Buying property in Bulgaria without an agency — profitable or risky

Buying property in Bulgaria without intermediaries, directly from the owner, is possible. But, as in any country, you need to know the specifics of the market – the location, pricing, laws and many other things, so that in the future the property will be liquid, so that it can easily be swapped for another option, rented out or resold — multiplying your capital.

In order to buy an apartment on your own from the owner, you will have to walk a long road so as not to end up in trouble. You can invest your capital wisely, or you can spend a lot of time, hope for fortune and, as in a lottery, either win or lose everything.

Europeans and Americans prefer not to take risks and buy property through agencies. Citizens of Russia, Ukraine and Kazakhstan do not always turn to a realtor, but trust their acquaintances and friends who already own housing in Bulgaria. Doing so is a big mistake. Foreign citizens do not know all the peculiarities of the Bulgarian property market, the legislation, the legal procedures and the “hidden pitfalls”.

Another extreme is turning to several agencies at once. It is more correct to choose one realtor with whom you are comfortable, who answers questions fully, correctly and competently, and who defends your interests. The fact is that all agencies cooperate with each other, and you will get a picture of all the current offers anyway. The specialists of Bulgaria Avenue are always on the client’s side; we will choose the best of the whole variety of properties for you.

One of the defining reasons for deciding not to turn to an agency but to buy directly from the owner is the need to pay a commission to the agent.

In fact, for the services of a real estate agency in Bulgaria on the coast (Sunny Beach, Sveti Vlas, Elenite, Golden Sands, etc.), the buyer does not pay a commission to the agent when purchasing! Usually the percentage is already included in the offered price.

The cost of agency services in major cities – Sofia, Varna, Burgas, Plovdiv – is 3 %. Indeed, when acquiring urban property without an agency you will not have to pay an additional commission, but the risks are also high.

Whether it is worth buying property without an agency in Bulgaria –  everyone decides for themselves, based on their own strength and possibilities.

On your own, you can choose the cheapest and most advantageous option. But is that really so?

Many buyers think that buying property on their own from a developer will be cheaper than on the secondary market. In practice it is different. Secondary resort property is many times cheaper. And when buying urban property, an investment will bring a profit if you invest in a project under construction with the possibility of an interest-free instalment plan. But you need to be well-informed about the developer’s reputation and the specifics of the property’s location so that this property will be liquid. It is important to go through consecutive steps that a specialist knows. You will need time and considerable effort to do this on your own. The Bulgaria Avenue database contains a huge number of properties, and we are interested in offering you the very best option. We value our reputation and good reviews.

What are the risks of buying on your own, and what should you pay attention to 

• Set an upper price limit so as not to get lost among offers you cannot afford, which will cost you wasted time and nerves.
• Before purchasing property you need to make sure that it has the technical characteristics stated in the advertisement. Often the seller advertises their property in the most glamorous light, and later it turns out that this is not true.
• There are cases where the property is within the settlement regulation zone, but the detailed development plan (regulation) affects all or part of it. For example, a street may be planned to cut through it, or there may be construction restrictions due to the presence of electrical power lines. Sometimes such property is put up for sale at a very low price in order to «catch» a Buyer and get rid of it more quickly.
• In small villages there are cases when the borders of plots, buildings and utilities do not correspond to the provisions of the detailed development plan. For that reason the future buyer must visit the technical service at the municipality or the town hall at the location of the property and find out about its status. There you can learn additional details, as well as the future development around the neighbours, which often turns out to be important.
• You may find out that the property has «unpaid bills» (this is recorded in the notarial deed), and you have to pay part of them. Do not conclude the transaction until the seller settles everything. Otherwise — you will lose money and time. It may happen that a lifelong right of use was established for the property which the Seller «failed» to notify you about, and you forgot to read the certificate of ownership in which this is reflected. And so you buy a house you will not be able to use. You will have to wait for the user’s death.
• Problems with restitution are also dangerous. A transaction is deemed invalid if municipal property is sold to a private person, but not through the chairman, but through their deputy who is not authorised to sign such contracts. As a result, the illegally purchased property does not belong to the Buyer, even though he has paid for it.
• Be sure to request the originals of receipts for paid taxes, electricity, water, heating, telephone and so on, in order to avoid additional expenses.
• If there are Tenants, read the Rental Agreement. Pay attention to its term of validity, so that you understand how soon the tenants will move out. Make sure that the contract is notarised.
• If an apartment or house has several owners, ask them to authorise one person to conduct negotiations. Practice is full of examples where one of the co-owners changes their mind while the transaction is being prepared, and sometimes even at the notary’s office.

So — you have carefully studied the property, viewed it (not just once, and always in the daytime) and understand the details. The positive aspects have amazed you, and the drawbacks of the housing are not critical. You have enjoyed it — the apartment corresponds to your desires and aspirations.

• Before taking the step towards purchase, be sure to arrange things with the owner of the property: ask to see their identity document and the document confirming ownership, and compare the data. Also carry out a basic legal check of the documents. If you cannot cope with this difficult task on your own, seek help from an intermediary agency or from a trusted person (a lawyer).
• The next step is checking whether this property is encumbered (mortgage, claims, litigation, loans, financial obligations, third-party claims on the property, etc.). The check can be carried out by an oral enquiry at the district court where the property is located. However, this check is not a sufficient guarantee. It is recommended to request a certificate of the presence or absence of encumbrances.
• The preliminary contract. The advantage of this document is that you have an official document on the basis of which your rights have arisen. You will find out whether the property actually exists. In practice there are many examples of fraud of various kinds when buying property. The Buyer may be in order under the Preliminary Contract and all the conditions for concluding the transaction at the notary may be observed. But the seller does not fulfil their obligations. In this situation the law gives the Buyer the right to demand that their rights be observed in court. He has to file a claim (paragraph 3 of Article 19 of the Law on Obligations and Contracts) to declare the Preliminary Contract final. The statement of claim must be entered at the appropriate registry office where the property is located (Art. 11, b of the Rules for Registrations and Art. 114, b of the Insurance Law). In this way, the Buyer is protected, so that no one else can acquire real rights.
• There is also a solution for people who buy with their own money. The transfer of the money for the purchase of the property to an escrow account and to the notary’s special account. The notary blocks the money that the buyer pays. Most often the money is released at the moment when the transaction is registered and the parties are convinced that there is no more danger for the buyer. The Seller is also protected, because the money is blocked before he sells his property.

In this article we have described only a few situations that a Buyer may face when purchasing property on their own. Do not forget either that although Bulgarian and Russian have a certain similarity, understanding fluent, live speech in communication, reading legal documents in Bulgarian and grasping all the legal subtleties on your own will be difficult for you.

Buying a home is a serious step, and we advise entrusting its handling to professionals.

The Bulgaria Avenue company will be glad to assist in choosing property; together with you it can carry out an analysis and offer the most advantageous property that will meet your goals and wishes.

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