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Terms and Conditions

8.1. General
These payment conditions are only valid for properties which are ready for takeover by the buyer. First step in the buying process is that a reservation contract is established between the buyer and Kretaestate. The reservation fee is 5.000, - euro.
The reservation contract is valid in a limited period, normally 45 days. The work with the contract documents will start as soon as the buyer confirms the buy, maximum 45 days after the sign of the reservation contract. The payment schedule is split into two part payments. The first payment, 60% of the total contract value, direct after the contract confirmation. The second payment, 40% of the total contract value when buyer and seller are signing the deed.
See the payment schedule in chapter 8.5.


8.2. Reservation fee
The reservation fee is a part of the total contract price, and will be deducted from the contract price if the buyer fulfils its contract obligations. If the buyer do not fulfil the contact obligations, Kretaestate is entitled to keep to total reservation fee.

8.3. Power of Attorney
During the contract work period and payment of taxes and fees we recommend the buyer to establish a Power of Attorney, to give the rights of acting on their behalf during this period. Normally this work will be given either to a lawyer or to a person in Kretaestate. Our recommendation to establish a Power of Attorney is based on the fact that this work takes some weeks to do.

8.4. Nødvendige formaliteter.
If a buyer from a foreign country should buy a house/apartment in Crete he will need the following documents.

• A copy of their passport.
• A written confirmation, to confirm your correct home address.
• A written statement, from your employer.
• To get Greece VAT number. The staff of Kretaestate will help you.
  

When the above paper exercises are done, you must then open a bank account in a local bank. To be able to buy a property in Crete, the buyer must transfer his money from his bank account in England to his bank account in Greece. Then could our lawyer or a representative from Kretaestate act accordingly to the written Power of Attorney.

8.5. The buying process.
To be able to transfer a Greek deed from a buyer to a seller all economical conditions must be settled. Which means that all taxes, fees, salaries and VAT in conjunctions with the buy must be paid before the transaction is legal. The first payment of the bargain, 60% of the total contract price, is already paid.
After all part payments is done and different register is updated the final transfer of the deed can take place. At the same time the last 40% of the contract price must be paid.

Our payment schedule is:

• Day 1. Signing the reservation contract; 5000, - euro to be paid.
• Maximum 45 days after signing the reservation contract or after the buyer confirms the buy, the buyer has to transfer 60% of the total contract sales price to his Greek bank account.
• Day 55. The final payment, 40% of the total contract price must be transferred to the buyer Greek bank account, to be available for final contract signing.
• Day 45 to 60, payment of all taxes, fees and VAT and a part payment to the buyer. This will be done by the person who has been authorized by the buyer to act on his behalf.
• Day 61 to 70, transfer of the deed from the seller to the buyer, and payment of the final 40% of the total contract price.
  

Note! In Greece it is not possible to get any bank guarantee, for the pre payment of a contract period of a house buying process. The ready made house, act as a guarantee for the pre payment.

8.6. Taxes and Fees.
To buy a property in Greece there are some taxes and fees that has to be paid by the buyer.

• A.On most of the new houses, built after 2007, the buyer must pay 23% VAT. This tax is not calculated from the actual sale price but from a tax price given by the local tax office. Normally is this tax price about 30% to 60% of the actual sales price. Note! If it not agreed on a separate payment for the sales provision, this amount is calculated in the sales price.
• B. For all house contracts to be legal, it is needed to be two lawyers and one notaries to witness the contract. The buyer has to pay the salary for one lawyer and the notaries. The cost of these two jobs is normally about 4,5 % of the value of the contract (the sales price).
• C. I most case the buyer most pay about 2.200 euro to be connected to the electricity and water net. This cannot be done before the buyer has received the sign and approved deed.
  Note! The cost for connections of water and electricity is an extra cost, to be paid after the deed is sign.
• D. In some cases it can be possible to buy a property for a lower tax cost than we have specified above. This case will be clarified before the signing of any contract.
  

We will give one price example how to calculate the total sales price of a property.

The property cost 200.000 euro and the tax price is 50% of the sales price.

Sales price includes sales commissioning. = 200.000 euro

VAT.= (200.000 euro * 50% * 23%) = 23.000 euro

Fees notaries and lawyer = (200.000 euro * 4,5 %) = 9.000 euro

Total sales price. = 232.000 euro