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Documents transfer of property

Our clients choose us because they know we understand their objectives and offer them legal support by getting the documents transfer of property.

We regularly handle transactions for the world’s leading investment banks, private equity funds, hedge funds, pension funds, REITs and sovereign wealth funds.

Increasingly they are cross border, highly structured and involve sophisticated financing arrangements.

We support our clients in their most important real estate projects on an international basis.

1. Property title documents transfer of property

Most frequent documents of ownership:

• Title Deed, registered with the Registry Agency – title deed for purchase and sale, title deed for donation, title deed for exchange, notarized statement of ascertainment;

• Deed with registration records;

• Sales Agreement executed under the Ordinance on State-Owned Properties;

• Sales Agreement, executed under the Municipal Property Act and the State-Owned Public or Municipal Real Estate Act.

2. Property Tax Evaluation Certificate – issued by the local tax office at the property domicile.

The Property Tax Evaluation Certificate has to contain an address identical to the address of the property as per the title deed.

Property co-owners may not have any outstanding debts concerning the property, which shall be indicated in the Property Tax Evaluation Certificate.

3. Certificate of Marital Status of the seller(s), indicating the marital status of all owners as of the date of acquisition of the property.

4. Marriage Certificate of the seller, if applicable.

5. This property is not acquired as marital property, it shall not be considered matrimonial property community;

6. The property has any real rights registered, in order to execute the sale transaction, the user shall abandon all the real rights, established in their favour.

The waiver has to be signed in the presence of a Notary Public and shall be registered with the Notary Public’s file.

7. In case the property is subject to partition – the document in question (contract, ruling), registered with the Registry Agency.

8. Plan of the plot, in case of transfer of land (land plot, yard or part of yard, where the property/apartment is built).

9. In case the property has been received as inheritance

10. If the seller is divorced, the court ruling dissolving the marriage in divorce shall be presented.

11. Specific cases require different documents, which follow the property history and proves the title of ownership.

12. Certificate of Burdens for the property – to be issued by the Registry Agency

13. In case the seller is unable to perform the transaction personally, he needs to appoint another person with a Power of Attorney.

This Power of Attorney shall be notarized, and both the signatures affixed and the content of this Power of Attorney shall be certified.

14.A declaration under article 25, paragraph 7 of the Notaries and Notary Practices Acts and a declaration under article 264, paragraph 1 Tax Code

15. An identity document, which confirms the identity of both the buyer and the seller

16. In case the transaction refers to transferring developed buildings – the respective documents issued by the builder/investor

17. Other documents, according to the specifics of the transaction.

Due to the diversity of documents possible, we recommend that the documents under this transaction be checked by a lawyer.

June 24, 2018/by lawyer

Legal advices, News, Personal

Registration of a branch

The dynamics of modern business relations can easy switch to another country of doing business in different settlements by registration of a branch.

If you have such a need, you are generally faced with three options for doing business:

A) register individual “subsidiaries” of trading companies and through them to carry out your business.

With this option new companies are emerging and they have separate business enterprises.

The common between them is in the owner who owns them, but in the case of third parties they are completely independent subjects;

B) to disclose retail outlets (warehouses, shops, etc.) in the different settlements, without creating new companies and operating in them.

In this situation, no new legal entity emerges – a company, the trader himself engages in legal relationships with third parties.

B) register a branch through which to separate the performance of part of your activity in a settlement other than that in which your company has its registered office.

The branch is a legal-organizational form for carrying out a business activity in which a trader (firm), through a relative separation of part of its activity, carries it out in a settlement other than that in which its seat is located.

In the internal relations, the branch is dependent on the trader and this dependence is manifested in different directions, for example in:

A) the lack of an independent firm, and the branch company includes the trader’s firm and the branch add-on;

(B) the branch is part of the trader’s business (and, if transferred, the branch is transferred).

In disputes arising out of a direct relationship with a branch, claims are brought against the firm (as may be done at the headquarters of the branch);

B) the termination of the trader also leads to the termination of the branch (the same applies when the bankruptcy is declared);

D) the branch does not compile a stand-alone balance – the branch leads commercial books as a sole trader without compiling a separate balance sheet.

