Reservation Agreements and Property Deposits in Greece: What Buyers Must Check Before Paying

What is a property reservation agreement in Greece?

A reservation agreement is typically an arrangement intended to hold a property for a potential buyer while the parties prepare for further checks or completion.

It may be described as:

• Reservation agreement.
• Booking agreement.
• Property holding agreement.
• Private agreement (ιδιωτικό συμφωνητικό).
• Deposit agreement.
• Preliminary purchase agreement.

These labels do not establish identical legal rights.

An estate agent may use a reservation form to identify the buyer, property and proposed price, while recording a period during which the seller is expected not to market or agree to sell the property elsewhere.

A private agreement may also require the buyer to transfer money.

But the existence of a written reservation agreement does not mean that the buyer has acquired ownership or that the agreement is a valid enforceable preliminary contract for the property transfer.

Greek Civil Code Article 1033 requires a notarial instrument and registration for the transfer of ownership of real estate.

Source: Greek Civil Code — Article 1033.

What can a reservation agreement actually achieve?

Depending on its terms and legal validity, a reservation arrangement may document the parties' intentions, establish limited obligations concerning negotiations or reservation, record a payment and specify what should happen if the transaction does not proceed.

It should not be assumed to guarantee that the seller has clear title, that building irregularities are resolved or that the final purchase can legally be completed.

What this means for the buyer: Treat a reservation document as a legal document requiring review, not merely an administrative form used by the estate agent.

Is a private reservation agreement the same as a notarised preliminary contract?

No. This is one of the most important legal distinctions in Greek property transactions.

A formal preliminary contract (προσύμφωνο) is an agreement through which the parties undertake an obligation to conclude a specified future contract.

Article 166 of the Greek Civil Code states that such an agreement must follow the legal form required for the future main contract.

For a contract obliging parties to enter into a real-estate purchase, the relevant notarial formalities are therefore significant.

Sources:

• Greek Civil Code — Article 166, Preliminary Contracts
• Greek Civil Code — Article 369, Real-Property Agreements
• Greek Civil Code — Article 1033, Transfer of Ownership

The Greek Supreme Court, in Decision 945/2017, confirmed the importance of the prescribed form for preliminary contracts relating to real-estate sales.

The judgment explains that a document does not have to use a particular ceremonial expression to constitute a preliminary contract: its substance matters. But when the mandatory notarial form is not observed, the purported preliminary agreement can be invalid under the relevant provisions.

Source: Areios Pagos — Supreme Court Decision 945/2017.

Three arrangements compared

A document's title is not conclusive. Its content, agreed obligations, form and circumstances determine its legal treatment.

Can a private agreement still matter legally?

Yes.

It would be equally wrong to conclude that every private reservation agreement is meaningless simply because it is not a valid notarised preliminary purchase contract.

A private agreement may contain distinct obligations concerning an agreed reservation period, payment, reimbursement, confidentiality or negotiation conduct. Whether those obligations can be enforced depends on their wording and applicable law.

The invalidity of a purported preliminary sale obligation does not, by itself, answer every question about repayment or possible independent claims.

A Greek lawyer should examine the specific agreement before giving advice about its consequences.

What this means for the buyer: Do not rely on a private form as proof that the seller is legally committed to transfer the property. Equally, do not assume a form cannot affect your money merely because it lacks a notarial signature.

What is the difference between a deposit, advance payment and earnest money?

The English word deposit is too broad to establish a specific legal consequence in Greece.

A payment may be intended as an advance against the purchase price, earnest money securing contractual performance, or another sum governed by agreed payment and cancellation terms.

1. Advance payment — προκαταβολή

An advance payment (προκαταβολή) is generally an amount paid ahead of completion and intended, where agreed, to form part of the purchase consideration.

If the transaction completes and the payment is credited towards the price, it is not an additional buying cost.

For example, a €20,000 advance credited against a €250,000 price leaves €230,000 of purchase consideration outstanding.

However, that does not by itself establish what happens to the advance if completion fails.

The legal basis of the payment and any contractual refund conditions must still be examined.

2. Earnest money — αρραβώνας

Earnest money (αρραβώνας) has a particular legal meaning under the Greek Civil Code.

Article 402 provides that, absent a different agreement, earnest money given when a contract is concluded is treated as security against loss caused by non-performance.

