Leasing, Lease-Back Agreement

Details

A lease agreement is a contract between a special type company (societe anonyme) and a special purpose company (the sole object of which is the conclusion of a leasing agreement) called a “lessor”, and a business or which the former grants, for a certain period of time and for a fee, to the latter, the use of a thing, movable or immovable, while at the same time giving the right to either buy the thing after the expiration of the fixed time (option).

The leasing company, of a specific type and purpose, intervenes between the supplier and the lessee – who, according to the provisions of the law, must be a company or a professional – financing his investment. The lessor and the supplier are linked to each other by the contract of sale, which the former draws up either in person, i.e. through its organs upon request and on behalf of the lessee, or through the latter, who acts as the representative of the leasing company. While, the lessor company and the investor – tenant are connected with each other by a leasing contract according to the definitions of the law.

The institution of leasing was extended to real estate with the amendments brought by Law 2367/1995 to Law 1665/1986.

When the lease agreement concerns a real estate, both the main contract and its amending contracts are drawn up with a notarized document and are transferred to the transfer books of the region of the leased property (article 1 par. 3 of Law 1665/1986). If the area is cadastral and operates a Cadastral Office, the registration of the financial lease in the relevant cadastral sheets is required according to article 12 par. 1 case o of Law 2664/1998. The transfer of the lease agreement to the transfer books of the Mortgage Office / entry in the cadastral sheets is a condition of the active party of the contract, i.e. it is required in order for it to acquire energy both in the relations between the parties and against the third parties.

Also, in addition to the required transfer, the leasing contracts related to real estate are obligatorily registered in the book of article 5 of P.D. 1038/1949 του Πρωτοδικείου Αθηνών (καθιερώνεται «διπλό σύστημα δημοσιότητας»).</i> <b>1038/1949 of the Athens Court of First Instance (a “dual system of publicity” is established). It should be noted here that the registration of the contract in the relevant book of the Athens Court of First Instance is not a precondition for the preparation of the contract, which is valid and in force from its notarial preparation, but is required in order to “realize” the tenant’s right and protect him against third parties (i.e. to bind third parties as well).

However, this protection is of limited importance in the real estate, in respect of which there is no bona fide acquisition of ownership and the special successor of the lessor will be bound by the financial lease, after the condition of AK 614 for the existence of a document of a certain date with the compliance with the constituent notarial form and provided that the lease agreement does not contain an otherwise provision (see ibid., A. Georgiadis, pp. 67 and 70 ff.).

If you are interested in this service, please contact us to inform you about the required documents, as well as about our fee and the amount of the promissory note of the Bar Association, which is adjusted depending on the amount of value of the property listed in the contract, so that the exact amount of the requested service is sent to you and this product is selected in your cart for payment.