Registration of a branch

Branch registration is the result of the following procedure, which includes:

1. decision on the establishment of a branch;

2. election of a branch manager;

3. Entry in the Commercial Register (TP).

The decision to register a branch is taken by the competent corporate body under the rules of the relevant commercial company:

The decision should contain a clear intention to establish a branch and its headquarters, address of management, subject of activity, manner of management.

Setting up a Bulgarian branch by a foreign company is one of the legal forms for establishment of a business presence in Bulgaria.

Usually the branch office is considered to be an alternative to being a (sole) shareholder of a Bulgarian company.

The Bulgarian branch office is not a separate legal entity but a part of the foreign company.Registration of a branch

As a result, share capital of the branch is not required and the foreign company is liable for the liabilities incurred by the branch.

Legal Representative of the Bulgarian Branch

Though the Bulgarian branch office is not a separate legal entity and appointment of a director is not required, the authorization of a legal representative of the branch is mandatory.

The representative powers of the legal representative are determined by a power of attorney granted to him by the foreign company.

Registration with the Bulgarian Commercial Register

Under Bulgarian legislation branches are required to be registered with the Bulgarian Commercial Register. The necessary documents to register a branch in Bulgaria include:

official certificate of good standing of the foreign company;

official incumbency certificate containing the particulars of the persons authorized to represent the foreign company and their representative powers (if not contained in the certificate of good standing);

resolution of the foreign company to establish a branch in Bulgaria (the persons competent to adopt such a resolution are determined by the national corporate law of the foreign company);

constituent act/articles of association of the foreign company;

notarized power of attorney granted to the legal representative of the Bulgarian branch;

notarized written consent and specimen signature of the legal representative of the Bulgarian branch;

declaration under art.13, para. 4 of the Bulgarian Commercial Register Act.

Accounting

Under the Bulgarian Commerce Act following the successful branch office registration, the branch is required to maintain its own bookkeeping as well as to prepare a balance sheet.

Taxation

Under the Bulgarian tax legislation the profit generated by a foreign company’s branch established in Bulgaria is subject to corporate income tax.

June 24, 2018/by lawyer

Legal advices

Changing manager LLC Bulgaria

Change in the manner of management and representation or change of the person (s) representing the company

A change in the management of a company may occur when two or more persons are elected in the place of a manager to represent and manage the company together or separately, as well as the appointment of a procurator.

I. In the Commercial Law an option is provided by the manager of the company aloneto request it to be removed from the Commercial Register by giving written notice to the company.

Within one month of receipt of the notification, the company must declare its release in the Commercial Register for entry.

If the company does not do so, the manager may himself file for registration the fact that is entered, whether or not another person is elected in his place. In a nutshell, in order for the manager or the liquidator to declare the deletion alone, the law provided for the existence of two prerequisites – the manager / liquidator / requested the deletion by written notification to the company and the company had not declared its deletion in within one month of receipt of the notification.

The second and more frequent reason for change of manager in OOD is

Election of a new governor after the expiry of the mandate of the old governor or
Withdrawal of the manager’s authorization at any time during his term of office,
Resignition of the manager.

Empowerment of the manager may be withdrawn at any time and his name deleted from the commercial register.

The freedom of the general assembly to free the governor at any time, respectively to elect a new governor, is imperatively regulated by the legislator, and it results from the free withdrawal of empowerment (including empowerment).

There is a complete correspondence between the possibility of the general meeting of the company to withdraw the authorization of the manager / for the dismissal of the manager / as provided in Art. 141, para. 5 of the Commercial Act, the unilateral withdrawal of the manager, with a written notification to the company. The possibility of a free change of the manager is related to the fact that the legislator did not introduce grounds for the dismissal of the manager.

Even in cases where such a foundation is provided in the company agreement, they could not overcome imperatively the art. 141, para. 4 of the CG freedom of the General Assembly to withdraw the authorization, but such grounds would have significance in the search of the manager’s responsibility.

The change of the manager of the company should be entered in the Commercial Register.

Upon the change of the current manager, it is necessary to conclude a new written contract for the assignment of the management on behalf of the company, also the general meeting must take a decision to amend the company contract if the management and representation of the company change are the essential elements of the contract.

This decision must be taken by a majority of more than three-quarters of the capital unless a majority of the company’s agreement is provided.

