The buying process in Crete
Greece has been in the EU since 1983 at which time all restriction on property ownership by foreigners were lifted. The buying process in Crete is actually now easier than in the UK, but when deciding on your budget, you should take into consideration an additional 10% of the purchase price for taxes, fees and legal expenses. In Greece the architect is responsible for the life of a structure, and all problems that require rectifying, which if not done according to the requirements of the client, can result in the matter being taken to court.
Once a decision has been made on the property of your choice, you must instruct a legal representative to act on your behalf. We are able to introduce you to a lawyer, but may prefer to use one of your own choice. He will then explain the steps you must follow for buying property in Crete.
It will cost you around 60 euros to sign over Power of Attorney for him to represent you for your purchase. For this to be legal, you will need to visit a Notary whilst in Crete.
Once power of attorney has been obtained your lawyer will be able to open bank accounts which you can use to transfer the funds for your purchase. He will then forward the stage payments directly on to the builder when they are due. He will also obtain your tax number which is required for buying property in Crete, as well as utility contracts, car purchases or any other major purchase.
Your lawyer should be paid at the Land Purchase stage which will be at either 40% or 90% of the stage payments. The lawyer fees will include the purchase tax of the property.
Before you leave Crete, you must make sure that you have completed a specification sheet listing any extras that you have ordered for your new property, together with details of your kitchen and tiles, and anything else on which you have specified a preference.
Once you have returned to your home country, you will receive a sales confirmation letter confirming the price of your new property, and a breakdown of the stage payments and the schedule.
A summary of stage payments can be seen below:
10% Deposit
Once your lawyer has your bank account in place, the 10% can be transferred directly into this account ready for payment to the developer.
30% - Land Purchase
The 30% payment is usually required within a few days of the deposit being received. It is often cost effective to transfer both amounts at the same time. If you are using a foreign currency exchange company, you are likely to save more again. At this point your plot will be registered with the local Land Registry and titles will be signed for by your lawyer. At this time you legally own anything then built on the land.
30% - First Construction
This money is required two months after the Land Purchase stage payment. This payment finances the initial stages of construction.
30% - Second Construction - less €1000 retention to cover 'final snagging'
This money is required two months after the 1st Construction stage payment. This payment finances the completion of your property construction. All extras requested must be paid for at this stage.
€1000 Final Payment
This final payment is required on completion of the property at the handover of keys. Although your new property will have been thoroughly checked for snags before you take delivery, you may find a few minor final issues that require rectification before you can finally start enjoying your new property in Crete.
Stage Payments can be made as follows:
Either:
3000 euros down payment will remove your chosen property from the market and reserves it as yours. (this will then be deducted from stage payments)
10% Deposit
90% Required at the final stage of the build – usually on commencement of the tiling of the property
This payment will finance the completion of your property, and any extras you have requested must be paid for now. The plot will be registered with the Land Registry and titles will be signed for by your lawyer.
Or:
3000 euros down payment
10% Deposit
30% Land Purchase
30% 1st Construction
30% 2nd Construction (Less €1000 Retention)
€1000 Handover Of Keys
Utilities
Electricity is provided by DEH, who will issue you a bill every two months. The cost is approximately 0.11 Euros per kilowatt + 19% tax (VAT). A typical monthly cost for a family of four will be around 44 euros. Strangely enough, this bills will also include your TV licence, whether or not you have one, which is 6 euros per month.
Water is provided by DEYAX who send bills quarterly. The standard charge is approximately 13.50 Euros + 19% tax (VAT) but the rate is set according to usage. A typical monthly cost for a family of four will be around 62 euros a quarter, although the more you use the higher the rate. There is also a tax on extras, such as sewers etc, set at 19%.
A new telephone line is around 30 euros, with a monthly line rental of approximately 12.00 Euros.
The buying process in Crete is a relatively straightforward process as long as you have sound legal advice and a good estate agent acting on your behalf. If you would like to view some of our property for sale in Crete, we can offer a free viewing trip giving you 4 nights FREE accommodation in one of our properties and visits to our developments and show homes as well as the chance to look around the various areas.
Property for sale in Crete >>
