What happened ?
In 1998 we moved from the overcrowded, overstressed and overregulated Netherlands to the calm and friendly little Grand Duchy of Luxembourg. Our house had been put up for demolition by the city counsil because they planned a whole new city district into which our house, dispite the fact it was only 25 years old, didn't fit in.
construction in Crete and Luxembourg
Our house in Luxembourg was build by my wife's father in the seventies in a village called Enscherange. He was busy expanding it when he unfortunately died during cardiac surgery in 1994. With the help of some dear friends we finished the work he started and by doing so learned a lot about general construction and working in a foreign country.
Although Luxembourg isn't that far away from Maastricht the Dutch city where we used to live, it is another world. They have 3 languages (French, Luxembourgish and German) and is a meeting point of Romanic and Germanic culture. Luxembourgers are Romanic in their stresslessness (mol schauen = we'll see) but Germanic in their tidyness and love for order. The people are friendly (but a bit distant at first) and the landscape is breathtaking in every season.
When you look at income per capita it is the richest country in the world but that is a fact Luxembourgers call "none of your business" and they prefer to keep a low profile about it. All in all Luxembourg is a wonderful country to live in and to us its our "Heemescht" (home). Luxembourg has one setback however! It's climate! In summer and during the day it's okay and even very hot but on summer evenings you can't sit outside without having a fire or terrace heaters. The winters last six months and in January psychiatrists have their high season.
Already heavily in love with the Greek islands and Crete in particular and being experienced, but somewhat cowardly expatriates we decided to look at the possibilities to take our tent further down south and started exploring the Greek property market.
And so on the first of October 2005 I flew to Chania, heavily prepared and with no intention what so ever to even buy a t-shirt let alone a house.
But then I saw a property on sale with the exact view my wife and I fell in love with twelve years before. Only having seen the property on the Internet and fully trusting on my gut feeling my wife agreed that we should start negotiations
And so, on the sixth of October 2005, we could call ourselves the proud owner of an old house and a stable on 2900 sq. m. plot in the northwestern part of Crete.
Wheather this was stupid or not you can judge for yourselves if you check out this site once in a while and be a witness to our steps towards living in the sun...........
Preparations
(Take a look at the checklist)
When you are looking to buy a property in Greece (or any other place other than you know very well), it wouldn't be a such a bad idea to have visited it a few times, preferably in all seasons and talk with local people about "life". This will give you a general idea of what the area you love so much as a tourist, can be when you are a resident. Notice that you will never know what every day life is like in a foreign country untill you actually live there.
If you are still enthousiastic about the idea. The next thing to do is to really narrow things down as much as possible. Don't forget that every holiday location seems small and distances seem short. That is because you are on holiday, relaxed and enjoying the scenery. It becomes different if you have to drive 45 minutes to the nearest traces of human existence every day (unless you prefer that). Be selective about your dream location, define it and hold on to it as much as possible.
Keeping this in mind you can start your search on the Internet. Take your time and don't expect to know everything after one surfsession. Compare the offers and surf on foreign sites. Also look for general info like economic growth, demographics, politics and language courses. Join message groups on the subject. But most of all try not to get to obsessive and leave the project for what it is from time to time.
After having done all this, make a shortlist of the properties you are interested in and contact the agents on their contact forms on their websites. If they do not respond be alert; either you are not serious enough or they aren't. If you do get a response call them and explain them in detail what you are looking for and if the properties you have selected fit to your wishes. Don't be too exact on your budget and keep your options open.
Now you can start planning your trip. Plan it like you would do a business trip. The people you are going to meet run a business or are on commission and (generally) not interested in spending a nice afternoon on the beach or having a nice drink and chat. They want to spend their time effectively and so should you. If they show you something you are not interested in; tell them so. They will not be offended but glad to offer you alternatives. Be sure to take ample time to think and relax after each visit. Do not plan more than two appointments a day (preferably one).
The vast majority of agents on Crete are bonafide and serious. You can check them out on the Internet on blacklists or by just "googling" their names. The real good ones will tell you to be patient and will not press you to come to a close. Remember: there are no stupid questions but only stupid answers. You are a stranger here and Greek laws can be strange to you. So ask and ask again about any relevant topic either serious (do we have drinking water) or seamingly irrelevant (what kind of plants grow here). If you meet several agents: compare their answers.
