Legal Aspects of Buying Real Estate in Bulgaria

Every real estate purchase is associated with a number of documents and checks, both from the buyer and the seller. What are the main steps, procedures, and prerequisites for a successful property purchase that you need to keep in mind, whether or not you use professional legal services? Here is a summary of the basic points for both Bulgarian and foreign prospective owners.

Documentation

This is one of the most critical steps for the successful completion of any deal, as securing and processing the documents takes time. If you work with a real estate agency, this process will largely be handled for you. Otherwise, you will need to be prepared with the following documents:

Notary Deed

Every deal involves a change of ownership, and to change ownership, it must first be indisputably proven who the property owner is. This is done with a document of ownership, which can generally be of three types – a notary deed, a purchase and sale agreement, or a court decision. These documents precisely describe the property, its owners, area, type, and boundaries.

Tax Assessment

This is a type of certificate that shows you have paid all taxes and fees on the property that you owe as an owner. It is issued by the relevant tax office, and the process takes from 3 to 14 working days depending on the order. Once you have received this document, you can proceed with the sale of the property. To request a tax assessment, you need to submit an application form.

Property Sketch

This document is necessary when selling land, a plot, ideal parts of them, or an entire building (with an approved cadastral map and cadastral register). A cadastral sketch is issued by the Agency for Geodesy, Cartography, and Cadastre (AGCC) if there is an approved cadastral map and register or by the municipal technical office at the location of the property (if there is no cadastral map and register).

Certificate of No Encumbrances

The certificate of no encumbrances is a document showing the absence of any liens or mortgages on the property that will be the subject of the deal. It lists all registrations, notations, removals of encumbrances, and rights over the property. This is one of the most important steps preceding the deal and must be approached carefully and thoroughly. The time for issuing the certificate is between 3 and 7 days, and depending on the type of ownership, method of payment, and marital status of the parties involved, more documentation may be needed.

Notary

The notary is an indispensable part of any real estate transaction. Their signature and seal guarantee the legal validity of all legal acts, contracts, and transactions.

Notary Fees

These are paid by the buyer and can vary depending on the type of deal and method of payment. The amount is significant and should be clarified before the actual transaction. Generally, the fees are determined by the material interest – the tax assessment or sale price, with the fees and local tax being due on the higher amount by law.