The main features of the process of buying property in Bulgaria

Briefly about the main

Bulgaria has successfully overcome the crisis - the country's housing market is now on the rise. Already in the first quarter of 2018, it entered the world's Top 10 real estate markets with the fastest growth in housing prices.

Every year there is an increasing interest in purchasing housing in a warm Balkan country from both foreigners and local residents. This applies to both urban real estate and resort. Bulgarians themselves generally invest more money in urban housing, but more recently Europeans have joined them.

In 2018, for example, the average budget for the purchase of such a property in Bulgaria increased by 15%, reaching € 60,000 per apartment. There is also a high demand for resort real estate among Russians, residents of the CIS countries and citizens of Israel.

However, the boom in the real estate market has led to the emergence of a huge number of real estate agencies. In Bulgaria, the procedure for opening a real estate company is relatively simple - there is no need to obtain a special license, only registration is required, in which the type of activity is prescribed. For this reason, in addition to reliable and professional real estate agencies, there are sometimes those who have dubious experience and reputation. Sometimes this can affect the purity of the transaction. Let's consider further the features of the process of buying real estate in Bulgaria and find out what requires special attention.

The main features of buying real estate in Bulgaria

The main advantage of buying real estate in Bulgaria is the ease of the transaction in comparison with other European countries. To purchase housing, the buyer, in addition to money, only needs a passport and TIN number to open an account in a Bulgarian bank. Preparation of documents for the transaction is also quite simple.

If the seller already has all the certificates ready, then the transaction can be carried out almost in a day. Otherwise, it will take up to 10 business days.

The process of registration of the sale and purchase of real estate itself consists of only two stages:

• conclusion of a preliminary agreement between the seller and the buyer
• registration of a notarial deed.

Real estate transactions in Bulgaria are quite safe legally, however, in rare cases, the facts of the sale of housing with problematic documents (for example, burdened with a mortgage or not receiving the status of a residential area) were still recorded.

How to avoid negative experience, which specialists to attract and what to look for at each stage of the purchase will be discussed further.

The process of buying a home in Bulgaria. Basic steps

Step 1 . After the buyer turned to the realtor and chose the object he liked, it is necessary to contact a licensed lawyer to conclude a preliminary contract.

Step 2. The first and most important task before drawing up and signing a preliminary contract is to check the "cleanliness" of the object. A lawyer takes responsibility for this. He has to check not only the seller, but also the developer and the land on which the building stands. If necessary, it is possible to order an additional certificate with a 10-year history of encumbrances on this property.

After the lawyer is convinced that everything is in order, he draws up a preliminary contract, which indicates the full cost of the object and describes all the stages of payments.

Step 3. A preliminary agreement is concluded in two languages - a licensed translator is involved in the transaction. When the contract is signed, the lawyer draws up a draft of the notarial deed. The cost of real estate is indicated in it, as a rule, with an underestimation. This is done in order to reduce tax payments and notary fees. After the project is ready, the buyer, together with the realtor, lawyer and translator, turn to the notary to sign it and formalize the transfer of rights.

Step 4. On the day of signing the title deed, the notary checks the personal documents of the two parties, as well as the property documents. He must also verify the current state of the property for encumbrances on the day and hour of signing the deal. For this, he has special access to electronic registers. Also, the text of the notarial deed is checked again, after which state and notary fees and charges are paid.

Step 5. After signing the notary deed, the notary submits it to the real estate registration department in court to enter the information into the unified state register. After the transaction, the lawyer, as a rule, within two months registers the new owner with the tax service and re-issues the water and electricity meters to him.

If the lawyer is experienced enough, and the client is ready for additional expenses, then the registration can be accelerated up to 1-2 weeks.

Transaction costs

On the day of the transaction, the buyer pays notary fees and state fees in local currency. The amount is on average 3-5% of the appraised value specified in the title deed of real estate, depending on its location. The costs for a licensed translator are around 25-35 euros.

A few tips on how to complete the transaction for all property buyers in Bulgaria.

1. Responsibly approach the choice of an object and a realtor. This will determine how quickly and successfully the transaction takes place. Do not hesitate to ask your realtor questions, even if they seem out of place to you, for all the points that put you on your guard.
2. Check the details and history of the seller whose object you are going to buy. To do this, it is sometimes useful to talk not only with a lawyer, but also with future neighbors or local residents, you can also look at reviews on the Internet.
3. Engage specialists in the transaction , namely, licensed and independent lawyers and translators, and carefully study the contract . This is the only way to ensure the security of the transaction. Often, a reliable realtor already has a proven team of specialists - after all, a real professional is always on the buyer's side.
4. Do not trust dubious and unverified realtors who offer "hot" options for urgent purchases at a price below the market. Sometimes, in this way, dishonest agents hide illiquid assets and housing with problematic documents or offers from bankrupt developers behind a lucrative offer.
5. Do not transfer the advance payment for the object remotely before arrival and personal inspection of real estate in Bulgaria. This may be one of the fraudulent schemes aimed at withholding advance payments.
6. Carefully study the agreement with the management company regarding the conditions for maintaining the area around the property and / or common areas. In the future, this can greatly affect the annual costs. Depending on the level and infrastructure of the house, maintenance can cost from 100 euros to 1500 euros per year.

HomesOverseas.ru would like to thank Evgeniya Prokazova ( Bulgaria Avenue ) and Sergey Gritsan ( Azimuth Realty) for their help in preparing this article .

photocredits: akk_rus / dmitry kruglyak / flickr