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How much are the expenses for the buying and selling of an estate?
The expenses for the buying
and selling of your estate include the following:
Lawyer's Fee: The least fee foreseen by the lawyer's
code is the following: 1% up to €44.020,54 and 0,5% for amounts
exceeding the pre-mentioned one. Additional € 14,67 for the purchase
of revenue stamps. The fee is deposited at the same time during
the signing of the contract and after it is deposited to the Bar
Association. For buying and selling of an estate with an objective
value or any value exceeding the objective one for reasons of loaning,
e.g. for an estate of € 100.000 value you will have to pay (440,20
+ 279,90 + 14,67) a total of € 734,77. In addition to the above
mentioned amount you will have to pay for audit, titles and transcription
at the land registry expenses.
Notary's fee: (Buyer) For the purchase of an estate
you will have to pay the 1,20% of the written in your contract value
of the estate. For parental provision or a donation you will pay
the 1,2% plus 0,65%(for the Bar Treasury) on the written in the
contract estate value. The above fee does not include the cost of
attested copies of the contract. The cost for the Bar Treasury includes
an additional amount of €70 to €90 for the three copies accompanying
your contract. The first copy is for you, the second for the transcription
at the land registry and the third for the tax office. It is not
necessary for the copy for the tax office to be attested. In case
of a loan one more attested copy is necessary for the bank. For
example, for the purchase of an estate with a written value of €100.000
you will have to pay (€1.200+€80) a total of €1280.
You should also know that from the 1,20% you will pay at the notary
85% is the notary's fee, 9% is the contribution to the Bar Treasury,
and 6% is for the Insurance Treasury for notaries.
Estate Agent's fee: For the purchase or sale of your
estate you will pay approximately 2% on the final agreed price.
The payment of the estate agent is done at the signing of the final
contract or alternatively you can pay half of the fee during the
signing of a pre-contract.
Attention: Make sure you cooperate with those real estate
agencies that are legal and audited by the Professional Chamber
and the Association of Estate Agencies of Thessaloniki so as to
avoid unpleasant surprises. Do not sign more than one order for
the same estate.
The responsible professional estate agents will pleasantly surprise
you with their high abilities in presentations and negotiations.
If you wish to sell your estate, you can assign the case to our
office and we will promote the estate in the best possible way and
achieve the best price. If you wish to purchase an estate, just
tell us what you are looking for and we will do the rest.
Which are the tax obligations and rights for the buyer of an
estate?
• The buyer is obliged
to submit a Tax Statement for the transfer of the estate (FMA) and
deposit the relevant tax. The statement is submitted in common with
the seller and should be signed by both.
• The buyer is entitled
to transfer tax exemption in part or in total, if the relevant requirements
are met.
• If you disagree with
the amount of the transfer tax, you can file a request at the Tax
Courts within 20 days from the submission of the statement.
• The statement is submitted
by the buyer or a representative at the Department of Capital of
the relevant tax office where the estate is registered.
• Both the buyer and the
seller should have a Number of Tax Registry (AFM)
• The FMA statement is
submitted prior to the signing of the contract.
• The FMA is submitted
along with the submission of the relevant statement. If the tax
is up to € 880,41, the tax should be deposited in cash. If
it is larger then it should be deposited in a bank check.
Which are the necessary documents and where can I get them from?
You will need certain documents regarding the estate and some regarding the buyer.
1)
Documents regarding the estate:
• Construction license
• Documents from Town Planning Offices, Municipalities, Electricity Company (DEH), Forest Agency.
• Notary documentation
• Designs and tables from Technical Offices
2) ) Documents regarding the buyer:
• Document on family status.
• Copy of the tax statement.
• Ε9 Statement
• Documents from Municipalities, Land Registry, Consular Offices.
• Contracts.
3) For the determination of the estate's value or for transfer tax exemption due to first residence, you may need a series of documentation depending on the case.
4)The FMA statement (3 copies) and the documents ΦΥΑΑ 1-5, Κ1-Κ9, ΑΑ-land (2 copies) can be received at any relevant Tax Office.
What
are the necessary documents if I wish to get a housing loan from
the bank?
Documents for a simple Loan:
1) For the pre-approval of the Loan.
• Application for a Housing Loan
• Copy of the Identity Card or Passport.
• Copy of the three (3) most recent payment receipts (for employees).
• Copy of the tax statements of the three (3) most recent years.
• Three most recent issued balance sheets or the detailed tax data (Ε3) of the (3) most recent years. (Only for professionals/ businessmen).
2) For the approval of the Loan.
