Legal division of property

In Bulgaria, property ownership can take various forms, each with its own legal implications.

The two primary types of property ownership are freehold and leasehold.

Freehold ownership grants the owner full rights over the property, including the land it sits on, while leasehold ownership involves the right to use the property for a specific period.

Legal Framework and Regulations:

The legal framework governing property division in Bulgaria is primarily based on the Civil Code and the Ownership Act.

These laws define the rights and obligations of property owners, ensuring a transparent and secure real estate environment.

It’s essential for property owners to familiarize themselves with these regulations to navigate the division process smoothly.

In Bulgaria, property transactions are typically executed in the presence of a notary public, who ensures the legality and authenticity of the documents involved.

Notarization is a critical step in the property division process and provides a legal foundation for ownership changes.Legal division of property

Property Division Process:

The legal division of property in Bulgaria involves several key steps:

1. **Due Diligence:**

Before initiating the division process, it is crucial to conduct thorough due diligence on the property.

This includes verifying ownership, checking for any encumbrances or debts associated with the property, and ensuring compliance with zoning and building regulations.

2. **Agreement of Intent:**

Parties involved in the division must draft and sign an Agreement of Intent.

This document outlines the terms and conditions of the division, including the share each party will receive and any financial arrangements.

3. **Notarial Deed:**

The next step involves the preparation and signing of a notarial deed before a notary public.

This document officially transfers ownership and must include details such as the property description, purchase price, and the parties involved.

Once the notarial deed is signed, it needs to be registered with the local Property Registry.

Registration ensures that the ownership change is officially recognized and provides legal protection for the new owners.

Tax Implications:

Property division in Bulgaria may have tax implications, and it’s essential to be aware of these considerations.

Capital gains tax, transfer tax, and other fees may apply, depending on the specific circumstances of the division.

Seeking advice from a tax professional is recommended to navigate the tax aspects successfully.

Understanding the legal division of property in Bulgaria is paramount for both local and international investors.

By following the proper legal procedures, conducting due diligence, and seeking professional advice when needed, individuals and businesses can ensure a smooth and legally sound property division process.

With its transparent legal framework and scenic landscapes, Bulgaria continues to be an attractive destination for those looking to invest in real estate.

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.Legal division of property

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 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 estateLegal division of 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.

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.

What are the primary types of property ownership in Bulgaria?

In Bulgaria, the two main types of property ownership are freehold and leasehold. Freehold ownership grants full rights over the property and its land, while leasehold ownership provides the right to use the property for a specified period.

What legal framework governs property division in Bulgaria?

The legal framework for property division in Bulgaria is primarily based on the Civil Code and the Ownership Act. These laws outline the rights and obligations of property owners, ensuring a transparent and secure real estate environment.

What rights does freehold ownership confer in Bulgaria?

Freehold ownership in Bulgaria grants the owner comprehensive rights over the property, including both the structures and the land. Owners have the freedom to use, lease, sell, or transfer the property, subject to legal limitations.

How is leasehold ownership defined in Bulgarian property law?

Leasehold ownership in Bulgaria involves the right to use a property for a specified period. While the lessee has certain rights during the lease term, the ownership of the land and structures remains with the lessor. The specific terms and conditions of the lease are crucial in determining the extent of the lessee's rights.

What role does notarization play in property transactions in Bulgaria?

Notarization is a critical step in property transactions in Bulgaria. A notary public is involved in the process, ensuring the legality and authenticity of the documents related to the transaction. This provides a legal foundation for ownership changes and adds an extra layer of security to the real estate dealings.

How do property owners navigate the division process in Bulgaria?

To navigate the division process smoothly, property owners in Bulgaria should familiarize themselves with the regulations outlined in the Civil Code and the Ownership Act. Understanding their rights and obligations is crucial, and seeking legal advice can help ensure compliance with the established legal framework.

Can ownership changes be enforced without notarization in Bulgaria?

No, ownership changes in Bulgaria typically require notarization. The involvement of a notary public is essential to validate the legality and authenticity of the documents involved in property transactions. Notarization provides a formal and legally recognized basis for ownership changes.

What are the key considerations during property division to ensure a transparent process?

Key considerations for a transparent property division process in Bulgaria include a thorough understanding of the legal framework, adherence to the Civil Code and Ownership Act, and engagement with a qualified notary public. Clear communication, proper documentation, and compliance with legal requirements contribute to a transparent and secure property division process.

Real estates lawyer Bulgaria

Our professional property lawyers team and assist the customer through the whole purchase or sale procedure from real estates lawyer Bulgaria.

