What does the new law provide regarding the purchase of real estate from the Greek State?
Law 5024/2023 modernises the institutional framework governing the conditions and procedure for the purchase of real properties belonging to the private estate of the Greek State and falling under the competence of the Ministry of Finance, by persons who are in possession of them.
The above law introduces the possibility of submitting an application for the purchase of State-owned real properties by persons who possess them, under specific conditions, on the basis of a defined procedure and the submission of supporting documents. For the issuance of the purchase decision, a price is paid, on which discounts apply, taking into account financial and social criteria.
Who is entitled to purchase real estate from the Greek State and under what conditions?
An application for purchase may be submitted by any person who, at the time of entry into force of the above law:
a) Has been in continuous possession, with title in their own name or in the name of their predecessors in title, for at least thirty (30) years over a State-owned property and, where a building exists within the State-owned property, that building has been erected at the latest by 31.12.1991, or
b) has been in continuous possession for at least forty (40) years of a State-owned property within which a building exists, which has been erected at the latest by 31.12.1981 and in which: ba) their main residence is located, covering the housing needs of themselves or their family, or bb) they conduct tourist, handicraft, industrial or commercial activity, using building installations and other accompanying works functionally connected thereto, or bc) they conduct agricultural activity, with or without the use of building installations and other accompanying works functionally connected thereto.
The period of possession of the predecessors in title is also added to the period of possession of the applicant.
What is the purchase price for real estate acquired from the Greek State?
The buy-out price corresponds to one hundred per cent (100%) of the objective value of the plot of land or land parcel. Where the system of objective valuation does not apply, the buy-out price is determined in accordance with the regime for calculation on the basis of comparative data provided by the competent service of the Tax Administration. If, in the area where the State-owned property to be bought out is located, no comparative data exist, the buy-out price is calculated on the basis of the highest value of a similar plot or land parcel, as the case may be, in the nearest area for which the same urban planning legislation applies.
If, on the plot or land parcel, as the case may be, there are buildings erected by the applicant or their predecessors in title, the buy-out price under paragraph 1 is increased by twenty-five per cent (25%). If the building has been erected by the State or a third party, the buy-out price corresponds to one hundred per cent (100%) of the objective value of the property.
Are there exceptions to the purchase of State-owned real properties?
Caution, however – properties or parts of properties of forest character are excluded from the buy-out. If, however, within the State-owned property to be bought out there is an area of forest character, provided that it covers at most twenty per cent (20%) of its surface, it is bought out as a single unit together with the State-owned property, with retention of its protection terms, which derive from its nature and from the applicable legislation. The protection terms are mandatorily mentioned in their entirety in the buy-out decision.
FREQUENTLY ASKED QUESTIONS ON THE PURCHASE OF REAL ESTATE FROM THE GREEK STATE
1. I have possessed a State-owned property for years; can I buy it out?
Law 5024/2023 provides the possibility of buying out State-owned properties for those who have possessed them continuously. Required is either possession with title for at least thirty years, with any building erected by 31.12.1991, or possession of forty years with a building erected by 31.12.1981 and used as a main residence or for tourist, handicraft, industrial, commercial or agricultural activity. The period of possession of the predecessors in title is added to that of the applicant. The assessment of the conditions is made on a case-by-case basis and requires careful examination of titles, period of possession and characterisation of the land.
2. How much will the buy-out of the property cost me?
The price is, as a rule, set at 100% of the objective value of the plot or land parcel. In areas without an objective valuation system, calculation is made using comparative data from the Tax Administration or, if these do not exist, on the basis of a similar property in the nearest area. Where buildings have been erected by the possessor themselves or by their predecessors in title, the price is increased by 25%. If the buildings have been erected by the State or a third party, the price amounts to 100% of the objective value of the entire property. Discounts are provided for on the basis of financial and social criteria.
3. How long does the buy-out procedure take to complete?
The procedure is not short, as it includes stages of examination and assessment by the competent services of the Ministry of Finance. From the submission of the application until the issuance of the buy-out decision and the signing of the deed, a period from several months to even years may elapse, depending on the completeness of the file, the existence or otherwise of an objective value in the area, any parts of forest character and the workload of the services. Proper preparation of the file from the outset significantly reduces delays caused by requests for supplementary information.
4. What documents do I need for the buy-out application?
Required are titles of ownership of the applicant or their predecessors in title, evidence of continuous possession (aerial photographs, utility bills, certificates from the competent authorities, witness statements, old E9 declarations), a topographic diagram, building permits or evidence of erection of buildings, certificates from the Forestry Authority on the character of the land, certificates from the national land registry (Ktimatologio) and the urban planning authority. Where the property concerns a main residence or professional use, the relevant supporting documents are also required (certificate from the Independent Authority for Public Revenue (AADE), operating licence, business activity code (KAD)). The compilation of a complete and well-documented file is the most critical phase of the case.
5. What happens if there is a forest area within the property?
Properties or parts of properties that have a forest character are, as a rule, excluded from the buy-out. There is, however, an important exception: if the forest area covers up to 20% of the surface of the State-owned property, it is bought out as a single unit together with the remaining part, but with retention of all protection terms deriving from its nature and from forestry legislation. These terms are mandatorily recorded in the buy-out decision and bind the purchaser. For correct calculation, cross-checking of the forest map with the topographic diagram is required, in order to avoid unpleasant surprises.
6. What is the role of the lawyer in this procedure?
The lawyer examines titles, aerial photographs, land registry extracts, forest maps and urban planning data, in order to ascertain whether the strict statutory conditions are met and to assess the amount of the price. The lawyer drafts the application, organises the file of supporting documents and represents the client before the competent services of the Ministry of Finance. In the event of rejection or overpricing, the lawyer files the legal remedies provided for. Given that the opposing party is the State, supported by the Legal Council of the State, specialised legal representation of the private individual is essential to the successful outcome.