The Buying Process

Purchasing Process in Bulgaria

Although different to purchasing in the UK, buying property in Bulgaria is a fairly straight forward and simple process. When buying a property “off plan” the preliminary contract is signed by all parties involved and this is an obligation for the developer to build and the client to purchase. The preliminary contract will illustrate the timescales, prices and undertakings and is produced by a Bulgarian Solicitor. The contracts are checked by both Log Homes Bulgaria Ltd and the independent lawyer of you, the client, prior to signing. The main difference between purchasing in the UK and Bulgaria is upon completion. In Bulgaria a third party who acts on behalf of the government, known as a Notary is responsible to ensure that the correct details are entered into the property deeds. The client, and/or their lawyer and a representative of the developer will then sit with the Notary who will issue the property title deeds once they are sure that all the details are correct.

The key stages are typically as follows:

• Payment of a deposit to secure the property and signing of a preliminary contract
• Detailed checks on title documents, building permissions, etc.
• Making staged payments in accordance with the contract
• Setting up of a Limited Company
• Signing Contract of Purchase / Notary Act in the presence of a Notary
• Transfer of balancing funds
• Completion

Seeking Legal Advice

As with UK property law, Bulgarian property law is quite involved and we strongly recommended that all clients seek an experienced lawyer in Bulgarian law. Prior to completion and the transfer of title deeds, the lawyer will conduct checks on legal title, licences and permissions and debts on title to ensure that everything is in order before the contracts are exchanged. Your lawyer will then usually act as a representative before the Notary Public to sign the documents required for the transfer of ownership.  

Property Ownership

Only Bulgarian nationals (or a Bulgarian Company) can purchase land in Bulgaria, therefore to buy a Log Chalet complete with garden, a company must be formed.  Setting up a Limited Company requires a bank account with a balance if 5000 Bulgarian Leva / 2600 Euros which can be withdrawn upon completion. The process will cost between 600-1000 Euros and can take up to 4 weeks.  Your lawyer will normally include the company set up as part of their service.  A nil tax return for the inactive company will then need to be filed annually - your lawyer will normally also be able to offer this service.

Reserving your Log Chalet

Log Homes Bulgaria will accept provisional reservations by telephone which will be held for 1 week by which time a Reservation Agreement Form and a deposit of 2,000 euros is required. The deposit is refundable should there be any cancellation made on behalf of us the developer, however it is non refundable should the client be responsible for the cancellation, unless reserving on a pre-release project where the deposit is fully refundable. Once reserved confirmation of the payment plan will be sent, illustrating the payment stages required, along with a preliminary contract to sign and return within 28 days.

Exchange / Preliminary Contracts

Prior to commencing work on your Log Chalet a preliminary contract will need to be signed and returned to us including cleared funds for the 1st payment of 30%.  Once construction starts we will raise a 2nd invoice, at which point the client will be required to pay the next payment of 30%.  The client will have 14 days to forward the payment by bank transfer to our nominated bank account.

Roof / Windows

Once the chalets are completed to shell/roof level and the windows are fitted Log Homes Bulgaria will send a written confirmation of the 3rd payment required by the client of 30%. The client will have 14 days to forward the payment by bank transfer to our nominated bank account.

Completion / Purchase

When the chalets are ready for completion Log Homes Bulgaria will issue a further invoice for the final payment of 10% upon signing of final contract for transfer of ownership by a notary deed. At this point the client should ensure they have a mortgage in place if required. The buildings completion will be determined by the developer serving a notice of completion to the client of the solicitor. The Notary will then conduct checks on legal title, licences and permissions, and debts on title to ensure that everything is in order before the final legal contract is exchanged. Your legally appointed representative (usually a Bulgarian lawyer) will need to then appear before the Notary Public on a mutually agreed date to sign the documents required for transferring ownership. The title deed will then be transferred to the client in accordance with Bulgarian Law by the Notary public who is registered to perform these duties under Bulgarian Law. This will be written in Bulgarian and a certified translation will be included.

Bespoke Range Process

The key stages for our bespoke range are typically as follows:

• We source a suitable piece of land to suit your requirements (unless you already have your own land).
• We set up a Limited Company in your name on your behalf.
• Detailed checks on title documents for the land.
• You pay for the land, bought in your new company name.
• Signing Contract of Land Purchase / Notary Act in the presence of a Notary.
• Payment of a deposit to proceed with the build of the chalet and signing of a preliminary contract.
• Detailed checks on building permissions, etc.
• Making staged payments in accordance with the contract and our invoices.
• Transfer of balancing funds.
• Completion.

Additional Fees / Services

There will be an approximate charge of 2.8% for Notary fees and local taxes.