The purchase and sale is a demanding process that requires the cooperation of multiple professionals in order to be completed smoothly for both contracting parties. Also, it must be understood that a purchase and sale, even if the property has been found and the contracting parties (buyer and seller) have come to an agreement, cannot be completed within a month, but now a period of a few months is required until the completion of it. In particular, the following persons are required to be involved in the process:
- a notary public, who undertakes the drafting of the contract, and/or of the preliminary contract, as well as the inspection of the required documents
- and an engineer, for the collection of specific documents and the provision of certifications
- the representation of each contracting party by an attorney, who, except for the audit of ownership titles, provides guidance regarding the required documents. It must be noted that the presence of an attorney during the signing of a contract is not mandatory by the law. However, especially on the part of the buyer, an audit of the ownership titles of the property to be bought is NECESSARY in order to acquire the property free of any encumbrance and legal matters that will definitely cause issues in the future.
Also, on the part of the seller, they should be represented by an attorney if the seller wishes their participation in the collection of the documents required for the transfer. Usually these days, a seller sells a property because they have pending loans, among other things. In this case, they must be repaid, or negotiated with the respective company if the seller wishes a reduction of the debt due to the lump-sum payment. Then, the elimination of the mortgage prenotation follows, so that the property to be free from encumbrances. Throughout the process the seller must have the assistance of an attorney.
Which are, however, the required documents for the purchase and sale process for each contracting party?
Buyer
The buyer, as regards the required documents, has a limited role, since only their personal information is required, such as a copy of their ID card or passport, their TIN, residence address and profession.
Seller
The obligation of collecting the required documents falls upon the seller. In particular, the following documents are required from them:
- A copy of their ID card or passport, their TIN, residence address and profession
- The title of acquisition, which usually is a notarial deed (such as a deed of inheritance acceptance, a former sale contract of the property stating the current seller, a parental benefit, contract of donation) proving the seller’s right of ownership on the property to be sold. Also, a certificate of transcription of the property.
- The seller’s tax clearance certificate in order to prove the non-existence of outstanding debts of the seller to IAPR.
- The seller’s insurance clearance certificate in order to prove the non- existence of outstanding debts of the seller to the National Social Security Institution (EFKA).
- The seller’s Ε9 form, which is inspected to make corrections if necessary.
- The Unified Property Ownership Tax (ENFIA) certificate, a specific certificate issued online for the transfer of a property proving that the seller included the property in the Real Estate Tax return for the last 5 years (E9 form must be audited before its issuance).
- A statement from an engineer certifying the existence or non-existence of arbitrations on the property. In case of existence of arbitrations, the statement must confirm that they have been settled.
- Electronic Identity of a Building – Completeness certificate drafted by an engineer. The electronic identity of a building is a digital/ electronic file which includes all information of a building or an independent divided property, e.g. an apartment in an apartment building, and is filled by the engineer. Essentially this file includes the title of ownership, the building permit, the floor plans, the ownership percentages, the Energy Performance Certificate, the settlement of arbitrations and any information related to the property. All data and all the changes made on the property are kept in this file.
Therefore, especially for the sale of older properties, the Electronic Identity of a Building must be drafted from scratch and such process takes time. Such actions, which are now necessary for the drafting of a property transfer contract, increase the time needed for the completion of a notarial deed. - Extract of the cadastral diagram. The cadastral diagram can be issued online upon application submitted to the Cadastre and it shows the land registered property integrated in the wider region. For its issuance, the National Cadastre code number (KAEK) of the property is required. The diagram includes a map with the location of the property, the data of the property such as address, coordinates, declared area and area of ownership.
- Energy performance certificate. This certificate is issued by an engineer and classifies the building or part of it in an energy class.
- Copy of the building permit.
- A topographical plan, if it is a plot of land or parcel, with its Electronic Plan Code (KID). The Electronic Plan Code (KID) is a unique code issued by the National Cadastre automatically upon the issuance of a topographical plan and constitutes the identification reference code of the plan.
The above are the main documents that must be collected by the seller. However, as the case may be, the notary public may request additional documents, and informs the contracting parties accordingly.
REPRESENTATION BY AN ATTORNEY
It should be noted, as we mentioned above, that representation by an attorney during the purchase and sale process is not mandatory. These documents can be collected with the guidance of the notary public and of the engineer. However, the role of the attorney in this process is very important, especially due to the process of the audit of ownership titles, since the attorney is the one who performs the audit in order to avoid any unpleasant surprises. The process of purchase and sale is very important. It is an investment and before proceeding, the buyer must receive proper counselling.
You may read our article here regarding the auditing process of ownership titles, and also for any additional information you must pay attention to during a purchase and sale.
Our office undertakes the support and counselling of principals throughout the process for the purchase and sale for a smooth and problem-free completion of the process for all contracting parties.
Evangelia Souli
Associate Attorney, Anna Korsanou Law Firm
Special thanks to the Notary Public in Athens Emmanouilidou Maria for her assistance in writing this article.
