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.
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.
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.
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
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).
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 firstname.lastname@example.org
Purchase property in Bulgaria
Our law office D.Vladimirov & Partners provide a professional legal services to purchase property in Bulgaria.
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.
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.
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
Based on the Costruction Law in Bulgaria the construction of a building could be divided in four major stages:
Getting of building permission – that document represents the official start of the building process. It is issued by the municipality council per location of the future building and after the architectural plan of the building has been given and approved. Every building without this document, even if finished, is illegal according to the Cosntruction Law and is to be demolished by the competent authorities.
Our Construction Law lawyers can you assist you the issuing of the Building Permission. Call: +359 (897) 90 43 91.
Issue of Certificate for rough construction, roof level, (Act 14) – this act certifies that certain stage of the construction process is reached. More specifically, the separate floors, staircases, outdoor and indoor walls, as well as the roof of the building are completed.
During the construction process the authorities issue an acceptance of the completed works by the investor and the supervisor
The completion of construction is certified by execution of a protocol (the so called “Act 15”) which is signed by the investor, the designer, the contractor and the supervisor. Act 15 is the document evidencing the delivery and acceptance of the completed works between the contractor and the investor. With it, they certify that the works have been executed in compliance with the approved design, the “as-built” drawings, the legal requirements for the construction works and the terms of the construction contract.
This Certificate called Act 15, the supervisor prepares a final report on the execution of the works. the inside doors are fixed at that stage, as well as the water pipes, electric wiring, central heating, the outdoor and indoor plastering is completed. The executor of the construction works hands over the building to the investor.
Issue of Certificate for Permission for usage (Act 16) – the building is completed in full at that stage. It is examined by government construction authorities if it corresponds to the initial architectural project about which the building permission is received and the other technical requirements and the construction legislation. The buyer could now inhabit the apartment or it could be rented.
These four stages are absolutely obligatory and a must according to the Bulgarian Construction Law and our company provides professional consulting services and negotiaton assistanceship bteween the foreign investors and the construction contractors.
OUR LEGAL PRACTICE – CONSTRUCTION PROCEDURES
Throughout the years of our practice in the fields of construction law we actively took part into the development of projects, linear and site infrastructure projects, gas stations, environmental and water projects, waste treatment facilities construction projects, etc.
We have experience at all stages of the construction process – from the proper development of a detailed zoning plan procedure, giving the frames of the future construction project, and providing due diligence support to dispute resolution through court and adjudication and less formal resolution procedures.
We are also able to provide legal advice upon the necessary demolition of equipment, whose operation is terminated, and the related consequent land restoration procedures.
We are used to work in each and every step of the construction process, including demolition of lawful buildings and the consequent waste management issues.
Our practice includes legal advice and drafting of
- various types of contracts needed for the organization and implementation of the construction process, i.e. design contracts,
- EPC contracts,
- design supervision contracts,
- construction supervision contracts.
We represent our clients in the negotiations on the specific terms and conditions, rights, obligations and responsibilities of the participants in the construction process.
Our team coordinates the necessary matters with civil engineers, designers and other experts who help us deliver first class and effective legal support.
LAST changes in the construction law in Bulgaria
Аfter it came into force last month, changes in the law on spatial planning, which set the functions of the Ministry of regional development and the new Ministry of investment design, the management decided to make new revisions in the law.
The legal act to be divided into two separate, one will govern the territory, and the other will affect the investment process in construction.
Before that, however, will be prepared a “map” of the problems in the legislation and the obstacles placed in front of the business. On this basis will be made and changes in legislation to alleviate regulatory regimes.
The deputy hopes that with the new changes in the law will stimulate investment in construction. In his words, the decline of investments is not due only to the crisis, and the conditions under which they are forced to operate at the moment investors – without predictability in terms of time for the realization of the projects, their price, as well as participants in the entire investment process.
Another major problem that hinders the investments, is the lack of general development plans of municipalities. A total of 262 municipalities, 220 do not have urban plans, which investors must demonstrate the compatibility of the projects, the territory.
Regardless of whether you are a contractor with a changed conditions claim, an owner of a real estate property on where a landslide occurred and caused damage to another property we can help and consult you.