• The most recent title of the estate. (If it is an apartment you will need a detailed design of the building and the building's rules and regulations).
• Document that proves the transfer of the estate.
• Document that proves ownership from the share of the one making the transfer.
• Document regarding any foreclosures, non-sales and non-claims from the Land Registry.
• Documents regarding any constituencies that are mentioned in the estate's titles. .
• Cadastral extract (in case the area of the estate has been included at the National Cadastre).
• Topographic design of the land & design of coverage.
• Ground plan of the offered for guarantee estate
• Budget of works (in case of building, completion, etc)
• Copy of the building license from the Town planning office.
3) For the drawn of the Loan.
• Document of the registration of mortgaging by the relevant land registry.
• Documents related to tax and insurance.
Documents for a subsidized Loan:
• Document on family status.
• Copy of tax statement or a validated by the Tax office copy of the E9 document, where the estates are declared.
• A statement Ν.1599/86 that will declare that this is the first residence and that you have received a subsidized loan from any other agency.
• Document stating the objective value of the estate (only for cases of construction).
• Certification of Studies from recognized foreign or Greek schools (if there are children that study).
• Document proving inability (if there is an adult child with an inability of more than 67%.
• Divorce documents and the court decision regarding the custody of minor children (in case the parents are divorced).
• Death Certificate (in case of widowhood).
Can I be exempted from transfer tax for a second time?
From 01/01/2003 the second tax exemption for estates transferred has been abolished. There is though the possibility for a new exemption from transfer tax on inheritance taxation, parental provision and purchase for as many times as the tax payer wants, if the estate he/she is not an owner of an estate that fulfills his/her housing needs and the tax payer has submitted the tax of the previous exemption of any cause.
Auditing of the ownership titles
The auditing of the ownership titles includes the following:
• Check of their legality, as well as on the ownership status of the estate from the Portion's Books. The above check should cover duration of at least 20 years.
• Check for any mortgages, foreclosures or court decisions by individuals or legal entities.
•Check whether the estate has been acquired by inheritance in which case you should have the death certificate, the inheritance certificate and the certificate regarding the fact that it has been recalled or cancelled. If there is no certificate of inheritance then you will be asked to submit from the municipality certificates from the closer relatives. You may also be asked to submit the minutes from the publication of the will, a certificate of non- contestation of the inheritance right and a certification of a non-renunciation of inheritance.
•Check at the Court in case the buyer owns a business, for a certificate of non- bankruptcy, or non-submission of an application for bankruptcy, or that he/she is not under a status of compulsory bankruptcy.
Can I buy land with others?
If you are thinking in going ahead with such a buy you should be extremely careful.
The buyer of a land that it would be co-owned with others aims usually to participate at the building of the land and acquire a separate ownership in some of the estates that will be constructed. For the acquisition of separate ownership the horizontal and vertical land should be composed through a notary action.
You should first understand the meaning of the following terms:
• Land.
This is a part of land that is placed within a specific town, city, village plan, or within the borders of a housing complex with not a specific plan.
• Co-ownership.
It means that the rights and obligations of each one of the owners are determined based on the percentage of ownership of the estate.
• Construction of an estate on land. .In order to build an estate on a land, this should follow all necessary conditions according to article 6 of the Law 1577/85.
• Horizontal ownership. .
With this term we mean the setting of separate ownerships for each owner, for an estate comprising of more than one floor, or on the land, or on the total of estates, or on one or more of the floors that serve a use (e.g. apartment, office, store, etc). Accordingly the percentage of co-ownership is also determined for the land and the common areas of the estates.
• Vertical ownership.
With this term we mean the co-ownership at a land, with the right to construct more than one estate, either attached or separate from one another. Each co-owner acquires exclusive ownership either of one of the estates or a part of them, while he/she has the right to exclusively use that part of the land where the estate he/she owns will be built at.
Before going through with the purchase of a land with others or a land that includes a semi-finished estate you should pay attention to the following:
• The existence of a notary action of a horizontal or vertical ownership.
• That there is a percentage for the coverage for your own building as well.
•That the building terms have not been changed, with a reduction at the building coefficient, a reduction of the allowed height, a reduction of the coverage percentage, etc.
If these three conditions are met, then you can proceed with the purchase of a horizontal or vertical ownership.
In the case of land, you should pay attention for the following:
•That you can have a horizontal ownership if the land meets the conditions for building.
•That there is no possibility for vertical ownership that was abolished through Law 2052/92.
• That you may encounter problems if the land is not a result of a legal partition.
• That in the case the land is a part of a large fortune of the seller in the same area, the possibility of a debt in land or money should be examined. In some cases there is the possibility that the land does not meet the conditions for building.
