Bulgaria property news and articles

The preliminary contract represents a legal commitment between both parties.The seller commits to sell the property and the buyer commits to buy it. you do not have to certify the preliminary contract in front of the notary in order for it to be valid, although, if you do so, this provides more protection for both parties. The preliminary contract is usually drafted and signed in Bulgarian. In case any of the signing parties does not understand Bulgarian, there should be a licensed interpreter present at the signing, and the contract must be translated.There is no problem if the contract is also signed in English if,for example, both parties are English and understand the language, but if the contract needs to be presented to the court or any other state or local institutions, it should be officially translated into Bulgarian by a licensed translation agency. If your lawyer is signing the preliminary contract on your behalf,you may still ask for a translation so that you understand the terms and conditions.

In general your lawyer will check the existing notary act of the current owner or seller. He or she will check the history of the Bulgarian property that you are buying and also if there are any encumbrances on it – mortgages, court claims, court injunctions and so on. Since all notary acts are registered with the Registry Agency, it is possible to trace the history of the property and all previous transactions.

When you have chosen a property in Bulgaria you wish to purchase, the seller, through the agent, may ask you to pay a reservation deposit and sign a reservation contract in order to take the property off the market (this is normally the practice when buying an off-plan apartment in Bulgaria, and is not so common with house purchases in Bulgaria, in case your Bulgarian company is registered and you are ready to pay 100% of the money). The amount is normally 10% of the property price. Paying this deposit shows your serious intentions and interest in buying the property in Bulgaria.

It is very rare to have a deal completed and all legal checks made while you are in the country on your first visit. Most deals take 1-2 months to complete. You can return to Bulgaria at every stage during the conveyancing process to sign the documents, but this is not really a practical or cost-effective solution. In most cases therefore it will be necessary to leave power of attorney with your representatives in Bulgaria.

Of course this is something that can be arranged before choosing a property and agreeing the price, but in practice most people first have contact with a lawyer at this stage of the process. In fact there are no legal requirements to use a lawyer, since the actual rights of ownership over a property can be transferred by a notary with a notary act. A notary is a licensed official who can authenticate documents and perform certain other acts. On the day of the deal they will verify who the buyer and seller are and check that all the paperwork is in order to complete the deal legally.The lawyer’s role is different.The lawyer’s role is to ensure that your interests specifically are being satisfied and to check all the documents are in order so that the notary can legalise the deal.

There are two broad definitions of land in Bulgaria: unregulated and regulated. Unregulated land is land that has strict control over its use and what can be built on it. In most cases unregulated land is used for agricultural purposes, and only buildings associated with this sector are permitted to be built. It is possible to change the status of unregulated land, but the process is complex and takes up to ю months to complete. An EU citizen or company is now permitted to own agricultural land as long as they are agricultural producers and are carrying out agricultural activities.

At present time, most people currently buying a property with land in Bulgaria still do so via a company-irrespective of the new rights of EU citizens.

The company is owned by the shareholders (you) and the company owns the property. It is a perfectly legal procedure and costs a bout €300-750 (£200-500) to register the company (including all the state taxes and legal fees).There can be more than one shareholder. You will have to decide on a name for the company, deposit in a bank at least 3,500 leva (€1,800) as initial start-up capital (the bank account is called a capital-raising account), sign many documents and wait about two weeks for the process to be completed. Your lawyer or estate agent would be able to arrange this on your behalf in your absence by using power of attorney.

Until recently, Bulgarian banks would only lend to Bulgarian citizens, but recently these restrictions have been relaxed. Not all Bulgarian banks will lend to foreign citizens, however, so you will have to shop around. Bulgarian Mortgages are not generally available if you are buying land alone. You might decide to use the services of a local mortgage broker, who can assist with the process of applying for and finalizing of the mortgage.

Building Swimming Pool in your Bulgarian property

Swimming pools are popular in Bulgaria, providing relief from the long, hot summers and increasing the desirability of a property for letting. Before you decide to invest in one, however, it might be worth checking out if there is one nearby that you can use instead. Many restaurant complexes have a pool and the admission price is often very low (and in some instances free).

Perhaps you have bought a plot of land in Bulgaria without a dwelling on it or the property requires so much work as to make Bulgarian property renovation impracticable. In this instance a new build property will often be a better solution than messing with an existing building – and sometimes cheaper. If this scenario might apply, try to take the decision early – possibly by inviting a qualified Bulgarian surveyor, or at least some experienced Bulgarian builders, to assess the structure – rather than after a month of hacking out rotten supporting beams!