If you have any Construction Law issues and you need an expert lawyer to protect your rights all you have to do is to contact our Bulgarian law office.
Parking regulations, Condominiums rights Bulgaria
The parking space is located on the free part of the Building, which is built with building or buildings.
If the building or buildings are built on the basis of a building right, the free areas can be used by the owner of the site, respectively, to be given for use by third parties, including as separate parking spaces. In such a situation are the owners of sites in residential complexes.
So far, there is no extensive practice in Bulgaria for the renting of parking lots as public parking spaces, especially as citizens have a widespread understanding that the construction of the car parks and the infrastructure to them has been financed by the owners of the respective dwellings.
In any case, the Art. 64 of the Ownership Act, according to which the owner of an object in the building is entitled to use the land as much as necessary.
But it must be emphasized immediately that the parking of one or more family cars is definitely not a necessity of using land under Art. 64 ЗС.
The legal situation with the regulation of parking places in BULGARIA
If we are faced with a building in superfood mode and the owner has transferred a dealership with a notary deed to a third party “parking” on the empty space before concluding that there is a negligible deal, the will of the parties should be carefully examined.
It is possible in the form of a “parking space” the owner of the UPI to have set up the person the right to build a future garage; and precisely in order for this foundation not to transfer to the other owners an ideal part of the land. However, building with garages is not always possible from an urban point of view.
It is possible in the form of a “parking space” the owner of the UPI to have established the right of use on a real part of the terrain (with a view to using it for parking). Although the right of use under Bulgarian law is inconvenient for its non-transferability, its acquirer is not devoid of interest in acquiring it. There is no legal obstacle to establishing a right to use on a real part of the UPI.
A parking space can also be acquired through a rental agreement, as in the case of a commercial transaction, the principle 10-year limit under Art. 229, para. 1 of the CPA. However, the possibilities for such an interpretation are severely narrowed to cases where the “transfer” of the parking space is indicated by a time limit, and such cases do not actually occur.
Last but not least, we should consider that there is a complete and initial nullity of the order. If the owners of the building or buildings also own the corresponding ideal part of the ownership of the land, the problem of using part of the yard as a parking space should be solved on the floor of the condominium, because the yard will be a common part.
The possibilities for establishing parking rights in a yard – a common part of condominium property, are not large. The only cases where the area of the yard will be sufficient to provide parking space for all owners will be singular. On the other hand, a decision of the general meeting of the condominium can not deprive the owner of his right to use the yard for parking. There is only the possibility – with the unanimous agreement of the owners – to provide for an alternation of usage by days of the week, by months or by years. It is possible (again with unanimity) to agree that a part of the owners who use the parking spaces will pay the others who will not use a rental sum.
In order to avoid a situation where they do not have a parking space reserved for themselves, many clients of “green” dwellings want the latter to be explicitly entered in the deed of their dwelling. Building contractors also do not mind such a practice because the sale of parking places guarantees them considerable profits without much cost.
De lege lata and in view of Art. 38 BC, we can not deny that the yard is predestined for the GENERAL PART of the condominium. Consequently, transactions with the parking lots on the common part will be null and void if the transfer of the parking space takes place in parallel with the transfer of the dwellings, as is the mass practice.
But is it possible to transfer the parking spaces as a right of use, right to build or rent on real parts of the terrain before the developer has begun to transfer the objects to the building and thus establish a condominium? I think it is quite possible.
The law does not require terrain, which will become a common part, not be burdened with limited property rights or lease contracts. With the argument of Art. Pursuant to Article 237 of the IPA, the rented lease agreement would be binding on the acquirers of the condominium.
Therefore, de lege lata there are ways of “acquiring” the parking spaces in the yard before the condominium is built up.
These methods, however, do not coincide with the practice of acquisition by entering in the same title deed which acquires the main object. The very “acquisition” as the end result will be quite different from what is expected from the buyer, paying the parking space. Except when establishing the right to build, it will not become the owner of the parking space, but only a user of a right of use or a long-term lease.
The parking space is located in underground or overground covered parking.
This type of parking space is considered to be 3, that there is no separate object and the deal with them is negligible. Indeed, in this case there is no way to acquire ownership of a real part of the parking lot.
