releaz is an innovative digital end-to-end marketplace which connects owners and investors by introducing the first residential sale & leaseback model in the Greek market. releaz’s purpose is to offer hassle- and risk-free returns to investors.
releaz allows investors to view detailed financial, quantitative and qualitative information about properties that they are interested in and to be able to conduct transactions directly through the online platform. Previously, all information would have to be pulled from a variety of sources (lawyers, engineers, valuers etc.) requiring knowledge and local contacts that would not be available online, excluding in that way a number of investors.
In addition, releaz is the only platform that utilises the sale and leaseback model in residential properties at pre-determined repurchase prices from the owners, ensuring attractive rental yields and exit options to property investors.
Combining the above elements, releaz created a platform that offers direct and easy access to the real estate market, streamlining and digitizing the entire transaction process.
Through the releaz platform, initiate the purchase process by either submitting an offer or reserving instantly the property at the listed price.
A) Offer submission directly to property owner:
The property owner will have five days to make a decision, which can result in:
- Offer Accepted – The property owner accepts your offer, and you proceed with the transaction.
- Offer Declined – The property owner declines your offer, and you have the right to submit a new offer.
- Offer Expired – The property owner does not take action during the five-day period, and you are free to submit a new offer after the lapse of the five-day period!
B) Instant property reservation at the listed price:
The property owner is obliged to accept your reservation and to proceed with the completion of the transaction. At that point, the property is no longer available for sale.
All properties listed on the releaz platform have been appraised by independent RICS valuers, hence you are offered the best possible reassurance regarding the reasonableness of the offered value of each property. In addition, all listings have gone through technical and legal due diligence by the architects, civil engineers and lawyers of the releaz team to ensure the technical and legal soundness of the properties listed on the platform.
The property owner. Once the valuation of the market value is agreed, the property owner selects the annual rent which ranges from 4% to 6% on the cash proceeds per annum.
The repurchase price depends on the cash proceeds, the annual rent and the year of repurchase. The calculation formula of the repurchase price has been designed by the releaz team to offer the investor a very competitive return on investment.
The property owner can repurchase the property at a pre-agreed price strictly within a five-year period. In that respect, the repurchase option can be exercised any time after the first anniversary from the transaction date and within the five-year period which cannot be extended. The repurchase option is included in the notarial sale and leaseback contract, thus protecting both parties. If the owner terminates the leaseback prior to the end of the 5-year period or defaults under the lease-back agreements, the owner forfeits automatically the repurchase option.
The properties listed on releaz belong to various owners, individuals or companies who wish to sell them, while retaining both their use as tenants and the right to repurchase them. The purpose of the platform is to connect investors with owners.
While releaz cannot guarantee that the property owner will never miss a rental payment, any payment default over 3 months will allow investors to terminate the leaseback and automatically the investor can evict the tenant, who will also forfeit the repurchase option.
releaz provides sufficient photographic material, 360° tours as well as detailed technical and legal reports to minimize the need for a personal visit. However, if you wish to inspect the property you are interested in, you have the option to submit an inspection request via the request property inspection tab in the respective property page. The releaz team will arrange the date/time of the inspection.
If you decide to reserve the property you are interested in instantly, then you fill in your card details for completion of the reservation process and your bank account is charged with the respective reservation amount. This is necessary both to protect both parties and as practical proof of your commitment to proceed with the transaction.
If you decide to submit an offer, then releaz needs to get a pre-authorization on your card for the respective reservation amount. Your bank account is not charged until the property owner has accepted your offer. Otherwise, in case the property owner rejects your offer or the five-day period lapses without any response, the pre-authorization is lifted automatically from your bank account.
Upon completion of the transaction, releaz is entitled to a transaction fee of 2% (plus VAT) as a real estate services fee for the conclusion of the property’s sale and leaseback contract. Investors can opt for the Closing Services, so that releaz undertakes on their behalf all the required tasks for the completion of the transaction (i.e. reviewing final notarial contracts, registering the transfer with the Land Registry, arranging payment of transfer taxes, arrangements with notary, engineers etc.) with an additional fee of 2% (plus VAT) upon completion of the transaction.
Every sale and purchase property transaction burdens the buyer with closing costs which include, without limitation, real estate transfer tax, Land Registry costs and notary cost etc., which amount to around 5% of the transaction value. The relevant amount is paid by the investor at the time of purchase, but is taken into account for the calculation of the investor’s total investment return at the exercise of the repurchase option by the seller.