The way to the property

Author: Natalia Boguta

Each country has its own particular procedure for purchase of real estate. In Germany, the deal takes place with the participation of a notary who makes a draft of purchase and sale contract, checks the title deeds to the apartment seller, and is often a key element in the settlements between the buyer and the seller. "Purchase and Sale Agreement may be signed by the parties in person and by power of attorney. Parties are given a copy of the purchase and sale contract and the original is retained by the notary who draws up the ownership. For the settlements between the parties the notary opens a so-called trust account that is accessed only by this notary. The buyer transfers the agreed price of the apartment for this account. Only after processing the deal and the transfer of ownership to the buyer the notary transfers the funds to seller ", - says Dmitry Kiselev, a senior lawyer of international law firm Beiten Burkhardt. According to his statement after the signing of purchase and sale contract the registration of ownership of new owner shall be done in the Land Register kept by the land court. Extract from the Land Register is the main evidence of the transfer of ownership of the apartment to the buyer. Prior to registration in the Land register the inspection for arrests and interdictions of the property shall be executed.

The ownership of real estate in Germany can be a good source of income as many people in this country live in rented apartments and the demand for rental housing is great. However, no privileges to foreigners buying property in Germany are provided - neither in obtaining long-term multiple entry nor in obtaining a residence permit.

And if you buy apartments in Cyprus? The procedure for completing the ownership of the property will take maximum six weeks. "The term for the procedure to be completed is about 1 month. The conclusion of the contract is possible for two visits. During the first visit (about a week) the buyer selects real estate and makes payment of the initial deposit. The second visit can be timed to the signing of the main contract and making necessary payments, "- Alexey Latenko said. Buyers of the property in Cyprus can safely apply for a two-year multivisa for the whole family. But for citizenship it will be necessary to invest millions. "Persons who are not citizens of the European Union are allowed to obtain a passport in Cyprus under the speeded up procedure (in 6-9 months, not in 5-7 years ) If direct investment were committed in the amount of not less than 5 million euros" - said Kateryna Nikitina the head of Cybarco Ukraine company.

Greece is another case. Buying a property there gives the right to receive annual multivisas to the owner and his family, as well as a residence permit. "In May 2013 an amendment to the legislation came into force, providing five-year residence permit for third-country national subject to legal ownership (in person or by a legal entity owned by the applicant), use and disposal of real estate in Greece. The minimum value of the real estate property  to obtain a residence permit in Greece is amount to 250 thousand euros, "- said Natalia Gnatiuk General Director of Real Net company.

Two-bedroom apartment of ​​40-50 square meters area located at the resort of Halkidiki (Kassandra peninsula) can be purchased for 30-50 thousand euros. The prices in Thessaloniki are loyal also - in the suburbs of this large city one can find apartments of 55-72 square meters area, distanced for 400-500 m from the sea at the price of 45-58 million euros. However, it will be the flat in an old building which will need to be repaired. The Greeks are very supportive of foreign buyers, a deal of purchase an apartment in Greece will be concluded in a month. "In most cases, if we are not talking about the border areas, the transaction of purchase and sale of real estate can take three weeks, from the first call to a lawyer to the final registration of the act of transfer of ownership rights in the Land Registry", - said Natalia Gnatiuk.

The procedure for purchasing property in Greece is transparent and usually takes no more than 3-5 weeks. The term for completing ownership of the property can only be extended due to the tightening of procedures for obtaining an individual license of the NBU. Indeed, as it has often been noted by the magazine "Money", investing in real estate abroad requires obtaining such a license. "For a bank transfer of funds in amount exceeded of the equivalent of 15 thousand UAH., without leaving for a permanent place of residence in order to purchase a property the person must obtain an individual license of the NBU for the implementation of investment (buying a property abroad is a capital investment)", - says Maxim Lavrynovych, managing partner of law company "Lavrynovych & Partners." According to several lawyers’ opinions, the procedure is complicated, and it can not be gone through by everyone (because the origin of the revenues the buyer transfers for the purchase of real estate is carefully checked).

Procedure for the purchase of real estate in Greece*

 

Step 1

Step 2

Step 3

Step 4

Step 5

Step 6

Step 7

Step 8

Step 9

Step 10

Choosing a company in Ukraine (agent), which provides offers of apartments in Greece. Selection of objects of interest, signing an agreement with Ukrainian company..

A trip to Greece for viewing selected apartments.

Selecting the property for purchase, signing the contract, paying the deposit fee in the amount of 10% of property value (deposit)

Submitting the documents in Ukraine and obtaining a license for making investments abroad.

The lawyer in Greece checks the object in terms of legal clarity.

The buyer pays taxes (15% of purchase price).

Transfer of funds from Ukraine to this account.

The signing of the final agreement and the contract of transfer of the property ownership, their certifying by the notary, transfer of money to the seller.

Registration of the act of sale of the real estate to the National Land Register of Greece.

Payment for the lawyer’s services in GreeceОплата услуг адвокат в Греции (2% of the  amount of the deal) and payment for the services of Ukrainian agent посредника (1,5–3% of the amount of the deal).

 

!!! Term for completing the deal

!!! Additional expenses (approximately, at acquisition price of 120 thousand euros)

From 2 weeks to 3 months (depending on the terms of obtaining license of NBU)

24 thousand euros

* The material has been prepared using the date of Real Net company

the magazine "Money" of 19.06.2013/ all text is available at dengi.ua