However, I do not think that the case of the nullity is always applicable here. Negligence is an institute, the application of which we must resort to moderation and abstinence, especially in the commercial turnover.
With careful analysis of the outcome of the parties, we will see that the parking lot is a separate object in the non-residential building. This object is not an integral part of its nature or purpose, because it is designed to serve not all but part of the floor owners (the others may not be car owners, have garages on the ground, etc.).
The parties are not aiming to become sole owners of the parking lot, but to use it in general, each “knowing” which part is. In my opinion, from this it follows that the will of the parties is the garage to be PRIVATE.
By purchasing the parking spaces an ideal part of the parking lot is purchased, and in parallel, the real estate is distributed in real way. Upon a subsequent sale of an object in the building we will have to consider it to be transferred as a “parking space” and the ideal part of the parking lot.
To assume that the transfer of the parking space is a negligible transaction would mean allowing the developer and other landlords to invoke this nullification and shake up against the person who has in good faith bought his parking space. This, in turn, will lead to completely redundant disputes.
Still, the adopted construction remains controversial and uncertain in the case law. It is preferable for the parties to exercise extreme caution when acquiring parking rights and to require the transferor to further clarify in the notarial acts what the subject of the transaction is.
Particularly in the case of the acquisition of parking spaces in general (underground) parking lots, it is necessary to examine whether the parking spaces are not envisaged according to the projects for a common part of the condominiums. If they are not, the notary deed must explicitly state that an ideal part of it is acquired. It is even better if, prior to the transfer of the parking space, the developer has prepared and submitted to the future owners a future use agreement accompanied by a parking plan.
For the time being, it is not possible to expect an explicit legal regulation of the parking spaces. It would be nice if it was created. We believe that once a phenomenon has it in practice, it is preferable for the law to regulate it explicitly instead of making it not noticeable.
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 email@example.com or call us now on + 359 897 90 43 91. Out law office will support you legally by your company transfer shares !
Bulgarian courts will freeze bank accounts of debtors and abroad
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 in BULGARIA
The regulation, which establishes the procedure began to apply from January 18, 2017.Cross-border work is in two hypotheses.European Account Preservation Order (EAPO-regulation)
- 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 EAPO is available as an option in all phases of the litigation process – where 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 and subject to freezing, located in another Member State.
And in 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 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.
We would like to pay attention to the fact this Regulation won’t apply in the United Kingdom and Denmark so freezing bank accounts of debtors held in these two countries won’t be possible under the above procedure.
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.
Document checklist for property sale in Bugaria
- Property title documents – certifying the title of the 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. If executed after 1 June 1996, this Agreement has to be registered with the Registry Office.
- Property Tax Evaluation Certificate – issued by the local tax office at the property do
micile. The Property Tax Evaluation Certificate has to contain an address identical to the address of the property as per the title deed, or in case of discrepancy, Certificate of Identity of Addresses has to be issued. The Property Tax Evaluation Certificate shall list all of property owners.
Property co-owners may not have any outstanding debts concerning the property (this means paying property tax and waste discharge fees), which shall be indicated in the Property Tax Evaluation Certificate.
- Certificate of Marital Status of the seller(s), indicating the marital status of all owners as of the date of acquisition of the property. This certificate shall be issued by the Uniform System for Civil Registration and Administrative Services to Population department in the district of domicile of the owner.
- Marriage Certificate of the seller, if applicable.
- If the property is not acquired as marital property, it shall not be considered matrimonial property community (MPC); however, in case the address of the property is the address of registration of one of the spouses, a statement has to be filed, under article 26 of the Family Code, which shall evidence the respective spouse agrees to with the sale. This shall also apply for property acquired by inheritance, donation, and in general cases other than MPC.
- If 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, by filing a waiver of the right to use the property. The waiver has to be signed in the presence of a Notary Public and shall be registered with the Notary Public’s file. In case the used is deceased, an excerpt of the Death Certificate shall be submitted.
- In case the property is subject to partition – the document in question (contract, ruling), registered with the Registry Agency.
- Plan of the plot, in case of transfer of land (land plot, yard or part of yard, where the property/apartment is built). It shall be issued by the technical service in the district of location of the property, and shall have a term of validity for 6 months.
