As there are many advisories on the internet I thought why not make one of my own?
It is a separate matter whether one will use the information below but who knows...
Here it is. The Survivor's OFF PLAN Survival Guide to the Bulgarian Property Jungle.
1. Use a lawyer! This is the most important step.
Do not use the lawyer recommended by the estate agent. Search on the internet for lawyers or ask a friend but do not even think of buying property without a lawyer.
2.
Do not pay any reservation fee, deposits or other advanced payments without making sure that you will get a full refund in case that for whatever reason you decide later on not to buy. It is good also any such documents to be reviewed by a lawyer before you commit.
3. Make sure that you have all the contracts in both English and Bulgarian and they are thoroughly checked by your lawyer. Some things to consider:
- the parties are clearly described with all relevant contact information (phones, faxes, addresses, emails, etc)
- the property that you are buying is also thoroughly described (you need to have at least three neighbours for identification of your property)
- payment instalments are linked to issuing of certain documents certifying progress of the construction and not only to dates
- rights and obligations are equal for both parties
- penalties are also equal to both parties
- finishing of the construction is specified with exact date and linked to issuing of a permission for use for the property
4. Make sure that you are not signing the contract with an offshore or another sort of Bahama-mama (banana) company.
5. All your payments should be paid
only via bank transfer and to bank account of the developer in Bulgaria. Again - no offshore and Bahama-mama banks.
6. The full price is clearly stated and is specified whether it includes VAT.
7. There is explicit provision that the full price will be stated on the Title Deed when the property is finished. No "tax valuation" and another money "saving" tricks. Do not believe that you will save some money, blah-blah, you will only help developer to avoid paying taxes. Later on all this "tricks" will hit you like boomerang, but this time the loss will be only for you.
8. If you have a chance: do not bind yourself with property maintenance and any other sorts of additional contracts. So far no developer had provided decent maintenance and it is very likely that you will pay just for nothing while still need somebody to provide the maintenance.
9. Avoid like hell any "guaranteed returns" or all other scams where you will neither use your apartment and at the end of the year it will appear that have not earned anything from it or even if there is something it will be far less from what was promised.
10. Read again all points above, if you want of course. At the end of the day it is your money that will be spend. Only you can decide what to do with them.
Howto