When you have found your property by now; congratu- lations! Be very minute about what is going to happen next. Have the agent write it down for you. Do not be hasty and adapt to Greek customs (siga, siga). When you return home you should be able to explain exactly what you have done, what is next, what it's going to cost you and what you get for your money. Be an expert on Greek planning regulations (they are not that difficult) and construction ("no rocket science" according to our own agent).
When you have not. No worries, just start again. And if you don't find anything, be patient and remember:
Buying procedure
The buying procedure as described here is only applicable to EU-citizens.
Step 1: Power of attorney and bank account
In order to purchase real estate in Greece you'll need a public notary and a lawyer. A good agent can explain the buying procedure more elaborately and usually can introduce you to a notary and a lawyer. You are ofcourse free to select your own legal aid.
If you are serious about buying a property you should go to a public notary who will draw up a power of attorney (PoA) which will enable your lawyer to act on you behalf in signing papers, applying for water and electricity connections, applying for a Greek tax number (AFM-number), appointing a lawyer etc. etc.. This PoA will cost about 40 euro. If the purchase, for whatever reason, is cancelled, the PoA is not wasted because you can use it on other attempts
You will have to open a (Greek) bank account on your name (look for a bank with web banking services like the National Bank of Greece).
Most real estate agents will ask you to sign a side contract in which their commission is regulated. It's content depends on what your agent is going to do for you and so will the provision fee. We paid a provision fee of 2.5 % for a very active agent. If an agent only shows you around the property once or twice the fee should be much lower.
Step 2: Downpayment and appointment of lawyer
Once you are sure that you want to buy a certain property, you will have to make a deposit of 10% of the purchase sum. Negotiations on the purchase price are not uncommon but remember you are not negotiating with a street vendor!
Please note that withdrawing from the contract in this stage is not possible once you have transferred the downpayment. In western europe most pre-contracts are made with the provision that financement (mortguage) is provided. In Greece this is generally not the case (this depends on the pre-contract). The buyer is bound to the contract unless:
- the seller is not entitled to sell
- the plot is not as it is presented by the seller
- the seller has major debts
If you in this stage decide to withdraw from the contract you lose your downpayment but are not obliged to pay the full purchase amount.
If the seller withdraws from the contract he has to refund the downpayment and pay a fine of 100% (this fine will in practice hardly ever be paid).
Your Greek lawyer can make the following arrangements:
- applying an AFM number
- legal translations of documents (you need a birth certificate)
- preparing a "pink slip" needed for transfer of sums to Greece
- handling of the downpayment in the precontract phase
- checking the buying contract and signing it in your absence
- payment of transfer (real estate) taxes
- closing and handling the final payment of the contract
- keeping of keys and papers
- appointment of a "mechanico" for making of topographic maps
- registring.
Another important task for your lawyer is to check the title of the seller. He will check if the seller is the rightful owner (famous in Greece because distant relatives can suddenly pop up claiming that they own part of the property), if the property is not endebted and if the property is sold with all the necessary permits for building or use as envisaged (building regulations).
Step 3: Completion
You'll also need your lawyer to co-sign the purchase contract (if the value is higher than 11.300,- euro)
In general you should calculate 12-15% of the purchase sum for taxes, lawyers, registry and fees. Here are some specifications (in euro):
POA ---------------» 40,-
Title check --------» 500,-
Representation ---» 350,-
Signing ------------» 1%
Topo (Map) ------» 200,-/500,-
Notary -------------» 2%
Taxes --------------» 7-13%*
*(Taxation on real estate is a hot topic at the moment. New laws are espected on the valuation of property and taxation. Property tax is being replaced by TVA. Nothing is sure at the moment, so beware)
If all the paperwork checks out OK, you are ready for completing the contract. You will be asked to transfer a lump sum to your ownbank account in Greece to which your lawyer has access with his PoA. He the will complete the purchase by signing the contract at the public notary's, paying the puchase sum and all fees and taxes.
