GREECE Law and Practice Contributed by: Nikolaos Koulocheris, Ioannis Charalampopoulos, Rozita Karasso and Dimitra Kotsovelou, Machas & Partners
national investment, enhancing real estate market liquidity and enabling large-scale projects. • Establishment of a specialised legislative frame - work for the operation of the institutional Private Rented Sector (PRS) in order to attract professional investors owning and operating rental housing at scale. • Digitalisation and simplification of property transfer procedures would speed up transactions, lower costs and reduce administrative burdens, benefit - ing both buyers and developers. 2. Sale and Purchase 2.1 Categories of Property Rights The following are the key property rights that can be acquired in Greece. • Full ownership: The universal right in rem that can be either absolute (100% ownership) or divided into undivided co-ownership interests among two or more people who jointly enjoy and exercise it. • Bare ownership: A limited right in rem consisting of the legal title in a real estate property but deprived of the right to use or benefit from the property. Bare ownership derives from the granting of a usufruct. Upon the usufructuary’s death or the expiry of a usufruct established for a specific period of time, the bare owner becomes the full owner. Bare own - ership can subsist in any undivided co-ownership interest. • Usufruct : A personal servitude allowing the usu - fructuary to use and benefit from the property, though the ownership remains with the bare owner. Usufruct can be established in any undivided co- ownership interest in a property. • Right of habitation: A personal servitude granting the right to reside in someone else’s property or part thereof until the beneficiary’s death. • Easements : A limited right in rem allowing the own - er of one property (dominant estate) to use another property (servient estate) for specific purposes (eg, access). • Hypothecation: An encumbrance over real estate property established as security for the preferential satisfaction of its beneficiary in the repayment of the secured claim.
• Real right on surface: Introduced in 2011, this allows the Greek State to grant third parties the right to exploit the surface of public land for up to 99 years, without transferring ownership of the land itself. 2.2 Laws Applicable to Transfer of Title The transfer of title is primarily regulated by the Civil Code, which governs property transactions, including sales (Article 513 et seq), gifts (Article 496 et seq) and inheritance (Article 1193), and it is consistent across all property types. The Civil Code outlines the require - ments for the validity of the transfer, such as a notarial deed and registration in the Land Registry or Cadastre Office. Payment of real estate transfer tax or inherit - ance tax is also obligatory for the transfer of title. Transfer of title may be restricted in border areas, forestry areas, archaeological sites, and coastal and beach zones. There are also environmental restric - tions (an energy performance certificate is necessary before the transfer of title). 2.3 Effecting Lawful and Proper Transfer of Title The lawful transfer of real estate title is executed by virtue of a notarial deed, which must be countersigned by both parties in the presence of a notary public. The notarial deed must be registered in the local Land Registry or Cadastral Office to establish ownership and provide legal evidence of property rights. Title insurance is not as common in Greece as it is in some other countries. Buyers typically rely on the Land Registry or Cadastral Office records and often conduct thorough due diligence to verify title and Legal due diligence (title search) : An on-site search is conducted at the local Land Registry and the Cadas - tre, if the property is located in an area with an opera - tional Cadastral Office, to verify the property’s title. This includes confirming the title history including the proper transfers by predecessors in title, any encum - brances and any restrictions on property use. encumbrances before purchase. 2.4 Real Estate Due Diligence
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