Checking Bulgarian property before purchase

The preliminary contract sets out the parties’ liability for failure to perform their obligations. In particular, if the deal falls through due to the seller’s fault, the seller must return the deposit and pay a penalty. However, buyers should still not relax and count on the preliminary contract fully protecting them: getting the money back from the seller may not be all that simple. So it is far more sensible to protect yourself before signing the preliminary contract. Namely, to carefully check the property you have chosen.

The preliminary contract and the check

The main purpose of the preliminary contract is to protect the parties, but mistakes and outright abuses are possible when this document is signed. For example, there are quite a few cases where the potential buyer is given no documents at all before signing the document and paying the deposit and the agent’s commission. In essence, people are forced to buy a pig in a poke, paying a deposit for a property they know nothing about.

The rule is simple: if the seller refuses to provide the property documents before the preliminary contract is signed, it is better to abandon the purchase. You must not sign a contract without having seen the documents for the apartment, without making sure that the other party to the transaction really is the owner of the property and has the right to sell it. This also applies to intermediaries – they must confirm their right to conclude a preliminary contract.

What to pay attention to during the check?

First of all, you need to make sure that the sale and purchase transaction will not be declared void, and that no one will lay claim to the chosen home in the future – neither banks, nor private individuals, nor the state.

A certificate confirming the absence of encumbrances can be obtained from the Property Register. However, such a certificate, which any estate agent, lawyer or notary can request online, may in some cases be insufficient. This is due to the specifics of registering property in the Register in the 1990s and earlier, and to the imperfection of the electronic information system. In such a situation you should obtain a «удостоверение за тежести на имота», i.e. a certificate of encumbrances on the property. Such a certificate can only be obtained offline, directly at the Registry Agency.

Thus, if the seller became the owner of the property in the 21st century (more precisely, after 1998), then a certificate obtained electronically will be enough to establish the real state of affairs. If, however, the seller became the owner earlier, especially before 1992, it is better to obtain the certificate directly from the Property Register at the property’s location. Of course, obtaining such a certificate will take additional time and require additional expense, but it will allow you to avoid a great many unpleasant situations.

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