What should you do to protect your interests?
➽ First step would be the research and establishment of the legal status of the real estate. A transaction can only be successful if it is concluded by the people who own the rights to the real estate and transfer them according to the law. If any requirement of the law is not complied with or any of the persons having rights to the property are not parties to the transaction – then this transaction can be attacked in court and declared invalid.
It is investigated not only how the seller acquired the property, from whom he acquired it, but also whether there are any irregularities in previous transactions.
➽ Second step is entering into a “preminary-contract”.
It can protect the interests of both the buyer and the seller. Everything depends on the will of the parties and what agreement they have reached.
The preliminary contract reflects all the specifics of the specific transaction for the specific property. Deadlines are set for carrying out certain actions, a deadline is set for notarizing the transaction by which the buyer becomes the owner of the property. Often, in practice, the term agreed between the parties under the preliminary contract is used for the procurement of all necessary documents, the provision of cash, the transfer of documents to the bank that must grant credit to the buyer (in the case of a purchase with bank credit).
➽ The last stage is the conclusion of the final contract for the purchase and sale of real estate in notarial form (notarial deed). It is carried out by “confession of the transaction” before a notary in his office. The presence of the parties is in person or through their representative authorized by an express written power of attorney.
On the day of the confession of the transaction, the notary enters the contract of purchase and sale (notarial deed) in the Property Register at the Registration Agency. The transaction takes effect between the seller and the buyer from the moment the notarial deed is signed, and for third parties from the moment the notarial deed is entered in the Property Register.
The notary does not certify the payment of the sale price, but only the will of the parties on the transfer of ownership. The parties themselves agree on how and when the transfer of the sums of money will take place.
Important note: amounts of and over BGN 10,000 (EUR 5,000) can only be transferred by bank transfer.
In practice, several possible payment methods are required:
➽ Transfer of the entire amount before the confession of the transaction in front of a notary;
➽ Transfer a part of the amount before the confession of the transaction in front of a notary, and the rest of the price – on the day of the transaction;
➽ Transfer of the entire amount after confessing the transaction in front of a notary. In these cases, a verbal arrangement can be made with the notary to receive confirmation of the payment by the parties.
➽ Another option is to provide all or part of the amount to the notary’s trust account, which amount is released and transferred to the seller after the transaction is acknowledged. This possibility is an additional service that notaries offer and which is paid additionally by the parties upon their agreement. Such a service is also offered by banks through the signing of a tripartite contract for a special account.
➽ The payment is also specific, when the amount is secured through the granting of a loan from a bank. In these cases, the price paid by credit is not transferred on the day of the transaction, but for a certain period of time, during which the sale is entered in the Property Register and the mortgage imposed by the bank is entered on the real estate, no money is received by the seller funds.
Only after the entire mortgage enforcement procedure has been completed and an encumbrance certificate has been issued, reflecting the registered mortgage, the buyer’s creditor bank transfers the funds to the seller. This procedure takes about 7 days for transactions executed in Sofia. (details in the article “First steps in buying real estate. Financing the transaction”).
Remember that each transaction is specific and requires a different approach, the procurement of different number and type of documents.
What the Lead Consult team does for you:
➽ A comprehensive and detailed study of the legal status of a given real estate;
➽ Establishing the owners of the property, researching whether there are registered encumbrances on the property;
➽ Preparation of all the required documents for the conclusion of the purchase and sale contract;
➽ Compilation of a notarial deed;
➽ Accompaniment and representation before a Notary;
➽ Registration in the BULSTAT Register;
➽ Representation before competent state and municipal bodies;
➽ Consulting in applying for and obtaining financing (bank loans, financial leasing);
➽ Preparation of documents for the establishment and entry of collateral on real estate (contractual and legal mortgages)
Preparation of draft contracts for real estate lease and registration about them in the Registration Agency, the preparation of draft contracts under the Law on Territorial Planning between the participants in the construction process (builders, contractors, construction inspectors, etc.); Procedural representation in real cases /property claims, possession protection claims, restitution claims, etc./.