Our Bulgarian lawyers, even they are real estate company’s lawyers guarantee and makes you sure that the transaction is legal,

The seller or the buyer understand each legal action

He works with purchasers, buyers and sellers of apartments, houses, plots of land, agricultural land, mortgages, bank loans, loan applications, tenants.

We advise always to use a property lawyer services because the past two years a lot of problems occurred with the real estates properties in Bulgaria.

Before it was believed that the real estate agent was enough to assist you.

+LEGAL CHECK OF DOCUMENTSReal estates lawyer Bulgaria

If you are a seller in a real estate transaction, our law firm can offer full legal services, including the following:

– we prepare a project and coordinate amendments to the text of a preliminary contract for sale and purchase of real estate;

– we inspect, advise and assist you in obtaining the necessary documents for the sale, including, but not limited to:

  • a certificate of tax assessment of the property;
  • certificate of marital status;
  • certificate of marital regime;
  • certificate of presence/absence of material encumbrances;
  • previous property acts;
  • cadastral scheme of the property by the GCCA, and others;
  • Filing a corrective declaration under Article 14 of the LTFA;

– we perform a check on the buyer – their representative power, availability of information about court cases against them, and other relevant information;

– we prepare and make amendments (if needed) to the draft title deed, assist our clients before the notary public and accompany the client on the day of the transaction;

– we assist our clients in obtaining possession of the property, including the preparation of a acceptance and delivery certificate, if such is needed and agreed;

– we coordinate the communication with the lending bank, if the buyer is going to use a loan for the purchase, we monitor the issuance of a letter of engagement;

– we cooperate, if the sale price will be paid through a trust account contract/escrow account;

In addition, although we are not financial advisers, we can provide you with guidance on the approximate real market price of the property, which you can receive from eventual sale.

We can represent you as a client in property issue throughout the whole process

If necessary, we can sign the new notarial deed on your behalf as seller and deliver possession of the property to your buyer.

We also offer legal assistance in solving problems related to the Cadaster and Property Register Act, problems with property boundaries, unresolved regulatory bills, precise registration of apartments, houses and plots in the schemes issued by GCCA, as well as with the preparation and supply of all the necessary documentation.

Should you have any questions or need information on the above legal services, please

Real estates lawyer Bulgaria

But the Bulgarian property lawyer is the attorney who will be useful in practically all cases, including any legal stops in Bulgaria, contract negotiations and mortgages.

Some of the purchase contracts are standardized, others have ambiguous terms

In that case you need a property lawyer who is profound into the Bulgarian property legislation.

Our legal services include legal activities in following activities like: 

  1. Legal representation during sale and purchase of real property;
  2. Provision of any documents required for the purposes of legally confirming property status;
  3. Obtaining a certificate for entries, recordations or deletions;
  4. Performing checks within the archive records at the Registry Agency
  5. Legal check for the choosen property – a legal entity and clarifying circumstances that are vital for the transfer of the real property,
  6. lawsuits against the seller, which may affect the property.
  7. Drafting, preparation, signing, termination, and rescission of contracts for purchase and sale of real estate.

Preparation of notary notices for cancellation of preliminary contract for the sale of real estate.

Full legal assistance and representation in court during court cases for a refund of paid deposit as per a signed preliminary contract.Real estates lawyer Bulgaria

Legal representation by real property lawyer during legal proceedings under Article 19 of Contracts and Obligations Act for the announcement of a preliminary contract as final.

Full representation of a seller or a buyer during the signing of a title deed and the related procedure of declaring the property at the local municipality.

Legal representation during court proceedings for property aqusition.

Valuation of real estate properties by a competent licensed appraiser and obtaining the relevant valuation within a period of up to few days.

Our work for investor clients is at the heart of our real estate lawyers group.

We are committed to all aspects of the real estate law and we are able to service all requirements of our real estate investor clients. Real estates lawyer Bulgaria

Our experience includes not only the preparation of straightforward sales, purchases and leases but also the preparation of most complex deals

Legal advice on the structuring and financing of such deals.

Our real estate lawyers work in close cooperation with our tax law experts in order to provide you with a working solution that is to meet all your requirements and to cover all aspects of your deal.Real estates lawyer Bulgaria

In particular, our work in this area includes:

  • Preparation of due diligence reports related to prospective purchases or leases of real estates;
  • Preparation of sale agreements;
  • Preparation of short or long term lease agreements;
  • Advice on the organization of the design and construction processes;
  • Preparation of construction agreements;
  • Preparation of design agreements;
  • Review and preparation of agreements with supervision companies;
  • Organization and preparation of deals that require an escrow payment;
  • Provision of tax advice on all aspects of the real estate deals.
Not found