Thinking of buying property in Greece? How it's done.

For decades, real estate prices in Greece rose steadily. Buying property in Greece was considered a safe bet almost forever. Especially after the property boom from 1998 onwards, when Greek banks started offering loans and mortgages in a relatively new mortgage market, values in many areas skyrocketed.

That lasted until 2010. When the crisis hit Greece hard, property values first stopped rising and then, over the last two or three years, began a steady, if controlled, decline.

Until a couple of years ago, foreign buyers may have thought that the properties they liked in Greece were somewhat overvalued. That is now history. Prices have fallen, in some cases dramatically, to the point where many think now is the time to buy.

If you are among those considering buying property in Greece, here is some basic advice on the process from A to Z.

First, you have to find the property you are interested in. You can do this by searching the market yourself, using every bit of information you have on properties, locations, prices and yields, or by appointing one or more estate agents to find a property with the characteristics you want.

When you buy or sell property in Greece, you can appoint more than one estate agent. Usually you are not bound by exclusivity terms, and you can accept or decline any offer from an agent, even if it meets your initial requirements. If you go ahead, you will pay the agent who found the deal a maximum of 2% of the sale price.

Once you have found the property you want and agreed on the price, you need to retain a lawyer who works only for you. Especially if you are a foreigner unfamiliar with Greek law and practice, the lawyer should be of your own choice and absolute trust.

Retaining a lawyer referred by the estate agent, or even by the seller or developer, may not be a good idea. It is vital that your lawyer protects only your interests and is not even acquainted with the other party. Many foreigners bought property in Greece in the past without knowing that their lawyer should have been of their own choice and trust, and in some cases the complications that followed could have been avoided with a better understanding between the foreign buyer and the Greek lawyer.

Once the buyer's lawyer understands the client's wishes and instructions, and a relationship of trust and confidentiality is established, the lawyer contacts the seller's lawyer and the agent to request copies of the deeds and titles of the property. The most crucial part of the purchase is checking the titles and confirming that the property is free of any legal burden, lien or other liability.

The title check takes place at the local land registry or cadastre where the property is located. The buyer's lawyer examines the titles on the spot, and this is the most crucial part of the purchase. Only lawyers may carry out such title searches, and the buyer's lawyer has the final say, and the final responsibility, on whether the purchase goes ahead, at least as far as the buyer is concerned.

Once the title search shows that the property is legally sound, or once the seller has made the necessary corrections (amending titles, removing old and forgotten liens and so on), the notary starts drafting the deed of sale. The notary is chosen and paid by the buyer. The lawyers for the buyer and the seller advise the notary on the drafting.

The seller and buyer sign the deed of sale at the notary's office in the presence of their lawyers. Each side can sign in person or by proxy. The proxy can be their lawyer, a friend or a relative, who must be someone they trust completely.

The foreign buyer must always remember that the purchase funds must be wired from the buyer's bank account abroad to the buyer's bank account in Greece. If the buyer already has funds in a Greek bank, he or she must either have declared them as income in past Greek tax returns or be able to prove that they were wired in past years from a bank outside Greece.

Finally, every foreign buyer must know that the purchase is not complete, even after both parties have signed at the notary's office, until the deed is properly registered at the local land registry in the buyer's name. This usually happens within a few days of signing.