CONVEYANCE OF PROPERTY AND PERFORMANCE OF TAX ATTRIBUTION

• The date of the contract composition during its drafting, as this is considered the timing of the statement.
• At the indication "DATE OF ACQUISITION OF PROPERTY" the exact date (e.g 15/02/2013) of the acquisition of property should be written, to determine the number of years elapsed between purchase and sale, to apply the appropriate rate impairment. Note that the preceding interval is calculated as specified in Articles 241 and 243 of the Civil Code. Therefore, a period expressed in years ending just pass the corresponding date of the last year.
• The difference between the purchase price and the selling price of the property, which is subjected to tax, reduced by applying the rates of impairment from table 1 above.

If the moment about purchasing a property has come, then you should follow the below steps:

• Realize your needs, the purpose and the use of property.
• Make up your mind about the amount you wish to spent for purchasing the property.
• If you intend to get a loan, think of the amount, the conditions, under which circumstances and your credit ability.
• Choose the area or the areas you are interested in.
• Be informed about property prices at these areas.
• Calculate the buyer’s additional expenses, except from property’s price, legal fees, solicitor’s expenses and transfer tax.

Addressing to RealBrokers, you will be advised by professionals for every step you take, in order to take advantage of market research’s conclusions on a daily basis and obtain the property customized at your needs.

When you will find the property you like and after a successful process of negotiations, you pass through the stage of Advance-Engagement. Then, the buyer should give an advance to the owner-seller, signing a Private Agreement or a Solicitor’s Prior Agreement, in order to formalize buyer’s interest, the property to be withdrawn from the market and the price to be fixed according to the agreement.

The two parties agree and co-sign the following:

• The amount of the value of the property.
• The advance amount.
• The payment term.
• Possible construction interventions, if the property is under construction.
• The signing deadline of the final contracts regarding the Property Title Search.
• The clauses concerning the buyer and the seller in case of repudiation of one of them.

This process can be executed by an appointed lawyer.

In case you change your mind for any reason and you do not want to buy the property, then the advance remains in favor of the owner unless your repudiation is due to legal or technical problems of the property (commitments to the public sector, banks, unclear titles, technical problems etc.) that were detected from your Lawyer during the Property Title Search, as it was mentioned above.

When signing the prior agreement, you receive a file of the property in order for the lawyer to carry out the adequate Property Title Search. If the buyer gets a loan in order to purchase the property, at the same time with the legal search, the buyer must provide a full file of the property at the Bank, which will offer him a loan, containing: a) contract of the property, b) copy of the building permit, c) topographical plan, d) block plan, e) plan view, f) contract of establishment of horizontal property. Banks usually request all the above documents to be authenticated.

At the same time your solicitor prepares the contract and the Transfer Tax Statement accompanied by sheets of calculating the rateable value of the property. It is signed by the buyer and the seller and it is submitted by the buyer itself or an appointed person at the Capital Section of the Excise Tax Office where the property belongs, before the signing of the contract. You must have your VAT Registration Number.

If the property is outside the areas of objective determination, instead of sheets value calculation, an Analysis Sheet is submitted and property value is estimated by the Administrative Head of the appointed Excide Tax Office.

Required documents for the Contract (for the buyer)

1. His identity details.
2. In case of Vat exception for first residence, the buyer provides at the appointed Excise Tax Office:

• Certificate of Family Status (even if he/she is single)
• Copy of his Tax Return of the last two years
• Copy of the document E-9, authenticated by the Excise Tax Office of his income.

After the above, the signing of the contracts, the transcription of the property at the Land Registry and the reception of a copy of the contract follow.

INDICATIVE EXPENSES OF THE BUYER

The fiscal stamp from the Bar is defined according to the following:

• For value contract up to 44.020€ 1%
• For value contract from 44.020€ to 1.407.351€ 0,5%
• For value contract from 1.407.351€ to 2.934.702€ 0,4%

The legal research of the property is charged additionally.

Solicitor’s premium is defined at 1,2% upon the Face Value of the Contract. You should deposit to your solicitor additional expenses such as copies of contracts, fee stamps etc.

According to the new tax system from 1/7/2011, VAT is imposed at solicitor’s and lawyer’s fees.

Real Estate Advisor’s fee is often up to 2% upon the final, agreed price, plus VAT. Payment is deposited when the final contract is signed.

Registration fee at the Land Registry for conveyance (purchase) is up to 0,475%o upon contract value. Additionally, if the purchase is carried out with a building loan and the property is under encumbrance, then the conveyance charge of the encumbrance is to amount from 0,75%o-0,80%o upon the encumbrance value. .

Property Transfer Tax

The tax is calculated on the stated amount in the contract. In detail, it is calculated at 3% of the indicated in the contract purchase price.

For properties with building permits after 2006, VAT is up to 24%.

