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European preservation Order

According to the legislation the Bulgarian courts will freeze bank accounts of debtors and abroad after issue an European preservation Order.

Lenders will be able to require the freezing of assets of debtors and abroad,This was made possible by amendments to the Civil Code.

The amendments to Bulgaria accepted procedure called. European order for attachment of bank accounts.

It’s about an EU legal instrument whose purpose is to facilitate cross-border debt recovery in civil and commercial matters.

Cross-border debt recovery

The regulation, which establishes the procedure began to apply from January 18, 2017.

Cross-border work is in two hypotheses.European Account Preservation Order.

The first is where the creditor lives in the country – an EU member and the court imposing garnishment, bank account and subject to freezing, located in another Member State.
The second court in one country and bank account – in another.

The authority entitled to issue a European arrest is the first instance court if the request for a lien to be done before examining the merits of the case.

There is however an opportunity for the applicant to request an order at any stage of the case by the court sees it.

If this happens in those proceedings, the order is issued by the appellate court.

Obtaining European preservation Order is available as an option in all phases of the litigation process

The creditor would be interested to secure prospective proceedings, as well during a pending lawsuit, and also in cases where court decision (or similar) has already been obtained and the judgment creditor needs to secure its enforcement.

If the court refuses to issue an order, the creditor may appeal an interlocutory appeal.

If the failure is ordained of appellate jurisdiction, the appeal before the Supreme Court.

Cross-border work is in two hypotheses.

The first is where the creditor lives in the country – an EU member and the court imposing garnishment, bank account

The subject of the EPO to freezing, located in another member State.

The authority entitled to issue a European arrest is the first instance court if the request for a lien to be done before examining the merits of the case.

There is an opportunity for the applicant to request an order at any stage of the case by the court sees it.

If this happens in those proceedings, the order is issued by the appellate court.

If the court refuses to issue an order, the creditor may appeal an interlocutory appeal.

If the failure is ordained of appellate jurisdiction, the appeal before the Supreme Court.

The debtor will be able to seek annulment of the order in the same order.

The European accounts Preservation Order will be a good option for the local creditors, whose debtors reside on the territory of the European Union.

Contact us for more information on + 359 897 90 43 91 or send us email office@lawyer-bulgaria.bg

February 10, 2018/by lawyer

Legal advices, News, Personal

Purchase of property Bulgaria

Thorough area research and companies contracted lawyers is highly recommended to the process of purchase of property Bulgaria.

Examine a range of properties suggested by different agents, compare prices and ensure you are paying a fair price.

Extreme caution is advised. Do not rely on estate agents, promoters or lawyers, who advise you to cut corners in order to save time and/or money.

Bulgarian property works much differently than property law in Bulgaria

Seek independent legal advice

Many property owners are now having legal trouble, since they failed to look for independent legal advice

Engage a lawyer experienced in property transactions, who is not in any way related to other parties in the transaction.

If you are using a Bulgarian-based lawyer, make sure that lawyer has a registration with the Bulgarian Bar Association.

By the purchase of property Bulgaria there are no requirements for liability insurance for your Bulgaria-based lawyer.

Avoid signing any papers or paying any fees before you’ve consulted with an independent legal professional.

For all types of real estate transactions, we offer full legal assistance, from the initiation of the respective procedure to the conclusion of the final contract in the form of a title deed.

We take part and negotiate on behalf of the client with the other party and with any third parties.

We prepare the texts of preliminary contracts and title deeds.

Based on an explicit authorization by a client, who is currently abroad or is not able to participate in the transaction in person due to other obstacles, we are able to act during the conclusion of the transaction.

For performing a sale and purchase of a property, you should review the entire history of the property for any vicious previous transactions made with it, as well as perform a check for any existing real estate encumbrances over the property.

Every buyer is at risk of buying property with a burden attached to it, or having the transaction declared invalid because of a vicious previous transaction with the property, if these checks are not carried out.

If you are a seller, one of the biggest threats to your rights is to sign the deed of sale, but not to receive the agreed purchase price, or e.g. to assume responsibility for penalties without knowing that there is a statement of claim filed against you.

If the parties have not established trust between themselves, it is advisable to consider a reasonable mechanism for making the payment for the sale of the property, including by using the trust account of the notary, who will execute the transaction.

