GREECE Trends and Developments Contributed by: Notis Sardelas, Fay Vetouli and Lydia Dimakopoulou, Sardelas Petsa Law Firm
tions on the acquisition of property in designated bor - der regions and certain islands. These restrictions are primarily motivated by national security concerns. Under this framework, individuals and legal entities from outside the European Union or the European Free Trade Association are generally prohibited from acquiring property in such areas. Nevertheless, the law provides a mechanism for obtaining special per - mission. Applicants must submit a request to the competent decentralised administrative authority, clearly stating the intended use of the property and demonstrating that the acquisition does not pose a risk to national interests. In addition, acquisitions involving privately owned islands are subject to further scrutiny and require authorisation from the Ministry of Defence. This reflects the strategic importance of such properties and the need for careful oversight. Real Rights over Immovable Property The principle of numerus clausus A defining feature of Greek property law is the princi - ple of numerus clausus, which limits the types of real rights that may exist. This principle, summarised in the Civil Code, ensures legal certainty by preventing the creation of novel or atypical property rights through private agreement. The recognised real rights include the following. • Ownership, which may be full or divided into bare ownership and usufruct. Bare ownership confers title without the right to use or enjoy the property, while usufruct grants the right to use and derive benefit from it. • Servitudes (easements), which impose a burden on one property for the benefit of another (eg, rights of way). • Mortgages and pre-notations of mortgage, which serve as security interests for the performance of obligations. These rights have erga omnes effect, meaning they are enforceable against third parties and not merely between contracting parties.
The “right of surface,” introduced by Law 3986/2011, represents a modern addition to this system. It allows the holder to construct and exploit buildings on public land for a specified period, effectively granting a tem - porary ownership-like right over the structure. Land Registration and the Cadastre System Legal significance of registration The Greek system of property registration is based on the principle that real rights over immovable prop - erty are only effective upon registration. This principle ensures transparency and legal certainty in property transactions. Registration is required for a wide range of legal acts, including transfers of ownership, establishment of mortgages, inheritance acceptances, and court deci - sions affecting property rights. Without registration, such acts do not produce legal effects vis-à-vis third parties. An important corollary of this system is the principle of priority: when multiple rights are registered over the same property, precedence is determined by the order in which they were registered. Structure and Evolution of the System Historically, Greece operated a system of local Land Registries, which recorded transactions based on per - sonal indices. Over time, this system has been gradu - ally replaced by the Cadastre, which is based on a property-centred approach and incorporates detailed mapping data. The transition to a fully operational cadastral system remains ongoing. Once completed, it is expected to enhance legal certainty, reduce disputes, and facili - tate investment by providing a reliable and accessible database of property rights. Proof of Title and Due Diligence Ownership is typically proven through certificates issued by the competent registry and certified cop - ies of title deeds. However, in practice, legal due dili - gence conducted by a lawyer is essential. This pro - cess involves reviewing registry records to confirm the chain of title, identify encumbrances, and verify the absence of legal defects.
294 CHAMBERS.COM
Powered by FlippingBook