Bank expenses in case of loan

Registration encumbrance expenses

They are deposited in favor of the bank that offers the loan and they are up to 9% upon the amount of the registration encumbrance.

Good Luck with your purchase!

RENTER’S CHOICE. Law and international conventions prohibit the exclusion of renters based on nationality, color, religion, sex, age, personal preferences etc. Renting constitutes a constant relation where the main criterion of choice among many applicants is neither the amount of rent nor the above characteristics, but only the solvency and consistency of renter, i.e. his capability to response constantly every month to his financial commitments from this rent (rents, service charges and utility bills). This, of course, is difficult to be estimated in advance! For this reason, you should contact in person with every applicant and inform him about everything and mainly about rents of large items. If you have to deal with an unknown applicant, do not hesitate to request him any details about his solvency or for someone solvent guarantor to co-sign the rental contract.

AGREEMENT WITH RENTER. Never accept rent or guarantee “advance” without signing the rent agreement! NEVER deliver keys or the right of settlement to an applicant renter before you definitely sign the rent agreement fulfilled by you or drawn up by you lawyer. The rent agreement should refer to all identity details of the renter, as well as his VAT Registration Number, his/her wife/husband information or other people who may use the property, way of use of the property etc. If the renter is a foreigner, the number of residence authorization in our country should be written on it. Never rent a property with your own telephone connection! However, if the already rented property has a telephone connection, you can transfer it for free, directly to your renter!

LEASE AGREEMENT. You should use lease agreements templates or agreements drawn up by a lawyer. For important leasing (professional etc.), you should always address to your lawyer! You should be careful and definitely address to a lawyer if you are requested to sign an agreement drawn up by the renter! You should always deposit your lease agreements at the appointed Excise Tax Office in 30 days from the date of their editing.

After you compose the lease and both parties sign, we do not submit it to the competent tax office (with our visit), but electronically through the TAXIS system. Responsible for submitting the lease through the TAXIS system is our accountant.

DURATION. The law stipulates that residential tenancies last for three years and professional tenancies also last for three-years or for as more as it is agreed.  According to law, house properties leasing may be less than 3 years.   The duration that is agreed and shown on the professional leasing is often shorter, taking into account that the renter may leave before its expiring date after one (1) year of its initiation. Render, however, must inform owner three (3) months before by any document and remunerate him with one (1) monthly rent, returning back the guarantee, if there are no expenses. The performance of a shop etc. without remuneration is being effected with a 16 year completion, while a self-employed office (doctor, lawyer, mechanic, accountant etc) in a 12 year completion.

LEASE (RENT). The initial rent is defined on free terms by all interested parties, in all rents, as well as its subsequent revaluation. The whole amount of the rent should always be shown on the rent agreement as well as its annual rallonge. In professional rents, stamp fee is imposed up to 3,6%. Never accept proposal from your renter regarding writing at the rent agreement amount shorter than the rent. Never forget that a “good renter” is always better than a “good rent”. So, never endeavor unreasonable rents, because at the end you may lose!

CERTIFICATE OF ENERGY EFFICIENCY. The owner shall submit the said certificate for residential or business premises with an area of over 50 square meters, which shall be composed by the engineer.

CERTIFICATE ENFIA ( United Property Tax). The owner from 01.01.2015 should submit this certificate which can be obtained from the TAXIS System (Electronically). Responsible to ensure the certificate is the accountant.

USE OF PROPERTY RENT. Always define the purpose of use (as main or secondary residence, store, office, workshop, warehouse, parking etc) and the professional object (trading clothes, vehicles etc).You should pay special attention if property is used as a store of health interest (coffee shop, hairdresser’s, gym, educational institution etc). In this case, a prior authorization and a permission from the appointed authority, which is issued only if the rent fulfills specific conditions of surface area, urban legality etc, are adequate.

RENT INSURANCE. It is a substantial action of foresight for every owner to insure every property, residence or professional premises rented to third parties from the very first day.

RELATIONSHIP WITH RENTERS. Never forget that the renting process, especially that of a residence, is a constant human relation. For this reason, you should always face your contract partner firstly as a human being! In general, never bring a case before the Court, if you haven’t first contacted with your renter!

PAY ATTENTION IN EVERY TRANSACTION! Leasing a property as well as every amendment, revaluation of the rent etc, are transactions with serious consequences that sometimes can be irreparable! You should always be careful and do not act, if you have not first be advised by your Lawyer, especially if you have no experience at leasing properties!

The RealBrokers take the direct responsibility of promoting your property for renting/leasing in Greece and Abroad, using specific promotion methods. Contact us for more information.

PROPERTY SEARCH. Check carefully without any rush with the people you are going to stay with, the property you found to rent, as well as its conditions. If it is during night, you should request to visit it in daylight. If there are any obvious faults, you should request to be restored or write them down on the rent agreement. You should also check if there are everything you need around the property (transportation, market, school etc).

