Documents for real estate transactions in Bulgaria: requirements and obligations.

International Law Office D. Vladimirov & Partners March 6, 2018 International Law Office D. Vladimirov & Partners. You simply need to be registered or logged in to Mondaq.com to print this article. When buying real estate in Bulgaria, it is useful to know in advance what documents will be required. This will save time and simplify the process.

There are several groups of documents: documents identifying the buyer, documents identifying the property, documents identifying the seller, and documents identifying the future transaction.

Documents identifying the buyer

These start with a copy of a passport or ID card, but that's not all. Buyer''must provide the notary with a declaration of citizenship and marital status, a declaration of no or existing tax liabilities (it is best to pay taxes and show that you have no debts to the state). Another important document that the buyer must provide to the notary is a declaration of intent to purchase the property. It must specify the type of property, its location, method of purchase, etc.

Documents identifying the seller

In most cases, the buyer and seller enter into what is called a preliminary agreement. This is a contract that contains all the basic elements of the final purchase contract: seller and buyer, property, price, terms, etc.''A preliminary agreement does not transfer ownership of the property. It is merely a commitment that a final contract will be signed in the future, usually within 45 days. The preliminary agreement must be in writing and once signed, the buyer pays a deposit to the seller, usually 10% of the value of the property. The seller's obligation after signing the preliminary agreement is to provide all necessary documents for the purchase of the property. The first and most important document that the seller must submit is a document confirming his ownership of the property. This is usually a certificate of title. Another obligation of the seller is''Obtaining a tax assessment certificate for the property. This document is issued by the taxing authorities where the property is located.

Documents identifying the future transaction

The seller must submit a certificate of''his or her marital status. If he or she is married, his or her spouse must sign a declaration of consent to purchase the property. One of the most important documents in real estate transactions in Bulgaria is the certificate of encumbrances. It is issued by the Registration Agency and applies to all certificates of ownership of real estate. The encumbrance certificate shows all transactions made with the property and can prevent fraud. All of these documents must be prepared by the buyer and seller of the property and presented to a notary public to proceed with the transaction. The notary will verify and compare the information contained in the documents.

According to Bulgarian law, if the payment is''more than 7500 euros, it should be made via bank transfer. The buyer must provide the notary with a bank document confirming that the payment has been made. Once this document has been verified, the notary can sign the new certificate of ownership of the property, making the transaction official. But this is not the end of the purchase process, as it must be registered to become public. The seller of the property must sign a declaration of income from the transaction, and the buyer must declare their new property at the municipality's tax office to begin paying occupancy tax and garbage collection fees. These are local taxes and fees that are different for each municipality in Bulgaria and are paid''annually. Real estate taxation.