General information only — not legal advice. Always use an independent lawyer/notary for your transaction and deposit arrangements.
What “escrow” means in property
Escrow is any arrangement where money (usually the deposit, sometimes the full balance) is held by a trusted third party and only released when clear, pre-agreed conditions are met.
In property deals, escrow-like protection can be created through:
- Lawyer stakeholder/client account (funds held with written release rules)
- Bank escrow / controlled account
- Notary-controlled workflow (common in deed-driven systems)
- Contractual + registry protections (filings that protect the buyer’s position even before title transfer)
The key idea is always the same: no money moves “on trust” alone—it moves when milestones are proven.
Why deposits are risky in Cyprus & Greece
Deposits usually happen before the deal is fully “transfer-ready.” Risks include:
- Title or ownership issues discovered late
- Existing mortgages/claims that aren’t cleared on time
- Planning/building compliance issues (especially where square metres don’t match records)
- Seller/developer delays
- Simple coordination failure: missing documents, missed filings, or unclear responsibilities
Escrow (or escrow-like controls) is your best tool to reduce these risks.
Cyprus: how deposit protection works in practice
1) Reservation deposits: protect them with written release rules
In Cyprus, reservation deposits are common. The safest approach is:
- pay only after a written reservation/deposit agreement exists,
- define refund vs non-refund triggers, and
- ensure the funds are held in a controlled way (e.g., lawyer stakeholder/client account) rather than simply paid to a counterparty.
The Cyprus Bar/consumer guidance commonly advises paying pre-contract deposits to your lawyer in a separate client/escrow account rather than to an agent.
2) The “Cyprus special”: deposit the Sale Contract with Lands & Surveys (DLS)
Cyprus has a unique buyer protection step that functions like “legal escrow” for your position:
The Department of Lands and Surveys (DLS) recommends that once you sign a Sale Contract, you have it stamped (where applicable) and deposit it with DLS no later than six (6) months from signing.
DLS also explains that with the deposit of the Sale Contract, the provisions of the Sale of Immovable Property (Specific Performance) Law 81(I)/2011 apply to protect the buyer if the vendor fails to meet obligations.
Plain-English takeaway: even if title transfer happens later (e.g., title deeds pending), depositing the contract helps protect your legal position after signing.
Cyprus “Protected Deposit” checklist (what to insist on)
- Where is the deposit held? (lawyer stakeholder/client account preferred)
- What triggers a refund? (failed due diligence, seller delay/default, inability to transfer)
- What triggers release? (contract signed, contract deposited with DLS, encumbrance releases, completion date)
- Proof you must receive: deposit receipt + signed agreement + DLS contract deposit receipt
Greece: how deposit and settlement protection works
1) Greece is deed-and-registration driven (notary is central)
In Greece, the formal completion is centered on the notarial deed and subsequent registration/inscription in the competent registry/cadastre system. Buyers can obtain official proof through Cadastre services such as a certificate of registration of a registrable deed.
So “protection” often looks like:
- making sure the property is transfer-ready (title + burdens + technical file),
- ensuring the notary’s file is complete, and
- verifying registration evidence after signing.
2) myPROPERTY and tax filing is part of the settlement chain
Transfer tax readiness is a common cause of delays.
AADE states that:
- A real estate transfer tax is imposed and payment is the responsibility of the buyer, and the rate is 3% of the taxable value.
- Initial timely transfer tax returns in objective value areas are submitted digitally through myPROPERTY by the notary (Dec. 1110/2022).
Why this matters for escrow: you can build “release milestones” around tax filing completion and deed readiness.
3) Is escrow common in Greece?
Some Greek real estate legal practitioners note that opening an escrow bank account is uncommon in Greece and that buyers are often expected to demonstrate funds availability before notarisation.
That doesn’t mean “no protection is possible.” It means buyers should focus on:
- deposit paid only with written conditions, and
- settlement funds moved at/near signing with documented completion deliverables and immediate registration steps.
Greece “Protected Deposit” checklist (what to insist on)
- Deposits only with written conditions (refund/release triggers)
- No deposit until lawyer confirms core title/burden checks (and engineer pathway if needed)
- Milestone-based release: e.g., preliminary agreement signed → technical file confirmed → myPROPERTY declaration accepted → deed signing scheduled
- Completion evidence: obtain a certificate/proof that the deed was filed/registered where available
The “Escrow-like” model that works in both countries
Even when formal escrow accounts aren’t standard, you can still protect buyers (and sellers) by using controlled releases tied to objective milestones:
Milestone 1 — “Deposit is safe”
- Deposit agreement signed
- Funds held by stakeholder (ideally lawyer client account) or via a controlled mechanism
Milestone 2 — “Legal readiness confirmed”
- Title/ownership checks done
- Encumbrance clearance plan documented
Milestone 3 — “Government workflow ready”
- Cyprus: Sale Contract deposited with DLS (Specific Performance protections activated)
- Greece: myPROPERTY transfer tax declaration submitted/processed per notary workflow where applicable
Milestone 4 — “Settlement”
- Deed executed (Greece) and registration evidence obtained
- Ownership transfer completed (or properly documented next steps if title deeds pending)
Common mistakes (and how to avoid them)
- Paying a deposit with no written release rules
- Letting an agent hold deposit without clear stakeholder terms (Cyprus risk pattern)
- Missing Cyprus contract deposit deadline (loss of key protections)
- Treating Greece tax filing as “admin later” (can block signing)
- No proof of registration/filing after signing in Greece
How REXE helps protect deposits and settlement
Most failures happen because the deal is coordinated in inboxes: no clear owner, no deadlines, no audit trail.
REXE helps by:
- Running a shared Deposit & Settlement Checklist (Buyer / Lawyer / Agent / Notary)
- Enforcing milestone-based releases (deposit → due diligence → filings → settlement)
- Tracking Cyprus’s critical “deposit the Sale Contract” step with evidence storage
- Tracking Greece’s myPROPERTY and registration proof milestones
