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BUYER'S GUIDE
FIRST BULGARIA ™ Buyer's Guide provides short information for individual investors and answers to general questions, regarding the steps while buying off-plan or resale property in Bulgaria. We'll be glad to send you a comprehensive Buyer's Guide upon request.
Individual rules apply to portfolio buyers and institutional investors .
I. SELECTION AND RESERVATION
Choose location and development (resort, building). Our featured Bulgarian property portfolio offers excellent high yield estates in the best performing Bulgarian property investment locations - Bansko ski resort area, capital Sofia and the Black Sea coast. If you feel uncertain or doubt, simply give us a call - we'll be glad to provide you with free advice and additional information about the properties on offer. Every week we make a selection of 5 Bulgarian properties with special features and put them on offer within our special incentive programme. Visit our Property pick of the Week selection of best-buys, coming with amazing incentives.
Contact us for latest availability and prices. The market is dynamic and availability changes frequently.
After you check availability and make selection, reserve your chosen property with us. Reserving means you "book" as an exclusive buyer through us and we take off the open market the unit (apartment, house) of your choice for a defined period of time.
FIRST BULGARIA ™ have a holding deposit (reservation) policy, which gives you the opportunity to hold a property for (normally) up to 30 days. This gives the client the opportunity to inspect the development on site and do further checks before signing the preliminary contract and paying the first installment. In some cases, we may accept verbal reservations, confirmed by an e-mail. The reservation fee should accompany a signed reservation form, which is available upon request. The holding (reservation) deposit is deducted from your first installment. If you decide to reserve on-line and the card payment is being executed before the signed reservation form reaches us back, we will confirm in writing receipt of your payment and reservation.
If you want to inspect first, before securing the property by paying the holding deposit, FIRST BULGARIA ™ may arrange this for for the client in compliance with our Bulgaria holding deposit policy *. The risk remains for the prospective buyer - the chosen unit remains on the market and may be reserved by another party. That's why, we recommend reservation first in some of the most sought after developments like the gated private golf complexes , which enjoy high popularity.
Reservation fees:
1. Apartments: € 1000 / £ 800
2. Houses inside Pirin Golf & Country Club: € 1500 / £ 1200
3. Properties inside Ibar Country Golf Club: € 2000 / £ 1560
The reservation fee (deposit) can be paid by cheque, online or by direct bank transfer and is followed by our written confirmation. It covers the administrative costs involved and the eventual loss of business, if you decide not to proceed with the acquisition.
If the client wishes, we shall arrange a customised, individual inspection (viewing) trip after consulting about his/her most convenient time for visiting the development site in Bulgaria. In some cases it is possible to arrange transfer ("switch") of the reservation fee to a different apartment (house) upon availability on site during the inspection trip. The cost of the inspection trip is fully refundable, once the client decides to further the property acquisition with us.
Preliminary contract of sale and Maintenance contracts are drawn. The draft contracts have to be checked by the client's solicitor. We provide a list (on our client's request only) with the contact details of 2-3 qualified solicitors (law firms) from the UK and Bulgaria with extensive experience in Bulgarian proeprty law.
We assist you at any moment during the process with free advice, if you decide to get it from us.
II. INSPECTION (VIEWING) TRIPS
FIRST BULGARIA ™ organise only tailor-made inspection (viewing) trips to our developments. The price of our individual inspection (viewing) trip is fully refundable, if the client decides to further the property acquisition with us.
For those clients, who would prefer to arrange their travel to Bulgaria independently , we'll be happy to show around the real estate(s) on site. This can be organised according to their schedule and they'll have the opportunity to ask our staff any questions that they may have.
III. CONSTRUCTION PHASE
We update our website on a regular basis. From October 2007 we provide construction updates ONLY to prospective clients and clients who purchased through FIRST BULGARIA ™ We will send this material (photos) to our clients, whom we help in the purchase process. This allows the client to get better impression of the place and the progress of his/her property construction.
Normally, during the construction phase, there are interim payments to be made before the development is finished and transfer of ownership takes place.
We help our clients with information in good time before interim installments are due.
IV. COMPLETION
Upon completion of the development and payment of the final installment, the transfer of ownership rights (title) takes place. The Bulgarian legal system requires that property ownership (title) transfer is performed in front of a local Notary.
First Bulgaria offers completion of property purchase service, which includes all necessary legal and technical steps for successful and cost effective transfer of property ownership to clients name and possession.
V. LEGAL FEES
When buying off-plan in Bulgaria one has to factor in the following legal fees payable in the process:
Conveyance, Preliminary contract and Maintenance contract checks performed by an independent lawyer, appointed by the buyer. During the checks the lawyer performs Bulgarian conveyance procedures (title, planning permissions, regulatory compliance etc.) and carefully checks the contracts’ content in order to protect to the maximum possible level his clients’ interests. The amount of the fee for this service is agreed between the buyer and the lawyer.
Notary and transfer fees and eventually lawyer's fee, payable upon property ownership transfer. The amount of these fees is between 2,5-3% of the purchase price. We strongly advice buyers to use lawyer's services in this very important phase of the buying process.
VI. FURNISHING AND BRINGING THE PROPERTY INTO HABITABLE CONDITION
Usually, after obtaining all necessary documents one has to arrange for furnishing and property management of their property. We offer a highly competitive furnishing service and advise on the most reliable property management and rental options.
VII. RESAlE
First Bulgaria offers advisory service and commission based agency resale.
VIII. GENERAL REMARKS
All our properties (developments and new build) are sold on a freehold or share of freehold basis.
All new build property in Bulgaria is subject to 20% VAT.
When one re-sells his/her property, payment of transfer taxes is agreed upon between seller and buyer. It can be agreed that these are paid by the seller or spit between both parties.
Maintenance of your property is regulated by the terms of the Maintenance Contract one signs jointly with the Preliminary contract of sale. This is charged at a fixed rate, usually fixed in EUROs per square metre per year. When buying a new build property or resale apartment purchased off-plan, always carefully check the Maintenance contract and its contents.
Tax issues. Useful general information about property related tax issues in Bulgaria can be found on the Worldwide Tax website.
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