•That you should check with the Forest Inspection in order to make sure that the land is not a part of the forest. You should also check with the Archeological Agency.
In the case the land is not included in the city plan, you should check both the building conditions and the legality of the land's titles.
One of the most usual problems is the full use of the allowed building percentage by the others co-owners. This situation creates even more arbitrary actions especially by that co-owner who has been left with no building percentage. In any other case there is no possibility for building.
Most of arbitrary actions around Greece, based on the examinations done by the Town Planning Agency, are found in buildings constructed at lands not included in the city plan that were co-owned by many owners.
Being aware of all the above you should proceed to all necessary research that includes the following:
•You should look for the initial act of commendation that should have attached the topographical diagram.
• You should check the act of commendation so it includes all rights and obligations of the owners that have already began to build and of those that have not started yet.
•You should check at the vertical ownership that the two or more parts of the whole land are clearly imprinted at the coverage diagram of the land, with a clear boundary that separates one from the other, and that the building coefficient of the whole land and of each of the parts are clearly stated.
•You should check of whether the land is constrained by the Municipality or if it is mortgaged at the Land Registry, or even if there is any problem regarding archeological findings according to relevant articles and by laws.
What you should know regarding the construction of a new house.
For the construction of a new house you will need to take important decisions at each stage, in order to make the best possible selections and ensure the highest quality in construction. The stages of construction are the following:
1. Studies. In order to achieve the best possible construction, a number of necessary studies should be done by an engineer according to your needs. The studies are prepared in such a way so as to be in agreement with the existing building conditions for each area, as well as in accordance to the existing general regulations such are, the General Building Regulations (G.O.K), the New Anti-Earthquake Regulation of Reinforced Concrete (NEKOS), the Building Construction Regulation, the Fire Safety Regulation, etc. The required studies are:
•
Topographic.
•
Architectural.
•
Static & Anti-Earthquake.
•
Heat Insulation..
•
Fire Safety.
•
Mechanical - Hydraulics - Electrical and of Electrical Installations. (The Mechanical and electrical studies are required for an estate of 3000 square meters and above, while the hydraulics and drainage study is required for estates of 2 floors and above, and of 1500 square meters size).
2. Construction License The basic requirement in order to begin construction is the issuing of the relevant license. This is issued by the Town Planning agency and is valid for 4 years. In order to acquire such a license you should submit the following documentation:
•
Application by the owner.
•
All studies as mentioned above
•
Receipts of the payments done to Engineers for the studies.
•
Budget
•
Statements of the assigning or the undertaking of studies and supervisions.
•
Various approvals (Municipality, Forest Inspection, Archeological Agency, etc)
•
Receipts of payment of contributions to Public and Insurance Organizations (IKA, etc)
•
For even lands you need the title of possession and the certification of ownerships, while for lands that are not included in the city plan you need the additional approval by the Forest Inspection.
3. Construction. Regarding the construction of the estate you have the following choices:
•
Assign the complete construction to a contractor.
•
Assign the construction to more than one contractor for each one of the necessary works (concrete, walls, plastering, etc)
•
Have a contractor purchase the material or include the material at the price of the work to be done.
•
Let the contractor have the supervision or assign the supervision to an Engineer.
In any case you should form a private agreement that is called Written Obligations. The following should be mentioned in this agreement:
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A detailed description of the works and material.
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The clear definition of the price and the forms of payment.
•
Mention of whether the price includes the special tax FPA, which should be paid by the owner.
•
Determine the duration of works and time of delivery.
•
Mention the fact that the contractor is obliged to keep all foreseen by the Law safety measures, as well as to proceed to the necessary trials for the quality of material and especially the concrete, according to the advice of the Engineer.
Also make sure you do the following upon the beginning of the works:
•
Inform the local Police Department for the beginning of works submitting at the same time the relevant Construction license.
•
Pay on time, the insurance contributions to IKA and regularly fill out the lists it has given you. Any delays or negligence will create serious problems.
•
Ask for invoices for all works and material. Their submission is necessary for the connection of electrical power by DEH.
4.Supervision.
Through supervision you ensure the good implementation of the study and the high quality of construction. You should keep in mind that any implementation of work without the supervision of an engineer is forbidden. The engineer is the one to supervise the works and makes sure that all safety rules are followed at the building site.
5. Safety Measures. The law enforces the taking of safety measures at the building site in order to protect the workers from falling, electrocution or any other injury, and to preserve the life and assets of the neighbors. The safety measures at the building site are indicated by the engineer-supervisor, but the owner is also responsible. Some of the safety measures include the following:
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Fencing of the building site and a sign that states that entrance is forbidden.
