How does the absence of Act 16 affect the purchase of real estate in Bulgaria?

Regulation of construction in Bulgaria

In Bulgaria, the issues related to the construction process are regulated by a number of important legislative acts, among which the key role is played by the Spatial Planning Act, known as the Act for Arrangement on the Territory. This legal document establishes clear rules and sequences to be followed in the construction of buildings and structures.

Based on the characteristics of the buildings under construction, they are classified into different groups, each of which has specific regulations.

Stages of preparing construction documents

When the building reaches the stage where its frame is installed and the walls are completed, the Act 14 is formalized. Then, after all internal and external finishing works are completed, Act 15 is signed. Finally, Act 16 certifies the full readiness of the facility for operation.

This means that in order to obtain Act 15all finishing works such as facade, window installation, flooring and door installation should be completed. Although water, sewerage and electricity systems may be connected, they may not yet be formalized. In some cases, equipment may be in the apartments but its acceptance has not been finalized, often resulting in missing personal accounts for services.

Expert opinion

Darya Borzova, the manager of Oazis Realty, emphasizes that the presence of a 15 Act already indicates that the building looks attractive and that residents have access to electricity and water supply. The appearance of a property with a 15 Act and a 16 Act is often difficult to distinguish, as both look completed.

However, their status on paper differs. This question can only be clarified by the owner themselves, based on the amount of their utility payments, or by the developer.

Transmission of communications

The commissioning of a building involves the transfer of all communication systems installed by the developer to the relevant authorities. For example, the transformer substation is handed over to local energy companies, while the water supply and sewage systems are transferred to the municipal water utility.

Buying real estate without a deed 16

An important question arises: is it possible to purchase real estate without an Act 16? In fact, a sale or gift transaction can be formalized at the stage when an Act 14 has been issued.

Theoretically, purchasing real estate can also take place at the foundation construction stage, but in this case, only a preliminary contract will be signed with the developer.

The role of the cadastre in real estate transactions

Since the moment the act 14 is formalized, information about the property is entered into the cadastre, which allows notaries to register the transaction as a real estate transaction. It's great that having act 16 is not a strict requirement for the notary.

The most significant is the very fact that the object is in the cadastre:If there is a "sketch," then the notary can carry out the transaction.

The technical significance of Act 16

However, for the developer, Act 16 is purely a technical document that does not necessarily need to be provided to the buyer. Therefore, if you want to be sure about the readiness of the property, you can request Act 16 yourself.

Investment opportunities in Sunny Beach

It should also be noted that the development of Sunny Beach resort in Bulgaria offers many opportunities for real estate investment, and knowledge of the specifics of the legislative processes can be an important factor for a successful home purchase.

The importance of insights in the real estate market

In the international real estate market, it is important to have access to insights and analytical data that help buyers make informed decisions. One of the fundamental documents that determines the possibility of a transaction in the secondary housing market is Act 16. This document is crucial when purchasing real estate, as the absence of it makes the buying and selling process vulnerable in terms of legal protection, even if the property itself appears relatively suitable for living.

Property status check

Nevertheless, if you decide to proceed with such offers, it is extremely important to ensure their status and the presence of all necessary permits. You can obtain this information by contacting local authorities. If a building has been in use for a long time without an acceptance certificate, this should raise certain doubts. Usually, this means that the house has not gone through the acceptance procedure, and any potential issues could become a burden for new owners for many years.

Risks described by experts

Real estate specialist Alexander Levchuk from Lev Estates noted that even a brief analysis can help identify potential risks. For example, there is a residential complex located just four kilometers from Sunny Beach. No matter how tempting the low prices may sound, the lack of Act 16 is a significant drawback, as the developer is unable to provide the necessary infrastructure, such as sewage systems, due to limited financial resources. As a result, the apartments in this project are already sold out, but the company itself is not eager to complete the registration process, preferring to maintain the property in acceptable condition.

