GREECE Law and Practice Contributed by: Nikolaos Koulocheris, Ioannis Charalampopoulos, Rozita Karasso and Dimitra Kotsovelou, Machas & Partners
Technical survey : If the property is land or outside urban planning limits, the buyer should hire an engi - neer to conduct a survey and confirm the property meets construction requirements and any related restrictions. For properties with existing buildings, the buyer should review the building permit to ensure compliance with approved plans and verify that any unauthorised construction has been legalised through proper filings and payment of fines. Tax due diligence : The buyer must ensure that all taxes related to the property’s acquisition by the seller have been paid before proceeding with the purchase. In case of corporate acquisition, full-scope tax due dili - gence is conducted on the target entity, including in particular for its qualification for an exemption from the special real estate property tax. This is an annual tax that amounts to 15% of the value of the property under the provisions of Article 15 of Law 3091/2002, which was introduced as a special anti-avoidance tax rule. This process helps ensure the property is legally sound, meets construction requirements and has no outstanding financial issues. 2.5 Typical Representations and Warranties In commercial real estate transactions, sellers typi - cally provide representations and warranties regard - ing their authority to sell, their ownership of the prop - erty, their compliance with laws, and the absence of encumbrances and other third-party rights in rem or in contract. Seller warranties may also include disclo - sures about property conditions, such as structural integrity and hazardous materials, as mandated by state laws. Corporate acquisitions include significantly more extensive warranties. Common buyer remedies for seller misrepresentation include rescission, action for damages, and specific performance, often secured by earnest money depos - its. Seller warranties usually expire within five years. No liability cap is customary in outright real estate acquisitions, while the cap in share deals is usually set to the transaction value but may vary. W&I insur -
ance is increasingly utilised to mitigate risks in trans - actions, even in those involving non-operational real estate holding vehicles. 2.6 Important Areas of Law for Investors When investing in real estate in Greece, key legal areas to consider include property ownership laws, zoning regulations and due diligence requirements. Investors should be aware of the legal framework governing for - eign ownership, as there may be restrictions in cer - tain areas. Tax implications, including transfer taxes and property taxes, are crucial for financial planning. Additionally, understanding contractual obligations in purchase agreements, as well as the implications of the Civil Code on property rights, is essential. Lastly, engaging with local notaries and legal advisers can help navigate the complexities of Greek real estate law effectively. 2.7 Soil Pollution or Environmental Contamination In Greece, real estate transactions are governed by the Civil Code and environmental laws. Buyers may be liable for existing soil pollution, regardless of cau - sation. Conducting thorough due diligence, including environmental assessments, is essential. Due to vary - ing legal circumstances, buyers should consult legal and environmental professionals before proceeding with transactions. 2.8 Permitted Uses of Real Estate Under Zoning or Planning Law To determine permitted uses of a parcel of real estate, buyers should review local zoning ordinances, consult the zoning map, and contact the planning or zoning department. Obtaining a title report and consulting a real estate attorney can clarify restrictions. Additional - ly, entering into development agreements with public authorities can facilitate projects by outlining terms for collaboration and resource allocation, ensuring regu - latory compliance, and addressing public interests to streamline the development process. 2.9 Condemnation, Expropriation or Compulsory Purchase In Greece, expropriation or compulsory purchase (Law 2882/2001, as amended and in force) is classified into compulsory expropriation, which is done for specific
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