Ripped Off

My experience of buying a house here was putting a  £500 deposit down and paying monthly for 2 years to an agent. I took a chance as I didn't see the house first as you should but 2yrs on I have finally paid for the property and have all the legal documents. Lucky I guess.
I imagine that if you give your agent a small deposit they may suspend other viewings but I don't think it is normal practice here.
It was first come, first served in my case. Would be better if you come out and have a look really, would be my advice.
I have only been here 3 weeks full time and getting information isn't always easy.
Gerald

You also need to be aware that the property might be for sale with another agent, or indeed several different estate agents, and this can be difficult to ascertain.
For example, a few years ago we decided to buy in the centre of Veliko Turnavo, and after several viewings with the estate agents, we put an offer forward which was accepted by the owner. We were then informed that we should put a sum into a holding agreement, to ensure we didn't back out of the sale, and to take the property off the market. However, less than a week later, another buyer comes forward, having seen the property for sale with a different agent ( our agents were not aware of this ) and they outbid us basically, we couldn't compete with what they were offering and lost the property. We did get our holding deposit back, but felt very disgruntled that there was nothing in place to protect the buyer........ Just something to be aware of.

OK, whether you have physical been to the property or have just viewed photos, you need to do a number of things.

A) Pay a deposit .... and
B) Both you and the Agent must sign a "preliminary sales contract" to prevent the Agent selling to someone else. This will also give you some legal protection.

The agent should provide the "preliminary sales contract" and it must be in Bulgarian.  A Bulgarian court will not recognise a contract made in any other language. Most agents will provide a translation but it is the Bulgarian version that is legally binding. 

So if you don't read Bulgarian, you will need to employ someone who can read in both languages.

At this point i would employ a Lawyer that reads and speaks both languages to do some "Due Diligence" for you.  You will need to instruct the Lawyer on exactly what to do as the work they will do is only what you instruct and no more. i.e. If they see something wrong that you have not asked to be checked... they are not obliged to report it to you.

Ask your Lawyer to....

- establish 100% of the right of ownership
- establish all holders of the right of ownership
- check for encumbrances on the property (if you buy a property that has a mortgage, you are buying the mortgage also....  and you must pay it or lose the property)
- make sure all sellers agree with the sales price and are listed on the "preliminary sales contract".

At this point the Agent will probably recommend his or her Lawyer.  Do not take this option.  Find your own Lawyer.  Unlike in UK, a Bulgarian lawyer is allowed to represent both parties.  So, if a Lawyer is representing both you and the Agent, you have no idea if they are colluding.

When you find a lawyer, ask them for their registration number and check they are registered with the "Bar Association" (https://www.hg.org/bar-associations-bulgaria.asp)
Make sure you check they are registered to practice law as anyone can call themselves a Lawyer. 

Your agent should be able to email the  "preliminary sales contract" directly to the Lawyer and the Lawyer should be able to do the  "Due Diligence" within 48h.  The Lawyer will then email the  "preliminary sales contract" to you for you to sign.  You can then send both the signed  "preliminary sales contract" (in Bulgarian) and the deposit to the Agent.

I can highly recommend

Krasen Valev (Attoreny-at-law)
Komitov & Tzekov Law Partnership.
Address: 6 Solunska Street, Sofia 1000


Tel: +359 2 986 5431, +359 2 988 3551
Mobile: +359 886 431710
Email: office@ktz-law.com
Website: http://ktz-law.com/

He charges about 500 leva for this service and his English is excellent

Many thanks for your reply........, I'm looking forward to the challenge ahead as yet another northerly wind blows in June. All your advice is much appreciated.

Thanks,

johnstuart.

Thanks for the reply. I'm hoping that the house you found in the end worked out well for you, I guess the same happens all over no matter wherever you buy property. I'll try and get as much detail from the agent or maybe even the seller !

Many thanks.

Many thanks indeed for your fully detailed reply. This will help out no end as I start the ball rolling in the next couple of weeks........., I'm a stickler for details and will be able to follow your recommendations and record my own findings for the future.

Once again, Thanks for taking the time, much appreciated.