Why is it so much more important to trust a real estate lawyer than a real estate broker in Bulgaria
The participation of a real estate lawyer in the process of acquiring, transferring or disposing of real estate in Bulgaria has an essential legal significance that goes far beyond the intermediary functions of the broker. The lawyer exercises legal protection based on the current legislation and bears professional responsibility for the legality of each of his actions. This includes carrying out a full legal inspection of the property (so-called due diligence), which covers not only title but also registered encumbrances, property rights of third parties, imposed foreclosures, mortgages, litigation and compliance between the cadastral map and the land register.
The lawyer complies with the requirements of the Property Act, the Cadastre and Property Register Act, the Inheritance Act, the Obligations and Contracts Act and the Registry Regulations. It assesses the validity and opposability of transactions, draws up legally compliant contracts and opinions, observes the form provided for in Article 18 of the GDPR, as well as the formal and substantive prerequisites for valid acquisition of rights in rem.
The broker, on the other hand, does not have the legal authority to carry out legal analysis, is not legally liable and is not subject to regulatory regulation under the Law on Advocacy. Its activity is inherently commercial and does not provide protection in the legal sense of the concept.
Therefore, trusting a lawyer is not just a preference, but a justified legal necessity. Only through legal protection can it be guaranteed that the real estate transaction is legally secure, that the client's interests are protected and that his rights are realized in accordance with the current Bulgarian law.
Can't I check the property I liked to buy with the help of artificial intelligence? What do I need a lawyer for?
Artificial intelligence can provide access to public records, summary information and general guidelines, but it cannot replace the legal analysis that only a lawyer is competent to carry out. An inspection of a property made by an algorithm or an automated system does not involve the interpretation of legal facts, knowledge and correct application of legal theory, judgment of contradictions between acts, validity of previous transactions, the presence of hidden burdens or procedural obstacles. Such an assessment can only be made by a lawyer with legal capacity and experience in the field of real estate law.
For example, the system can record that there is no mortgage or foreclosure on the property, but it cannot determine whether a person claiming to be the owner has in fact lost his right due to a void transaction, the presence of a broken contract, a pending nullity lawsuit or an inheritance dispute. Nor can it verify whether the immovable property falls within the scope of restitution, subject to restrictions under the Spatial Planning Act or terrain with insurmountable factual burdens.
The lawyer does not just check — he interprets the law, compares legal norms with the specific circumstances and formulates an opinion with the force of legal protection. This opinion has evidentiary value and can be used before a notary, court and administrative authority. Artificial intelligence is not responsible for the consequences of its recommendations — the lawyer bears.
Therefore, artificial intelligence can assist the process, but it cannot replace the need for legal certainty that only a lawyer can guarantee.
What are the legal risks when buying and selling a property in Bulgaria? What is a null and void deal?
The legal risks when buying and selling real estate in Bulgaria are mainly related to the possibility that the transaction will be invalid — in whole or in part — and not give rise to the desired tangible action. Such risks arise in the event of formal vices, lack of representative power, simulativity, fraud, circumvention of the law or violated rights of third parties. The distinction between Nulland destructibleDeal is fundamental.
Nullis the transaction that is initially invalid — that is, it has no legal effect at all, as if it had not been concluded. The reasons may be: lack of form (for example, lack of notarization), simulativity (the parties aim to achieve one thing, but do another in order to circumvent the law - e.g. fictitiously conclude a purchase and sale in order to deprive the heir of an inheritance), contradiction with imperative norms of the law (e.g. transfer by a non-owner), lack of consent or of a legal subject. Such a transaction is not subject to confirmation and its inaction can be requested at any time by any interested party.
Destructibleis a transaction that is formally valid but concluded in the presence of a vice of will — fraud, violence, error, extreme necessity or manifestly unfavourable conditions. In contrast to nullity, annulment is subject to judicial challenge within a certain period of time — as a general rule 3 years from the knowledge of the vice. Until its explicit announcement by the court, this transaction produces action.
Among the common legal risks in real estate transactions are:
— transfer of property by a non-owner or by a person without a required representative power;
— a transaction with a property encumbered by a mortgage, foreclosure or other tangible encumbrances;
— disguised donation through a simulated purchase and sale contract;
— lack of consent from a spouse (Art. 26, para. 2 of the ZPD in conjunction with Art. 24, para. 4 of the SC);
— sale in the event of a pending lawsuit or collateral imposed;
— transfer of agricultural land in violation of legal capacity restrictions or circumvention of legal requirements (for example, for foreign individuals).
Each of these cases carries the risk of loss of rights, invalidity of the transaction and even restoration of the property in the patrimony of the previous owner. Only through a legal analysis carried out by a lawyer can it be ascertained whether the transaction is genuine, objectionable and not burdened with legal vices.
What does it mean that a transaction is “relatively invalid” to a third party?
