Legal Guide to Buying Property in Bulgaria - Assetz Bulgaria
The buying process in Bulgaria is as follows :
• Once the reservation monies have been paid, which will secure your interest in the property and go towards the asking price, there is usually a period of 4 weeks in which to carry out checks before the investor signs the 'preliminary' contract. The preliminary contract is signed by all parties in which they effectively promise to enter into a final contract to buy and sell the property. After all the necessary details are provided, the contract will be drawn up by the developer’s solicitors and will set out timescales, payment terms, prices and the terms and conditions agreed.
• A deposit is required upon the signature of the contract. Usually this is at 40% of the asking price; however it is subject to the particular developer’s requirements.
• The remaining deposit is then due prior to build completion and payable in stage payments. The developer is usually flexible when these payments are made so long as the required deposit is paid in full before build completion. Your solicitor should be able to advise you whether this is actually the case.
• Transfer the required remainder of the funds on completion. Once the build is completed, you are able fund the remaining amount due via a Bulgarian mortgage. However, you cannot obtain a mortgage before the property is completed. (Please see section on financing options for further details.)
• In most countries, except the UK and other common law jurisdictions, the Notary plays a major part in the process of buying and selling real estate. The notary is a public official who is simply there to ensure that the transaction goes through in a proper legal manner, but it not duty bound to act on behalf of the investor. In the case of off-plan developments, the final Notary Act is not signed until the building is completed, at which point it can be put on the public record which will show the official transfer of title to the investor.
• Once this has occurred, the investor will transfer the remainder of the funds and obtain the title deeds in their name. At this point the property is legally completed and the investor becomes the owner!