Justice Minister Giorgos Floridis, during the presentation of the guidelines for the bill to be drafted by a special 13-member committee on the ownership status of private properties (apartment buildings, Airbnb, etc.), stated that changes will be made to Law 3741/1929, with the aim of liberalizing and maximizing the use of Greek citizens’ properties.
Specifically, 97 years after the implementation of Law 3741/1929, which “recognizes ownership of a building divided by floors or parts thereof” (apartment buildings, etc.), changes will be introduced and the contractual relationships regarding horizontal and vertical ownership among co-owners of apartment buildings, etc., will be restructured.
The purpose of the new legislative framework will be to establish the relationships between co-owners of apartments in multi-unit residential buildings within a flexible, clear, and modern legal framework capable of resolving emerging disputes, facilitating the utilization of real estate, and regulating the cohabitation of families in apartment buildings.
As Mr. Floridis noted, over the past 97 years there have been 1,116 legislative amendments and interventions regarding the ownership status of apartment buildings, etc., while the burden on the courts regarding these issues has been enormous.
At the same time, Deputy Minister of Justice Ioannis Bougas noted that the provisions of the bill to be drafted will fully comply with both constitutional and European requirements regarding the protection of property.
Thus, the regulations governing apartment buildings are now being modernized, and one of the significant innovative provisions is the one that will allow—regardless of whether the building’s bylaws prohibit it—the subdivision or consolidation of apartments in apartment buildings (horizontal properties), so that large apartments can be put to better use and the housing problem in large cities can thus be addressed. In other words, the owner of a multi-story apartment will now be able to divide it down the middle, living in one section themselves and renting out the rest—something that is not currently permitted.
Furthermore, this will resolve the huge, common problem encountered on a daily basis, where some residents of apartment buildings fail to pay their common-area fees. There will now be a specific procedure for collecting common-area fees (including the issuance of a payment order), and the creation of a reserve fund, as well as insurance for the apartment building, will be mandatory.
In fact, expedited procedures will be established for collecting common area fees from those who fail to pay. At the same time, apartment building managers will have expanded powers, but also increased responsibilities.
At the same time, the bill will remove obstacles to necessary repair work or energy upgrades for buildings that must be carried out but cannot be implemented due to a lack of quorum or the required majorities at apartment building tenants’ meetings.
Specifically, the legislation will provide for a reduction in the required percentage of votes needed to pass resolutions on matters such as repairs, maintenance, and energy upgrades to buildings. The reduction in the required percentages will vary depending on the urgency of the repairs, etc.
Justice Minister Giorgos Floridis, during the presentation of the legislative initiative, emphasized:
“Almost a hundred years after the basic law (3741/1929) on horizontal property, we have decided to take a comprehensive initiative addressing all outstanding issues regarding property ownership, and especially co-ownership, among Greeks.
In order to modernize all relevant provisions, the first major step is to codify the legislation, as there are more than a thousand provisions scattered across various laws.
Next, we must create a modern and functional framework so that property that is currently encumbered can be released and, above all, put to use, by removing all the restrictions that exist today.
In this way, we will be able to restore thousands of properties with valid title deeds so that citizens can then utilize their property as they see fit.
There is no aspect of ownership or co-ownership that is not covered by this legislative initiative, and we have established a committee to work on it, chaired by Supreme Court Justice Konstantia Emmanouilidou, a Supreme Court justice specializing in property law, land registry law, and real estate.
“The goal is for the committee’s work to be completed by next fall and for the Property Code to be enacted for the first time in Greece by the end of the year.”
Deputy Minister of Justice Ioannis Bougas outlined the key pillars of the legislative initiative for a modern, unified, and functional framework for co-ownership.
Specifically, he mentioned:
- The consolidation of provisions scattered across dozens of laws (Law 3741/1929, etc.) and their adaptation to new socioeconomic realities.
- The integration with the National Land Registry within an Artificial Intelligence environment and with urban planning and environmental law, in collaboration with the Technical Chamber of Greece (TEE).
- Simplifying the process for rebuilding shared plots and for vertical expansion of existing buildings.
- Faster issuance of decisions in partition lawsuits and adaptation of regulations to the new provisions of inheritance law.
- Simplifying the management of apartment buildings—facilitating decision-making among co-owners and the amendment of existing bylaws.
- The issuance of title deeds and the ability to transfer ownership in thousands of pending cases.
with information from APE