GREECE Law and Practice Contributed by: Nikolaos Koulocheris, Ioannis Charalampopoulos, Rozita Karasso and Dimitra Kotsovelou, Machas & Partners
includes confirming the title history including the proper transfers by predecessors in title, any encumbrances and any restrictions on property use. • Technical Survey: If the property is land or outside urban planning limits, the buyer should hire an engineer 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 acquisi - tion by the seller have been paid before pro - ceeding with the purchase. In case of corpo - rate acquisition, full-scope tax due diligence 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 intro - duced as a special anti-avoidance tax rule. This process helps ensure the property is legally sound, meets construction requirements and In commercial real estate transactions, sellers typically provide representations and warranties regarding their authority to sell, their ownership of the property, their compliance with laws, and the absence of encumbrances and other third- party rights in rem or in contract. Seller warran - ties may also include disclosures about property conditions, such as structural integrity and haz - has no outstanding financial issues. 2.5 Typical Representations and Warranties
ardous materials, as mandated by state laws. Corporate acquisitions include significantly more extensive warranties. Common buyer remedies for seller misrepre - sentation include rescission, action for dam - ages, and specific performance, often secured by earnest money deposits. 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 insurance is increasingly utilised to mitigate risks in transactions, 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 owner - ship laws, zoning regulations and due diligence requirements. Investors should be aware of the legal framework governing foreign ownership, as there may be restrictions in certain areas. Tax implications, including transfer taxes and property taxes, are crucial for financial plan - ning. 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. Buy - ers may be liable for existing soil pollution, regardless of causation. Conducting thorough
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