- In case the property has been received as inheritance – Certificate of Inheritance, Certificate of Death of the predecessor, Last Will and Testament.
- In case the seller is divorced, the court ruling dissolving the marriage in divorce shall be presented.
- Specific cases require different documents, which follow the property history and proves the title of ownership.
- Certificate of Burdens for the property – to be issued by the Registry Agency, and including any and all ownership documents – from the date of the first Title Deed to the date of the last Title Deed, and in case of inheritance – a Certificate of Inheritance. In case the property includes land or shares of land, a plan of the property shall be enclosed as well.
- In case the seller is unable to perform the formalities for a transaction personally, the seller shall have the lawful obligation to appoint another person to represent the Seller 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. A declaration under article 25, paragraph 7 of the Notaries and Notary Practices Acts (NNPA) and a declaration under article 264, paragraph 1 of the Taxation and Social Security Code of Procedure (TSCCP) shall be issued.
- An identity document, which confirms the identity of both the buyer and the seller (identity cards, certificates of good standing, and a decision of the competent body – in case the party under the transaction is a legal entity).
- In case the transaction refers to transferring developed buildings – the respective documents issued by the builder/investor – building permits, architectural design and distribution of land, permit to use – Act Form 16, et al.
- 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.
Selling your Bulgarian property
Selling your house, land or apartment is a very important action, particularly if it is owned by a domestic registered limited liability company in your name.
Our legal department has prepared this article in order to lead you through this procedure which may look like a labyrinth , but in fact is quite easy and straight forward when you know what exactly you need and which step follows next.
Real property agents may try to conceal the tax complications which may arise from selling a real property at a price higher than the price of initial purchase under the Title Deed. Should the occasion arise, the owner of the property, i.e. the domestic limited liability company owes capital gains tax. The same scenario is valid if the seller of the property is a natural person and sells the property for a higher price within 3 (three) years after purchasing it.
Please take into consideration that the legal aspect of the transaction is the one which will ensure the positive financial outcome of it, by ensuring you are not liable for damages due to making misleading statements in the new Title Deed (drafting a Title Deed is one of the services we offer). Please also note that you will need to do the following before you initiate the sale:
– ensure the property or the company that owns the property is in good standing (cadastre registration, no outstanding payments for taxes, no encumbrances on the property, et al.)
– getting up to speed on the current real property market situation and any possible Capital Gains tax complications after the sale – get information on fair market values of similar properties in the area in order to correctly determine the going price of your property. If you own the real property through a company, selling a property entails some accounting costs as well.
– marketing the property – make sure any real estate brokers or agents are marketing the property at the asking price; ensure also that you will only pay the requisite fees after the actual signing of a Title Deed.
Please note that in case you are selling a property through a company, you should require a VAT invoice for any and all fees payable. Please also ensure the full price for the sale is listed on the Title Deed. Make sure any and all reservation deposits are transferred to your account and not to the real estate agent account, as there is a risk of the real estate agents acting unfairly and keeping the deposit.
We are happy to prepare the relevant documents and act/negotiate on your behalf to protect your legal and financial interests before real property agents and to guarantee you will receive all amounts payable to you and to ensure you get the full benefit from your sale. Consider hiring us to act on your behalf a good move.
How to find the right buyer for your property (and getting a deposit) is easily the hardest part of the process. We can help you by examining your documents and help you in listing your property for sale. After having successfully found a buyer, we will collect information from the buyer about their selected method of funding the transaction (by way of example – a mortgage loan). A crucial element of our job is to ensure a smooth sale process. We will act in good faith on your behalf and ensure that you received the deposit and mediate in paying the legal fees for obtaining the requisite documents.
– Obtaining the requisite documents for the sale of your property in Bulgaria. Please be aware that this is a lengthy process – application for documents are filed to the Land Registering Agency, to the Cadastral Agency, the National Revenue Agency, et al. Please also be aware that your prospective buyer (or their lawyer) may require examining the documents before agreeing to go through with the purchase.
– Please be advised of the Cadastral Plan particulars as regards to properties. Your property needs to be registered with the Cadastre Agency and prior to selling your property, you need to obtain a Cadastral Plan and present it to a Notary Public.