The decision shall be drawn up with a notary authentication of the signatures and the contents made at the same time, unless a written agreement is provided in the Articles of Association.

The decision shall be entered in the record book. In LLC, a change in the way of management most often means assigning the management of EOOD to a procurator, but it is possible to appoint a governor if the constitutive act does not exclude the possibility of appointing a third party manager.

The procedure for entry in the Commercial Register and the register of non-profit legal entities lasts three working days.

Our legal services includes:

1. Drafting & preparation of the necessary documents, according to the requirements of the Commerce Act;

2. Drafting of applications of the Registry Agency – Commercial Register and all other necessary documents;

3. Transfer & payment of Register state fee for recording changes in circumstances;

4. Transfer of all state fee for Commercial Register, bank Fees;

With our service we will save you valuable time, with our knowledge and skills we will complete the entire procedure for you at moderate competitive prices.

June 24, 2018/by lawyer

Legal advices

Applying transport licence Bulgaria

Any carrier wishing to carry cargo on the territory of the Republic of Bulgaria and / or on the territory of the European Union must register a transport company and hold the respective license to carry cargo on the territory of the Republic of Bulgaria or a license to carry out international freight transport.

This development concerns the registration of a freight transport company within the European Union (the procedure for registering a freight transport company on the territory of the Republic of Bulgaria is similar).

This is the issue of a Community license for the international carriage of goods. The procedure for issuing such an international transport license is regulated in ORDINANCE No 11 OF 31 OCTOBER 2002 FOR THE INTERNATIONAL CARRIAGE OF PASSENGERS AND GOODS .

The state fee for issuing an international license for freight transport from January 1, is 500 leva. The freight license is NOT indefinite! It shall be issued for a period of validity of 10 years, after which it shall be renewable.

1. In order to operate as a freight carrier, you must first register a transport company. It is recommended to be in the form of EOOD or OOD.

The transport activity can be realized with both own and hired heavy trucks, but obligatory with Bulgarian registration.

2. The license of the transport company is issued by the Minister of Transport, Information Technology and Communications on a proposal of the Automobile Administration Executive Agency.

Any transport company applying for a freight license must meet certain specific requirements, namely:

I. REASONABILITY – The requirement of reliability is met when transport managers are not convicted of deliberate crimes of general character under the Penal Code or are not deprived of the right to exercise transport.

II. PROFESSIONAL COMPETENCE – The transport manager must have a Certificate of Professional Competence issued by the Automobile Administration Executive Agency or a Certificate of Professional Competence issued by a competent authority of a Member State of the European Union. Note that a person may be the head of the transport activity of no more than two transport companies.

III. FINANCIAL STABILITY – Demonstration of the financial stability of the transport company depends on the number of vehicles with which the transport activity will be carried out. For the first car, the transport company proves that there are resources for carrying out its transport operations, equal to the BGN equivalence of EUR 9,000, and for each subsequent car the BGN equivalence of EUR 5,000. The provision of the above mentioned resources for transport activity is evidenced by the corresponding amount in the capital of the transport company, through bank guarantee and insurance contract.

At the same time, the transport company must have no tax and social security obligations unless it is deferred or deferred under the Tax and Social Insurance Procedure Code, as evidenced by the Certificate for the existence or absence of tax liabilities.

IV. ESTABLISHING THE TERRITORY OF THE REPUBLIC OF BULGARIA – the transport company must have its own or hired operational center, garage area and office.

Compliance with each requirement should be certified by the relevant document. The circumstances declared in the contracts, declarations, etc. are controlled and controlled and checked prior to the license being issued by the licensing authority, so it is advisable to use advisory services to specialists who are familiar with the practical requirements for issuing such a license.

The time limit for the issue or refusal to issue a license for the carriage of goods is 30 calendar days from the date of filing of the application. If there is a document missing or there is an irregularity in the documents submitted, the deadline for their removal is one month after receipt of the instructions from the Ministry. The license is issued in as many copies as the vehicles themselves.

We would like to offr you our legal service as follows :

• Drafting of documents & registration procedure of your new shipping company for you.

• Legal advices to preparation , fill in and submit the necessary documentation for the issuance of an international freight license.

