The issue of arbitrary buildings is a thorny one, causing problems to owners and renters alike, given that leasing a property either built without a permit or one that has undergone unauthorized changes in use is prohibited by Greek law. However, many proceed with renting their properties without having addressed any illegal modifications to the building, due to the law failing to specify relevant penalties accordingly.

It is very important to note that according to Civil Code and Urban Planning legislative regulations, owners renting out illegal buildings face compensation claims for unlawful leasing, arising from the unsuitability of the rental property. They also risk being reported to Urban Planning authorities, which in turn will cause them to pay substantial fines whatever unauthorized constructions they possess.

The above regulations are applicable to all leases and property concessions. Business owners renting health-related stores, catering operations and anything pertaining to the tourism industry such as hotels, guesthouses, gas stations, etc., are required to be diligent with their legality documents to avoid possible complications with the Urban Planning department and keep a file containing all relevant paperwork in their business quarters, in case of inspection. Short-term rentals should meet all specific rental requirements as well, clear of any urban planning violations, (e.g, excess contraction, coverage, height and/or use) or face a €5,000 fine and immediate compliance within 15 days.

To ensure that the property is fully legal and ready to be leased, the tenant has the option of hiring an engineer to verify the legality of the property. It is vital to remember that the Energy Performance Certificate (EPC) is not sufficient to prove legality and does not regularize any unauthorized modifications. Engineers who provide EPC documents simply allow owners and tenants to compare and evaluate the property’s performance in terms of energy classification and do not record any permit deviations. It is also advised to provide the building’s permit number in the lease agreement. Alternatively, in the case of a previously unauthorized property that has been regularized, the declaration of compliance should be included in the lease agreement.

It is also prohibited and absolutely void to transfer or establish real rights on illegal buildings, for private and company-owned properties alike, with very few exceptions where unauthorized constructions or unauthorized uses have been:

• Existing before 30/11/1955, the effective date of the decree from 9/8/1955
• Exempted from demolition
• Excluded from demolition
• Demolition has been suspended
• The preservation process has been completed for the period specified, or the preservation process has been finalized
• The process of paying the unified special fine has been completed, or 30% of the unified special fine has been paid.

To rectify violations, the owner must follow a certain procedure that involves:

1. an on-site engineer inspection, during which all deviations will be documented, measured, and photographed
2. gathering all necessary documentation
3. submission of an owner-authorized declaration by the engineer
4. recording and inputting violations and property details into the government platform authorized by the Technical Chamber Of Greece
5. payment of a fee that ensures inclusion under law
6. another submission of necessary plans and documentation by the engineer.

Once these steps are completed, the owner will be granted a compliance certificate under law, with a legalization certificate issued once 30% of the fine is paid.