In the last 20 years over 300,000 Russian citizens have bought a so-called second home in the Republic of Bulgaria. Studies show that 25 percent of them are willing to relocate permanently in Bulgaria. About 500,000 properties have been purchased and the amount of Russian investments in real estate has been estimated to range between 4 and 5 billion US dollars. But are you sure that you are the real owner of your property and what needs to be done?
Check the real ownership
In order to successfully close the purchase of a property, you have to be sure that the “seller” is the real owner; otherwise the transfer of ownership of the real estate is not possible. It is not enough just see the original of the notary deed. There have been cases where a compliant notary deed was presented, but the real owner was someone entirely different.
Buying a property from spouses
Several years ago, the „prenup agreement” was introduced in the Bulgarian legal system. The above mentioned agreement gives the option to choose exactly who shall be the owner in case of a divorce, which potentially could lead to a situation where one buys an apartment and loses it later.
Debt collection from seller
After closing the deal, the seller enters in a process of a tax audit resulting in a tax report with liabilities. In case the state authority is not in position to collect the taxes due, potentially the tax authorities shall breach the agreement in order to proceed with public sale of the apartment.
The main risk here is the potential possibility – from the seller’s side to not lift the mortgage and after a certain period of time the bank to collect the property in its capacity as a pledge.
Talk to us
If you need more clarifications customized advising related to the purchase of real estate as well as our services on how to protect your property on the ground, do not hesitate to get in touch with the local Eurofast team in Bulgaria!
Tel: +359 2 988 69 77
Fax: +359 2 988 69 79