Updates in Bulgarian Legislation: Changes Made and Significant Developments in Legal Practice

Some legislative gaps have been filled and some controversial applications of the law have been interrupted through interpretive decisions of the Bulgarian Supreme Court of Cassation.

On June 1, 1996, Bulgarian law provided for the possibility of acquiring private municipal or state property in Bulgaria, subject to continuous ownership for 10 years. However, on May 31, 2006, the law was amended and the period of continuous ownership was temporarily suspended. The suspension has been extended several times, most recently in early 2018. As a result of this latest extension, the suspension will remain in effect until December 31, 2022.

The suspension that occurred so close to the expiration date' The 'Procedural Code, which provides that the rights of a tenant are secured only if the lease agreement was registered before the installation of the first mortgage. In case the lease agreement is registered after the first mortgage on the property has been installed, the purchaser at public auction obtains possession of the leased property from the lessee despite the registration of the lease agreement in the property registry. The new provision is clarified and specified not only for the purchaser at public auction but also for tenants and sub-tenants of mortgaged property.

Validity of real estate transactions despite lack of corporate authorization.

Bulgarian law, in the case of a transaction of acquisition or' 'corporate authorization must not have a negative impact on the safety and stability of commercial transactions.

Form of corporate resolution for real estate transactions.

The amendment to the Commercial Act introduced a new requirement regarding the form of a corporate resolution in a closed-end company for the acquisition or sale of real estate.