Documents Needed to Sell Propery In Bulgaria

Streamlining Your Bulgarian Property Sale: A Guide to Essential Documents

Selling a property in Bulgaria, while seemingly intricate, becomes manageable with a clear understanding of the necessary documentation. Following our previous guides on preparing your home for viewings and determining the optimal price, we now delve into the core of the transaction: the essential documents required for a successful property sale in Bulgaria.

Navigating the buying and selling process necessitates meticulous attention to detail and effective communication with various institutions. Both buyers and sellers must exercise caution at each stage to ensure a smooth transaction, free from potential risks or future complications.

The role of a proficient property agent extends beyond initial viewings; it encompasses crucial support in the vital process of gathering and organizing the required documents to finalize the deal.

Key Documents Mandatory for Property Sale in Bulgaria:

These are the fundamental documents that are invariably required when selling a property in Bulgaria:

• Proof of Ownership: This is the cornerstone document establishing your legal right to the property. Typically, this takes the form of the title deed (‘Notarialen Akt’), which could have originated from various transactions such as purchase, donation, establishment or transfer of building rights, or exchange. In certain scenarios, the document of ownership might also be a contract for the purchase of property from the municipality or state, a voluntary partition contract, a constative title deed (establishing ownership through continuous possession), a decree of assignment (often in cases of privatization), and occasionally even a court decision resolving ownership disputes.

• Cadastral Plan/Sketch of the Property: This document provides a visual and technical representation of the property’s boundaries and features as registered with the Agency for Geodesy, Cartography and Cadastre. For land located in areas where a comprehensive cadastral map is not yet in effect, a sketch is issued by the local municipality. It’s important to note the difference in validity: a cadastral plan/sketch remains valid indefinitely unless there are changes to the property’s data, whereas a sketch issued by the municipality typically has a validity period of six months from the date of issuance.

• Tax Assessment Certificate: This certificate, obtained from the Local Taxes and Fees office at the municipality where the property is located, must be current (issued within the same calendar year as the sale). It confirms that there are no outstanding tax liabilities associated with the property. Crucially, the tax assessment also identifies all individuals holding title to the property, which may include parties not explicitly named on the title deed (e.g., both spouses for property acquired during marriage, all legal heirs for inherited property).

• Certificate of Entries, Notations, and Deletions for the Property (Certificate of Encumbrances): Issued by the Registry Agency, this document provides a comprehensive overview of all registered entries pertaining to the property in the Property Register at the time of issuance. Commonly referred to as a “certificate of encumbrances,” it lists any liens, mortgages, easements, or other legal burdens affecting the property. While not strictly mandatory by law (as the Property Register is publicly accessible), obtaining this certificate immediately before the transaction, with a verification period extending back at least ten years (and preferably longer), is standard practice. This is because electronic registry reports are not considered official documents.

• Certificate of Marital Status for Sellers: Required for Bulgarian citizens, this certificate is issued by ESGRAON (Unified System for Civil Registration and Administrative Services of the Population). To ensure the information is up-to-date, it is recommended to obtain this certificate shortly before the sale date. For foreign sellers, if their country of origin does not maintain a register of civil status, their marital circumstances are typically certified through notarized declarations.

• Certificate of Existence or Absence of Public Debts: Although not legally mandated, presenting this certificate, issued by the Territorial Directorate of the National Revenue Agency (TD NAP) at the seller’s permanent address, has become standard practice and is often requested by the notary at the time of notarization. It is also a mandatory requirement when the buyer is financing the purchase with a mortgage loan. This certificate is usually valid for one month from the date of issuance.

• Payment Receipts for Property Utility Bills: While not a legal requirement for the sale itself, it is common practice for sellers to provide proof of paid utility bills (electricity, water, heating, gas, maintenance/condominium fees). This reassures the buyer that they are not inheriting any outstanding financial obligations related to the property.

Additional Documents for Specific Situations:

Beyond the core documents, certain circumstances related to the property or its ownership necessitate the provision of additional paperwork:

• New Construction Properties: Sellers of newly constructed properties are required to present comprehensive construction documents up to the current stage of completion. These include the building permit, the investment project plans, floor plans, acts certifying the various stages of construction, and the certificate of commissioning/permission for use of the building.

• Buildings Completed Before 31.03.2001 (Without Construction Documents): For older buildings lacking formal construction documents, a certificate of tolerability (‘Udokostoverenie za Tarpimost’) is required. Issued by the municipality where the property is located, this certificate confirms that the building is not subject to demolition.

• Inherited Properties: In addition to the title deed, the sale of an inherited property requires the death certificate of the deceased owner and a certificate of their marital status at the time of acquiring the property (for Bulgarian citizens, from ESGRAON). A current certificate of heirs is also necessary, and for properties inherited from a foreigner, a reference from the register of wills in their country of origin may be requested.

• Property Acquired Outside Marriage (Seller Currently Married): If the seller acquired the property before their current marriage but is married at the time of the sale, the non-owner spouse must submit a declaration under Article 26 of the Family Code consenting to the sale and confirming that the property is not the family residence.

• Technical Passport of the Building: While not always mandatory, presenting the technical passport of the building (for both new and older constructions) is good practice. This document summarizes key information about the building’s construction, commissioning, technical characteristics (structural stability, fire safety, etc.), and energy efficiency indicators. Some banks also require this for mortgage loan assessments.

• Land Sales with Discrepancies: In cases where there are inconsistencies in the area and boundary data of land, a combined sketch (‘Kombinirana Skitsa’) from the cadastral authorities may be required.

• Missing or Incorrect Property Details: For detached properties where details in the title deed are missing, incomplete, or incorrect, a certificate of identity of the property or a certificate of administrative address may be necessary.

• Seller Debts: If the buyer has concerns about the seller’s potential debts to third parties, they may request a Certificate of Absence or Existence of any pending enforcement proceedings. This document, issued by the Central Register of Debtors maintained by the Bulgarian Chamber of Private Enforcement Agents, helps identify if the property could be subject to liens or public sale due to the seller’s financial obligations.

• Mortgaged Properties: For properties with an existing mortgage, the creditor (bank or other lender) issues a letter of undertaking (‘Pismo za Anulirane na Ipoteka’) agreeing to release the mortgage, if this is not done prior to the completion of the sale.

• Owners Under Legal Incapacity: If the property owner is a minor or under legal guardianship, the sale can only proceed after judicial authorization from the Regional Court of the owner’s place of residence, outlining the specific conditions of the transaction, including the price and payment method.

When you entrust the sale of your Bulgarian property to a professional agency, their services should include providing a tailored report on the specific documents required for your case and offering assistance in obtaining them locally. The primary goal is to safeguard your legal interests and ensure a successful and seamless sale. Effective communication and coordination with all parties involved – the buyer, their legal representatives, financing banks, and the notary public – are crucial to streamline the process and ensure all necessary documentation and requirements are met efficiently.