Real Estate Transactions In Bulgaria

There are several main legislative acts that regulate ownership title rights, limited property rights and real estate transfer deals in Bulgaria – these are the Constitution of the Republic of Bulgaria, Property Act, Contracts and Obligations Act, Commercial Act, Agricultural Land Ownership and Use Act, Forestry Act, Water Act, Black Sea Territorial Development Act, Protected Territories Act, State Property Act, Municipal Property Act, Civil Procedures Code, Encouragement of Investments Act, Territorial Development Act and Condominium Management Act.

In Bulgaria all types of transactions regarding establishment or transfer of real property rights related to real estate properties must be in the form of a notary deed. This is one of the general principles of the Bulgarian Property Law. That means that these transactions must be executed in the office of a notary in the respective district where the real estate is located. Such types of transactions could be sale-purchase contract, exchange contract, donation contract, contract for transfer of ownership against reduction of debts and etc. The real rights that could be subjects of these transactions could be the following – ownership title rights and limited property rights over real estate (construction rights, rights of use, servitude rights, easements). The notary deed is not necessary if the legal person conveying the ownership title right or limited property right is the Bulgarian state or respective municipality – in this case the contract must be in writing but the notary form is not necessary.

All real estate transactions involving ownership title or limited property rights must be registered into the Real Estate Register (with the Bulgarian Registry Agency within the Ministry of Justice) in order to make the property rights of the transferee public and defendable against third parties.

Before the execution of each transfer of ownership or property rights over real estate the transferor must have paid all its public tax duties. This rule guarantees the financial interests of the State and the municipality.

Under the Bulgarian notary law, before the execution of the notary deed, the notary must check the ownership title rights of the transferor (the current owner or the seller). If the seller is a company, the notary is also obliged to check all the relevant corporate resolutions regarding the transaction (resolutions of the General Meeting of Shareholders or resolutions of the Board of...