Property Sales Process | Selling Costs

 

Introduction:
Selling property in Bulgaria is very safe for foreign investors.  Below is a brief Q and A with regards to seller obligations:

What (if any) are the minimum formalities for the sale and purchase of real estate?
A property purchase agreement has to be concluded in the form of a notarial deed. The property purchase agreement has to - at least - include the parties, the purchased object and the purchase price.  Beyond that, the provisions of the statutory law do apply.

Is the seller under a duty of disclosure?  What matters must be disclosed?
There is no legal duty of disclosure.  Nevertheless, some notaries carry out a preceding review in the Land Registry to check the validity of the legal title and if there are any registered encumbrances over the property.

Can the seller be liable to the buyer for misrepresentation?
Yes, the seller can be liable to the buyer for misrepresentation.

Do sellers usually give contractual warranties to the buyer?  What would be the scope of these?
The main contractual warranties are related to: Title, non-existence of encumbrances, eviction, non-existence of defects and regularity of the asset as regards construction and town planning matters.  In certain cases, such warranties may be diminished or waived altogether, by a mutual agreement.

What (if any) are the liabilities of the buyer (in addition to paying the sale price)?
The main obligation of the buyer is the payment of the sale price.  In case there is/are lease agreements for the real estate, it/they may be binding for the new owner.

Vendors must ensure they possess relevant property ownership documents and make sure they have paid any outstanding tax or utility bills on their property.

1. Market research:
Before you do anything, check out the market.  Unless you’re forced to sell, steer clear of slumps when prices are depressed and perhaps consider letting out long-term until the market recovers as an alternative.

2. Preparing for sale:
It is worth doing some research through consulting with local agents to get advice on how to prepare your home to increase its attractiveness to prospective buyers.  It’s vital to consider what will appeal to local buyers.

3. Marketing your property:
Once you have decided it’s the right time to sell and are confident your property is in a condition which will appeal to prospective buyers, you are ready to go to market.  The normal means of marketing a property in Bulgaria is via an estate agent who can also value your property.  If you used an agent to buy your Bulgaria home, it could make sense to use the same one to sell it, as they will already know the property.  Before you take on their services, you should check carefully what they will and will not do in terms of marketing and what they will charge as commission – make sure you shop around to get the best service!

However, it’s increasingly easy these days to sell without using an agent.  There are an increasing number of specialist websites and magazines advertising property for sale in Bulgaria.  The key advantage here is avoiding the high estate agents’ fees.  You will need to do your research to get the price right.  Just looking at the adverts will not be enough.  You will need to get out and see comparable properties in your area and check out their facilities.  Alternatively, you could try to sell your property at auction.

4. Timeframe:
Generally it will take 3-5 weeks to sell a property. This is dependent on a number of factors, not all of which are in your control.

The terms and conditions of the sale can be negotiated very quickly, therefore it is important to have an accurate picture of the condition of the property, likely repairs that will be needed and its consequent value.

Usually a surveyor can prepare a report within a week of instructions. The legal title to the property can be checked at the Land Register in a day or two. Searches with the local authority, trying to confirm the uses and building permissions associated with the property, will similarly take several days.

The Preliminary Contract is then exchanged and a deposit paid. There is then a period of, at maximum, a few days while the money transfer is arranged and any final checks made. The sale will take place in front of a Notary at an agreed date and time.     

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