PROPERTY LAW. SALE AND PURCHASE OF REAL ESTATES IN BULGARIA

  Yosifova, Ivanov & Petrov Law Firm offers a full range of legal services in the field of property law, including legal services related to investments in real estate in Bulgaria and property transactions.

Over the years we have gained invaluable experience during the representation of numerous Bulgarian and foreign clients during:

– purchase and sale of real estates;

– establishment of a contractual or legal mortgage over real estate;

– donation;

– property substitution;

– establishment of construction right (superficies);

– transfer of real estate in exchange of maintenance and care;

– establishment of the right to use a property;

– contributing a real estate in the capital of a company, etc.

             If you are planning to buy a real estate:

We offer our clients, who are planning to purchase real estate, a complete legal analysis of the selected real estate, including the following services:

– we prepare a project and coordinate amendments on the text of a preliminary contract for

sale and purchase of real estate;

– we examine the history of the property, perform a full check on whether the property is free of legal burdens (encumbrances), obtain previous property documents and other relevant papers;

– we perform a check on the seller – their representative power, availability of information about court cases against the seller, marital status and other relevant information;

– we prepare and put amendments (if needed) on the draft of title deed, assist our clients before the notary public and accompany the client on the day of the transaction;

– we assist our clients in obtaining possession of the property, including the preparation of an acceptance and delivery certificate, if such is needed and agreed;

 – we coordinate the communication with the lending bank, if the client is going to use a loan for the purchase, we monitor the issuance of a letter of engagement, assist in establishing legal/contractual mortgage;

– we cooperate, if the sale price will be paid through a trust account contract/escrow account;

Should you have any questions or need information on the above legal services, please request our Free Brochure “Purchase of Real Estate” here.

             If you are planning to sell real estate:

If you are a seller in a real estate transaction, our law firm can offer full legal services, including the following:

– we prepare a project and coordinate amendments to the text of a preliminary contract for sale and purchase of real estate;

– we inspect, advise and assist you in obtaining the necessary documents for the sale, including, but not limited to: a certificate of tax assessment of the property; certificate of marital status; certificate of marital regime; certificate of presence/absence of material encumbrances; previous property acts (title deeds, contracts for sale and purchase of municipal/state property); cadastral scheme of the property by the GCCA, and others; if necessary, we may file a corrective declaration under Article 14 of the LTFA;

– we perform a check on the buyer – their representative power, availability of information about court cases against them, and other relevant information;

– we prepare and make amendments (if needed) to the draft title deed, assist our clients before the notary public and accompany the client on the day of the transaction;

– we assist our clients in obtaining possession of the property, including the preparation of a acceptance and delivery certificate, if such is needed and agreed;

– we coordinate the communication with the lending bank, if the buyer is going to use a loan for the purchase, we monitor the issuance of a letter of engagement;

– we cooperate, if the sale price will be paid through a trust account contract/escrow account;

In addition, although we are not financial advisers, we can provide you with guidance on the approximate real market price of the property, which you can receive from eventual sale.

We can represent you throughout the whole process and, if necessary, we can sign the new notarial deed on your behalf as seller and deliver possession of the property to your buyer.

We also offer legal assistance in solving problems related to the Cadaster and Property Register Act, problems with property boundaries, unresolved regulatory bills, precise registration of apartments, houses and plots in the schemes issued by GCCA, as well as with the preparation and supply of all the necessary documentation.

Should you have any questions or need information on the above legal services, please request our Free Brochure “Sale of Real Estate” here.

             Negotiations and drafting notarial (title) deeds

For all types of real estate transactions, we offer full legal assistance, from the initiation of the respective procedure to the conclusion of the final contract in the form of a title deed.

We take part and negotiate on behalf of the client with the other party and with any third parties (brokers, lending banks when buying a property through mortgage, etc.). We prepare the texts of preliminary contracts and title deeds.

Based on an explicit authorization by a client, who is currently abroad or is not able to participate in the transaction in person due to other obstacles, we are able to act during the conclusion of the transaction.

We can provide you with consultation, as well as with preparation and verification of documents, related to the establishment, transfer or termination of limited property rights over real estates in Bulgaria – right of construction, right of passage, easements, right of use, etc.

Registration with the tax offices, Geodesy, Cartography and Cadaster Agency and the Bulstat Register

We perform all necessary registrations of the completed sale and purchase of the property in the local tax offices (if applicable), Bulstat Register, Geodesy, Cartography and Cadaster Agency, on the territory of the whole country.

