Transfer of Ownership and Other Property Rights over Real Estate

This category includes all types of contracts through which ownership is transferred or other property rights over real estate are established. Such contracts include purchase agreements, donations, exchanges, transfers of property in return for maintenance and care obligations, the establishment of usufruct rights over real estate, rights of passage, and others.

According to Article 18 of the Obligations and Contracts Act, these transactions must be executed through a notarial deed by a notary with jurisdiction over the area where the property is located. They must also be registered with the relevant Registration Office based on the property’s location, except for voluntary partition agreements of real estate, which may be executed before a notary outside the judicial district where the property is located.

If you wish to enter into such a transaction concerning real estate located within the territory of Sofia Municipality, you can schedule a consultation with the notary in advance. During the consultation, the legal requirements for the specific type of contract will be explained to you, and you will need to present the documents you have regarding the real estate. The notary will clarify which additional documents you need to obtain, after which the transaction will be scheduled for execution. Note that notarial deeds and other contracts are registered on the day they are executed, so transactions must take place between 8:00 AM and 1:00 PM on business days.

Essential Documents Required for Notarial Deeds

Proof of ownership (or another property right) over the real estate: Examples include a notarial deed, voluntary partition agreement, court partition protocol, court decision, contract for acquisition with municipal or state authorities, and others.

Certificate of tax valuation of the real estate: Issued by the “Local Taxes and Fees” Department of the respective district of Sofia Municipality.

Cadastral map or plan of the property: Issued by the Agency for Geodesy, Cartography, and Cadastre (our notary office can assist with obtaining this document).

Notarized power of attorney (certified for signature and content): Required if one of the parties does not appear in person.

Notarized declarations accompanying the power of attorney for the disposal of real estate: These include declarations under Article 25, para. 8 of the Notaries and Notarial Activity Act, declarations under Article 74, para. 2, item 1, and in relation to Article 264, paras. 1 and 4 of the TSIPC, and declarations under the Measures Against Money Laundering Act. Note that these declarations are valid only until the end of the calendar year in which they are certified.

Real-Time Compliance Checks under TSIPC

Due to amendments to the TSIPC, we are now required to perform real-time electronic checks for outstanding public liabilities subject to enforcement under Article 264, para. 1 of the TSIPC for transferors and grantors of property rights. If such liabilities are identified, they must be settled through payment via the National Revenue Agency’s virtual POS terminal or physically at an NRA office.

Additional Documents for Participants in the Transaction

In certain cases, additional documents may be required, such as:

Certificates of heirs.

Marriage certificate.

Marriage contract, if applicable.

Proof of the acquisition regime of the property.

Certificates of administrative address or name identity.

Certificates of building tolerances, building permits, approved construction documents, and others.

It is advisable to bring all documents related to the property for the upcoming transaction. The notary will determine which documents are necessary.

Schedule a Consultation and Document Review

To ensure a smooth process, schedule a date and time for a consultation and document review with the notary.

Transfer of Ownership of Real Estate: Commonly Used Methods

The most common method for disposing of real estate is through a notarial deed for sale

Advice for Sellers:

The seller is obligated to present all necessary documents to the notary in advance, proving their ownership of the property being sold. If the property is mortgaged, subject to claims, involved in ongoing legal disputes over ownership, or encumbered with liens or other burdens, the seller must inform both the buyer and the notary of these circumstances in advance.

Advice for Buyers:

Before making any payments, whether for the purchase price, a deposit, or under a preliminary contract, consult the notary handling the transaction. Seek the notary’s assistance in drafting and certifying the signatures of the parties on a preliminary contract for the purchase of the property. It is advisable for buyers to request a Property Encumbrance Certificate (PEC) from the seller when signing the preliminary contract (our notary office can assist with this service). This certificate will confirm that the property does not have registered mortgages, encumbrances, claims, or other issues.

Our notary office conducts mandatory electronic checks of property encumbrances and third-party rights for every transaction, including a final check on the day and time the notarial deed is signed.

Donation of Real Estate

Donation transactions for real estate are usually conducted between relatives, such as parents and children, grandparents and grandchildren, or siblings and nephews/nieces. The required documents for a donation are the same as those outlined above. Additionally, proof of the familial relationship (e.g., birth certificates) is required.

