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 The Transaction Process
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Negotiating the Preliminary Contract
Once you have decided which property you would like to purchase, we will approach the seller and will negotiate on your behalf with him or her on the conditions accompanying the sale (about timing, particulars of what is sold, fixtures and rights that go with it). The contract that is negotiated (the ?Preliminary Contract?) will contain all the important terms and conditions of the sale.
Deposit
It is customary in Bulgaria to make a deposit of 10 per cent. of the value of the property on signing of the Preliminary Contract. This will guarantee that if the property you are looking to buy is sold to a third party in breach of the Preliminary Contract, the buyer will return double the amount originally accepted (so, for example, if you leave a €660 deposit, and the Seller sells to a third party in breach of the Preliminary Contract, he must return the €660 deposit and pay you a further €660 as penalty/compensaion). Were you to change your mind without good reason after exchange of the Preliminary Contract, you are highly unlikely to receive the deposit back.
Sale
There is usually a few days between the exchange of the Preliminary Contract and the conclusion of the final sale documentation (the ?Notary Deed?). This time period is necessary in order for certain final property and legal checks to be made.
The sale is concluded by the following steps
Buyer and Seller agree the sale (on the terms of the Preliminary Contract) and the buyer shows evidence that the purchase money is ready to be transferred to the seller (see the Money Transfer Page for details of how money can be transferred to the seller)
Both the buyer and seller appear before a notary public (the ?Notary?)
Buyer and seller present to the Notary evidence that the Preliminary Contract has been properly concluded, that all necessary taxes have been complied with, and that the purchase money (less deposit) has been transferred
signing the notary deed transferring legal ownership of the property for a specified price
the buyer must transfer the purchase price (less deposit already paid) to the seller
on presentation of evidence that the puchase price has been fully paid, the Notary then enters the sale details into the Land Register
Letter of Credit
If you are not in Bulgaria at the time the sale is to be concluded, in order to make payment in person, we will arrange a letter of credit for you, ensuring that the issuing / paying bank is a major international bank. The letter of credit will ensure (on guarantee from the bank) that amounts of money will be disbursed from your funds on presentation of property transfer documents (the Notary Deed').
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