Planning to Buy Real Estate in Bulgaria? Be Cautious!

Planning to Buy Real Estate in Bulgaria? Be Cautious!

If you have decided to purchase real estate, you must be extremely careful, as there have been increasing cases of fraud related to property ownership in recent years.

The main and most serious problem that may arise for you as a buyer is the emergence of a third party claiming to be the owner of the property, potentially leading to your removal from it.

In such a situation, it is quite possible that, in addition to losing the property, you may not be able to recover the price you paid for it. This would indeed be a very unpleasant situation, accompanied by considerable stress, anguish, and possible expenses for legal disputes.

Of course, the risks can be minimized if you understand your rights regarding the seller and any third party claiming rights over your property.

To ensure your peace of mind, you must carefully verify the ownership of the property and ensure that the seller is the actual owner. To do this:

  • Review the property documents.
  • Make all necessary inquiries about the property at the Registration Agency to check for encumbrances—mortgages, liens, rights of construction, rights of use, ongoing court disputes, etc.

Otherwise, you risk losing the property you have already purchased if someone later claims that they, not you, are its owner!

Keep in mind that the notary is not required to investigate the property historically or inform you of any risks!

The greatest risk for you as a buyer is whether you will actually become the owner of the property and whether you will be evicted from it.

It is possible that after the sale transaction is completed, a third party may appear claiming that they, not you, are the owner of your property.

And even though until that moment you have lived peacefully, believing that since you have paid the price, signed the notarial deed for the sale of the property, and registered the deed in the Property Register, nothing can go wrong, if the third party proves their rights—specifically, ownership of the property in question—they will have the right to reclaim the property, regardless of how many times it has been transferred or who currently possesses it.

In such cases, the rights of the actual owner take precedence over those of the buyer. In practice, the property will be returned to its actual owner, and you will lose the property for which you have already paid a certain amount!

In this situation, if the property fully belongs to a third party (the seller sold someone else’s property), you as the buyer can rescind the sales contract and demand a refund of the price you already paid, along with any expenses related to the contract and all necessary and useful expenses incurred in connection with the property. However, if you were aware of the rights of the third party, you may only seek a refund of the purchase price.

If only part of the property belongs to a third party, you as the buyer have the legal right to rescind the sale through court proceedings and demand a reduction in the sale price, along with compensation for any damages incurred.

Of course, many other “hidden pitfalls” may arise in connection with the purchase and sale of real estate. Therefore, no matter how experienced a broker you hire, they are not a lawyer, and it would be best for you to consult with an attorney who can verify the property’s ownership, assess any risks for you, and negotiate clauses to hold the seller liable in case you are evicted from the property.

It is important to understand that every transaction is highly individual, and it is not possible in this article to discuss all risks and problems that may arise during the purchase and sale of property.

Thus, it is advisable to contact a Birou avocat Denislav Marinov as soon as you decide to purchase a property, so they can advise you, explain the pros and cons of the specific deal, identify any risks, and represent you during negotiations for both the preliminary contract and the final transaction.

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