Donations are always gratuitous transactions, unlike contracts for transferring property in exchange for maintenance and/or care obligations, transfers as debt settlement, or transfers as an alternative to payment.

For donations between direct relatives, no municipal acquisition tax is due under the Municipal Property Taxes and Fees Act. All fees in these transactions are calculated based on the property’s tax valuation.

Establishing or Retaining Usufruct Rights

Any owner of real estate can establish a usufruct right over their property or retain such a right when disposing of the property. Usufruct rights may be for life or a specific term, and they may be gratuitous or for consideration.

The usufructuary is responsible for paying property taxes and usage fees, including utility accounts for electricity, water, and heating, which may be registered in their name.

The usufructuary may also collect rent, lease payments, or other benefits from the property.

Exchange of Real Estate

Similar to a sale, an exchange is a bilateral contract where two parties mutually transfer ownership of real estate via a notarial deed. The same rules and required documents apply as for a sale. However, properties involved in the exchange may be located in different judicial districts, and a single notarial deed may include properties outside the notary’s judicial district. In such cases, the notary registers the deed in all relevant registration offices.

An exchange may involve additional payments if one property is more valuable than the other.

Voluntary Partition Agreement

Partitioning of real estate is almost always necessary when property is inherited by two or more heirs. Inherited property shared among heirs remains co-owned, with each heir holding an undivided share proportional to their inheritance.

A voluntary partition of real estate is conducted through a notary with a written agreement certified for signatures. This agreement is registered with the Property Registry. The participation of all heirs is mandatory, as stipulated in Article 75, para. 2 of the Inheritance Act. Failure to include all heirs renders the partition void.

Partition agreements are often used to divide property following a divorce or to allocate jointly acquired property during a marriage under the community property regime.

Partition agreements can be executed by any notary, regardless of jurisdiction, and may include both real estate and movable assets, such as vehicles, money, or other items.

Establishment of a Right to Build (Superficies)

This is a limited absolute property right that allows a person to construct and own a building on someone else’s land. It excludes the rebuttable presumption under Article 92 of the Property Act that the landowner is also the owner of the structures on the land.

Superficies creates a property encumbrance on the land. The landowner relinquishes their right to build on their property, granting this right to another person. When the structure is completed, the builder owns the building, and the granted right to build transforms into a right to retain the structure on the land.

The landowner retains ownership of the land, even after the structure is built. To avoid disadvantaging the landowner, compensation is often agreed upon, such as granting the landowner ownership of part of the newly constructed building.

Contractual and Statutory Mortgages

Statutory Mortgage:

Statutory mortgages are established during real estate sale transactions or partitions. For example, if the buyer has not fully paid the purchase price at the time of sale, the seller may request a statutory mortgage in the notarial deed, guaranteeing payment within a specified period.

A statutory mortgage can also be registered in favor of the seller or the buyer’s creditor bank.

Contractual Mortgage:

A contractual mortgage is executed in the form of a notarial deed in favor of a creditor under a loan agreement to secure repayment. Multiple mortgages may be registered on a single property, with each having a priority order based on the registration date.

Mortgages remain valid for ten years and can be renewed before expiration. If not renewed, a new mortgage registration is required, which then has priority based on the new registration date.

To register or renew a mortgage, the parties must provide the same documents as for a property sale. Consult the notary for advice and guidance in these cases.

Upon full repayment of the purchase price or debt, the creditor issues a consent form to cancel the mortgage registration. This document, notarized for signature, along with required documents, is submitted to the Property Registry to remove the mortgage record.

Аscertaining notarial deed

Аscertaining notarial deed for Certifying Ownership Rights over Real Estate Based on Documents or Acquisitive Prescription

These notarial deeds for certifying ownership rights are governed by Article 587 of the Civil Procedure Code.

If a property owner lacks a document proving their ownership, they can obtain such a document by presenting proper written evidence to the notary to establish their rights.

If the owner does not have sufficient evidence, the notary conducts an inquiry into the circumstances of acquiring ownership through prescription. This process involves interviewing three witnesses, designated by the mayor of the municipality, district, or local administration, or an authorized official within the jurisdiction where the real estate is located. The witnesses are selected based on the owner’s instructions and should preferably be neighbors of the property.

Based on the evidence collected under paragraphs 1 and 2, the notary issues a reasoned decision. If the ownership right is recognized, the notary issues a notarial deed certifying the applicant’s ownership of the real estate.