In case of sale of the property /no matter if it is a house, an apartment or a land plot/, we perform the respective registration of the sale at the respective municipality on behalf of the seller, to ensure that no taxes will be charged on the property.

    Acquisition of property by prescription

The acquisition of a property by prescription is one of the legal ways to establish that right of ownership arises in favor of an individual over a particular property.

If you had possession of a specific property for a period of 5 or 10 years, you could claim ownership of that property. In relation to this, we can offer you initial consultation on specific cases, where we can clarify with the client whether there are legal prerequisites for the application of the statute of limitations and whether the client can be recognized as owner of the property.

In addition, we can assist you with obtaining all documents required for the property, as well as represent you before a local notary public during the preparation and conclusion of the title deed (document on ownership of the property).

      Division of Real Estate

If you are an owner of a real estate property, together with at least one more person, and if you want your co-ownership to be terminated (most often because of contradictions with the other co-owner or because of need of fresh funds), our law firm can represent and assist you in performing the division of the real estate.

We represent our clients in the execution of voluntary division of real estate, or in legal proceedings for division of real estate.

As far as voluntary division of real estate is concerned – we can participate in the negotiations with the other co-owner of the property, obtain the necessary documentation and arrange for signing a contract for voluntary division of the property before a local notary public, which contract will serve as your title document from now on.

In the event that you can’t reach an agreement with your co-owner for voluntary division of the property, we can assist you in the preparation of a lawsuit, represent you during the court case procedure, defend your interests and obtain a court decision that substitutes the title deed.

  Protection of property rights

If you consider that your ownership rights over a real estate property is being violated or withdrawn due to fraudulent acts of third parties (misappropriation of other person’s property, refusals of tenants to leave the property after expiration of their contract, etc.), our law firm can represent you by performing actions to protect your rights and legitimate interests.

We provide consultations on specific cases (including through reviewing and obtaining relevant documents), drafting and filing statements of claim against third parties’ actions and representing the client in the Bulgarian courts until the completion of procedures.

                               Obtaining a notary (title) deed

We quite often assist clients, who own a property, but for whatever reason they do not keep the original of the title deed for that property. In relation to this, we can provide our clients with the service of obtaining a notarial deed for the property owners through the notary, who has performed the transaction for the property, or through the relevant Registry Agency Office at the location of the property.

Why is it advisable to consult with a lawyer before undertaking any actions concerning real estate property matters?

In recent years, real estates have become subject of numerous frauds, as a result of which the interests and rights of many individuals have been infringed.

In our practice, we have had cases of signed preliminary contracts for the sale and purchase of real estates, where the seller is “represented” by a proxy without the necessary representative power.

In other cases, the seller intentionally conceals the existence of property encumbrances or other material problems on the property, relying that the buyer will not perform (in person or through a lawyer) the proper inspections of the property in a timely manner.

These second type of cases are quite common, especially when both parties to a transaction are represented by the same real estate broker, for whom it is important to carry out the transaction, respectively, to receive a commission fee and not to protect the interests of the parties under the respective property transaction.

It is of utmost importance, no matter if you are selling or buying a property, to carry out the necessary research, to carefully review the documents presented to you for your signature, as this could otherwise have negative consequences for you.

For performing a sale and purchase of a property, you should review the entire history of the property for any vicious previous transactions made with it, as well as perform a check for any existing real estate encumbrances over the property.

Every buyer is at risk of buying property with a burden attached to it, or having the transaction declared invalid because of a vicious previous transaction with the property, if these checks are not carried out.

If you are a seller, one of the biggest threats to your rights is to sign the deed of sale, but not to receive the agreed purchase price, or e.g. to assume responsibility for penalties without knowing that there is a statement of claim filed against you.

If the parties have not established trust between themselves, it is advisable to consider a reasonable mechanism for making the payment for the sale of the property, including by using the trust account of the notary, who will execute the transaction.

For more information on the above legal services, please contact us by using the e-mails and phone numbers provided in our „Contacts” section.

More information about the legal procedures, related to sale-purchase of real estate in Bulgaria, you can find in the following articles:

Real estate sale in Bulgaria

For Real estate purchase and sale at an actual price

The role of the preliminary contract in property transactions in Bulgaria

Property acquisition via prescription

Escrow account on real estate transactions in Bulgaria

Notarized POA for real estate sale, signed abroad

Disposition of property, owned by a child

Claiming back maintenance fee in a case where you are not using your apartment

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