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Buying Process

i)  What other costs are involved in buying a property?

There are the buying costs:  notary fees, land registry and stamp duty which in Bulgaria is in the region of 4.5% from the property cost. If the property is close to lifts or in a 4/5 star complex, tax can reach 6%. Other costs could be legal fees, around €500. Essential cost so that the client’s lawyer can check the property in his name before they proceed with the purchase.

ii) What are the steps of buying a property, is it safe?

As soon the buyer decide on which property will buy, a deposit of €2,000 euro is paid. This is to take the property off the market and hold it for the buyer. Buyer has to send a copy of his passport and sign an Offer and Reservation Document where Property ID, price and special conditions are agreed on.

Within 2-3 weeks the property is checked that they are no debts and in can be sold. A contract for sale is signed. Buyer sings it. He either come in person to sing the title deeds or arranges for a POA (power of attorney) to a lawyer to sign in his name. Monies are usually sent to the client’s or the notary’s account. The transaction is completed when the buyer receives the deeds and the keys. And the seller has received the payment.

Bulgaria has a very safe sale process for completed properties, which cannot be sold if they are any debts or incumbencies. Our partner law firm check on our behalf all properties we have listed for sale with Plus Property.

iii)  Why are properties are so cheap?

It is cheap. In fact you cannot build at the price is been sold. The reason for low prices is that there were developers with big bank
loans which had need to sell to pay the rate.They are also re-sales from owners who need money, and sell at low price.

iv)  Which building is the best to buy?

This depends of each buyer circumstances, budget and motivation on investing in property. We usually spend a good amount of time with our buyers looking to understand what they look for and offering comprehensive market  and area insights, so to offer them the few best properties for them and help them take a knowledgeable decision. In short, If is for rent, buy close to ski lift in building with spa facilities and good management. If looking for a bargain buy at a low price per square metre. If is for living, relocation, look at a building with minimal facilities, close to the park, centre and shops. If it is a mix of investment objectives which includes the desire for a luxury tranquil retreat, then take a look at the golf area. Alternatively four star building with facilities further out of town could be the best solution.

 

From our lawyer

Buying /selling process;

Representation before the competent institutions in order to gather all papers required by law from the seller of a property in order to sale/conveyance/transfer the property

Each case is specific and the duration of the procedure, the documents requested and the costs involved vary. However in the common case the duration of the procedure, the documents requested and the costs involved are the following:

A. Duration of the procedure

After you provide us with an electronic copy of your deed and your bulstat registration certificate/card (please see p. B below), we will draft for you and e-mail you a PoA (please see p. B below) to be signed. With the PoA you authorize us: 

1. to apply for issuance of a cadastral sketch of your property (the sketch is required by law and shows the exact location, size and ownership of the property) to be issued by the Cadastral Agency within a week term;

to apply for issuance of a tax evaluation certificate containing information re due council taxes for the property and the registered owner of the property - the certificate is issued within 14 working days by the local tax office. 

to apply also for issuance of an encumbrances certificate of your property needed to prove that the property is free of mortgages and liens. 

We will check also whether all utilities bills are paid and the the maintenance fees covered. 

B. Documents requested

To proceed on your behalf we will ask you to sign a PoA (note: the PoA expires automatically after completion of the tax registration) and to email us electronic copy of your deed (note: the deed is mandatory enclosure to the application for tax registration), your Bulstat registration certificate/card, your electric and water lot, your maintenance contract and any proof of payment of the maintenance fees. 

C. Costs

The state fees for issuance of sketch are 30 BGN (please note sometimes there are technical complications which delay the issuance of the sketch and lead to additional costs for example: in case the property is not listed into the cadastral plan) + bank charges.

The state fees for issuance of a tax evaluation certificate are 10 BGN. 

For information regarding the legal fees please contact our Bansko lawyer team for details.

D. Results of the procedure

As a result of the procedure all information and documents needed for the transfer of the property are gathered.

 

Info provided by : http://www.banskolawyer.com/articles.php?article_id=3

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