From will to deed: a road to property ownership in Greece

From ATHENS NEWS , 17/08/2007, page: A14
Article code: C13248A141

So you were left some property in Greece? Now what?

ANNA HAUGHTON
EVRIDIKI LEROU
GIANNA ZAFEIROPOULOU

CONVERTING what has been written and published in a will into a deed in your name can be a very involved process in Greece. Many factors come into play. How was the will written? Is the property clearly identified?

Many old Greek wills are vague in their bequests. One might state: "I bequeath all my property to my siblings." Some others do not clearly describe the property: "I bequeath my son the land between Yannis' farm and Demetra's rock wall." Where is the property located and what are its square metres or standing boundaries?

To legally accept property (transfer the deed into your name) or even file a declaratory tax form (E9/E1), you must have a clear description of the land you are attempting to claim. Of course, not all wills are ambiguous. Many clearly describe the land, the structures on the land and state who is to inherit it.

Regardless, if a will is clear or vague, the most important first step is to research the chain of title. If the research is not done correctly, problems may surface later when developing or selling the land.

The framework

In Greece there is no centralised/computerised national land registry system. Land registries have been created in some areas, but these are few and far between. In most areas, only mortgage offices exist.

Attorneys often refer to the land registry for clarity, but in fact they are referring to mortgage offices because in other countries the meaning of the office is different. The primary difference is that the mortgage office records titles by name and the land registry uses many more parameters.

Only lawyers are qualified and permitted to conduct research in Greece's land registries and mortgage offices. In any land transaction, the title to the land must be researched. Sometimes this involves more than one mortgage office. There are more than 30 mortgage offices in Athens. These offices cover different periods and areas. The researcher may have to search in several offices to track down a property. In some island locations there is no mortgage office at all, and the office covering that island's land may be located on a larger, neighbouring island.

In almost every case, a lawyer must travel to the mortgage office or land registry - if one exists - which covers the area where the land is located. If the land has recently been sold or accepted, the documentation may be clear enough for further transactions.

However, if the documentation is an old will or an even older acceptance deed, then it is imperative that the research is current to protect your interests. Changes may have occurred to the land or ownership rights over time. Town boundaries may have changed that affect zoning, or parts of the supposed inheritance may have been sold off without the present owners' (claimants') knowledge.

What needs to be done?

The first step is for an attorney to identify the land's claimants after studying the following documentation:

1. Any existing wills (inheritance occurs either through a will or intestate, which is without a will).

2. A detailed family tree in order to determine who can claim a share of the property in light of Greece's inheritance laws, as well as to identify individual deaths that may impact the claims.

3. In cases of intestate succession, the heirs' nationality will impact their share.

The next step is for the attorney to identify the properties. This can sometimes be the harder of the two endeavours, depending on the documents provided, the information logged at the mortgage office and if there are individuals locally who can actually identify the property.

When trying to identify property, if there is no will describing the property or if the existing will is unclear and no documentation exists at any of the mortgage offices or land registries, then you may have a serious problem. Without living relatives/friends residing near the property to help with the identification of the land, there are limited ways to identify the land. In some cases, property has been trespassed on and if there is no written proof at the land registry of this, like an adverse possession lawsuit, the only way to determine if trespass has occurred is by actually visiting the property.

There are real dangers to letting land "sit" without claiming it through these legal steps. It is your responsibility to establish clear title or you can leave the door open for trespassers.

In addition, with the Greek government's attempts to reorganise the country's land registries into a truly functioning property database, failure to assure current and clear title could mean the loss of your land. If you value your land in Greece, it is imperative that you act to protect your interests.

The documentation

In order to avoid further delays and also help your attorney better understand your case and determine the next steps to take, you should provide them with the following documentation:

1. Copies of any and all documentation describing the land (bills of sale, acceptance of inheritance documentation, acceptance of gifting, wills etc) you have.

2. A draft of the family tree listing full names of members, including maiden and married names - if possible two generations before the grantor (drafter of the will) down to you and your siblings. The attorney should search through these family names to make sure you are aware of all your property claims, as well as the share of the property you may claim.

The reason to have so many generations, apart from following the property in cases where there are no recent titles, is that the mortgage offices record titles by name only. In some villages, all the male children carry the same name. The researcher must be able to differentiate which familial line is the correct one back through several generations.

