Въпроси и отговори

1. Do I have to pay a reservation deposit?

You choose a property and you pay a reservation fee in order to secure it. In most of the cases, you will be given 3-5 weeks until you sign preliminary contract for the real estate and you make first payment. At this stage, it is highly advisable that you appoint a lawyer to act on your behalf, complete all checks and provide you with independent and professional legal advice concerning all permissions, clauses in the contracts and any potential risks to consider.

2. What legal checks shall be performed?

The typical legal work carried out by our company starts with checking and reviewing of all legal documents for ownership of the property, the right of construction and investigation of the Sellers company for insolvency or any court injunctions. We carry out our checks and verification in order to be assured that all the documents are issued by the competent authorityIt is between 3 and 4 weeks, depending on the speed of reply from the developer in question.

3. When do I sign the Preliminary contract?

After the document checks, the developer sends us their proposed Preliminary contract. Our lawyers review the contract taking into consideration all necessary legal requirements and stipulations, according to Art 19 (3) of the Obligations Law and the other relevant Bulgarian laws governing the preliminary sales. We make suggestions to the developer, concerning the appropriateness of the contract with respect to each party. Our lawyers ensure the inclusion of all necessary legal clauses, required for a preliminary contract. We send the Developer the amended Preliminary contract and negotiate on the new clauses and conditions.
On reaching an agreement with the developer, we send our clients an approved Preliminary contract and Lawyers report, which is our professional opinion of the deal.

4. What does the Lawyers report mean?

Within the Lawyers report, our lawyers inform the client of the completed work, regarding the Preliminary contract and the legal documents relating to the deal. If everything looks accurate, complete and authentic, we advise our clients to sign the contract. If we feel that there are issues that are still outstanding, we notify the client of any eventual risks that they may face in signing the contract.

5. What is the procedure on the Preliminary contract signing?

Either the developer or our Law office, will then undertake to send the client the two identical copies of the contracts, which the client must sign, returning one of the copies by post to the developer.

6. How do I make the payments when buying an off-plan unit and are they bound to the stages of the construction works?

Upon signing the Preliminary contract, the client undertakes to make a series of stage payments as the construction process progresses. In compliance with the effective Bulgarian law, the completion of the different stages of the construction works is accompanied by the issue of official documents. The most important document on starting an off-plan development is the Building Permission, which gives the developer the right to construct. The first stage of the construction works is construction of the building foundations. Upon finishing each floor, the developer is issued official protocol, regarding the quality and the safety of the constructions. When the last floor is built, the developer is issued Act 14, which means that the building is at the stage of rough construction and it has enclosed walls and roof. The last stage of the construction process is the issue of Act 16 and the permit for use, which are respectively bound with the execution of the finishing works and taking the possession of the property.

7. At what stage is the right of ownership transferred?

Once the property has been constructed (or in the case of a resale property) the Final contract / The Notary Deed should be signed. This is the document transferring the right of ownership (title) to the Buyer. Our lawyers will assist the client in the preparation of the Notary Deed. In addition, we will carry out investigations for any outstanding debt and other liabilities that might attach to land or buildings contained within the contract. As per the Bulgarian law, the final contract shall be signed in front of the Notary Public, in the region that the property is located.. According to Bulgarian Regulations the Buyer shall be presented personally or by an authorized person. A client can authorize VIP Consult lawyers to act on his behalf by certified Power-of-Attorney.
Our clients can authorize our lawyers by Power of Attorney to represent them in front of the Notary Public for signing of the Notary Deed. Drafting a Power of Attorney and legal representation on the date of signing the Notary deed in the Notary Public

8. What expenses do I have at the date of the notary transaction?

At the date of performing of the transaction, the client will pay 3, 5 % Notary and state taxes due, based on the sale price a legal requirement for notary fees and tax on acquiring a property in Bulgaria.

9. What obligations do I have upon signing the Deed?

Upon acquiring a property in Bulgaria and after signing the Deed before the Notary Public, the client has two obligations: to register the property under the terms of Register BULSTAT and The Local Taxes and Fees Act. Our lawyers can provide you these additional services on your behalf.

10. Do I need to set up a Bulgarian company?

When you are buying an apartment you do not need to set up a Bulgarian company. Foreign individuals can not own land (this is a Constitutional prohibition). However, the Foreign Investment Law removed the restrictions on acquisition of land by locally-registered companies with foreign participation. By setting up a company incorporated under the Bulgarian legislation foreign persons can acquire full land ownership rights. When you establish a company in Bulgaria you become local legal person and there are no restrictions for the purchase of land.
Normally the registration of a LTD company takes no more than 20 days and VIP Consult Lawyers can provide this service on your behalf.

11. Why shall I have a marketing research before investing in Bulgaria ?

Making a precise marketing research on the characteristics and tendencies of the real estate market gives you complete understanding of the market and reliable information on the competitors, their activities and how theyre performing. VIP Consult marketing department delivers the accurate market data and insight you need to plan your investment.