Article 403 addresses the consequences of culpable non-performance: a defaulting party may lose earnest money paid or be required to return twice the amount received, with further damages potentially available subject to the statutory rules.

Sources:

• Greek Civil Code — Article 402
• Greek Civil Code — Article 403

3. Contractual penalty — ποινική ρήτρα

A contractual penalty (ποινική ρήτρα) is a separate contractual mechanism.

Article 404 of the Civil Code permits a debtor to promise a specified payment or other performance as a penalty for failing to perform, or performing improperly, an obligation.

Source: Greek Civil Code — Article 404.

These concepts can interact in a transaction, but they should not be treated as interchangeable.

Comparison

What this means for the buyer: The correct question is not simply, “How much deposit do I have to pay?” It is, “What is the legal character of this payment, and what happens to it under each possible outcome?”

Does the buyer automatically lose the deposit if they withdraw?

No universal rule applies to every payment described as a deposit.

Greek Civil Code Articles 402 and 403 can create serious consequences for earnest money under the relevant contractual and legal conditions.

But it is inaccurate to assume those provisions automatically govern every estate-agent reservation fee, advance payment or private holding agreement.

The Greek Court of Appeal of Piraeus, in Decision 63/2025, discussed different functions of earnest money, including confirmation of a contract, a specifically agreed withdrawal mechanism and security or penalty for non-performance.

The judgment emphasised that the parties' intention and the applicable contractual structure matter.

Source: Piraeus Court of Appeal — Decision 63/2025.

What if the buyer simply changes their mind?

The consequences depend on what was validly agreed, whether the payment was earnest money or another type of advance, and whether withdrawal violates an enforceable obligation.

There may also be separate questions concerning the validity of the underlying agreement.

A buyer should not expect a guaranteed refund merely because they have not yet signed the final deed.

But a seller should not assume that any payment labelled a deposit is automatically forfeited either.

What if the seller withdraws?

Article 403 can support a requirement to return double the earnest money in the relevant case of culpable non-performance.

That is not the same as a universal promise that any seller who changes their mind must refund twice every amount paid.

The parties' agreement, the correct characterisation of the sum, its connection to a valid obligation and the reason for non-performance must be considered.

What if the seller cannot legally transfer the property?

This is materially different from an unexplained buyer withdrawal.

A problem with title, seller authority, building documentation or a necessary approval may affect whether the transaction can proceed and which party bears responsibility.

The agreement should expressly address identified contingencies rather than leaving the parties to argue later about whether failure amounts to default.

What this means for the buyer: Do not rely on slogans such as “buyer loses deposit, seller pays double.” Those statements omit important legal conditions.

How much deposit is normally requested in Greece?

There is no single statutory reservation-deposit percentage that every foreign buyer of Greek residential property must pay.

The amount depends on the proposed arrangement and what the parties agree.

Some commercial buyer guides refer to deposits amounting to a percentage of the purchase price, while agents may request a smaller fixed reservation amount.

Those figures describe practices or particular proposed arrangements, not a legal obligation to pay a standard 10%, 20% or 30%.

A buyer should not interpret a requested deposit of €20,000 as reasonable or safe merely because it represents a familiar percentage.

The more important questions are:

• Why is payment required before the checks are finished?
• What contractual protection does the buyer receive?
• Who controls the money?
• Under exactly which conditions must the money be returned?

Illustrative deposit amounts

Illustrative arithmetic only. These are not recommended deposit levels or verified Greek market averages.

A higher deposit increases the amount at risk if a dispute arises. It does not automatically strengthen the buyer's legal title or ensure the seller can complete.

Should you pay a deposit before due diligence?

From a buyer-risk perspective, completing essential investigations before making a significant non-refundable payment is generally the preferable sequence.

That does not mean every reservation payment is prohibited or necessarily unsafe.

It means the buyer should understand what remains unverified before transferring money.

A foreign buyer may feel commercial pressure to move quickly, particularly when the seller or agent claims there is competing interest.

But commercial urgency does not resolve legal uncertainty.

Legal checks

The buyer's independent lawyer may need to investigate:

• The seller's ownership and authority to sell.
• The chain of title and relevant registered documents.
• Mortgages, prenotations, seizures or other encumbrances.
• Cadastral identification and registered property rights.
• Co-ownership, usufruct and restrictions affecting the asset.
• Legal access or other rights relevant to use.
• Contractual obligations and any unresolved legal matters.

