Now that you have decided on a property to buy, there is a short procedure to be followed:
- Preliminary contract
- Deposit paid
- Company formed (to conform to current Bulgarian law)
- Company bank account opened – deposit 5000 leva
- Power of Attorney to the lawyer and/or agent
- Funds transferred for the balance of the sale.
- Sale completion
To simplify matters, we have taken into account all the various minor charges together with legal fees and our commission.
How to buy What actually happens…
An initial contract (preliminary contract) is entered into and a deposit will be required usually about 10% of the purchase price.
The Preliminary Contract is drawn between you as a Buyer and the owner of the property as a Seller. You need to sign this contract to proceed with the purchase.
Upon signing of the preliminary contract a down payment of 10 % of the sale price is paid to the Seller. The commission of the Agency – our company, is paid also at this moment. It is 3 % of the price of the property but not less than 500 Euros.
If, it is a property with land, or a plot of land.
You will need to form a company, this will then conform to current Bulgarian law.
(Land cannot be owned by foreign individuals, only by a limited company formed in Bulgaria, even though that company is wholly owned by a foreign individual.)
‘The company’ is required to be solvent and you will need to open a bank account and deposit 5000 leva (2560 Euros) in the account, plus a small amount to actually open the account, usually around 20 Euro.
This can then be returned to your personal bank account once the company is set up.
It is normal procedure to give a power of attorney to the lawyer and/or agent, to be able to act on your behalf as the sale progresses. There are a number of documents to be dealt with at the local authorities and court, and it is unlikely that you will be in Bulgaria at each of these stages.
We will keep you informed as things progress and when completion is due. The funds required to complete the sale, will need to be transferred to your Bulgarian account in good time to prevent any delay with the sale. Again we will keep you informed.
It will take usually a month between the signing of the Preliminary Contract and the conclusion of the final sale documentation (Title Deed). This time period is needed in order for certain final legal and property checks on Title documents, permissions and licenses, Debts on Title to be made.
This is the final stage when you will complete the purchase and become owner of the real estate. The Notary fee (approximately 2 % of the sales price) and Municipal fee (1 % approx.) must be paid, the full amount paid to the seller and the title deed will be transferred into your company name.
Additional costs include the services of a lawyer, to act for you, for opening up your company and dealing with the property purchase. We have a lawyer that we deal with regularly, and understands the requirements we expect. You are, of course, free to appoint your own lawyer.
We will also appoint a translator, to assist you, who will also sign documents to verify that the Bulgarian documents you are signing are a true translation of the English version. These are carried out with the lawyer and local notary.