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BULGARIA
PROPERTY PURCHASE LEGAL REGULATIONS
How is the purchase of a real estate in Bulgaria by a foreign person arranged by law?
According to the Bulgarian Constitution, foreign individual persons may acquire a real estate constructed by means of a building lease granted (e.g., an apartment, a store or an office in a multi-storey building) not including title of land. If a foreign person, however, wishes to acquire a real estate in the territory of Bulgaria including title of land, such person will be required to register a company (normally a single-person private limited liability company) in their name as provided under the Law on Commerce.According to the substantial legislation the company registered will be a Bulgarian legal entity owned by the capital holder and any property may be acquired in the name of such company without limitation. We expect the law to change within the short to medium term.
The Transaction process
Negotiating the Preliminary Contract
Once you have decided which property you would like to purchase, we will approach the seller and will negotiate on your behalf with him or her on the conditions accompanying the sale. The contact that is negotiated / the Preliminary contract/ will contain all the important terms and conditions of the sale.
Deposit
Upon signing the preliminary contract buyer will pay a deposit to seller thus establishing their commitment to purchase the property. In Bulgaria such deposit usually rates at 10% of the cost of the property to be purchased. If after signing the preliminary contract seller unreasonably refuses to sell the property, seller will have to refund twice the deposit to you, and vice versa, if after signing the preliminary contract you unreasonably refuse to purchase the property, you will lose the deposit you have already paid.
Upon signing the preliminary contract and paying a 10%-deposit the real estate agent’s fee will have to be paid as well.
Sale
There is usually a month between the exchange of the Preliminary Contract and the conclusion of the final sale documentation / the “Notary Deed “/. This time period is necessary in order for certain final property and legal checks to be made.
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