Old housing and lack of Act 16

If you are considering an old property that was built more than twenty years ago, the absence of Act 16 may also be the case. This is because the legislation regulating the issuance of such documents appeared much later, and such properties fall under a special moratorium, according to which Act 16 is not mandatory.

Consequences of the absence of Act 16

The lack of Act 16 can lead to many negative consequences for buyers. The problem is quite wide-ranging, affecting both minor household inconveniences and serious difficulties related to the ability to resell the home in the future. In rare cases, a house may not have access to such vital resources as water or sewage if the developer has built it too far from other settlements. Connecting the necessary utilities in such situations may be too costly, leaving the property without accessible vital services.

• Lack of water supply
• Problems with the sewage system
• Difficulties with real estate resale

While this is often the result of design flaws rather than willful misconduct on the part of the builder, the consequences can be extremely serious: in some cases, the dwelling may be left without a water supply.

Issues with connecting to the power grids

Connecting to the power grid usually doesn't pose any difficulties, as the power networks cover almost all coastal areas, and the connection costs are within the standard budget. However, there are cases where construction is carried out without obtaining Act 16 for connecting utilities, which makes it impossible to supply electricity to new buildings.

Risks in the Nessebar region

According to Daria Borzova, the manager of Oazis Realty, there have been cases of problematic complexes in the Nessebar region, for example, in Kosharitsa, where the developer did not receive Act 16. This created significant risks for buyers, as legally all constructions remained the property of the developer, who also owned the land. Thus, the safety of transactions in the real estate market depends on how thoroughly future buyers check all necessary documents during the transaction process. Risk analysis and verification of legality can be a decisive factor in ensuring the safety of purchasing housing.

Water supply and conflicts with management companies

As a result of a conflict with the management organization, the apartment owner found himself in a situation where he had to dig up all the equipment responsible for water supply. The resolution of this issue was carried out through the courts. The sales manager of Lev Estates, Alexander Levchuk, recalls a difficult case that occurred a few years ago in the Meden Rudnik area of Burgas.

Challenges of construction and water supply

During the construction of a multi-story residential building that was supposed to have 14 floors, serious difficulties arose with access to water. It is unclear how the developer managed to obtain a construction permit, but it later became apparent that the water supply was limited to the fifth floor. Although the building received a certificate for 14 floors, residents who rushed to move in were in for an unpleasant surprise: water did not reach the upper floors.

Utility service rates

In addition, it is worth noting that utility tariffs in such situations are much higher than normal rates. Even if the house is already connected to all necessary communications, until the moment of receiving the act 16, all expenses for water supply and electricity will not concern the tenants, but will fall on the shoulders of the developer. This fact leads to the fact that homeowners will have to pay industrial tariffs, which are much higher than the standard tariffs for individuals.

Distribution of expenses

Moreover, individual accounts for residents are not created, and the total amount of expenses for electricity and water will be divided among all apartments. If one of the owners is unable to make the payment on time, the other residents will be forced to cover their debts; otherwise, the building may be left without utility services.

Problems with real estate sales

There are also challenges associated with selling such properties. If you have to sell an apartment in such a building, be prepared for potential buyers to back out of the deal or demand a significant price reduction once they learn about the lack of Act 16. Banks are also very reluctant to issue mortgage loans for such properties.

Apartment prices

However, more often than not, such apartments are priced significantly below market rates, which gives some buyers the chance to avoid taking out a loan.

Examples of affordable real estate in Bulgaria

At the moment in Bulgaria you can find various real estate options for sale. For example:

• St. Vlas:Apartments priced at €234,990. The area is 143 m², with three bedrooms, located in the "Manastira 2" complex on the third floor of a three-story building. The interior layout includes a spacious room combined with a kitchen and relaxation area, three separate bedrooms, a terrace with a sea view, and a bathroom.
• Ravda:A two-bedroom apartment for €85,500, with an area of 85 m². It is located on the first line by the sea in the "Riviera Fort Beach" complex. The apartment features a spacious living room with a kitchenette, one bedroom, a bathroom, and a large terrace with a picturesque view of the sea.