We will save you valuable time with our knowledge and skills to complete the registration process and get a freight license for you at moderate competitive prices. Call us now on `+ 359 897 90 43 91 or send us your mail on оffice@lawyer-bulgaria.bg

June 24, 2018/by lawyer

Legal advices, News

Legal division of property

When co-owners of common property fail to understand how to divide their property voluntarily and turn their ideal parts into real, they can turn to the court for legal division of property

This way of termination of the co-ownership is settled as a particularly indisputable production, which takes place in two phases .

Any joint proprietor may file a claim for a division, which is always subject to the district court of the place of inheritance (in the case of a division of inheritance) or the location of the property (in the case of a split of a real estate). Where incapacity or abstention is involved in the partition, prior permission of the District Court is required.

Division by Court settlement. In any case of a court case (prior to the entry into force of the court decision on the distribution of the property), the judicial separation may end with a court settlement. Legal division of property

The latter includes a contract between the parties for the distribution of properties and a definition by which the court approves the settlement if it does not contradict the requirements of the law and good morals.

A particular type of court settlement is the agreement of the spouses to divide their property upon divorce by mutual consent.

FEATURES OF Legal division of property

First stage of the legal division of property

In the first phase of the partition the issues between who will be partitioned, which properties and what is the part of each ofthe partitioners are clarified .

The action for partition is not extinguished by prescription.

The subject matter of a division may be all or part of the property, unless the law provides otherwise, or if it is incompatible with the nature or purpose of the property. If one of the co-owners does not take part in the division, it is entirely null and void.

The court decides by a decision on the admissibility of the division, which is subject to self-appeal, after its entry into force, a new hearing is scheduled and the division continues in its second phase.

At the request of some of the distributors, the court ruled on the issue of the temporary distribution of the use of the property until the end of the divestment and the sums that the users should pay to the others.

– Second phase of the judicial split of property

In the second phase of the division a real distribution of the shares admitted to partition is made between the parties that are recognized as co-owners and according to the established shares with the court decision of the first phase of the admission of the division.

Whenever possible, each of the partitioners should receive a real share of the objects subject to the divestment, as the units are equalized with money.

In the second phase of the division, if submitted, the following shall also be considered:

the claims on the accounts of the distributors to recognize the costs he has incurred to increase the value of the property
claims to increase the inheritance (inheritance split)
as well as for the assignment of an indivisible residential property (in the case of a divorce of a matrimonial property community or an inheritance).

The casting may be done by drawing lots or by partitioning where the prerequisites provided for in law are available. Where a property is unalterable and can not be placed in one of the lots, the court shall order it to be put out for public sale.

This phase of the division ends with a court decision that has the power of a notary deed on shared real estate and is subject to entry in the Registry Office on the location of the property.

Public sale of the real estate

Where the co-owner to whom the property is awarded fails to pay the remaining monetary equation within six months, the award decision is invalidated by law and the property is exported to a public auction.

In this case, the property may not be sold for public sale and assigned to another co-owner if it has made a request for an assignment, the legal prerequisites are in place, and he immediately pays the price at which the property is valued at the split, less the value of his share in it.

When making the sale, the distributors take precedence over the third parties involved in the sale, each of them being able to buy the property at the highest bid.

If several distributors wish to redeem the property at the highest price offered at the first sale, a new sale is only made between these dividers, which is carried out under the general rules.

After that the actual distribution is executed. With the help of an expert the court divides the real estate by creating of separate shares for each co-owner after which each of them receives his property by lot.

Each party of the case for judicial division pays the outstanding court fees according to the market price of the received share. There are no obstacles for the parties to make an agreement about the way of termination of the co-ownership during the judicial division and to arrange a court settlement.

June 24, 2018/by lawyer

Legal advices

Legal grounds for divorce Bulgaria

Our family lawyer has been asked many times for the reasons and legal grounds for divorce in Bulgaria. Hiring a lawyer is advisable to avoid any futher problems.It is necessary. There are no formal impediments that would prevent either party from filing a petition in court.

Finally we would like to show basically the two important legal, grounds for divorce are set out in the Bulgarian Family Code: irretrievable breakdown of the marriage and mutual consent.

Divorce through breakdown of the marriage: Article 49 FC

Each of the spouses is entitled to petition for divorce where there has been a ‘serious and irretrievable breakdown’ of the
marriage.

