BUYERS GUIDE

The purchasing process for overseas real estate varies from country to country and the following information will be useful to you. Below is a summary of the buying procedure for a Bulgarian property. The most important factor is to work with an established agent who can guide you through each step of the process.

A good agent is essential when you buy a property in Bulgaria. We can provide you with a selection of properties for sale from our database and can recommend a good independent lawyer to take you through all the legalities, some of which are different to those in the UK or other countries. If we do not have your ideal property we will do our best to find it for you using our network of contacts.

When you have decided on a property in Bulgaria you will need to make a verbal offer through us which will need to be accepted by the vendor. When we have done this, negotiations will proceed. Our lawyer can formalise the agreement and carry out the necessary checks on the property and complete the legal requirements of the sale.

Once a price for the real estate has been agreed, some form of preliminary contract is usually signed. This contract effectively reserves the property and takes it off the open market. A 10% deposit will normally required at this point to secure the property. Usually contracts are signed in order for the owners to prepare the necessary documents for the signing of the Title Deed before a Public Notary.

After a certain period of time (usually one month, but it can be sooner or later depending on the complexity of the vendors documentation) the buyer pays the remaining 90% of the purchase price. The fees payable to the government incurred on completion are as follows:

• State tax (similar to a stamp duty), to be calculated on the purchase price.
• Notary Fee Calculated in accordance with the price stated in the Title Deed.
• Land Registry Fees
• Legal Fees

Upon completion, the vendor and purchaser of the real estate will be required to sign some form of contract in front of a lawyer or notary. This contract hands ownership of the property to the purchaser. Deeds will be transferred for the real estate and the final balance will be due. In cases where the purchaser is not available at the time of completion, a power of attorney (made earlier) can be used to buy the property in your absence.

Things to be aware of:

It is quite likely that the owner will not want to declare the real price of the property on the Deed of Transfer. This is done so that the owner will avoid paying Capital Gains Tax, however, such a situation has its financial consequences, either by not having official documents for the money spent or paying higher taxes if you decide to sell the property afterwards on its real value.

It is usual for the vendors to be allowed one month after completion in order to remove their possessions from the property. It may be possible to make other arrangements with the vendor if necessary.

This guide is not exhaustive and we can help you through all these processes using the best independent professionals in the region, including lawyers, translators, accountants and notaries.