This is particularly important for properties you own in Sunny Beach, Bansko, Pamporovo, Kavarna, Sozopol, et al., since it is there that a Cadastral Plan is existing already. For further details on the Cadastral Plan, please visit our section “Cadastral registration”.
– Effectuating the sale: You have two options at your disposal. You can go for direct signing of the Title Deed for the sale of a property, or you can do a preliminary contract first, against the receipt of a deposit payment. Naturally this is the key point of the sale process and we will be happy to assist you in creating both the preliminary agreement and/or the Title Deed for sale, based on your existing documents.
We will have those translated and approved by you prior to signing. It will also be our responsibility to set an appointment with a local notary public acting in for the area of location of your property. You can also authorize us to appear before the Notary Public on your behalf and save yourself a trip to Bulgaria.
– Post-sale: After you complete the sale and sign the Title Deed, we can provide you with a copy and we can help you deregister it from your file with the Bulgarian Revenue Agency to make sure you are no longer paying local property taxes for that property. We also offer the service of exchanging the public utility company batch registrations.
List of legal documents, needed for the sale of properties in Bulgaria
The main document proving your ownership is the Notary Deed. You should have received it when you first bought the property. If you by any chance have lost it it doesn’t mean you have lost your ownership. Contact your agent for assistance to have a notarized copy issued from the notary who has initially signed the deal.
You need additionally the sketch for the property – the sketch is issued by the local technical department in the Municipality where your property is located. Depending on the Municipality, cost and time to issue the sketch could vary, but generally the process can take up to one month and price is around 30 levs . You can also apply for express order which will cost you at least double. The sketch could be ready in 24 hours. In order to put a request for a sketch you will need a copy of the notary deed. Once a sketch is issued it is valid for 6 months. After that the whole procedure should be done again!
The next documents, which is nessesery for the sale of property in Bulgaria is a valid Tax Evaluation Document, issued by the Local Tax services Office in the Municipality where your property is located.
The request for issuing this paper could be submitted only by the owner of the property or his legal attorney. Again the cost and the period for issuing depend on the Municipality but it start from 15 levs and could be maximum 50 levs for an express service, Please bear in mind that in order to have your Tax Evaluation paper Issued you have to pay all the taxes for the property that you owe . In the worst case if you have not declared your property in the tax services upon purchase you will be penalized according to the period that you were late with and also depending if you own the property as a physical person or as a company. Penalties for company owners are higher. Please mind that the address of the property in this document and in the deeds have to be absolutely identical because it may cause a problem while registering the deal.
If you are selling the property as a phisycal person, you will need to have a document stating your Marital Status. This document you should supply from your own country and get it translated and legalized in Bulgaria. If the property has been bought during your marriage you will need a letter of attorney by your spouse for the deal. So for this it is important what was your marital status by the time when you have purchased the property.
One of the documents, which will be needed is a legal certificate of lack of encumbrances– this document states that there are not established real rights in favor of third persons for the property you are selling . This document is issued by the Registry Service in your Municipality. When submitting a request you have to provide the notary deed for the property. If the property has land you have to supply a sketch as well. This document is valid only 24 hours. Some notaries do not request this paper as they are checking it automatically at the day of the deal.
Legal declaration for citizenship and marital status as per article 25. 7 from the Notary Law act. This document should be filled before the Notary public on the day of the transfering of the ownership over the property.
Legal declaration stating that you don’t owe any taxes to the Republic of Bulgaria. This document should be filled in in two copies at the Notary in the day of the deal. X. In case you as an owner will not be present at the deal , make sure that you have an accurate letter of attorney signed and notarized ( apostilled) by you with which you empower a lawyer or someone you trust to sign on your behalf and on your account !
Property is owned by a company
……you need to provide a company decision for the purchase / sale of property If you own the property as a company you will need a written decision of the share holders in the company that you have decided to sell this property which is an asset of the company. It should be signed by all shareholders and stamped. By law when providing this paper there is no need all the shareholders to be present at the deal as far as the manager is present but many Notaries will require it!
Please note that in some cases you may need additional papers due to some complicated form of ownership. In each case we advise you to use us for your own security!
We would like to advices you not to forget you passport !
Our law office will represent you and provide guidance in each of the steps listed. Please contact us if you have any questions or if you need any assistance on the matters detailed herein.