Is the process of buying a property similar to that in England??
The short answer is ‘No’.
The Bulgarian legal system is very different and the procedure you follow is totally different from if you were buying a property in England. Before you commit to a purchase you need to determine whether the sale includes land, as according to the Bulgarian Act on Foreign Investment a foreign national can buy a building but not land. Therefore the most common method for land ownership is to form and register a company which owns the land or property, and the buyer then owns all the shares in the company. The incorporation of a company usually takes from 2 to 4 weeks and is normally processed through a Power of Attorney. This must be in the Bulgarian form as this will be recorded and reviewed by the official government offices in Bulgaria, or in the Bulgarian Embassy of your home country (supported by the official Apostle).
At this stage another consideration is purchasing on your behalf, the person buying a house may attend in person before the Notary dealing with the sale, but if this is inconvenient arrangements can be made for a Power of Attorney to be granted, this is quite normal as it allows the proxy to attend and sign on your behalf.
The transfer of ownership is subject to Notary and municipal fees, the Notary fees are based and paid on the either the purchase price or the tax value of the property, which-ever is the higher. In addition 2% of the market value of the property is paid to the local municipality in which the property is situated. The buyer is responsible for covering the costs of the ownership transaction.
The essential documents for finalizing the transaction and transfer of ownership which support the title deeds are, the planning permissions for the building, the Certificate for burdens which stipulates whether there are any liens, encumbrances or adverse claims against the property and the Architectural plans showing the legal construction of the building. Other important issues if considering the purchase of a building plot are any government plans for the status of the area, including clarifying whether the plot is programmed or registered for building on, and if this is marked for an individually owned building or is allocated for commercial purposes, such as a hotel etc.
Using good properly registered Real Estate agents and following the local procedures and requirements should result in a painless transfer of ownership. Thousands of foreign nationals end up investing in a property which is clear of debts, with planning consents and without charges against it, just remember buyer beware and only deal with Agencies registered here with the local authorities or registered with the government in the UK.
