The Do’s and Don’ts
1, Never ever sign a contract that you do not understand, always en-sure any translation is done by a Government registered Translator, do not rely on a translation done in the Agency by their own staff.
2, The Estate Agency you choose should be proficient in Bulgarian law and process, they should also know the full specifics involved in buying a property here, and be able to offer ongoing and future back-up. An agency with established premises, staff and the appropriate Government license to operate with-in the UK is also beneficial, as you can then speak to that office to discuss any issues that may arise.
3, Before proceeding with any purchase make sure you travel here and carry out an inspection, this should revel any problems and highlight any work that may be required to bring the property up to standard.
4, Use a fully qualified and competent Notary who will check the full legal position of ownership and debts prior to any purchase being completed.
5, If you see a `must-have property` and are ready to put down a deposit make sure you have a clear understanding of the price you will be paying inclusive of any agency commissions, plus any legal and government charges as well.
6, If you are arranging finance on the property, ensure that you have allowed an adequate period of time to not only finalize the loan, but also to transfer the funds to Bulgaria if the loan is not agreed. This will ensure you do not lose your deposit or face penalty charges in the event of delays.
7, Try to arrange your mortgage finance ‘in principle’ before traveling to view property in Bulgaria, thus avoiding any possible problems with delays.
8, Arrange your mortgage in the country that you earn in, unless you are going to receive rental income from the property in the local currency, then this may be an alternative option to make payments from.
9, Think about combining your cash with friends or family, it could mean a property with a pool is within your reach, rather than a cheaper property.
10, Check with the Estate Agent or vendor to ensure you are aware of the costs charged by the Legal and Government authorities for purchasing a property in Bulgaria.
11, Ensure the appointed person holding the Power of Attorney to act on behalf of yourself and your Company is competent in dealing with your finances, an appropriate University Degree is preferred. They will need to meet criteria to ensure they pay the local taxes and bills relating to your property when and as they are due, especially if future rentals are envisioned. Failure to pay your taxes in some countries, such as France, Portugal, Bulgaria and Spain, could lead to court action and possible seizure of your property.
12, Remember that bills for Lawyer’s fees, Management fees, Local Council Taxes, Income Taxes, Insurance etc must all be met in your host country.