Features of apartments

Apartments are usually offered with furniture and appliances, which makes them more appealing to caring buyers who want to quickly settle into their new home.

Offers from Grand Estates Group

Grand Estates Group is pleased to offer unique opportunities for purchasing apartments in Bulgaria. Special attention should be given to the apartments on Sunny Beach, which are priced at67,000 eurosThis option is an apartment with an area of50 square meterslocated on the first floor with a southwest orientation.

The property comes fully furnished and equipped with all necessary appliances, making it suitable for both living and renting out. For the convenience of clients, online viewings are organized, and transactions can be completed remotely with payment in rubles.

Three-room apartment in Sozopol

In addition, the Grand Estates Group portfolio includestwo-room apartmentin Sozopol, the cost of which is123,500 eurosThe total area of this housing reaches98 square metersThe apartment is located on the second floor of a prestigious complex situated right by the sea.

The apartment includes:

• hallway
• spacious living room with a kitchen area,
• two bedrooms,
• two bathrooms and
• two terraces overlooking the pool and the surrounding area.

It is the perfect place for a comfortable vacation and permanent coastal living.

Two-bedroom apartment in Saint Vlas

It is also suggestedfurnished two-room apartmentin Saint Vlas at the price67,500 eurosThe area of this housing is74 square metersand it is located in the modern residential complex Sea Fort Club, just a300 metersfrom the sea.

The complex is surrounded by a picturesque forest and offers excellent living conditions.

• three restaurants,
• bar,
• cafe,
• gym with a sauna and spa

Cozy apartments in Sunny Beach

Sunny Beach also offerscozy apartmentsfor73,000 eurosThis one-bedroom apartment has an area of65 square metersand is located on the sixth floor with a beautiful view of the pool.

The price includes stylish furniture and other amenities. The Sweet Homes complex, where the apartments are located, is situated in the heart of Sunny Beach, in a quiet and picturesque area, making it an excellent place for year-round living.

Three-room apartment in Saint Vlas

If you are looking for more spacious housing, pay attention toa three-room apartmentin St. Vlas with a price of99,900 eurosThis apartment has an area of108 square metersis on the fourth floor.

Here there is:

• hallway
• spacious living room with a dining area,
• two bedrooms,
• two bathrooms and
• a terrace with a magnificent view of the sea and the surroundings.

Two-bedroom apartments in Nessebar

And finally, pay attention totwo-room apartmentin Nessebar, the cost of which is only169,000 eurosThe area of these apartments is84 square metersand they are on the first floor with breathtaking panoramic views of the sea and ancient Nessebar.

This accommodation will be an excellent choice for those who dream of enjoying fresh sea air and beautiful landscapes.

Conclusion

Each of the presented real estate properties stands out for its high quality and comfort. Feel free to contact Grand Estates Group for more information, to arrange viewings, and to discuss favorable terms for the deal.

A unique offer for comfortable living

We invite you to consider a unique offer — the opportunity to become the owner of a beautiful apartment that will be the perfect place for relaxation and permanent living. This two-room apartment, with a total area of 83 square meters, is located on the fifth floor in the famous resort town of Sunny Beach. It is suitable for those who value the functionality and coziness of their home.

Offer of a three-room apartment in Saint Vlas

A wonderful opportunity has appeared in the real estate market to purchase a three-room apartment for €162,000 in the picturesque resort town of Saint Vlas, located on the coast of Bulgaria. The total area of this property is 110 square meters, and it is situated on the third floor of a modern residential complex right by the sea. The apartment offers a stunning sea view from its windows, and it is already fully furnished, allowing new residents to immediately immerse themselves in the cozy and comfortable atmosphere of their new home. Inside, there are two cozy bedrooms and a spacious balcony - the perfect place for morning coffee or evenings with friends.