Off-plan developments

Off-plan developments in Bulgaria are properties, for which no Permit to Use (Act Form 16) have been issued.
The regulated stages of an off-plan development are set forth in the laws and regulatory documents. A non-exhaustive list of documents follows below:
Planning permission – this authorizes developer to draft architectural designs and construction plans for development;
Construction permit – it entitles the developer to start the construction according to the approved architectural, construction technical plans
Opening the construction site and designating the construction line and level (Statement for Start of Construction)
Certificate for completion and approval of shell-and-core construction (Act Form 14)
Certificate acknowledging the compliance of the construction with the statutory rules (Act Form 15)
Permit to Use (Act Form 16)
Buying an off-plan development without Construction Permit is not advisable.

Typical transaction for buying off-plan developments involves two stages:

A/ signing of a preliminary agreement

B/ signing of a title deed in the presence of a Bulgarian Notary

The transfer of property is completed with the signing of the Notary Deed.

It is advised that the payment for purchase of off-plan property shall be made in installments,

All installments shall be paid after the completion of the relevant development stage and obtaining the statutory certification document.

December 9, 2017/by lawyer

Legal advices, News, Personal

Preventing property Frauds

Preventing Property Frauds

In the wake of the global financial crisis, the rise in unemployment and the drop in consumption in Bulgaria, crime levels are on the rise, property related fraud in particular.

The bad actors range from educated professionals to poorly educated individuals.

The National Police Directorate General has classified different types of crime into the following main sub-types:

Acts or failures to act by legal entities /investors and contractors for residential building developments/ and public administration officials responsible for the approval of architectural designs, development plans, et al. This exists due to the information gap about local laws and mediators’ malpractices. These types of fraud most often involve violations of the zoning and spatial planning legislation and/or civil law.
The second group involves individuals who, acting unlawfully, acquire or dispose of properties of third parties, who are bona fide owners. This type of fraud is perpetrated through embezzlement of proceeds from time share, misuse of personal data and its use to “acquire” the property. The fraud relies on misleading foreign buyers, using the fact that buyers are not familiarized with the domestic legislation. Fake brokers are set up and involved in a “negotiation” and document exchange process.
Buyers often rely on the brokers and fail to investigate the developer of the building. Another sub-type of this fraud involves properties of foreign nationals, who have acquired properties through companies and said properties have been listed on the balance sheet of their company.
Since the information in the Commercial Register is public, fraudsters have access to the identity documents, UCN/PNF, address and other data, in particular – the signatures of the partners/managers of the company. This data is then used to produce false documents in the name of fictitious persons.

Such documents may include:

Last Will and Testament or Donation – widely used for acquisition of property of deceased or mentally incapacitated individuals.

Certificate of Death/Certificate of Inheritance – in most cases used to acquire the complete documentation for further transaction with property of deceased persons.

Abuse of mentally incapacitated persons, who are not placed under guardianship and are in a mental institution.

Often the documents have the authentic signature of the owner, who has been mislead/taken advantage of by the fraudsters, who have created a relationship with them.

Two types of real estate fraud that are on the rise in the past 12 months:

Fraudsters impersonate individual homeowners and use stolen IDs to sell or mortgage properties. The mortgage or sale happens quickly and the fraudulent proceeds are dissipated outside the jurisdiction almost immediately.

The CBC recently reported that a handful of organized crime syndicates are behind these real-estate frauds, in which 30+ homes in the GTA have either been sold or mortgaged without the owners’ knowledge.

Fraudsters dupe unsuspecting homeowners into registering one or more mortgages on their properties at “cut rates.”

The unsuspecting homeowners end up with one or more mortgages registered on title to their properties on terms they never agreed to while failing to receive some or all of the mortgage proceeds advanced by the lender.

Minutes of Meetings with decisions to change the manager of a limited liability company, substituting the real manager with a person involved in the fraud.

Changing Partners in a limited liability company by selling shares and a transaction for disposal with the company property by the “new” partner.
Court rulings for awarded ownership/claim.
Court rulings for recovery of ownership rights.

Our services in property Frauds

Promissory note /frequently falsified document/, used to initiate enforcement proceedings at private bailiffs and enforcement of injunctions on the property of the debtor.

Failure of the debtor to secure the claim means the property is subject to a public auction, and in some cases the property is acquired by a fictitious person at prices several times lower than the market prices.

The National Automated Information Fund for Bulgarian identity documents connection system has the goal of preventing attempts of fraudulent real property transactions using false identification documents.

Furthermore, Notary Publics have access to the Property Register of the Registry Agency and to the National Database “Population” (for data on legal successors of deceased persons).

December 8, 2017/by lawyer