FINANCIAL COMMITMENTS. Do not rush to rent a property when the rent amount seems excessive or is beyond your financial capability. You can always find another property which may seem financially reasonable. Finally, you should be informed about the financial commitments, except form the rent amount (service charges, bills, local fees etc.)

ADVANCE. Never deposit rents or advances unless you are sure about owner’s identity or his authorized representative.

After you compose the lease and both parties sign, we do not submit it to the competent tax office (with our visit), but electronically through the TAXIS system. Responsible for submitting the lease through the TAXIS system is our accountant.

LEASE DURATION. Every leasing of a main residence has at least 3 years duration, even if the rent agreement refers to a shorter period. After the expiring date of three years, leasing can be continued based on a silent agreement between owner and renter, as an open-ended contract. That means that the renter can leave the property whenever he wants and the owner request his property back.

RENT-RAISING. The whole agreed rent must always be shown at the rent agreement. Every raising that is agreed is legal both during the first three year period and after that. Usually, the percentage of index is agreed to be the annual rallonge up to 1-2 units. If the rent duration is less than the three year period, then for the rest rent period, in case of dispute of the third parties, it is provided an annual increase up to 75% of the index increase during the passed twelve year period.

GUARANTEE. During the conclusion of the rent agreement, a monthly rent is deposited as a guarantee for old residences while two monthly rents for new residences. This amount is being returned when the renter leaves the property, after he has returned property to the owner and cleared all his financial commitments.

REFUSAL OF RENT COLLECTION ON BEHALF OF THE OWNER. If you have offered the rent to the owner, but he refused illegally to receive it, then you have the right, in order not to be considered restive, to deposit the rent at the Deposits and Loans Fund in his name. You have also the right to notify through a probation officer the note deposit or to deposit it to a solicitor or your lawyer, who may advise you for all.

NON PAYMENT OF THE RENT. In that case a short process of eviction of every renter who doesn’t pay the rent is realized. Firstly, a nonjudicial notice of default is notified regarding the debt payment. If the debts get paid off within a month, then the legal process ceases, unless it has happened before. If the debts do not get paid, then an order of rent deposit is issued, notified and executed after 20 days. However, the renter has the right to appeal the order, according to legal advice, raising serious reasons, such as the debts payment.

The RealEstate RealBrokers undertake with responsibility to find the suitable property for you. For more information, contact with us.

Good Luck with your rental!

It is possible that you may not have the adequate capital to cover your building needs and address to a Bank to get a building loan. It is very important to make a good search in the Bank System in order to choose the most satisfying solution.

The RealBrokers having special knowledge and cooperating with many Banks, may help you choose the safest lending institution.

What you should know in general about the Building Loans:

Loan Amount: Banks are not used to finance the whole market value of the property. The loans range from 70% to 80%.for example, if you want to buy a property of 300.000€ under the condition that the bank mechanic will evaluate the property at that price, the loan will range from 210.000-240.000€. The rest amount should be covered by your money, as well as purchase’s and loan’s expenses.

Lending Capability: Make sure your income is over 9.000€. In case you haven’t, you will need a guarantor.
You should check carefully that the monthly installment of your building loan does not exceed the 45% of your monthly net income. Incomes that come from amounts entailing extinction of tax liability are not included except they result from companies, so you should provide the most recent tax document E5.
You will need a guarantor when, the borrower has a net, annual income less than 9.000€, his age is less than 23 years old and over 70 years old at the expiring date of his loan and also when the borrower works at the same employer less than 2 years.
Guarantor’s characteristics
Relationship with the borrower
Age ranging from 23-70 at the expiring date of the loan
Net, annual income more than 11.000€ (it is raising depending on the requested loan amount)
Without loan debts (especially when the borrower’s income is almost 11.000€)
It is desirable that the borrower is property’s owner.

Additional Expenses: These are expenses that you will deposit once-for-all. They are loan expenses including the technical and legal property’s inspection. You have also Land Registry’s expenses regarding property’s encumbrance. You should be informed in advance with every detail about these amounts as well as for the payment term. The payment term of the loan expenses is different in every Bank. This amount is often paid in advance.

Loan Interest Rate: You may choose between a fixed interest rate during all loan period or a floating interest rate, or a combination of fixed and floating interest rate.
The fixed interest rate during all loan period does not seem satisfying as you will be bound for many years, if there seems to be a downtrend of interest rates.
The floating rate, i.e. the variable rate, is the most common. Nowadays, it is directly connected to the Base Interest Rate of the European Central Bank. The Base Interest Rate changes of the one part, but its variance seems to be small, of the other part. The Bank adds its profit margin (that is one of the small differences among Banks) as well as for the obligatory levy for all banks according to the L. 128/1975. So, you should check if your final interest rate is = Euribor+ Bank profit +levy.
In the combination of fixed and floating interest rate, there is an offer of fixed interest rate for a specific time period, while after the expiring date of that period you have often the possibility to choose a fixed or floating interest rate for the rest of the duration.

