The main stages of buying and selling properties (homes, appartments, flats, villas) in Bulgaria are the following:
Finding a Property/Buyer in Bulgaria
Most often, though not necessarily, assistance in finding a suitable property (or a buyer for the property) is provided by real estate agencies. A significant advantage of the Bulgarian real estate market is that property prices range from pretty affordable, even cheap apartments, to high-end luxury villas located at the coast of the Black Sea. Commissions for the services provided on the transaction should be paid to the respective company. The fee is negotiated between the agency and the client, and usually, it is a percentage of the amount of the transaction. Normally, it is around 2.5 % of the price.
It is important to research thoroughly the area you are considering purchasing the property in, as well as companies you might use (developers, estate agents, and lawyers). You should look at a range of houses/apartments/villas that belong to different agents to compare prices and ensure that you do not end up paying too much.
A word of caution: Numerous property owners are now experiencing problems with their property because they did not seek independent real estate legal advice and instead used lawyers and translators which were recommended by the estate agent or developer and in some cases were acting for both parties. Always appoint a lawyer who is experienced in property conveyance and utterly independent of anyone else involved in the transaction, including the estate agent or the seller!
Preliminary Contract and its main mission
The practice set in real estate transactions, considering the usually high price, is that the parties enter into a preliminary contract which specifies the conditions for the future performance of the formalities related to the deal at the notary’s office.
The legal structure of the preliminary contract is stated under Art. 19 of the OCA and Art. 362 to 364 of the Civil Procedure Code (CPC). The preliminary contract for purchase and sale of real estate must be executed in writing form. The purpose of the preliminary contract is to prepare the execution of the final agreement.
The notary deed – last step for the ownership transfer of the property
The notary deed is the final act which transfers the ownership of the property from the seller to the buyer.
To perform the formalities related to deal at the notary’s office, the parties (or their representatives) must appear before the notary to sign the title deed.
The notary public should be in the same area where the property is located will have jurisdiction. The seller must submit to the notary the original documents evidencing the ownership right to the property.
Registration for the deal and Declaration
On the same day of the deal, the notary presents the title deed in the registry office where the real estate is located.
The Judge of Registration orders the recording of the title deed with the Property Registry at the Registry Agency, which ensures the rights of the buyer in case of possible claims of third parties. From this time, the buyer has every right to dispose of mortgages, rentals, sale, etc.
According to the Local Taxes and Fees Act, any individual who has acquired a new property, whether new or old construction, or whether a replacement, has to declare within two months the formalities related to the transaction
Here at Innovires Legal can assist you with:
- Incorporation of Bulgarian company (necessary for the Non-EU citizens)
- Complete property and seller check up
- Assistance with finding the desired property
- Drafting and revising the preliminary contract
- Representation in front of the notary
- Declaring the transfer of the property to the municipality
Innovires Legal assistance in the real estate market ->
In case you need additional support and information, do not hesitate to contact us.