Technical checks

The buyer's engineer may need to examine:

• The building permit and approved plans.
• Correspondence between documents and the actual property.
• Unauthorised additions or changes of use.
• The Electronic Building Identity where relevant.
• Technical or planning restrictions.
• Visible defects and any further specialist work required.

The extent of the inspection must be agreed with the professional.

Sources: Greek property due-diligence guidance — Chroni & Associates and Greek property lawyer's due-diligence framework.

What if the seller will not reserve the property without payment?

That is a commercial constraint, not proof that the buyer must waive due diligence.

Possible arrangements for the parties to discuss with their lawyers include a short reservation period, a payment subject to clearly defined conditions, or proceeding directly to the appropriate formal agreement after essential checks have been completed.

A buyer should not assume that an agent's standard template provides adequate protection without legal review.

What this means for the buyer: The earlier the money must be paid, the more important it is that the written agreement precisely addresses the checks that have not yet been completed.

What conditions should a reservation agreement contain?

The relevant conditions depend on the specific property, buyer and transaction.

The following table is a review framework, not a ready-to-sign contract or substitute for drafting by a Greek lawyer.

Three of these deserve particular attention.

1. Identify the property precisely

A real estate advertisement may not contain the exact legal identity of the property.

It may describe an apartment informally or use an approximate location.

The agreement should be checked against the legal documents, including relevant rights and ownership shares.

A reservation for “a house near Chania” is not a substitute for correctly identifying the real property interest the seller proposes to transfer.

2. Define what counts as an unsatisfactory check

A vague condition such as “subject to legal checks” may leave uncertainty about which findings allow withdrawal.

For example, does an unresolved mortgage count if it can be discharged at completion? What happens if the building plans differ from the actual apartment? Must missing documents be supplied by a particular date?

A Greek lawyer should formulate the conditions according to the actual transaction and determine whether the intended arrangement has the appropriate legal form.

3. Make the payment consequences explicit

The document should not leave the buyer guessing whether the sum is refundable if a defined condition fails.

It should address who makes the repayment, where the money is held, how notice is given and the intended timing of repayment.

The legal validity of those provisions must still be assessed.

What this means for the buyer: “Refundable subject to due diligence” is a starting concept, not a complete explanation of the protections the buyer has actually secured.

Who should hold the property deposit?

There is no sound universal answer for every Greek residential purchase.

The money might be proposed to be held by a seller, an agent or another party under a documented arrangement.

These options involve different practical risks.

Payment directly to the seller

A payment to the seller places the money under that person's control unless another legally effective mechanism applies.

If a dispute arises over repayment, the buyer may need to pursue recovery.

Having paid the person advertising or selling the property does not mean the buyer has acquired a registered interest in it.

Payment through an estate agent

An agent may propose receiving a reservation amount.

The buyer should establish whether the agent receives it in their own capacity, on behalf of the seller or under a separate holding agreement.

An agency's ordinary brokerage role should not be confused with a regulated escrow arrangement.

Payment through a documented holding mechanism

A separately agreed holding arrangement can provide rules concerning release and repayment.

But calling an arrangement “escrow” does not itself establish how funds are legally protected, who has authority to release them or what happens in a dispute.

The buyer's lawyer should confirm the actual legal and operational mechanism.

What about the new notarial one-stop framework?

Greek Law 5293/2026 introduced a framework for an expanded notarial role in property transfers, including optional arrangements involving designated holding of purchase funds.

However, the implementation of the new framework is subject to its legal and administrative commencement conditions.

A buyer should not assume a particular notarial funds-holding service is already available for every transaction throughout Greece.

Source: Law 5293/2026 — Article 15.

What this means for the buyer: Ask who legally controls the funds, how they can be released and what independent documentation proves the payment.

How should a foreign buyer make and document the payment?

A property-related payment should have a clear, verifiable financial record.

Before sending funds, verify the recipient's legal identity, account ownership and payment instructions using a trusted independent communication channel.

This is especially important where instructions have been supplied by email.

Payment instructions changed at the last minute should be verified through a separate known contact method.

