Buying property in Bulgaria
Common practice in Bulgaria when purchasing property is to reserve the property you wish to buy. It is essential to sign a reservation agreement with the seller and you should have to pay a reservation deposit. The usual amount is not very big (no more than 3000 Euro) but each seller has the right to decide what reservation fee would like to keep the property off the market.
After you have reserved the property and have paid the deposit we recommend you to sign a
preliminary sales agreement. According to Bulgarian law this contract
precedes the conclusion of the final contract (notary deed) and shall
incorporate all provisions concerning the material terms of the final
Before you sign the preliminary contract we will need approximately 15 days to gather the necessary information on the property and to ensure that everything with the ownership rights of the seller is clear and the property is free of any pending charges.
If you are buying land it would be necessary to set up a Bulgarian limited liability company (LLC, which in Bulgaria corresponds to the suffix OOD).This would not be necessary if you are buying only apartments or “off plan” properties without land.
Once the preliminary contract is signed by both parties it becomes a legally binding document. You should note that signing a preliminary sales agreement does not make you an owner of the property but it protects your rights as a buyer and we highly recommend you to sign a preliminary sales agreement for your purchase.
According to Bulgarian law to finalise the sale process both parties or authorised representatives should sign the final contract before the Notary from the region where the property is situated. The Notary is a public official and his duty is to identify the buyer and the seller and their will to conclude the contract for the transfer of the property ownership and also to ensure that all legal requirements are fulfilled.
If you are unable to be present and to sign the Notary deed we could do this on your behalf. It is common practice at our Law Firm to have a valid power of attorney for most of our clients at the beginning of all buying or selling operations.
After the Notary deed has been signed it should be registered at the Property Register. That usually took about one week. Once the Property Register has returned the Title Deeds it is our engagement to collect all of the documents concerning your purchase and to arrange the best time for you to collect it from our offices.