This is the process of buying a property in Bansko.
The process here is in fact much simpler than the UK and a little more ‘hands on’. It is also quicker with an average of 6-8 weeks from agreeing price to completion. And, while it isn’t a legal requirement to use a lawyer when buying property here, I strongly recommend you do – the good news is that legal fees are much less than the UK also. Below I outline the main steps when buying here.
Find the right property for you.
Although this seems to be stating the obvious I say it because sometimes we all get caught up in the hurry to buy and love the look of a place yet maybe we don’t have all the facts to hand. Traditional agents won’t rush to tell you that the hot water could cost you an additonal 10 EUR per day (for example) or what the annual maintenance is. So be sure to have all the facts at hand so you are making a truly informed decision.
Agree a price
We are in a seller’s market in Bansko at the moment and so sellers are starting to get their asking price (or close to it) however you can always put in a respectful offer. I will pass it to the seller and between us we can come to an agreed price.
Reserve the property
Placing a reservation deposit and signing a Reservation Agreement means that the property is reserved for you and the seller obliged to take it off the market. This gives us time to prepare the closing documents to complete the sale. The amount of the reservation will vary according to the apartment (usually between 1,500 – 3,000 EUR) and I will tell you up front so you know what will be needed.
Appoint a lawyer
As I mentioned above there is no legal requirement to appoint a lawyer here. However you are making a sizeable investment and want to ensure that there are no issues in the future (which will cost more to fix). I can happily recommend some independent lawyers that I have worked with over the years or if you want to source your own lawyer that’s fine too. Just make sure you have one. Their fees are around 450-500 EUR and it protects your investment.
Power of Authority?
You will need to decide whether you want to return to Bansko to sign at the completion of the purchase which happens in front of the Notary or whether you prefer to give Power of Authority to a legal representative to sign on your behalf. This would usually be your lawyer. A POA can be arranged while you are here in Bansko or it can all be arranged when you return home.
Agree Completion Date
While we are preparing all the closing documents for the completion of the purchase we will agree a completion date that works for both you, the sellers, the lawyer and the Notary. The remaining funds will need to be transferred to Bulgaria (usually to the Notary’s escrow account) before this date. Once the new title deeds have been signed the remaining amount due will be transferred to the seller. Congratulations! This is the date that you become the new owner of the property.
The costs of buying a property vary depending on differences such as the property type (apartment, house, business etc), the purchase price and the tax valuation of the property. To give you a general idea you should allow for 4-5% of the purchase price in additional costs for the Notary fees, Purchase Taxes etc.