There are many misconceptions and myths about buying property that can confuse potential buyers.
This is not only due to unknowing the local legal order or the lack of such experience on the ground, but also because of certain cultural differences.
The following article lists and explains some of the most common myths about buying property in Bulgaria:
- Myth: A verbal promise is sufficient
- Myth: A signed preliminary contract is not final
- Myth: The notary checks all the details of the purchase
- Myth: The transfer of ownership is automatic after payment
- Myth: Real estate with a mortgage is out of property transfer
- Myth: Debts and liabilities of the previous owner are not transferred to the new owner
- Myth: A flat or house handover protocol is optional
- Myth: Estate agents are legally obliged to disclose all defects
- Myth: Estate agents make a lawyer superfluous
- Myth: All costs are borne by the buyer
- Myth: A verbal promise is sufficient
Reality: Preliminary property purchase agreements must be in writing to be legally effective. Verbal commitments are generally not legally binding.
- Myth: A signed preliminary contract is not final
Reality: A signed preliminary purchase agreement is legally binding. Once signed by both parties, the contract is valid and obliges both parties to fulfil the agreed conditions. In this sense, the proper party has the right to file a lawsuit to declare the contract final.
- Myth: The notary checks all the details of the purchase
Reality: Above all, the notary confirms that the purchase contract fulfils the legal requirements, that the identity of the parties is correct and that you sign it voluntarily and with a clear understanding of the contents of the contract.
It is the buyer's responsibility to carry out a thorough examination of the property (due diligence) and to ensure that his rights are well protected by the notarial deed.
- Myth: Der Besitzübergang erfolgt automatisch nach der Zahlung
Reality: The transfer of ownership as a rule takes place only after the new owner has been entered in the land register. Payment of the purchase price is a prerequisite, but the transfer of ownership is not finalised until the entry in the land register.
- Myth: Real estate with a mortgage is out of property transfer
Reality: The myth that you can't buy a property with an existing mortgage is also false. In fact, properties can be sold and bought with existing mortgages. Actually, this hypothesis occurs frequently. The important thing is that the buyer is well informed about the mortgage and takes the necessary steps to ensure that the mortgage is properly discharged.
- Myth: Debts and liabilities of the previous owner are not transferred to the new owner
Reality: Old encumbrances, such as mortgages, rights of way or building charges, usually remain in place and are transferred to the new owner. A thorough check of the land register is therefore essential to avoid unwanted surprises.
- Myth: A flat or house handover protocol is optionall
Reality: A handover protocol is very important as it documents the condition of the property on handover. It protects both parties from later disputes about the condition of the property or missing fixtures and fittings.
- Myth: Real estate agents are legally obliged to make aware of all defects .
Reality: Whilst estate agents are obliged to disclose known defects, it is still advisable not to rely solely on the information provided by the estate agent. An in-house inspection and the involvement of other impartial experts are recommended.
- Myth: Estate agents make a lawyer superfluous
Reality: As a rule, estate agents do not have legal training comparable to that of a lawyer. Their qualifications focus mainly on the property market, sales techniques and customer advice. Their main role is to convince you that the property they are offering is the best one for you. On the contrary, thanks to the in-depth professional knowledge and impartial opinion of an attorney, the emphasis of their advice is to protect your legal interests.
You can find out more about the various professionals involved in the property purchase process and their roles here: The people involved and their roles when buying a property
- Myth: All costs are borne by the buyer
Reality: There is no legal requirement that all costs (usually property purchase tax, notary fees, land registry fees) should be borne by the buyer. Although in practice this is most often the case, this can be agreed freely according to the wishes of the parties (in the preliminary purchase agreement).
This can happen if there are several costs to be expected due to certain characteristics of the property for which the seller is responsible (e.g. mortgage).
The possible variants here are that the seller is responsible for the costs in full or according to a certain split, e.g. 50/50 or another percentage.
These myths actually illustrate how important it is to obtain comprehensive information and, if necessary, legal advice before buying a property. If you need more information and would like to be advised by a professional in the field of property law, I would be happy to help you!