(2) When granting the decree of divorce the court makes a ruling on its own motion on the issue of the fault for the breakdown of the marriage, unless the breakdown is caused by objective factors which cannot be ascribed as the fault of either spouse.

(3) The court does not rule on the issue of fault for the breakdown of the marriage where the spouses so request and they submit to the court their agreement on the custody of any children and access to and maintenance of the children, and also on the division of their property, the use of the matrimonial home, the payment of maintenance and the use of the family name.

(4) A divorce is not allowed where the breakdown of the marriage is due solely to the misconduct of the petitioner and the

Bulgarian Family Lawyer, Divorce, Child Maintenance and Custody

respondent wishes to preserve the marriage, unless there are important reasons why the divorce action must continue.

Divorce by mutual consent: Article 50.FC

Where there is serious and firm agreement between the parties about the divorce, the court allows it without investigating their motives for
terminating the marriage. A petition for a divorce by mutual consent cannot be filed until three years after the contraction of the marriage.

Agreement reached by the spouses in a divorce by mutual consent:

Above all else, divorce by mutual consent is a lot cheaper and faster, rather than filing a lawsuit. Such divorce is possible, if one of the parties is Bulgarian citizen.

Both parties must sign an agreement, which may be drafted in couple of languages – it’s imperative, that one of them is Bulgarian. In case of a lawsuit, relevant for the court will only be the one drafted in Bulgarian.
An agreement must be reached about all of the following:

The divorce will follow trough by mutual consent.
If there are children, born during the marriage – who will exercise effectively the parental rights, with whom will the children live respectively; what amount of child support is to be payed – child support may not be less then 125 BGN per month for every child.
When will the parent, who’s not effectively exercising the parental rights, be allowed visiting, personal contact, and personal time with the children.
Who will be using the family home, if there is one, and it is located in Bulgaria.

It should be noted, that according to the Bulgarian legislation, unlike other countries, the divorcing parties are entitled to alimony only in specific cases, where one of the parties is unable to work or maintain itself trough estate property, due to medical condition.

Article 51
(1) In a divorce by mutual consent the spouses have to include provisions in the agreement regarding the discharge of parental rights and obligations, their personal relations, and the maintenance of the children, and also their property relations, the use of the matrimonial home, the payment of maintenance and the use of the family name. The agreement is ratified by the court after it is satisfied that the interests of the children have been protected.

(2) Where the agreement is not complete or the interests of the children are not well protected the court sets a term within which these defects should be remedied. If the defects have not been remedied within this term, the divorce petition is dismissed.

Applications for child custody and child maintenance after the termination of a marriage by mutual consent

June 8, 2018/by lawyer

Legal advices

Legal documents & apostiles

Most transactions involving real estate in Bulgaria require a notary at the location of the property. A notary may be used for a range of other dealings: to certify your signature on documents (for instance on contracts); to help you execute a Power of Attorney; to deposit a will for safe-keeping; to transfer a car or other vehicle, etc.

Bulgarian notaries are a regulated profession separate to Bulgarian solicitors (who are referred to as Bulgarian advocates), and Bulgarian notaries have a very specialised role. They function as trusted parties and repositories for certain types of formal business.

Notaries cannot also be members of the Bulgarian lawyer association, and being highly-specialised cannot generally assist with preparing the documentation or advising on the transaction or legal business you may be planning even though they are uniquely placed to help you give it formal effect. We are in a position to help you with these.

Scope of Notary Related Services

We draft and finalise all types of notary deeds — e.g. for the transfer of real estate through sale and purchase contracts, through gifts, by inheritance, etc. We are also in a position to advise you when and how to use the notarial form of contract to your advantage.

Because of our extensive experience and network of contacts among Bulgarian notaries, where more than one is available, we are able to liaise with them for you and ensure that you obtain the best service.

Verification of documents with an apostilles

Sometimes, if a document is required to be presented in Bulgaria but was signed or otherwise prepared outside Bulgaria, the document would need to be:

(a) certified; and/or

(b) apostilled

Apostillisation is designed to replace the older procedure of legalisation, and is governed by an international convention (we refer to this as “the Apostille Convention”).

