A court decision puts an end to the practice of informing real estate buyers (when filing a sales document) about the liens borne by a property. Following the new data created by the decision, Attorney General Giorgos Savvidis, in his opinion, clarified that the Land Registry Department is not obliged by law to inform buyers - when they submit the sales contract - that there are liens on the property.
According to the legal opinion, it was decided that this practice of the Land Registry should be terminated, as the information of the buyers after the conclusion of the sales contract is considered to be delayed, while at the same time this practice causes substantial delays in the filing process.
Under the Real Estate Sale (Special Execution) Act, for sales contracts concluded and submitted after December 12, 2023, the seller is obliged to include, as an integral part of the contract, a certificate of survey of the immovable property that is the subject of the contract. It should be noted that this certificate must not have been issued more than five working days from the date of conclusion of the contract.
The provisions of the law
Regardless of the opinion of the Attorney General, which reduces the quality of a property buyer's information when filing the sales document, the regulation mentioned above was included in the law to strengthen the buyer protection framework. In detail, the 2023 legislation strengthens buyer protection, by introducing an innovative process, through which the buyer is entitled, in cases where there is already a mortgage, to pay the amount of the sale contract to the seller's bank account to the mortgage lender and to transfer the property, which is the subject of the contract, in the name of the buyer, regardless of the encumbrances or prohibitions that may be imposed on the immovable property or its owner and which follow the contract as a matter of priority.
According to information from the Land Registry Department to the affected bodies, in case of omission, from May 18, the day on which the transitional period expires, an administrative fine will be imposed on the seller, which will be determined according to the amount of the sale price.
"Information on the legal status of a property can be ensured in advance, following the procedure provided for in Article 51A of the Law on Immovable Property (Possession, Registration and Valuation)", adds the Land Registry. At the same time, it calls on interested parties to receive the required information before concluding any contract.
Applications change
At the same time, the Land Registry Department, with the aim of speeding up the procedures and reducing the time for accepting and submitting contracts, proceeded to revise the application for a sales contract.
Also, separate applications have been prepared for the submission of the exchange and consideration contracts, which are posted on the Department's electronic portal and can be submitted electronically.
The new forms provide a clearer and standardised structure of the parties and the details of the properties. In addition, the mandatory reporting, per page and paragraph of the contract, of its essential information is introduced, with the aim of facilitating their identification and avoiding errors and omissions.
As the Land Registry clarifies, the antiparochi form provides for a separate reference to the provider and the antiparochi, as well as to the relevant consideration of the consideration, thus enhancing the management of more complex and complicated cases.
In addition, the practice of detailed reference to liens is abolished, while the relevant information will be ensured through the submission of an application for the issuance of an investigation certificate. These differences are expected to contribute to improving the time for accepting and processing applications, in order to better serve the public.
