How to Purchase Property in Bulgaria: Completing the Sale
Signing the Preliminary Contract
The first contract that you will sign will be the preliminary contract. This will be drawn up in the Bulgarian language - in which case it is advisable to have a translator present to translate its contents to you verbally.
There are some companies who will provide the preliminary contract in English (together with the Bulgarian version), which makes the whole process much easier. Do note that the contract must exist in at least the Bulgarian language to be legal. If you are asked to sign a contract that is ONLY in English, this will not be legally binding in Bulgaria.
The preliminary contract itself is signed by both parties, i.e. you the buyer and the individual(s) selling the property. In this contract, you will generally find the full specification of what you are buying and any land associated with the property will be quoted in square metres. Do ensure that the amount of land quoted is what you were told by the estate agent/owner. The contract will state the actual deposit amount that you will give to the buyer and will contain any protective clauses added by your solicitor.
Paying the Deposit
At the time of signing the preliminary contract you will also (generally) be expected to pay a 10 per cent deposit to the owner. This is generally expected to be paid in cash, and is handed to the owner after the contract has been signed by both parties. However, do not be afraid to request a bank transfer if you are uncomfortable making a cash deposit.
Now, you may be in the situation that you don't carry 6,000 euros for this occasion. So, it's not uncommon to agree a smaller amount to be handed over at the point of signing the contract - with an agreement to settle the remainder of the deposit within 7-10 days. For example, 1,000-2,000 euros is generally accepted at this stage. As a rule this is also added to the preliminary contract - so it is your legal duty to settle the deposit by the date stated.
So, after signing the preliminary contract, is that it? Well, not quite. You now need to go to the notary public, together with the seller. This process will in most cases be managed by your agent / local estate agent. Here, the notary will verify the identity of the buyer / seller and essentially authenticate the preliminary contract and supporting documentation, including any power of attorney documents.
Signing the Final Contract
There are a couple of ways of dealing with the final contract. One is to give power of attorney to someone you trust to sign the paperwork on your behalf. The other is to come to Bulgaria yourself. Clearly, such an important stage in the purchase process would benefit from your presence, so do try to make every effort to sign the final contract yourself. If you are purchasing a new property it's even more important, especially if you did tie additional points to the preliminary contract. In such a case you will have to inspect the property and be sure that the issues have been addressed.
It is advised that you arrange for the final contract to be translated in English, as this will become the final binding legal contract - and the preliminary contract will no longer be valid. Do be sure to read through the whole contract. Check that it includes all the rooms, land etc. that you understand the property to have, and do check that the declared purchase price is stated correctly.
