There is no doubt that buying a property is an important step from a personal, financial and last but not least legal point of view. It is a complex process that requires the co-operation of various professionals and authorities. In order to be prepared before investing your valuable time and money, it is good to have an overview of the people involved and their duties and obligations.
Enclosed you will find the following information on the topic:
- Real Estate Agent
The estate agent is probably the first person who comes to mind when you think of buying a property, especially if you are in a new country without many acquaintances and perhaps only with a small circle of friends. Then comes the figure of the estate agent, who is there to show you the new, unfamiliar world of property in the foreign country.
Basically, a real estate agent is the intermediary between buyer and seller. Their main tasks include valuing and marketing the property, organising and carrying out viewings, negotiating the terms of the purchase and, last but not least, assisting with the completion of the property transaction.
However, the involvement of an estate agent in the property purchase is by no means compulsory. But if you decide in favour of one, choose them wisely!
It is good to know that in Bulgaria there are no legal requirements, such as specific training or qualifications, to offer services as a real estate agent.
In first place, a real estate agent is a salesman who wants to sell you a property for a commission. Although real estates as objects of sell have very specific characteristics due to their legal status and financial value, the broker is not legally required to prove certain qualifications and expertise by means of a diploma/certificate or other type of certificate.
As there is no further regulation of this profession and at the same time it is becoming more and more lucrative, the quality of the service provided is very often questionable, especially when it comes to legal issues. In this sense, it is recommended not to simply rely on the broker, but to continue to work closely with other professionals.
2.Seller
The seller is the person or company selling the property. Their main interests lie in achieving a fair sales price and making the sales process as smooth as possible. The seller must ensure that all legal and technical aspects of the sale are fulfilled.
On the other hand, however, the information and documentation provided should not be accepted unilaterally, but all necessary checks should be carried out independently in relation to the natural or legal person of the seller and the ownership of the property. At best, this can be done through a due diligence report prepared by an experienced lawyer as early in the purchase process as possible.
3. Notary
By all means is the notary a central figure in the property purchase process. They check the terms of the contract, notarises the notary deed and enters the new owner in the land register. The notary also ensures that all legal requirements for trensfer of property rights are met.
The notary is a neutral authority who ensures that the purchase contract is legally valid and that the interests of both parties are protected. The important word to look out for here is NEUTRAL! The notary is impartial in his professional nature and therefore cannot guarantee your personal interests as a buyer.
Finally, it is also important to bear in mind that the notary is involved at the end of the purchase process, so to speak, at which point it can unfortunately be too late, or the loss of time and money can sometimes be irreversible.
4.Buyer
Having already clarified the above-mentioned persons and their main roles, the moment comes to answer another question, namely who will acquire the property.
Even if this question may seem obvious to you at first glance, there may be certain specific in some cases that you should consider in advance.
Of course, the buyer's main concerns in the beginning of the process is carrying out a thorough inspection of the property and legally securing the purchase, but beyond this comes the fulfilment of legal requirements for the purchase and respectively the legal consequences of the property purchase. And exactly with the latter there could be some issues to be considered.
A real estate property can be acquired by a private individual or by a legal entity (such as a LTD or SC). The choice between these two options depends on various factors that can be influenced by the tax, legal and economic situation. Here are some reasons that can affect this decision:
For example, this could be the prohibition on property acquisition by non-EU citizens (where in some cases certain legal constructions can still be used to achieve the end effect); the depreciation effects by legal entities; the tax consequences in casse of property sale; the financing possibilities and creditworthiness; certain personal issues, such as property liability or family issues in the case of divorce/inheritance.
Each of these considerations can be weighted differently depending on the individual situation. It is therefore advisable to seek preliminary advice from your lawyer in order to make the best decision.
5. Attorney-at-law
If you are not quite sure about the legal aspects of buying property in Bulgaria, which is quite normal in a new foreign country, then the lawyer could be the exclusive person on your side, representing your interests and guiding you through the process.
You can read here exactly what obligations and information the lawyer has in the property purchase process and how they can consult you further.
In summary, the purchase of a property requires the cooperation of several specialised professionals and authorities, the most common of which have already been discussed above. Each party has a specific role that contributes to the smooth running of the purchase process.
An experienced lawyer can help you to go through this process safely and successfully by providing you with comprehensive advice and legal protection.