An even simpler procedure may apply where the document was prepared in one of a small number of countries enjoying agreements for special assistance in civil and judicial matters with Bulgaria: contact us to find out if your country of interest is one of these.

By far the most common situation involves documents which do require an apostille. Apostilled documents are immediately recognised in all other Apostille Convention states simply by having a special seal (‘apostille’) attached, and can be used (subject to a certified translation) in place of notarised documents. In property transactions, apostilles may be needed on Powers of Attorney and on several of the documents in the procedure for company registration (if a company is used).

We can help you obtain apostilles. You just need to visit, getting the draft of documents HM Government’s office for apostille processing. This allows us to prepare an apostille for you and deliver the certified POA, etc, to Bulgaria within several days of your instruction.

In EUROPEAN countries, we maintain relations locally to allow us to apostille your document for use in Bulgaria as fast as possible. Equally, we can procure legalisations, certified and sworn translations of documents and certifications of documents produced or executed in Bulgaria for use in other countries. Contact us further for this.

Drafting of Notarial Deeds

Using a lawyer rather than a notary to prepare a notarial deed is wise for most property buyers or sellers. It commonly reduces legal costs by 0.5% of the purchase or sale price of the property.

Together with our thorough experience investigating property title and conducting Bulgarian legal due diligence, this creates a one-stop shop – we deal with both the formalities and the substantive protection of investors’ interests.

Given that Bulgaria still has a somewhat decentralised system for recording title, it helps to smooth the process that we maintain regular relations with the competent governmental authorities.

Certification OF LEGAL DOCUMENTS

We certify documents from other jurisdictions for use in Bulgaria and vice versa. The ones most commonly used are: certification as true copies; for the authenticity of signatures on them; for use in legal proceedings; as witness statements; and as sworn statements and affidavits. We also prepare/help execute Powers of Attorney (POAs).

Service process

We offer procedural representation in Bulgaria to clients involved in international legal disputes in administrative, civil and penal matters.

If you need our legal assitance, do not hesitate to contact us immediately ! Our law firm D. Vladimirov & Partners is here for you to support your business to start well and seamlessly, so that you will be able to take advantage of all the opportunities and options our country is giving you.

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

June 2, 2018/by lawyer

Legal advices

Purchase property in Bulgaria

Our law office D.Vladimirov & Partners provide a professional legal services to purchase property in Bulgaria.

The entire process of buying a property in Bulgaria is complicated so we need to check the ideal parts of the ownership right and also the land plot for lack of encombrances.

Once you’ve found a home you plan to buy and agreed the selling price, you will need to take the following steps:

Signing a preliminary contract and pay a deposit.
Signing the notary deed and make the final payment.

The buying process is generally straightforward and is often completed within a month. EU citizens can purchase and own property in Bulgaria in the same conditions as locals.

The process of property acquisition and disposal can be lengthy and complicated and we advise our clients on the significant commercial implications that might arise.

We advise on and draft development agreements, provide legal assistance in construction, planning and site disposal matters, fund-raising arrangements, freehold transfers and any associated due diligence reports.

We assist in the acquisition of real estate in Bulgaria and in the subsequent implementation of investment projects in the field of hotel management and tourism, golf courses, office and commercial buildings, industrial construction works in Bulgaria

Please note we are chariging you for real costs and legal fees, state fees and the tax for transferring of ownership). If a travelling out of Sofia is needed, this would be calculated additionally.Purchase property in Bulgaria

Property legal check-up

Working with many international clients & corporate, our law office D.Vladimirov & partners has created a stable legal work policy for checking of the legal status of your property in Bulgaria.

Acting as a qualified property lawyers in Bulgaria, we performing the legal check services for our clients, depending on complexity of every case in the Bulgarian property register.

We check in the Bulgarian property Register the status of the certain property and report to our clients the final results and warnings, if there are any.

This information would allow you to check whether there are any encumbrances upon your property, for which you do not know, for example: a mortgage for a loan, which is already repaid, interdiction, imposed by the tax authorities for unpaid tax obligations, or any other rights of third persons.

Bulgarian land investment no longer requires company !

As a result of the contractual obligations, undertaken by the Bulgarian government in relation to Bulgaria’s membership in the European Union, an important part of the Bulgarian law was recently changed.

