Selling your Bulgarian property
In the last couple of years some foreigners asked for a legal support by Selling your Bulgarian property.
Selling your property in Bulgaria, especially when owned through a domestic limited liability company, involves a series of legal and procedural steps.
While the process may seem complex, understanding each phase can simplify your experience and ensure a successful transaction.
Preliminary Preparations
- Verify Ownership and Documentation: Ensure you possess the original Notary Deed, which serves as proof of ownership.
- Obtain a Property Sketch: Acquire a current sketch of the property from the local Cadastre and Surveying Service.
This document is typically valid for six months and is essential for the sale process.
- Secure a Tax Evaluation Document: This certificate, issued by the local tax services office, confirms the property’s tax status and is mandatory for the sale.
- Confirm Marital Status Documentation: If selling as an individual, provide a document stating your marital status.
If the property was acquired during marriage, spousal consent might be required, necessitating a notarized power of attorney from your spouse.
- Check for Encumbrances: Obtain a certificate confirming the absence of encumbrances, ensuring no third-party rights or claims exist on the property
Market Assessment and Pricing
- Understand the Current Market: Research the real estate market to determine fair market values of similar properties in your area.
This insight will help you set a competitive and realistic asking price.
- Consider Capital Gains Tax Implications: Selling at a price higher than the purchase price may result in capital gains tax liabilities. It’s advisable to consult with a tax professional to understand potential obligations.
Engaging Professionals
- Legal Representation:
Hiring a lawyer experienced in Bulgarian real estate law can safeguard your interests, assist in document preparation, and ensure compliance with all legal requirements.
- Real Estate Agents: Collaborate with reputable agents to market your property effectively.
Ensure that any fees are agreed upon in advance and are payable upon the successful signing of the Title Deed.
Managing Financial Transactions
- Handle Deposits Securely: Ensure that any reservation deposits are transferred directly to your account, not the agent’s, to mitigate risks of misappropriation.
- Full Disclosure of Sale Price: The complete sale price should be explicitly stated in the Title Deed to avoid legal complications.
Finalizing the Sale
- Choose Between Preliminary Contract and Direct Title Deed Signing:
You can opt for a preliminary contract with a deposit or proceed directly to signing the Title Deed. Your lawyer can guide you through the advantages of each approach.
- Notary Public Involvement: A local notary public must officiate the transaction. You can authorize your lawyer to represent you if you’re unable to be present in Bulgaria.
By meticulously following these steps and seeking professional assistance when needed, you can navigate the process of selling your Bulgarian property with confidence and legal assurance.