Paying a deposit to buy property in Crete: checks before signing or transferring money

Identify the property and seller before committing money

Ask early for the property's details, available deeds and a copy of the proposed document. An advertisement's address or photograph is not enough to identify what you would acquire. Establish whether storage, parking, a share in the land or another right is included, and whether the signatory is the seller or someone acting on the seller's behalf. Keep a record of the documents provided and questions still unanswered.

Legal title and registration checks should be coordinated with an engineer's technical review where needed. Encumbrances, co-ownership, an incomplete succession history, boundary issues or planning matters are not resolved merely by paying a deposit. If checks remain unfinished, any proposed commitment needs individual assessment and appropriate terms. Do not assume that every defect can be corrected before a completion date chosen during an initial viewing.

Advance payment, earnest money and a preliminary contract are different

Calling a payment a 'deposit' does not settle what happens if the purchase fails. The terms, validity of the agreement, purpose of the payment and reasons for non-completion matter. The Greek concepts of prokatavoli, an advance payment, and arravonas, earnest money, should not be treated as interchangeable. Neither automatic forfeiture nor repayment of double the sum should be assumed from the label alone.

Under Civil Code Articles 166 and 369, a preliminary contract committing the parties to conclude a deed transferring a right in Greek real estate requires notarial form. A private reservation form should not be presented as its equivalent. Legal review should identify precisely what the document promises and which provisions can take effect. English-language wording does not remove Greek legal-form requirements.

Review completion and repayment terms before signing

The document should identify who receives the money, which property it concerns and how it relates to the full purchase price. If an estate agent or another third party requests payment, establish the basis on which they receive it and who undertakes any repayment obligation. Ask for the draft before the appointment so there is genuine time for review rather than pressure to sign during a viewing.

Distinguish delays in obtaining documents from a refusal to sell or a buyer's inability to secure finance. Discuss the proposed treatment of each event, the timetable and how communications will be recorded. Buyers living abroad should clarify representation, translations and remote-completion arrangements before accepting obligations. A translation should explain the actual terms, not merely restate that the payment is 'refundable' without identifying the conditions.

• The exact property, rights, price and payment recipient
• Outstanding checks and documents to be supplied
• Completion dates and treatment of delay or cancellation
• Repayment conditions, potential penalties and allocation of costs

Use a compliant payment method and preserve the record

AADE Circular E.2075/2024 explains the mandatory use of bank payment methods for the price in transactions covered by Law 5073/2023, including advance payments, subject to transitional rules. Cash payments can have serious consequences for validity and penalties. Check the lawful method with your lawyer and notary before making the payment rather than assuming that a signed cash receipt is sufficient.

Independently verify the recipient and bank details, particularly if an email changes them at the last moment. Keep the final signed document, bank confirmation and correspondence together. If you have already paid and the purchase has stalled, collect the complete file before sending a withdrawal notice or agreeing to a deduction. Whether money can be recovered depends on the particular agreement and circumstances, not simply on the English word 'deposit'. For a property in Crete, bring the draft and available title documents to your initial legal review.