Brief overview of buying process

[TheTravelBug]

1. Research into various regions of Bulgaria – use books, internet, magazines etc.
- Decide on the kind of area you wish to purchase in – mountains, lakes, coastal areas, rural village, city…..
- Decide on the kind of property you want to buy – apartment, small old house, modern villa, plot of land….
- Decide on whether you are prepared to renovate a property or whether you want to build from new.
- Decide on your budget for purchasing (and renovating)
- Decide on what you want property for – rental, holiday home, investment…

2. Arrange to visit Bulgaria and the regions you are interested in – allow at least 3 or 4 days to view property in an area and if you decide to purchase start the paperwork.

3. Visit Bulgaria and view properties

4. If you intend to go ahead with the purchase then you will require at least a couple of hours to start the paperwork for your Bulgarian company. Currently all foreigners (non-Bulgarians) require a company to purchase land (not an apartment) and while the Government has passed a Bill to repeal this necessity inline with EU requirements, it is not likely to come into force until around 2012. Therefore to purchase a house in Bulgaria you need to set up a limited company here. This process usually takes two or three weeks but can be started while you are in Bulgaria and completed via a lawyer having Power of Attorney for you. You will also need to give authority to someone to complete transation in your absence.

5. Once back in the UK, you will need to send the company deposit if you have not already done so and the deposit to secure your property. A preliminary contract will be signed on your behalf to secure property.

6. Once company registered and you have sent rest of money a date will be set for notary deal and purchase completed.

7. Your house needs to be registered as under new ownership with the local tax authority within 2 months. Your agent will do this for you or your lawyer.

8. Your electric and water accounts and possibly telephone will need changing.

[santuario]

Hello,

Having just joined this forum, one thing shocks me greatly! Most every agent will tell you that you hand over a certain amount of cash fo the deposit on a property that you are intending to buy and never hand over the full amount until after the completion has been signed - as if something happens (in your own life, or whatever) and you have to back out, you lose the amount! I would just like to understand why the following has been stated:

"we ask that if possible, you send the full purchase price or at least a deposit of say 30 to 40% as in such a dynamic market, it is best to pass on as much of the money for the property as possible to the sellers under the Preliminary Contract to avoid them backing out of the sale."

Surely, for the intending purchaser, this is a very dangerous thing to do - standing to lose the entire amount, or at the very least - a substantial amount? Please let me know why you advocate paying the entire sum, or as much as possible when it could be lost through circumstances out of the control of the would-be purchaser.

[TheTravelBug]

This is only in cases of very low value property such as say 4000 to 5000 Euros. But is basically because at such low values, it can happen that the seller finds a higher bidder and so is willing to give back the deposit to the prospective purchaser (or even double if in contract) and go with new buyer who is paying more. Therefore by paying more than the usual 10%, and possibly the full amount, the buyer tends to definitely secure the property.

In any case when signing a contract and agreeing to purchase a property you should be a 100% certain you want to go ahead with it and will complete.

I understand your point and would not advocate paying more than the usual deposit if the property is say 10,000 Euros or more but at very low prices, risk of loss very minimal and ensures buyer gets their property.