Енергетика и „Зелен преход“

It is a well-known fact that in the last few years the real estate market in Bulgaria has been on the rise. Prices are increasing, mortgage lending is affordable, construction is booming, as a result of which more and more people are interested in the subject. Many individuals enter the property market with various goals – “to protect their money from inflation”, to meet housing needs, for speculative purposes, to start a property rental business, etc.

In view of the above, a huge number of brokers logically appeared on the market – many people joined existing real estate agencies, started new companies in this field, and hundreds of independent brokers continue to work. Naturally, their main goal is to assist market participants, receiving a commission for this. Unfortunately, in this process there are intermediaries ready to do anything to get a deal done. The brokerage profession is not yet regulated by law and there is no obligation for brokers to monitor the legality of a transaction, the tax effect of the transaction, the presence of encumbrances on the property, the structuring of the transaction from a financial point of view, etc.

Realtors are undoubtedly needed in the real estate market. What are the advantages of having a lawyer involved?

  • The legal profession is legally regulated and constitutionally settled. This may sound lofty, but it is actually a good initial guarantee that the hired lawyer is going to assist his client with all his knowledge and experience. The lawyer did not become a lawyer in connection with the boom in the real estate market, he tries to build his name with each transaction, regardless of economic circumstances.
  • Property analysis. A good real estate attorney will survey the ownership of the property subject to the transaction. He will examine the previous title deeds, as well as other recorded deeds – mortgages, foreclosures, restricted property rights, etc. After the analysis, he will advise his client about the possible risks related to the purchase and sale. Finally, he will prepare a preliminary contract and a notarial deed that will protect the interests of his client and reflect the specifics of the transaction.
  • Often, a transaction with real estate is accompanied by additional legal cases or the need to carry out procedures – erasure of encumbrances, registration of acceptance of inheritance, issuance of a permit for the sale of property by a minor, etc. That is why it is better to engage a lawyer from the very beginning / before signing a preliminary contract, documents such as the so-called in Bulgaria “stop-downpayment receipt” etc./ of the process of buying/selling a property.

It is clear to most people that a real estate transaction involves a broker and a notary – one by market and life logic, and the other by law. Many do not see the point of a lawyer or prefer to save money on the fee. It should be borne in mind that this may prove to be a problem at a later stage, because in the event of an incident there will be no one to bear responsibility, since neither a broker nor a notary has a legal duty to look after the specific rights and interests of the party the deal. Even if there are no complications in connection with the transaction, the involvement of a lawyer in it gives security and peace of mind to the party that engaged him. The use of competent legal assistance has many other advantages that depend on the specifics of the transaction, its structuring, the personal relationships between the participants, the type and legal status of the property, the negotiation process, etc.

This article reflects the view of Att. Yasen Kraychev, is informative and does not constitute legal advice. Kraychev Partners law firm has extensive experience in the field of property law and real estate transactions. If you wish to hire us, do not hesitate to request an offer and do so.