Apartment in Kosharitsa

Additionally, there is an alternative option - a three-room apartment in the Kosharița area, priced at €75,000. This apartment has an area of 97 square meters and is located on the first floor. The windows of this apartment offer a view of the pool, and the complex itself provides numerous amenities, including:

• playground
• The poolside lounge area is a great place to cool off in the summer heat.

Apartment in Sunny Beach

It is also worth highlighting an apartment in the sunny resort of Sunny Beach, priced at €115,000. This apartment is located on the fourth floor, has an area of 112 square meters, and is situated on the first line to the sea. All rooms in the apartment offer magnificent views, making life in this home truly a pleasure. Inside the apartment, there are:

• two comfortable bedrooms;
• three bathrooms, which makes it especially convenient for living.

Apartment in Primorsko

Another attractive option is an apartment in Primorsko, priced at €83,000. This apartment has an area of 60 square meters and includes two bedrooms. There is also the possibility of obtaining a residence permit upon purchase, which certainly adds to the appeal of this offer. The building is equipped withsteam heating system, which is a rarity for Bulgaria, and its location just 300 meters from the sea increases its value.

Another offer in Primorsko

Another interesting offer is an apartment in Primorsko, priced at €83,500. This 56 square meter space provides comfortable living conditions and also offers the possibility of obtaining a residence permit upon purchase. Payment options are varied, including:

• payment in rubles;
• Payment using cryptocurrency, which significantly simplifies the purchasing process and makes it accessible to various people.

Advantages of the proposed property

All the presented real estate options offer excellent conditions for both permanent living and vacationing in Bulgaria. They also provide the opportunity to generate rental income. The main feature is that the apartments are sold directly from the developer, which eliminates unnecessary overhead costs and allows buyers to obtain more favorable terms. There are also installment offers available, making the process of acquiring property even more convenient and accessible, which is very important for many who want to invest in real estate in Bulgaria.

Unique apartment in Primorsko

In Bulgaria, on the Primorsko coast, a wonderful opportunity has opened up to purchase a magnificent apartment for 500,000 euros. This modern apartment covers an area of 56 square meters and is equipped with everything necessary, including a stylish design.

The convenient location on the fifth floor of the Green Paradise V residential complex offers a wonderful view of the lush forests and the endless sea. The apartment includes an entrance hall, a bright living room combined with a kitchen and dining area, one separate bedroom, a bathroom, and a balcony.

The balcony serves both living areas, adding coziness and light to the interior.

Apartment in Sunny Beach

A new apartment has appeared at the popular resort of Sunny Beach, being sold for 50,000 euros, making it a great option for those looking to own property in Bulgaria. The total area of this property is 75 square meters, it includes one bedroom, and offers beautiful views of the pool.

The complex features two large swimming pools, providing a comfortable relaxation space for all residents. The apartment is fully furnished and equipped with all necessary household appliances. The option to pay in rubles makes the purchase particularly appealing for clients from Russia.

Advantages of obtaining a residence permit

It is also important to emphasize that there are significant advantages in the process of acquiring real estate in Bulgaria in order to obtain a residence permit. However, do not forget to carefully review the technical documentation for the properties.

• Apartments with Act 16They are considered ready for living and are quickly registered to new owners.
• Buildings that only have Act 15 may not be completely safe for occupancy, but that doesn't mean they are dangerous.
• Such apartments are subject to legal rental or sale.

Changes in the real estate market

Some properties on the real estate market in Bulgaria can be significantly cheaper. Previously, properties without a certificate of occupancy were not subject to tax obligations, which allowed developers to set lower prices for housing.

However, with the recent introduction of new tax measures, local authorities have started to impose taxes on such properties, which has affected developers' strategies regarding the timelines for commissioning.

Control over new constructions

Municipalities in Bulgaria are actively working to improve control over new constructions. For example, in the Nessebar region, a new amendment has been introduced, which requires property owners to pay taxes only after receiving Act 15, impacting the common practices that were in place before.

As a result, now every owner must bear the burden of costs, just like those who already live in houses with Act 16.