The buyer should retain the signed agreement, any lawyer-reviewed payment instructions, bank confirmation and a written acknowledgment identifying the purpose of the payment.

Should you pay cash?

A foreign buyer should not assume physical cash is an acceptable or advisable payment method.

Greek property-purchase documentation and consideration payments are subject to statutory financial and documentary requirements.

The exact treatment of an early reservation payment needs to be confirmed with the lawyer and notary under the applicable rules.

For the final purchase, follow the legally required payment method and recordkeeping rules.

What if payment comes from a foreign bank?

The sending bank and other transaction professionals may require identification and source-of-funds documentation.

The buyer should identify potential currency conversion charges, transfer delays and how the recipient will confirm cleared funds.

Do not confuse the payment's arrival with confirmation that the transaction itself is legally safe.

What happens if legal or technical checks uncover a problem?

The answer depends on the type of problem, what the agreement requires and which checks remain outstanding.

Consider several hypothetical scenarios.

Illustrative findings, not a conclusion that each situation automatically creates a right to recover the deposit.

Does a property problem always entitle the buyer to a refund?

Not automatically.

The legal consequence depends on the relevant contract, conditions, responsibility for the issue and applicable law.

A difficulty discovered during due diligence is not necessarily equivalent to a breach by the seller.

For example, a registered burden might have been disclosed and lawfully resolvable within the agreed completion process.

Conversely, a serious and unresolved title problem may materially affect whether the seller can perform the intended transaction.

The buyer's lawyer should assess the specific finding and the available rights.

What this means for the buyer: Before a problem occurs, the agreement should establish what happens when a defined investigation cannot be completed satisfactorily by the agreed deadline.

Worked example: A €300,000 purchase with a €15,000 reservation payment

Assume a hypothetical buyer has agreed a purchase price of €300,000.

The seller requests €15,000 before the legal and engineering checks are complete.

The following scenarios illustrate why the written agreement matters.

Scenario A — The purchase completes

Assume the €15,000 is legally and contractually treated as an advance credited against the purchase consideration.

The buyer does not pay €315,000 to the seller.

The advance forms part of the agreed price.

Transfer tax, notary fees and other acquisition expenses remain separate.

Scenario B — A defined due-diligence condition fails

Assume the parties have entered into a legally valid arrangement that clearly provides for repayment if a specified title issue is not resolved by a particular deadline.

If that condition applies, the agreement may require the €15,000 to be returned.

The buyer's rights and practical recovery still depend on the operative legal provisions and the actual facts.

Scenario C — Buyer default under a valid earnest-money arrangement

Assume instead that the payment legally constitutes earnest money securing a valid contractual obligation, and the buyer is culpably responsible for non-performance.

Under the relevant application of Civil Code Articles 402–403, forfeiture of earnest money may follow.

The €15,000 amount could therefore be at risk.

Scenario D — Seller default under the relevant earnest-money rules

If the seller is the culpably non-performing party in a qualifying earnest-money arrangement, the statutory double-return consequence may be relevant.

For €15,000 earnest money, twice the amount is €30,000.

That is not a universal compensation entitlement for every reservation agreement.

All four scenarios are hypothetical and depend on the payment's legal character, the contract's validity, the agreed conditions and the facts. They are not predictions of a court's decision.

Does a reservation payment remove the need for an AFM or notarial procedures?

No.

A reservation payment does not replace the tax identification, notarial or registration requirements of the eventual purchase.

A foreign buyer will normally need a Greek tax identification number (AFM — ΑΦΜ) and must complete the applicable transfer-tax and purchase procedures.

AADE explains the tax requirements for property buyers, while Greece's official digital transfer service describes the notarial and registration process.

Sources:

• AADE — Before Buying Property in Greece
• Gov.gr — Digital Property Transfer

A reservation payment also does not register ownership in the Hellenic Cadastre.

The property remains subject to the relevant legal rights and registration position until completion under applicable law.

What if the buyer lives abroad and cannot attend in person?

A foreign buyer may arrange parts of the purchase through appropriately authorised representation.

But the scope and form of any power of attorney must satisfy the requirements relevant to the transaction.

If the buyer is asked to sign a reservation document remotely, the same substantive questions remain:

• What legal obligations are being created?
• Is the document in a language the buyer understands?
• What is the correct legal form for the obligations it attempts to establish?
• Who receives the funds?
• What happens if the intended purchase fails?
• Can the buyer obtain independent advice before signing?

