Legal Steps to Buying Property in Bansko, Bulgaria

This article outlines the essential legal steps involved in purchasing property in Bulgaria. Understanding these procedures is crucial for a smooth and secure transaction. It’s important to understand that this process can be followed whether you are in Bulgaria or another country.

1. Property Search and Offer

The first step involves identifying a suitable property and making an offer. You can view properties in person or via video viewings with our experienced team at Bower Properties. This typically includes negotiating the price and terms with the seller, this step is our responsibility at Bower Properties.

2. Preliminary Contract (Preliminary Agreement)

Once an offer is accepted, a holding deposit is paid - known as earnest money, a preliminary contract is drafted and signed by both parties. This contract sets out the key terms of the sale, including:

• Purchase price

• Payment schedule

• Property description

• Deadline for signing the final deed

 

It is highly recommended to engage an independent local lawyer to review this contract to ensure it protects your interests. You can attend meetings with your lawyer or give them a Power of Attorney to represent you. 

3. Due Diligence

Before signing the final deed, your solicitor will conduct thorough due diligence on the property. This includes:

• Checking for encumbrances: Verifying that the property is free from mortgages, debts, or other legal claims.

• Ownership verification: Confirming that the seller is the legal owner of the property and has the right to sell it, including martial status checks of sellers. 

• Cadastral checks: Confirming that the property is registered correctly.

• Utility bills and taxes: Checking for any outstanding utility bills or property taxes.

4. Obtaining a BULSTAT Number

Anyone purchasing a property in Bulgaria will need to obtain a BULSTAT number, if they don’t already have one. This is a unique identification number required for various administrative purposes. Your lawyer can assist with this process.

5. Signing the Final Deed (Notary Act)

The final step is the signing of the Notary Act (final deed) before a public notary. Both the buyer and seller, or their authorised representatives, must be present. The notary verifies the identities of the parties, confirms the legality of the transaction, and registers the property transfer with the relevant authorities. If you are non-Bulgarian and present at the signing, you will need a legal translator present to read the deeds to you in your language.

6. Property Registration

After the Notary Act is signed, the property transfer is registered with the Property Register Agency. This process officially transfers ownership of the property to the buyer. Your lawyer will typically handle this registration on your behalf.

7. Tax Declaration

Within two months of acquiring the property, the new owner must declare the acquisition to the local municipal tax authorities. This is necessary for the calculation of annual property taxes.

Key Contacts

 

For further information or to schedule a consultation regarding property purchase in Bulgaria, please contact our Property Experts
info@bower-properties.com