Property purchase costs involved ?

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Sigma
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Joined: Sat Nov 30, 2019 8:38 pm

Property purchase costs involved ?

Postby Sigma » Sun Dec 01, 2019 11:46 pm

Anyone recently made a house purchase willing to advise on costs involved just to get an idea as what am reading on sites doesn't seem to add up to quotes i'm getting for conveyancing. The property i'm looking to purchase is fully legal and not that old i would think the legal process would be straight forward but the quotes i'm getting are a tad high to what i was expecting.

Kilkis
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Joined: Sat Apr 21, 2007 3:58 pm
Location: Near Chania

Re: Property purchase costs involved ?

Postby Kilkis » Mon Dec 02, 2019 11:21 am

I think the transfer of ownership tax still applies and is paid by the buyer. That used to be getting on for 10 % of the price depending on the location of the house, i.e. within a fire district or outside it. I'm not sure if that has been reduced. The buyer also pays the Notary's fee, their own lawyer's fee and a fee to the estate agent whom arranged the sale. In Greece the estate agent normally charges both the buyer and the seller and each percentage tends to be bigger than in the UK. While it is the responsibility of the seller to provide the Notary with all documentation to prove that the property is legal and pay any fees associated with that it is also quite common for the buyer to employ their own civil engineer to carry out their own survey so that would be an additional fee. Despite the possibility of severe penalties it is still not unknown for an engineer to be economical with the truth if the seller is a close friend/relative. When you made your own (gu)estimate did you factor in all those items?

I can't put individual figures on any of the above, partly because it is nearly 15 years since I bought my property and partly because I bought the land and had a house built so my fees only related to the cost of the land. I think they would amount to between 10 % and 15 % of the purchase price. In the past the fees tended to be lower because the contract often contained an objective value, not the market price, so all the percentage fees were applied to a lower sum. Today I understand that the contract must contain the purchase price.

Warwick

Tim
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Re: Property purchase costs involved ?

Postby Tim » Mon Dec 02, 2019 1:39 pm

You've got me racking my brains now, Warwick.

When I bought my house in 2008, I agreed the purchase price with the estate agent and made one single payment in that amount. I'm 99% sure I made no extra payments for anything after that.

Of course I have no way of knowing how much of that payment was passed on to the seller - and it could be that any necessary disbursements were made by the estate agent or lawyer out of that one payment.

Tim

mouche
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Joined: Sat Jan 15, 2011 5:43 pm

Re: Property purchase costs involved ?

Postby mouche » Mon Dec 02, 2019 1:45 pm

The approximate expenses over and above the agreed selling price are 2.5% agent’s fees plus 3% purchase taxes and lawyers, notary and land registry fees which total around 5-6%

So allow approx 10-11% in total on top of the asking price.


https://www.dreamcatchers-crete.com/buy ... y-in-crete

YoMo2
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Joined: Sat Mar 16, 2013 11:07 am
Location: Milatos, Lasithi

Re: Property purchase costs involved ?

Postby YoMo2 » Tue Dec 03, 2019 9:23 am

If the property is not brand new, the transfer tax is currently 3.09%. As mentioned by Warwick, it use to be 10%.

Andrew

mouche
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Re: Property purchase costs involved ?

Postby mouche » Tue Dec 03, 2019 10:23 am


Kilkis
Posts: 11075
Joined: Sat Apr 21, 2007 3:58 pm
Location: Near Chania

Re: Property purchase costs involved ?

Postby Kilkis » Tue Dec 03, 2019 10:48 am

Tim wrote:...When I bought my house in 2008, I agreed the purchase price with the estate agent and made one single payment in that amount. I'm 99% sure I made no extra payments for anything after that...


I had the same experience when I bought my land, Tim. I made a single payment to the agent and he used that to pay the seller, the Notary, the taxes, my lawyer and his fee. I had no breakdown of how much each part was. In the contract, however, it does specify what the price for the land was, in my case an objective value, what the transfer tax was and what the Notary's fee was. These all had to be declared to the tax office on the next E1 tax return as well as submitting an E9 return showing the details of the acquired property. I have no idea what the market price of the land was, my lawyer's fee or what the agent charged.

I think the transfer tax was reduced when they introduced VAT on new properties but I am not certain.

Warwick

Guy M
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Joined: Fri Mar 15, 2013 9:20 pm
Location: Kalamitsi Alexandrou

Re: Property purchase costs involved ?

Postby Guy M » Tue Dec 03, 2019 9:34 pm

When we bought our house (20 years ago!) we also paid only one lump sum but we were given a breakdown by the estate agent and lawyer.

I was clueless. We had to go to the notary in Chania to sign some statement and when we got there we were taken into what I thought was the reception where a woman behind a desk typed up the statement for us to sign on an old typewriter. I assumed that we would take this into the notary’s room to sign, only for it to be explained to me that the person doing the typing WAS the notary.

Part of the richness of having a house in Crete.

Sigma
Posts: 2
Joined: Sat Nov 30, 2019 8:38 pm

Re: Property purchase costs involved ?

Postby Sigma » Tue Dec 03, 2019 9:59 pm

Thank you for the reply's we questioned the figures quoted and have had a reduction not really tennis is it, looks like i will have to wise up if this is the norm on the island i would have thought people you use would want recommendation with it being an island will have to see how smooth the buying process goes again thank you for reply's.

YoMo2
Posts: 1156
Joined: Sat Mar 16, 2013 11:07 am
Location: Milatos, Lasithi

Re: Property purchase costs involved ?

Postby YoMo2 » Wed Dec 04, 2019 8:41 am

Sigma wrote:Thank you for the reply's we questioned the figures quoted and have had a reduction not really tennis is it, looks like i will have to wise up if this is the norm on the island i would have thought people you use would want recommendation with it being an island will have to see how smooth the buying process goes again thank you for reply's.


I'm sure you've heard the Latin expression, "caveat emptor", "let the buyer beware".........

Cross-check everything and trust no-one.

Andrew

bobscott
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Joined: Wed Aug 05, 2009 5:36 pm
Location: Kokkino Horio

Re: Property purchase costs involved ?

Postby bobscott » Wed Dec 04, 2019 10:14 am

YoMo2 wrote:
Sigma wrote:Thank you for the reply's we questioned the figures quoted and have had a reduction not really tennis is it, looks like i will have to wise up if this is the norm on the island i would have thought people you use would want recommendation with it being an island will have to see how smooth the buying process goes again thank you for reply's.


I'm sure you've heard the Latin expression, "caveat emptor", "let the buyer beware".........

Cross-check everything and trust no-one.

Andrew


Sound advice, wherever you are! Bob.
Yesterday today was tomorrow. Don't dilly dally!


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