Filenews 21 October 2022 - by Eleftheria Paizanou
Immediately and rapidly, land developers will transfer the properties to the buyers when they fulfil their contractual obligations, even if they will bear a lien.
Yesterday in the Plenary session of the Parliament, the bill was submitted, which seeks to prevent the creation of new trapped buyers of real estate. The legislation is included in the commitments given by the Republic to the Commission to address the inadequacies of the title deeds system, in the context of the implementation of the Recovery Fund. The Republic pledged to safeguard the interests of property buyers in advance.
Specifically, the bill creates a mechanism for the protection of real estate buyers, ensuring, in advance, that the transfer of real estate will be executed immediately and as soon as the buyer fulfils his contractual obligations. Essentially, the buyers, through the money they will pay for the purchase of the property, will also contribute to the repayment of the loan obligations of the land developers to the banks.
With the amendment of the Law on the Sale of Real Estate (Special Execution) provisions are added that will facilitate the transfer of real estate to buyers. Among other things, it is provided that the filing of a contract will not be accepted when the property that is the subject of the contract will be encumbered or the main owner of the immovable property is under prohibition.
At the same time, in case the lien is a mortgage, the deposit of a contract of sale is accepted, provided that it is accompanied by a written statement by each mortgagee and seller, of which the buyer has signed the knowledge, in a specific written form.
At the same time, the buyer will have to deposit in the seller's bank account the full amount of the sales contract, and the mortgagee will be obliged to accept it. In fact, in case the seller received a deposit from the buyer, it will be deposited in the bank. According to the bill, when the amount is paid into the bank account held by the seller in the bank, then the seller will have the obligation to exempt and eliminate the mortgage from the property, which is the subject of the contract. After this procedure, the property can be transferred in the name of the buyer, free from liens and prohibitions. In addition, the registration of any encumbrance or prohibition on the subsequent filing of the contract of sale will not constitute an obstacle to the transfer of the property in the name of the buyer. The bill should be approved by the end of the year.
