Quarantine and the Bulgarian property market

The lockdown announced in March 2020 in the EU countries, Israel and America in connection with the spread of the coronavirus disrupted the plans of many people to buy property in Bulgaria. Some had already pictured themselves as owners of apartments with sea views or houses with beautiful gardens and had paid a deposit. Others had decided to buy an apartment by the sea in Bulgaria but, because of the quarantine, cannot come to sign the contract. There is no need to panic – any of these situations has a solution.

How to buy an apartment in Bulgaria during the quarantine

The declaration of a state of emergency and the related inconveniences came as a surprise to many property buyers. Many are confused and ready to give up the purchase and lose their deposit. 
However, as in any situation, we recommend assessing things soberly. Forced isolation is temporary in nature. Despite the restrictions, there is always a way to achieve the goal and buy an apartment in Bulgaria.

Let us list three situations that home buyers may face, and ways to resolve them.

• A deposit has been paid for the apartment

The buyer has chosen an apartment, concluded a preliminary or deposit contract with the seller, and paid a deposit. 
Only a little is left to do – to collect the documents for the transaction and register it with a notary. However, a state of emergency has been declared, borders between countries and cities have closed, and the buyer or seller has lost the ability to travel to the notary to register the purchase and sale contract.

The problem can be solved by preparing a power of attorney for a representative of the real estate agency. If the document is provided by the seller, it must reflect the right of the realtor to collect documents for the transaction, represent interests in the sale, and sign the notarial deed. In the document provided by the buyer, they entrust the representative with representing their interests when signing the purchase and sale contract.

In addition to the power of attorney, the parties prepare and certify declarations required under Bulgarian legislation. The list and samples are provided by the agency. 

• The buyer has chosen a property

If the state of emergency was declared when the home has been chosen but no deposit has been paid, we recommend acting as follows:
 - Sign the preliminary contract, scan it and send it by email. The original can be sent by ordinary mail or courier. 
 - Transfer the agreed deposit to the bank account. 
 - Begin preparing the documents. If the seller is outside Bulgaria, a specialist from the real estate agency does this on their behalf on the basis of a power of attorney.
 - Register the transaction. If any party is unable to travel, they grant their representative the right to sign the documents.

• The buyer is in the process of choosing a property

What should those people do who planned to buy property in Bulgaria during the quarantine, or rather at the time when it was declared? Postponing the purchase is not necessary. Trust the specialists of the Bulgaria Avenue agency – we will provide you with all the information about the best offers on the market from developers, as well as the resale market. For each option we will send high-quality photos and videos of every square metre, along with real reviews. You will see the apartment in detail and learn even more about it than you would by seeing it with your own eyes. 

Then everything follows the scheme already described – preliminary contract, deposit, notarial registration by power of attorney. As soon as the situation returns to normal, you will come to your new apartment by the sea and be able to relax in your own flat or your own cottage.

The work of notaries. How to complete a transaction during the quarantine

In the situation of isolation, most institutions have switched to remote work or operate on limited hours. Home purchase and sale transactions are planned in advance, taking into account all the restrictions established by law.

A number of restrictions related to the quarantine in Bulgaria concern the work of notary offices:

• Not all notaries are open.
• Only urgent transactions are registered. The parties will have to justify why the completion of an apartment purchase cannot be postponed.
• The notary’s working day is shortened.
• A limited number of transactions is processed each day.

Please note that, due to the preparation of additional declarations related to the quarantine, the notarial completion of the sale takes more time. 

The quarantine – what will happen to property prices in Bulgaria

Analysts, realtors and sellers were looking at apartment prices in 2020 with optimism. Everyone was confident that, after some stagnation, they would rise. However, the emergency situation has mixed up all the plans, and a drop in prices is expected in the near future.

Even now, when discussing specific terms of a transaction, you can obtain good discounts on apartments from developers and owners. A little time will pass, the market will recover, and prices will start rising. That is exactly why we recommend setting aside your fears and panic and buying property in Bulgaria during the quarantine.

The Bulgaria Avenue real estate agency will help you buy an apartment or a house in Bulgaria at an affordable price. Now is the time to make your dream come true and acquire property in Bulgaria on the most favourable terms.