Duration of Loan: Usually the loan duration ranges from 5 to 3 years. The duration you can choose depends on your age. The youngest the borrower, the largest loan duration. The largest repayment period you may choose, the shortest your installment will be. But, the total amount you will return to the bank, including capital and interests, will be bigger for a larger loan period.

Loan installments: You should request an index of repayment, where it may result the number, frequency and mainly each loan amount. Providing everywhere exactly the same data, such as loan amount, repayment period etc. you will be able to compare each monthly installment amount.

Premium: Banks charge the obligatory premium by Law or once-for-all annually or additionally in every monthly installment. You must be informed about the insurance amount and its payment term because you may choose the lowest bank installment, but the premium will be higher. There are two kinds of premium.
Property insurance that protects the borrower and the bank in case of fire or earthquake. The cost ranges from 3€-1.000€ annually and is formed according to the value construction of the property.
Life insurance/of permanent or total incapacity. This insurance is optional and protects the borrower and its family from random and unpredictable events that could prevent the regular loan repayment. The cost ranges from 5€-1.000€ per year.

Time & way of disbursement: You should ask when the loan will be disbursed after signing your contract, because it is determinant for the payment deadline of the department in which will be included. There are many factors that can decrease the time of the loan reception. Be careful about the contract so as it refers to larger periods of disbursement, because if the disbursement is postponed, you won’t be obliged to face contract’s clauses due to non-payment on time of the department.
It is, also, possible that the Seller may open a bank account in order to deposit property’s price.
After loan’s disbursement and Property’s encumbrance, there is the repayment deed edited by the Solicitor that is against the Buyer.

Early repayment. All Banks provide the opportunity for earlier, total or partial repayment of the loan. See all provisions and the opportunity payment without any debts.

Lending Contract. Check if anything you agreed is included in the lending contract you will sign, otherwise the Bank will not observe its commitments.

Process stages of building loan reception.

• Information regarding the offered building loans by different banks.
• Choice of the bank.
• Submission declaration for building loan.
• Prior approval.
• Legal and technical inspection.
• Final approval and signing of the contract
• Signing contracts
• Property encumbrance.
• Loan disbursement.

Necessary documents for the reception of building loan
(for all banks)

1. Documents for the financial prior approval:
   • Completed declaration of the building loan.
   • Copy of the identity card (2 faces) or other certificate (e.g. passport).
   • Original copy of the salary statement concerning the last financial use.
   • Bank clearance if there are loans from other banks.
2. Documents for the final approval.
   • Certified copy of the property title.
   • Land Registry’s certificates.
   • Copy of building permit.
   • Certified copy of the floor plan by the Urban Planning.
   • Certified copy of the topographic diagram by the Urban Planning.
   • Certified copy of the block plan by the Urban Planning.
   • In case of repair/construction/completion, bank document of project budget.
   • Certificate by Cadastre in case the property has been subscribed at the cadastre to current owner’s name.
3. Additional certificates for recipients loans
   • Copy of identity card (two faces) or other certificate (e.g. passport).
   • Salary statement and copy of E1.
   • Copies of Ε9, initial and its amendments.
   • Certificate of family status.
   • Affirmed statement of L. Ν.1599/86 that it is your first residence and that you have not received a recipient loan from the same or another institution.

Building loan’s expenses

The charges of these expenses differ from bank to bank. The field is competitive enough regarding these specific charges and you will deal with many discounts at the market. In every case, banks charge the borrower with four expenses categories:

Once-for-all expense for the prior approval. This amount usually ranges from 50€-60€ and is deposited with the declaration submission while it is not returnable to the client.

Once-for-all expense for approval and inspection. It is calculated based on the building loan amount and ranges from 350€-3.000€. Several banks define a specific amount upon percentage of loan’s amount as once-for-all approval expenses, while other banks offset this specific expense with approval expenses after loan is approved. This expense is charged because the bank wants to make sure that the property has no pending legal issues regarding property’s titles (civil engineer’s expenses about property’s evaluation as well as the cost of legal inspection for the tiles are included).

Lawyer’s expenses. Charges range from 150€-250€ and include lawyer’s remuneration that stands at the court regarding property’s encumbrance.

Land Registry expenses / Encumbrance expenses. The borrower is charged with 0,825% of property’s value that is under encumbrance.
Loan expenses are paid off either during loan’s disbursement or as a part of the first installment or gradually through monthly installments.

The Real Estate Agency RealBrokers takes the responsibility of issuing building loans (under certain circumstances) aiming at better lending conditions and avoiding personal efforts from your behalf during buying and selling process. For more information, please contact with us.