Never sell your house in Greece if buyers need a mortgage

This time a year ago we deceided to move from Greece to Sweden. We contacted Elxis and ask them to put up our house for sale. We worked together great when we bought the house. In October 2023 we officially sold our house. This was also the point that everything turned into a massive shit show that still continues till this day.

Signing the purchase deed

We moved because hubby could get a job in Sweden. When the buyers agreed at buying our house, our lawyers said it was going to take about 2 to 3 months before we could sign the purchase deed. We asked multiple times, before selling, if our paperwork was complete. Our lawyer and real estate agent kept confirming this. When the buyers agreed to buy our house we asked them if they had all paperwork done and ready. This was confirmed.

The buyers of our house needed a mortgage for half the purchase price. They had been looking for a house for a long time and even proceeded with two houses. The bank aproved a mortgage on both houses. Sadly they experienced big issues on the sellers sides. Both houses were unbuyable.

The buyers had been aproved for a mortgage two times before. This is why we did not forsee any big issues. God, were we wrong.

The paperwork was far from done. The bank took ages to provide a letter of credit. Our paperwork could not be older than two months, so had to be done last minute. The notary went on strike. The buyers documents expired, so new ones needed to be provided. One paper missed a stamp. Another paper was not provided by the engineer who was on holiday. Note that this paper was just saying that there was nothing wrong with the other papers. In February, almost 5 months later the purchase deed was finally signed. Problem solved? Oh no, the shit show had just started.

The horrible mortgage

There is a letter of credit, the purchase deed is signed and this is the point that the Piraeus bank starts moving. Yes, they have received all the info, they agreed to the mortgage, they have all the info complete by adding the purchase deed. None of the less they start the complete procedure all over and believe me when I say all over.

The purchase deed stated that the bank is obligated to finish the process of the mortgage within two months. Strictly speaking it is not our mortgage, but the mortgage of the buyers. Meaning we have nothing do with it. The buyers were called in on regular base to provide documents they already provided. They had to sign the contract so many times there was no room left for another authograph.

This process took about four months instead of the two that were mentioned in the purchase deed. We were warned that it could take up to three to four months. Unbelievable that this had to take so long. Now we came to the point that the bank needed to transfer the money to our account.

You thought this was it? Well think again.

Proof, a lot of proof

We moved to Sweden in December last year. This is something that the Pireaus bank refuses to understand. Apparently Greek banks are only allowed to do business within their borders. When you no longer live in Greece they can´t pay out anything. Our bank account is mentioned in the purchase deed that is signed at the notaries office. It was clear from the start that the mortgage amount needed to wired to a foreign bank account.

When the mortgage was released they asked the buyers if we could send a bank confirmation and a handwritten note to state that our bank account was truly ours. We thought this was asked from us to confirm the bank account in the purchase deed. We asked our bank for a confirmation, wrote and signed the note and for the just in case added our identification. Two weeks later we received a message that the documents were declined. They had no proof that we are we and the bank account was really ours.

Oke what do you need then? Two solemn declarations. One for hubby, one for me. Fine we can do that. We made to solemn declarations online. There was only one problem. The declarations could be registered digitally, but you would receive a SMS code. This SMS could only be send to a Greek phone number registered to our names. One problem, as soon as we left Greece we no longer were able to have a Greek phone number due to the lack off an adress. Luckily our lawyer was so kind to put in his power of attorney. Guess what, declined.

What do they need?

Please someone explain what the Piraeus bank needs to be able to transfer the money. Funny thing they did not even know that themselves. So they declined everything, but could not tell what they needed. The only thing we kept hearing was they can not transfer money to a foreign account. What? One EU right? Everybody has a IBAN account and is able to make a SEPA transaction. One of the largest banks in Greece is not able to make a SEPA transaction within the EU. Yeah right.

Seeking advice

At that point we were four weeks further. What else can you do? We send them a bank statement with our adress on it. Our registration forms from Sweden with our adress. A new bank declaration and identification. Hoping this was enough proof. It proofed where we are living, that we are who we are and the bank account is officially in our name. Wat more proof can you provide?