•
Taking measures for the protection of workers such are helmets, boots, and gloves, depending on the performed work. .
•
Protection for falls with the use of safety belts, grates, closing of wells, etc.
•
Protection from the electrical power.
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Stability of scaffolds, working areas, etc
•
Safety measures for the neighboring houses in cases of digging, demolitions, etc.
6. Anti-Earthquake protection Due to high earthquake activity in our country you should seriously take under consideration especially during the study and the construction, anti-earthquake protection. The endurance of the estate in cases of earthquake is ensured by the static and anti-earthquake study prepared by the Engineer. Some of the elements that may affect the anti-earthquake protection of the building are the following:
•
The endurance of the land where the estate is built..
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The substructure.
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The building's symmetry.
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The quality of material and the way the estate is built.
These elements are taken under consideration at the New Anti-Earthquake Regulation (NEAK) that should be followed meticulously. You should also keep in mind that you should check very carefully all building material, especially concrete and irons.
7. Completion of the Building When all works are finished then you should proceed to the electrical power connection (DEH) as well as to the connection with other networks. You will have to do the following:
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Submit an application to the Town Planning agency for a relevant examination.
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Submit all payment receipts for the amounts you paid to the Engineers-Supervisors (in case you had not paid them at the issuing of the license).
•
Submit statements of the engineer and the owner mentioning that all studies accompanying the building license have been followed.
•
Submit to the tax office copies of the receipts of the contractors and the material used in order to get the relevant certification.
When all the above are done, then you can connect to all networks (DEH, OTE, EYATH, Natural Gas, etc).
8. Delivery of the House Before moving into your house you should record any possible incompletion and report them to the constructor. Only in such a way you can request any kind of repair or replacement.
Budget the cost of the building of your house.
The cost for the construction of a house requires specialized techniques, special negotiations and good knowledge of the market.
Below you will find an indicative budget for the construction of a house of 130-150 square meters with a construction cost of €90.000.
| A' Study & Issuing of Building License
|
4% |
3.600 |
| Diggings & Earthworks |
2% |
1.800 |
| Shell of Armored Concrete
|
19% |
17.100 |
| Walls |
4% |
3.600 |
| Plasters |
6% |
5.400 |
| Insulations |
3% |
2.700 |
| Glasses |
3% |
2.700 |
| Iron works |
2% |
1.800 |
| Frames (interior and exterior)
|
7% |
6.300 |
| Marble works |
3% |
2.700 |
| Floors |
8% |
7.200 |
| Electrical Installations |
5% |
4.500 |
| Sanitary wear – tiles – taps
etc. |
5% |
4.500 |
| Heating system |
4% |
3.600 |
| Water system – Drainage -
Gas systems |
5% |
4.500 |
| Paintings |
7% |
6.300 |
| Kitchen furniture |
5% |
4.500 |
| Different works (Fireplace, turn ,
e.t.c.). |
3% |
2.700 |
| Environmental place set |
5% |
4.500 |
| |
100% |
90.000 |
Parking
Permanent parking at the building are now obligatory by law.
Before issuing the building license by the Town Planning agency, the Engineer should submit a plan-through a notarial act- that will determine the parking spaces. The number of parking spaces should be proportional to the coverage of the building.
Parking spaces may be placed either at the entrance of the building, or at the rooftop, or at the basement, or at a floor or at an open space and are separated to outside or inside places with enough space of at least 12 square meters, easy access and enough free space for movement.
The open space, the rooftop and the entrance of the building are considered as common spaces. The parking spaces are set at these areas, either through the agreement of all co-owners, which is attached to the regulation of the building, or through the formation or amendment of floor ownership with a notarian act. For any amendment to take place all co-owners should be in agreement.
• Open parking spaces are not a separate ownerships, i.e, they do not hold a participation percentage at the common land. These are given for exclusive use to any owner of horizontal ownerships, e.g. of an apartment, and is done through a special note at the purchase contract. The parking space is directly linked to the specific apartment and it cannot be transferred or rented to a third party. The open air parking space cannot be closed without the agreement of the other co-owners.
• Closed parking spaces are either foreseen by the building license or are created later through a review of the license by the Town Planning Agency. These spaces are not common areas and are part of the horizontal ownership and are part of the land. They can be transferred to any interested party without any limitation. The owners of such spaces have the right to rent the space unless this is forbidden by the regulation of the building. Finally, all these areas are loaded with common expenses, just like the apartments.
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