Diversity in the regions

It is worth noting that the process of buying and registering real estate can vary significantly across different regions of Bulgaria. Apartments without an Act 16 usually cost significantly less, which increases their appeal to investors.

The earlier investors make a purchase during the construction phase, the more advantageous the final price will be. Often, buyers make an initial payment and pay off the remaining amount in installments until they receive the final documents.

So, investments are becoming accessible and profitable, and buying your own apartment in Bulgaria can become a reality.

Recently, there has been a trend of rising prices in the real estate market. People who make informed investments can expect solid profits. Apartments in buildings that are already completed but do not have a completion certificate (Act 16) are usually cheaper. This is due to developers trying to cut costs, but there are also other aspects related to potential risks for buyers. Therefore, before making a decision to purchase such property, it is crucial to carefully analyze the current market conditions.

Construction in Varna

When it comes to construction in Varna — the largest city on the Bulgarian coast — it should be emphasized that there are many properties in the country that are actually ready for occupancy but still do not have an occupancy permit (Act 16). The issue of unapproved residential buildings affects not only specific areas but also Bulgaria as a whole.

Checking for the availability of Act 16

Checking for the availability of Act 16 is a key step that must be taken before making a purchase. If you are planning to buy property on the primary market, don't hesitate to ask the developer about the presence of this document. Be prepared for the fact that the form of the act may vary: in some cases, you will receive "Act 16," while in others, you will get a "commissioning document."

Analysis of the apartment's status in the secondary market

When a transaction occurs in the secondary market, the status of the apartment can be clarified based on utility bills. It is also possible to contact the relevant local authority to obtain the necessary information about the selected property.

Recommendations from experts

According to the recommendations of Daria Borzova, the manager of the agencyOazis RealtyIt is preferable to purchase real estate that has an act 15 or 16, as this indicates that the housing is fully ready. It is even better when there are already other residents living in the building. However, sometimes it is worth considering the option of buying properties without this document, as it may allow you to buy an apartment at a lower price in a developing complex.

Signs of a successful deal

There are several signs that indicate a high likelihood of a successful deal. For example:

• If the building is within the city limits, it can be assumed that there should be no issues with connecting engineering utilities, as all necessary communications are located in close proximity.
• In large cities, land plots have a higher value, which encourages developers to approach their projects more responsibly.
• Construction is often financed by loans, and in a difficult situation banks actively support their clients.

Risks when buying real estate

On the other hand, if the complex is located far from urban infrastructure or surrounded by private properties, caution should be exercised:

• Laying communications over a significant distance can be very expensive.
• Owners of neighboring plots may not grant permission for the pipes to cross their land.

If the building was constructed more than a year ago and Act 16 is still pending, it could indicate that there are serious problems and difficulties in completing the process of obtaining all the necessary permits and documents.

Conclusion

In conclusion, it should be noted that the legislation in Bulgaria regarding construction and the acceptance of buildings has its own features and nuances that are important to consider when purchasing real estate. As the author of this material, I assure you that it is extremely important for every potential buyer to conduct a thorough check of the property's status before making a decision on the transaction.

Understanding the differences between Acts 14, 15, and 16 can serve as an important guide for assessing the reliability of the proposal.

Key aspects:

• Act 16- confirms that the building is fully operational.
• Lack of Act 16It doesn't always indicate fraud; sometimes it's related to project shortcomings.

Buying real estate at the construction stage or even without an occupancy permit can be attractive for investors due to the lower price, but such a deal carries risks that need to be carefully assessed.

I strongly recommend consulting with experts in real estate and legal advice to avoid unpleasant situations in the future, especially when it comes to older buildings that may not have the necessary permits.

Recommendations:

• Conduct a thorough check of the object's status.
• Reach out to real estate professionals for assistance.

Thus, awareness of the legal aspects and careful attention to detail when purchasing property in Bulgaria can be the key to a successful transaction and help avoid many issues related to maintenance and utilities. Investing in real estate always requires a thoughtful approach and attention to detail, and having the right information is the first step towards a successful investment.