Thursday 3 February 2011

Altered Homes Solution – or not?

After months of discussions, the Greek government finally revealed its plans to introduce a scheme that will allow homeowners to pay a penalty to protect illegally converted parts of their homes from demolition and channel the proceeds toward the creation of more green spaces. You have no doubt heard the horror stories coming out of Spain…?

Environment Minister Tina Birbili presented the details of the program; it means that those parts of a home that were originally planned as balconies, garages or basements but have since been turned into living space (known as “imyipaithroi” or semi-open in Greek) can now be legalised. The homeowner, in return for paying a penalty, will be given documents that officially allow the use of this space in its current state for the next 40 years without threat of demolition or further fines. Note to self: one does wonder what happens in year 41?

It is a reality that over the years the construction industry has taken advantage of loopholes in the law to build homes with much more living space than was actually permitted. This meant that builders increased their profits while buyers paid less in taxes. Most flats took advantage of a few square meters of "semi-open" space and incorporated it into a bedroom, bathroom or living room and basements or lofts in houses have often been utilised as living rooms.

In order to check on this, inspectors and officials from town planning offices will be sent out to check on buildings and impose fines on anyone not declaring their illegally converted areas. The success of this new law will be determined by whether proper inspections are carried out and, if inspectors find illegally altered areas, owners are actually called to book and made to pay fines.

The amount to be paid will be calculated according to the size of the area in question, whether the home complies with zoning regulations, the value of property and whether the house is the owner’s main residence.

There is, however, a serious underlying problem that could cause the government’s plans to backfire. Much like in Spain, many homeowners feel a deep sense of resentment at having to pay fines for properties they bought in what was considered by all to be a totally legal fashion, after town-planning offices, land registries, lawyers and notaries had signed off on the deal. On top of this, the real culprits, namely the developers and builders, are going unpunished. The majority of the properties were illegally built or altered before being sold, and yet not a single developer or builder is facing penalties or legal action.

Who can blame the property owners for being furious?

"The crucial question concerning these regulations is whether citizens will abide by them in the face of a state that is unreliable and has been pushing illegal construction for years," Yiannis Alavanos, head of the Technical Chamber of Greece, wrote in the Kathimerini newspaper. Harsh words indeed.

The law already appears to have hit problems; it seems that Greece’s highest administrative court has already declared the law unconstitutional so it remains to be seen if anything comes of it. In the meantime, just be aware of this ongoing wrangle.

Have a happy week ahead!

Best wishes to you

Carol
The Overseas Guides Company
http://www.Greecebuyingguide.com

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