I called our bank if there was more to proof that our bank account is ours. Could Piraeus bank call you to get a confirmation? Is there more documentation that we can provide? I thought the bank manager was going crazy. The bank declaration is a EU aproved legal document. Combined with a bank statement the Pireaus bank was more than able to confirm that the account was ours. If they wanted more info they would violate the EU privacy law. No there is nothing more we are going to provide to Piraeus Bank. The Piraeus bank is obligated to operate by EU laws.

EU Commission

Next step? I send a email to the EU commision. Explained the situation and asked them what laws would apply. I received an email within 3 days. They advised me to make a complaint to the Greek financial Ombudsman and send this to the bank:

In any case, please note that the claim according to which your bank account is a foreign one is wrong: there is free movement of capital in the EU and the Piraeus bank is supposed to make a wire to any EU established bank as if it were a Greek one : Article 63 of the Treaty on the functioning of the EU.

Despite this the bank still refuses to wire the money. We applied complaints at the financial Greek Onbudsman. Saddly enough they are just as fast as the Pireaus bank. Till this day we have not even received a message that they have received the email with our complaints.

Where to go from here?

That was our biggest question. How can we convince Piraeus bank?

Our lawyer is demanding they wire the money to our account as they are violating local and EU laws. The legal department of Pireaus bank has to determine if this is true and is a SEPA transaction a possibility. May they only want to wire the money to a Greek account they could use my parents account. They live in Greece and are customers at the Piraeus bank.

Another sollution for us was going to the Greek ambassy in Stockholm and give them our proof. They could send the proof over to the bank so they had real proof. Small reminder, we would deposit the same papers they already have in their possession. Thereby would it take us two days to drive to the Greek ambasy. I thought they were going nuts. Bring in papers that they already have.

Next option? They would write a bank cheque. Yes a bank cheque. In the oppinion of Pireaus bank this is safer than a SEPA tranfer. At first they wanted to issue the cheque in our name. In the EU the cheque is dying. There are just a handfull of countries within the EU that work with bank cheques. All the other countries work with the IBAN and SEPA transactions.

Piraeus bank has a sollution

Then they had a great idea. The notary must confirm that the bank account is ours. Did I mention she would get the same proof. The bank can not make sure it is our account, but a notary can.

Then the bank will issue a bank cheque. This cheque will be picked up by the notary. Our lawyer needs to fly to the notary and pick up the check. He gets the cheque and deposit the cheque in his own account. When he has the money in his account he can transfer the money to our account. Make life easy and a perfectly fool proof sollution. Reminder they will not wire the money directly to our account because of safety.

At this point there is no movement at all at the Pireaus bank. They talk and talk but there is not a single soul that will tie the knot. They keep shifting responsability, are contradictive and indecisive. Dispite the fact that the money is released and the buyers already started paying their mortgage.

Why share this story

I want to warn people for the contradictive bureaucracy in Greece. Even institutions in Greece that have to deal with EU laws, bend the rules in their own favor. Worst part, they make up rules as they speak. The system in Greece is still a flaw. The lack of rules before the financial crisis in Greece are colliding with the wish to implement control and new laws. Nobody wants to take responsibility.

Our bank account was good enough to pay with in Greece. We paid all our obligations and invoices regarding buying and selling the house with this account. You are allowed to bring your money to Greece, but the moment you need to receive money there are no sollutions.

This is the first blog completely in English. This blog will not be in perfect English as it is not my native language, but I try to tell our story.

I do not believe we are the first people who have to deal with this. If we are the first I hope to inform the people who are considering to sell their house to buyers who need a mortgage. Please think twice!!!! After the financial crisis and the billions of support Greece received from the EU they were told that things had to change. I guess old ways never die. Cash is still king in Greece, dispite the fact that Greece is part of the EU.

I also want you all to know we do not blame the buyers. This is out of their controll. They did not see this coming.

Are you planning on selling your house in Greece? Do your buyers need a mortgage? Need more information please contact us.

You can fill out our contactformulier or leave a message in the comments and I will respond as fast as possible..

Hejdå

Yours Truly