Law and taxes
How to Protect Your Money When Buying Off-Plan Property in Greece
Buying an apartment or villa off-plan allows you to purchase property at a more attractive price. However, it is precisely at this stage that investors most frequently ask: “What happens to my money if construction stops?”
Over seven years of working in Greece, I have learned one simple truth: a good developer sells trust, not square meters. That is why, before signing any contract, it is essential to verify not only the project, but the developer themselves.
The First Step — Check the Company
In Greece, every construction company is registered in official public registries. Before paying an advance deposit, you must ensure:
- that the company actually exists;
- that it is not in liquidation or bankruptcy;
- that it is legally authorized to conduct construction activities;
- that it has experience completing similar projects.
It is also worth researching previously completed properties, the company’s reputation, and any existing litigation.
Never Pay Everything at Once
In practice, stage-by-stage payment is considered the safest option.
Payments are tied to completed construction milestones:
- Land purchase;
- Obtaining the building permit;
- Foundation;
- Concrete structure;
- Roofing;
- Utilities and engineering networks;
- Finishing works;
- Handover of the property.
This approach protects the interests of both parties. The buyer pays only for the work actually completed, while the developer receives funding as construction progresses.
Bank Guarantees and Escrow Accounts
In many European countries, escrow accounts or performance bank guarantees are used for major projects.
In Greece, the use of such mechanisms is not mandatory for all private residential projects. Their application depends on the transaction structure, financing, and agreements between the parties. Therefore, before signing a contract, you should discuss with your lawyer which protection methods will be used in your specific project.
Legal Due Diligence Is Essential
Before paying the initial deposit, it is necessary to verify:
- ownership rights to the land plot;
- validity of the building permit;
- absence of encumbrances and mortgages;
- terms of the purchase and sale agreement;
- construction and payment schedule;
- liability of the parties for breaching deadlines.
This work must be carried out by an independent lawyer representing the buyer’s interests.
How AILIT Group Works
At AILIT Group, we believe that trust begins with transparency.
That is why our clients receive full project information even before signing a contract. We support the investor at every stage — from site selection and legal due diligence to architectural design, construction, and property handover.
In addition, we coordinate interaction with lawyers, engineers, and notaries, and monitor construction progress until the project is fully completed.
Learn more about our ongoing and investment projects here: AILIT Group Projects
Get in touch with the AILIT Group team: AILIT Group Contacts
Article reviewed by Alexey Fatuev — expert in construction and real estate development in Greece.