The research

If an old will is the primary documentation, it may take your attorney some time to sort out the wishes of the grantor and who the takers are, particularly if there are multiple marriages and numerous offspring involved. It needs to be determined if previous generations have accepted their inheritance so that the current generation may accept their inheritance. It is a layered process so that the chain of title remains intact.

Of course, problems can arise even with a recent will. If the grantor (testator) leaves all of his property and assets in a trust of some kind, the situation in Greece needs delicate handling. Trusts are not recognised and do not exist in Greece and they create enormous problems. It is wise for individuals who own property in Greece to leave their Greek holdings outside a trust.

Keep in mind that the research at the mortgage office/land registry is the most important step in legally clearing property. The attorney should research under all family names (ie grandmother's maiden name), siblings, aunts and uncles.

Most of the mortgage offices have numerous handwritten volumes which need to be cross-referenced and then cross-referenced again within their own organisational system. If other family members have accepted their inheritance, these documents should be on file and will help in the research, particularly if the property is jointly owned. The research should include verifying that there are no liens or burdens against the land, that the land has not been sold or gifted and that there are no pending claims of ownership through trespass.

As stated earlier, in some cases - depending on how old the will is and depending on where the property is located - the mortgage office may have little information. For many years land was passed orally; written documentation did not exist. If there is no paperwork, no one is available locally who can identify the land and the local mortgage office does not have any documentation, it can be very difficult to trace property.

Of equal importance is verification that the properties actually exist. Attorneys prefer a visual identification to ascertain that no one has trespassed on the land. However, if the property is inaccessible (no roads) or there is no one locally to point out the property, this visual identification may be impossible.

The acceptance

In Greece, you must accept your inheritance or gift of property. It is a formal, legal process involving a number of steps. Your lawyer's list of things to do when you are accepting your inheritance includes:

1. Research property, verify shares of takers and verify property parameters.

2. If and when property is identified, your attorney may recommend hiring a local surveyor to map out property that has a high value.

3. Calculate the property's value (in some cases it has an objective value which is set by the tax office). It is on this value that the inheritance taxes, notarial fees and the land registry fees will be based.

4. Draft power of attorney giving the attorney the right to act on behalf of the client for all the next steps.

5. After receiving from the client the original, fully notarised and sealed draft power of attorney from the client (and a copy of the client's passport or driver's licence), a Greek tax ID needs to be issued for the clients (these are requirements of the tax office).

6. Gather the necessary certificates (such as certificates verifying existing wills, death certificates, filing of foreign wills if they have not been filed in Greece etc).

7. Complete the inheritance tax declaration and file it at the competent tax office on behalf of the client. In some cases there are no property taxes. This can happen if the tax office has given the land a small value (agricultural), or because of a death occurring before a certain date. If there is an inheritance tax, it can be paid in instalments. The inheritance tax declaration must be filed within a year of the death of the grantor. If this deadline passes, a small penalty may be set by the tax office.

8. Draft the inheritance deed.

9. Submit all certificates and tax declarations to the symvolografos, or notary (not the same as a US notary), and sign the inheritance deed in their presence.

10. File the official copy of the notarial deed with the land registry.

Note: Some areas of Greece require additional steps.

After this last step, the property is finally transferred in your name.

The cost

All of the above legal processes, while not cost-prohibitive, are not inexpensive. Calculate by your own country's standards what it would cost to send a lawyer to a remote location, such as an island or mountainous village where they may get stranded due to inclement weather or have to travel hours away by car to conduct research in less than desirable conditions. Depending on the location, it may involve an overnight trip to access all the offices that in Greece only work morning hours.

Researching through old books, which are perhaps fire-singed, or volumes that have been miscatalouged - not to mention the time to research within these documents and filing the necessary paperwork - should be taken into account as well. This involves an outlay of legal working hours alone, not to mention travel expenses.

Depending on your case, you may need to add in inheritance taxes and maybe court costs if there is a challenge to the land. Many of the above costs are set by the Greek government, certainly taxes and land registry fees. By sending your attorney paperwork up front, in most cases they can estimate the initial step to research your property.

Land is an investment. If generations before you did not take the time to clarify their title, it is now in your hands. You must decide if it is worth the investment to you and your family. Remember you cannot sell or develop property without taking these steps in Greece. With the reorganisation of the land registries, the next generation may not get this choice.

* Anna Haughton, JD, member of the Massachusetts Bar, ABA

Evridiki Lerou, member of the Athens Bar

Gianna Zafeiropoulou, member of the Athens Bar

They can be contacted on 210-646-4435 or via email at annahaught@aol.com