Remote signing does not make an otherwise unclear or legally defective arrangement reliable.

What should you do if the agent says another buyer is ready to pay?

This is a common commercial pressure point in property searching.

The seller may genuinely have other interest. But urgency does not change the requirements for a legally meaningful agreement or the need to understand the consequences of payment.

A buyer can ask for a short period in which to obtain legal advice and basic documentation.

If the seller is unwilling to provide that opportunity, the buyer must decide whether to accept the increased uncertainty.

There is no guarantee that a reservation request will be accepted, and independent legal review does not eliminate all commercial risk.

But a purchase decision should not depend solely on a verbal assurance that the deposit is "just a formality".

What this means for the buyer: Treat pressure to transfer money before reviewing the documents as an unresolved risk, not as proof that the property is unusually desirable.

Questions to ask before paying any money

Before signing or paying, ask your lawyer to address the following:

1. What exactly is the document? Private reservation, notarised preliminary contract or another agreement?
2. Who has authority to sign? Is every necessary owner or authorised representative involved?
3. What property interest is identified? Does it match the deed and cadastral information?
4. What is the payment legally? Advance, earnest money, fee or penalty-related sum?
5. Who receives the money? On what legal basis and under which release conditions?
6. What checks remain open? Legal, technical, planning, financing or administrative?
7. Which outcomes permit repayment? Are the triggers objective and clearly defined?
8. What happens if the seller cannot complete? What remedies are actually available?
9. What happens if the buyer withdraws? Is any amount at risk?
10. Will the payment reduce the purchase price? How will this be documented at completion?
11. What deadlines apply? What happens when documents or approvals are delayed?
12. Is the proposed agreement in the proper legal form? Are any clauses potentially invalid or unenforceable?

The answers should be grounded in the actual document and transaction, not generic statements about how property deposits "normally work" in Greece.

Common questions

Is a 10% property deposit mandatory in Greece?

No single universal statutory rule requires every buyer to pay 10% as a reservation deposit. The proposed amount depends on the transaction and agreement.

Can I recover a reservation deposit if the lawyer finds a problem?

Possibly, depending on the legal character of the payment, the validity and wording of the agreement, the specific problem and the relevant rights or conditions. A due-diligence contingency is useful only if drafted and applied effectively.

If the seller pulls out, do they always pay double?

No. The double-return principle is associated with qualifying earnest-money arrangements and applicable legal conditions, not every payment called a deposit.

Is a private agreement enough to force the seller to sell the house?

Not automatically. A true preliminary obligation to conclude a Greek real-estate purchase generally requires notarial form. Separate obligations in a private arrangement may still require individual legal analysis.

Should the estate agent hold the deposit?

There is no universal answer. Confirm the agent's authority, the actual holding arrangement and conditions for release or repayment before paying. An agency account is not automatically a legally protected escrow account.

What this guide cannot determine

This article cannot establish whether a specific reservation agreement is valid or enforceable, whether a given payment can be recovered or whether a buyer or seller has defaulted.

Those conclusions require the original documents, the surrounding facts and qualified Greek legal advice.

The article also cannot establish clean title, building legality, absence of encumbrances or the property's market value.

A reservation agreement is not a substitute for independent legal and technical investigation.

Related guides

• Complete Guide to Buying Property in Greece — the full purchase process.
• The Property Buying Process in Greece — the stages from offer through registration.
• Documents to Request Before Paying a Deposit — evidence to obtain before making a financial commitment.
• What Does a Property Lawyer Check? — title, encumbrances and contractual risks.
• What Does a Civil Engineer Check? — building documentation and technical investigation.
• Estate Agent Commission in Greece — separate brokerage agreements and payment triggers.
• Extra Cash Beyond the Purchase Price — how advances and fees affect the total budget.

Before paying a property reservation deposit in Greece, have an independent lawyer examine the exact agreement and the rights being offered. A short review before payment may reveal an issue that becomes harder to address after the funds have changed hands.

The Greek Property Report provides independent buyer-funded property research. We do not act as estate agents or receive commissions tied to a completed transaction. Our research helps organise available property and market evidence, but it does not replace a lawyer's assessment of contracts, an engineer's inspection or the statutory functions of a notary.