The legalization of real estate has been a big-time issue for Greece. Till now as well, many laws have been enacted concerning the arbitrary construction of the real estate. Currently, law 4495/17 is in force which states the transfers of real estate are new obligatory to be accompanied by a certificate of an engineer. The engineer must state that in the specific property or the independent property, no arbitrary change has been structured or installed. It has been ascertained that the arbitrariness has been settled in the past.
However, on the additional basis of the urban planning law 4495/17, the transfer or sale of real estate in which there are arbitrary constructions or users and the rental of shops or companies that require an operating license is not at all allowed. A fact that gives the possibility of a much smaller fine in case of any urban control.
Issuance of certificates for sales and leases
νομιμοποίηση αυθαιρέτων is a legal process for declaring arbitrary uses. The engineer who undertakes the project is called to record the arbitrary constructions and violations that have taken place in a property. It should be noted that law 4495/17 cannot be subject to arbitrariness that has taken place after 28/07/2011.
Calculation of the process and the payment of the entire fine that has been calculated, the entire construction is considered settled except for demolition, and there is no obligation to pay future fines, which allows for a much smaller fine than one would pay in case an urban inspection was carried out.
Five-year extension for real estate legalization
The possibility of illegal constructions and uses has been extended until the end of 2025. This regulation does not include constructions without a permit or very large-scale arbitrariness. It should be noted that the legalization fine will be increased by 20% in 2020 and will continue to increase by 5% per year until 2025, when it finally reaches the level of 40%.
According to the government, the cycle of regulations and settlements of arbitrary constructions will be completely closed.
What are the documents, fees, and costs for real estate legalization?
The supporting documents depend on the type of construction and the category of the violation, and the characteristics of the area of the property. Regarding the fee paid in favor of the Greek state, as defined in the urban planning law of 2017, amounts to the amounts of:
- 250 euros for constructions up to 100 sq.m.
- 500 euros for construction from 100 sq.m. up to 500 sq.m.
- 1000 euros for construction from 500 sq.m. up to 2000 sq.m.
- 4000 euros for construction from 2.00.m. up to 5000 sq.m.
- 10000 euros for construction over 5000 sq.m.
Potential risks from the legalization of real estate
The process of legalizing a property is not obligatory, without this meaning that there is unlikely to be penalties in case a property is arbitrary. It is at the sole discretion of the town planning and other competent services to carry out inspections to determine whether any property is arbitrary or not.
It is also their responsibility to decide the imposition of a fine and its amount. In any case, the fines imposed are multiple of the special settlement fine, which is provided in cases of this kind.
What provisions are included in lease agreements?
- The use of the leasehold
- the object and duration of the lease
- term for termination of the lesser
- the rent amount and the manner of payment
- Some specific provisions were made for taxes, utilities, cleaning and safety expense, common charges, repair and maintenance of the leasehold.
There are some regulations on the minimum and maximum term of the lease
- 12 years for state and public entity leases
- three years for both business leases
- 20 years for quarries
- Four years for agricultural leases
- one year for timeshare
- Ten years for condominium lease agreements.
Minimum terms are provided for special public interest activities, such as quarries, mines, and hydrocarbons. Leases with a maximum term of 95 years are allowed for public entities’ privatizations and other development projects.