It is always
advisable to use the services of an English speaking
solicitor.
It is quite common for both buyer and
seller to pay the estate agent for his work in bringing
them together. His fee may be as much as 6 per cent
of the purchase price, split 3 per cent each between
the two parties. Often, this practice will only be
enforced when buying an older property and not a new
build, when, in all likelihood, you will be negotiating
with, and buying from, a UK agent and/or developer.
Another significant difference, when buying a house
with land rather than an apartment, is that non-nationals
are not permitted to own land. Therefore, it is necessary
to form a limited company in Bulgaria and register
yourself as a company director. Forming a limited company
is straightforward, taking around four weeks and costing
600 euros. The regulations are likely to change in
the near future, when Bulgaria joins the EU, as one
of the EU’s tenets is that property and land
ownership must be open to all.
Thereafter, the buyer’s solicitor will draw
up a preliminary contract of sale, at which stage the
buyer will be expected to lodge a 10 per cent deposit.
The solicitor will then check the property’s
title, and, assuming everything is in order, the purchase
price balance, land tax and notary fees, in total amounting
to approximately 5 per cent of the purchase price,
will fall due for payment. The title deed will then
be processed, and in due course the new owner will
receive his papers of legal ownership.
Costs
Several fees and taxes are payable
when buying property. Budget to pay 4–5 per cent
of the purchase price. Costs may include:
- Transfer fees: 2–2.5 per cent
- Notary fees:
0.5–1 per cent
- Legal fees: 1–1.5 per cent
- Surveyor’s
fee (optional)
- Mortgage fees (if applicable)
- Foreign exchange costs
(if applicable)
- Estate agent’s fees (if applicable)
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