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Our Buyers Guide brings together our considerable knowledge and experience to provide you with information on what you need to know and the people/ organisations you are likely to encounter. It is not meant to be a full explanation of Bulgarian property law but a guide to the basic process. If you choose we can also provide you along with this experience access to lawyers of the highest Calibre, so you can relax and feel confident you are in the best possible hands. If you have any questions of any kind, please do not hesitate to contact us directly! Essentially the Buying Process is summarised below Reserve a property All our off-plan developments do not require company incorporations
and when you buy an apartment, you buy a section of the building. This
section of the building is freehold and there is no lease, the apartment
is yours forever, or until you decide to sell. Buying off plan Buying an ‘off plan’ apartment in Bulgaria is essentially the same as buying in the UK and means reserving a property on a new development before the property is completed, often before construction has started. Buying ‘off-plan’ can prove a fantastic investment and prices are extremely competitive at this early stage as potential investors only have floor plans and artist impressions of the finished development to view and developers are keen to sell to minimise risk and to provide the project with some forward momentum. You then have the option of selling straight away upon completion for a profit, or you can hold on to your property for further rental/ capital growth whilst having a great holiday destination to visit. Holding on to the property for a longer-term means you can benefit from Bulgaria’s expected accession to the EU in 2007 where considerable appreciation is expected throughout the Bulgarian real estate market, with holiday apartments expected to lead the way and appreciate the most in value. 'Off Plan' purchases have provided spectacular returns for hundreds of people over the last couple of years. The real key to why buying 'Off Plan' can prove such a good investment lies in the fact that in many cases you only have to pay initially a deposit as low as between 10% - 25% of the purchase price and then nothing until various stages of the project are completed. Buying ‘off plan’ in Bulgaria is essentially the same as buying 'off plan' in the UK. A preliminary contract signed by all parties (similar to ‘Sold Subject to Contract’ in UK') is drawn up to cover the purchase of the property. It is known as the” preliminary contract” because both parties effectively promise to enter into a final contract to buy and sell the property. After verbal agreement and all the necessary details provided, the contract will be drawn up by the developers solicitors and will set out timescales, payment terms, prices and the terms and conditions agreed. At this stage, the agreed deposit – normally between 10%-25% of the purchase price – is paid to the seller and such contracts will also detail scheduled payments thereafter, up to and including the completion date in front of the Notary. (Visit our finance partner services who offer support in this area) There will be penalty clauses contained in this document in the event of either party withdrawing from the sale or purchase after this contract is signed. We advise you to obtain your own legal advice before committing to any significant financial transaction. Deposit A deposit is usually required upon signature of the contract. There
is no limit for this but experience shows that usually buyers are not
prepared to put up front a substantial deposit. It may vary but be prepared
to pay a minimum of 10% of the total value of the property. It is advisable
that this amount should never exceed 50%. Completion/Notary Act The client (passport in hand) is required to sign the Notary Act (Contract of Purchase) in attendance of a Bulgarian Notary – a legal entity who is duty bound to check every detail and document. The Notary Deed is equivalent to our “Title Deed” and is the important document transferring ownership of the property. You will require independent legal representation and a legally authorised translator with you to ensure that transfer of ownership takes place. If required, a ‘Power of Attorney’ can be granted enabling another person (usually your solicitor) to attend and sign on your behalf. Please note, in the case of off-plan developments, the final Notary Act is not signed until the building is completed. The client is responsible for these extra costs which will typically account for 3% of the purchase price: Notary fees, document translation and legalisation costs Purchase price: * We advise are clients to perform the standard property checks using a reputable Bulgarian Lawyer. We can provide access to lawyers of the highest calibre offering our
clients a full independent legal service which according to Bulgarian
Property Law are required and enough to protect your interests in the
best possible way. We can offer this at a fixed price of 750 Euros
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