From 1 January 2012 citizens of the EU are no longer prohibited to purchase Bulgarian land, which is in regulation.

Until this date they had to set up a Bulgarian company and purchase land through the established legal entity, as according to the old law only Bulgarian individuals and companies had the right to acquire Bulgarian land.

This led to many unfavourable consequences for foreign investors, such as paying additionally to a lawyer to establish a Bulgarian company, appointing an accountant for the relevant services and making other expenses, related to having and maintaining a company.

Preliminary Contract

The first stage in buying a home in Bulgaria is the signing of a preliminary contract. Your lawyer is responsible for ensuring that this is drawn up correctly and you shouldn’t rely on an estate agent to do so.

It’s important not to pay a deposit or sign a preliminary contract prior to performing an in-depth due diligence of the property.

Check that the property has the same dimensions as advertised, if there are any undisclosed encumbrances (i.e pending costs) and that all the necessary permissions and documentation are in place.

While some agents or developers will provide a properly-drawn up contract, some won’t – and unless you’re a Bulgarian-speaking lawyer you won’t be able to tell which is which!

For peace of mind it’s recommended that you have the contract drawn up or at least checked by a Bulgarian property lawyer.

There are a number of types of preliminary contract, depending on whether you’re buying an existing (built) property or a new property off plan (i.e. yet to be built or under construction).

Signing the Notary Act

Signing the notary act (sometimes referred to as the notary deed, purchase contract or final contract, which is equivalent to a title deed) is the final step in taking ownership of your property.

If you’re unable to be present at the signing, you can have your agent or lawyer sign it on your behalf if you’ve given him power of attorney.

You should always sign the notary act in person if you’re buying a brand new or off-plan property, to make sure that all the requirements of the preliminary contract have been met.

The signing of the notary act takes place in front of a notary public, who first checks that all the conditions contained in the preliminary contract have been fulfilled.

It’s normal for all parties concerned to be present when the final contract is read, signed and witnessed by the notary, including the estate agent, developer (for new or off-plan property), your lawyer and your translator.

Either party (buyer or seller) can give a representative power of attorney. In the case of an off-plan purchase, the final contract isn’t signed until the building is complete.

Find independent legal advice for purchase property in Bulgaria

Numerous property owners are now experiencing problems with their property because they did not seek independent legal advice and instead used lawyers and translators which were recommended by the estate agent or developer and they were acting for both parties.

Appoint a qualified lawyer, who is experienced in property conveyance and fully independent of anyone else involved in the transaction, eg the estate agent, vendor or developer.

If you need our legal assitance, do not hesitate to contact us immediately

May 20, 2018/by lawyer

Legal advices

New declarations transfer shares

Міnіѕtеrѕ оf Јuѕtісе аnd Ѕосіаl Роlісу hаvе аррrоvеd mоdеlѕ оf nеw dесlаrаtіоnѕ, whісh wіll сеrtіfу thе lасk оf unраіd ѕаlаrіеѕ, bеnеfіtѕ аnd ѕосіаl ѕесurіtу соntrіbutіоnѕ tо thе Rеgіѕtrу Аgеnсу (АВ).

The new legal regulation is mainly provided within Chapter 13 of the Bulgarian Commercial Act (Art.113-157) and particularly in Art. 129 and Art. 130 of the Commercial Act. Art. 129 regulates the principle possibility that a certain proportion of the shares could be transferred and inherited.

The changes in commericial legislation provides new requirements, depending on whether the shares are transferred to an individual who is already a shareholder at the company or to a third party. Therefore, both options shall be treated individually.

Тhіѕ іѕ duе tо а сhаngе іn thе Соmmеrсе Асt, whісh рrоvіdеѕ fоr а bаn оn thе trаnѕfеr оf соmраnіеѕ, ѕhаrеѕ аnd ѕhаrеѕ іn thе рrеѕеnсе оf ѕuсh оblіgаtіоnѕ, whісh lеаdѕ tо аbuѕіvе rеfuѕаlѕ fоr еntrіеѕ bу thе АВ. Dе Fаktо hаѕ аlrеаdу wrіttеn аbоut thе іѕѕuе, аѕ wеll аѕ thе оріnіоn оf аuthоrіtаtіvе lаwуеrѕ аgаіnѕt unіmаgіnаblе соrrесtіоnѕ .

