This is not meant to be a full explanation of property law but simply a guide to the basic process.
Bulgaria’s ownership policy will be harmonised with the EU in the future.
Under the Bulgarian act on Foreign Ownership, foreigners are not allowed to own land but may own buildings. You can however own land by setting up a Bulgarian Company to hold the property for you. (this will be changing next year “ see Latest news”)
At present under Bulgarian law any, foreigner purchasing property must have an officially appointed government translator present, to explain exactly what is written on all documents before you sign
The situation is summarised below:
Villa Houses & Land: In order for a foreigner to own villa/house/land in Bulgaria they must set up a limited company, this can be arranged through this website. It may seem a daunting task setting up a limited company in order to own the land upon which your villa house is sited. However, the hard work of finding the right people and advice has already been done for you. (see “What we do for you”)
Apartments: Foreigners can purchase apartments in Bulgaria without the need to set up a LTD company, if no land is included in the sale of the property. When you buy an apartment, you buy a part of the building and as such there is no need to create a company. This part of the building is freehold and there is no lease, the apartment is yours forever, or until you sell.
Buying an ‘off plan’ apartment in Bulgaria is essentially the same as buying in the UK. There is an initial contract signed by all parties, which is basically an obligation to build on behalf of the developer and an obligation to buy on behalf of the client.
The sales contract will set out timescales, prices and any penalties for late completion and will be produced by the developers solicitors. It will have been checked by the agent and the client will also have the opportunity to obtain their own legal advice before signing.
The difference comes when the property is completed. In Bulgaria, there is a third party who basically acts on behalf of the government. This person is called the ‘notary’. It is the notary’s responsibility to ensure that the correct details are entered onto property deeds.
In essence, the client and/or a representative, with the representative of the developer meet with the notary, who issues the deeds once they are sure everything is correct. (The notary is considered as a government official, to ensure all parties understand and agree with the contracts.)
Bulgaria Property Investment Ltd offers you a special service "Buy from any Country in the World!" that gives an opportunity to those clients who wish to acquire property in Bulgaria without having to travel the distance. This service is not unique but we pride ourselves in being one of the first to promote this facility. The service is especially useful for those buyers who wish to buy "off-plan" be it apartments or new build houses and are already familiar with the area where the construction work is to take place (or will take place). Our clients can benefit from lower agent commissions, avoiding travel costs and time saving.
All you have to do is:
Step 1: Reserve the property:
You can reserve a property through us for two weeks by transferring 1000 euro into our bank account. We will immediately pay the sum to the seller and he will take the property off the market. This amount will be deducted from the purchase price of the property when a Preliminary Purchase Agreement is signed with the builder.
Step 2: Sign a Preliminary purchase agreement and pay balance of full deposit:
After the property is reserved we arrange that the seller signs a preliminary purchase agreement that is prepared in advance after communication with both the buyer and the seller. The signed Preliminary Agreement is then posted by courier service to the buyer. Upon receiving the signed agreement the buyer transfers the agreed deposit payment (usually at least 10% of the purchase price, depending on the stage of completion of the property).
Step 3: Transfer the balance amount (on separate instalments if the property is in construction) and picking up the notary deeds. (Normally, the client should come over to sign and pick up the notary deeds personally. However purchases can be completed in the client's absence by using Powers of Attorney.)
In cases when the contract involves purchase of land our lawyers have to register a company on the client's behalf. This requires more time and paperwork. (See “Our Fee’s”)
Please contact us if you would like to reserve a property and make use of our "Buy from any Country in the World!" service. You can call Brian Howard on 0044 1983 863015 or Tony Philipson 0044 1983 810008.
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