Fіnаllу, оn 16 Fеbruаrу thе Ѕtаtе Gаzеttе mаdе аmеndmеntѕ tо thе Соmmеrсial Law Асt (mаdе іn thе trаnѕіtіоnаl аnd fіnаl рrоvіѕіоnѕ оf thе nеw Маrkеtѕ іn Fіnаnсіаl Іnѕtrumеntѕ Асt).

Іn соnnесtіоn wіth thе аmеndmеntѕ tо thе Соmmеrсіаl Rеgіѕtеr Асt, рublіѕhеd іn ЅG, nо. 15 оf 2018, wіth еffесt frоm 16.02.2018, wіth Оrdеrѕ оf thе Міnіѕtеr оf Јuѕtісе аnd thе Міnіѕtеr оf Lаbоr аnd Ѕосіаl Роlісу аrе аррrоvеd ѕресіmеnѕ оf:

Dесlаrаtіоn undеr Аrt. 16, раrа. 2 іn соnnесtіоn wіth Аrt. 15, раrа. 4 оf thе Соmmеrсе Асt;
Dесlаrаtіоn undеr Аrt. 129, раrа. 2 іn соnnесtіоn wіth Аrt. 129, раrа. 1 оf thе Соmmеrсе Асt.

These are two declarations relating to transactions in enterprises and the transfer of shares.

One is under Art. 16, para. 2 of the Act, which reads: “Entry shall be effected upon presentation by the alienator of a declaration according to a model that there are no required and unpaid obligations under Art. 15, para. 4. The Registry Agency shall immediately notify the Executive Agency “General Labor Inspectorate” of the submitted declaration. The order for the notification shall be determined jointly by the Executive Director of the Executive Labor Inspectorate and the Executive Director of the Registry Agency.

The second declaration is under Art. 129, para. 2 of the Commerce Act. The text reads as follows: “The transfer of the shareholding shall be effected by a contract concluded with a notary certification of the signatures and the contents carried out at the same time, and shall be entered in the commercial register after presentation by the manager of the company and by the claimant, and outstanding obligations under para.1., Article 16, para. 2-4 shall apply accordingly “

The registration procedure in BUlgaria has been regulated by the Bulgarian Commercial Register, which entered into force as of 01.01.2018, in compliance with Ordinance № 1/2007 on the management, safekeeping and access to the commercial register and to the register of non-profit legal entities. The registration is being executed through an application to the Commercial Register, which provides distant access for filing of the applications.

The share transfer of a limited liability company in Bulgaria constitutes a change of circumstances concerning this company, whereby the necessary documents for the registration of similar changes within the Commercial Register are expressly regulated by Art. 21 of the Ordinance.

If you need more information, just send us your legal inquiry at info@lawyer-bulgaria.bg or call us now on + 359 897 90 43 91. Out law office will support you legally by your company transfer shares !

March 3, 2018/by lawyer

Legal advices, News, Personal

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

Posts

Documents transfer of property

1. Property title documents transfer of property

4. Marriage Certificate of the seller, if applicable.

Registration of a branch

In the internal relations, the branch is dependent on the trader and this dependence is manifested in different directions, for example in:

Registration of a branch

Legal Representative of the Bulgarian Branch

Registration with the Bulgarian Commercial Register

Accounting

Changing manager LLC Bulgaria

The change of the manager of the company should be entered in the Commercial Register.

Applying transport licence Bulgaria

Any transport company applying for a freight license must meet certain specific requirements, namely:

Legal division of property

First stage of the legal division of property

– Second phase of the judicial split of property

Legal grounds for divorce Bulgaria

Divorce through breakdown of the marriage: Article 49 FC

Divorce by mutual consent: Article 50.FC

Agreement reached by the spouses in a divorce by mutual consent:

Legal documents & apostiles

Scope of Notary Related Services

Verification of documents with an apostilles

Drafting of Notarial Deeds

Certification OF LEGAL DOCUMENTS

Service process

Purchase property in Bulgaria

Property legal check-up

Preliminary Contract

Signing the Notary Act

Find independent legal advice for purchase property in Bulgaria

New declarations transfer shares

European preservation Order

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

Any more questions? Call us on + 359 897 90 43 91 !

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