The concept of “relative nullity” of a transaction vis-à-vis a third party means that the transaction between the parties is valid and generates action between them, but cannot be opposed to a specific third partywhose rights are affected or circumvented by this transaction. This is a form of third party protection, regulated in the Obligations and Contracts Act (Obligations and Contracts), in particular in the case of simulation, circumvention of the law, damage to a creditor, etc.
The most common hypotheses of relative invalidity are:
- Simulation (Art. 17 ZZD)— where the parties conceal the actual content of the transaction (for example, they conclude a purchase and sale contract, but in fact it is a donation), the third party may invoke the actual will of the parties if it adversely affects him.
- Action to the detriment of creditors (art. 135 ZZD)— where a debtor transfers property in order to reduce the creditor's ability to collect its claim, the creditor may challenge that transaction as relatively invalid in relation to itself (art. 135, para. 1). The transaction remains valid between the parties, but cannot oppose the transfer of the creditor's right, which can impose enforcement on the property as if there had been no transfer.
- Transfer of property with previously recorded encumbrances— the purchaser of a transaction cannot oppose a foreclosure, mortgage or statement of claim filed prior to its acquisition. Then the effect of the transaction is preserved between the parties, but not in relation to the third party, whose right was registered earlier.
Therefore, 'relative invalidity' is a remedy for third parties whose rights would have been circumvented or damaged by a seemingly regular transaction. This concept differs from absolute nullity, in which the transaction is null and void in relation to all.
Except in the case of simulation, damage to creditors or recorded encumbrances, the relative invalidity of the transaction may also occur in transfer of property — matrimonial property community (SIC)when the transferring spouse acts without the knowledge and consent of the other. In such cases, the transaction is valid between the parties, but does not give rise to a transferable action against the dissenting spouse, who may challenge it on the basis of Article 24, paragraph 4 of the Family Code.
Where immovable property is acquired during the marriage by means of a transaction for consideration, it is presumed to fall under the SIO regime, unless there is an explicit separation agreement or the acquisition is by means excluded by law from the community (e.g. inheritance, donation, personal funds in a proven manner). If one of the spouses independently disposes of such property, without the written consent of the other, the transaction is subject to relative invalidity in relation to it. That is, the spouse can challenge the transaction within a three-month period of knowledge (Art. 24, para. 4 SC in v. with art. 135, para. 1 ZZD), and if he did not know — within one year of the registration.
In legal practice, this qualifies as a hypothesis of circumvention of the right of co-ownershipof the other husband. The court may declare the transaction relatively invalid in relation to that spouse and order the annulment or enforceability of his rights to the property.
Other possible cases of relative invalidity are:
— transfer of property to a related person in order to avoid judicial enforcement;
— sale of property on which an inheritance claim has been filed, without notifying the co-owners;
— an exchange or donation which effectively conceals a transaction for consideration in order to avoid tax or legal consequences.
It is important to emphasize that, if a relative invalidity is established, the whole transaction is not canceledand only its effect in relation to the specific third party. This is a delicate balance between the principle of freedom of contract and the protection of the legitimate rights of third parties affected by it. In all such cases, legal protection is carried out by judicial order, requiring the active intervention of a lawyer in rem law.
What are the most common property scams and how to protect yourself from them?
The most common property frauds in Bulgaria are realized by circumventing or violating the requirements of property and bond law, and the risks are highest in transactions without a lawyer's supervision and without verification in the Land Registry and Cadastre. These frauds are usually not revealed through a simple “examination of documents”, but through legal expertise, which includes checking the legal basis, the validity of previous acts and the status of the parties.
The main schemes include:
- Sale by a non-owner— when a person transfers property to which he does not have the legally required right. This happens when using false powers of attorney, written-off owners, or when bypassing heirs. The transaction is void due to lack of title and can be challenged at any time.
- Disposal of real estate representing SIO, without the consent of the spouse— pursuant to Article 24 (3) and (4) of the Family Code, the disposition of property — a matrimonial property community, without the express consent of the other spouse is relatively invalid in relation to him or her. Such a spouse can file a lawsuit and challenge the transaction.
- Concealment of weights— sale of property with a registered foreclosure, mortgage, lawsuit or property rights to third parties. If the buyer does not carry out an inspection by lot in the Property Register and does not match with the cadastral map, he acquires a property with encumbered property and cannot oppose his right to the encumbered encumbrances (art. 113 OZ).
- Fake documents— use of forged notarial deeds, certificates of heirs, powers of attorney or identity cards. This leads to the absolute nullity of the transaction and the impossibility of acquiring the right of ownership.
- Selling with disguised vices of title— for example, where the right of ownership is based on a contract to be destroyed (e.g. concluded in the event of fraud or threat) or where the seller acquired the property on the basis of a void deed. These vices are not visible to the buyer, but can lead to the cancellation of the transfer retroactively.
- Hereditary disputes— transactions with inherited property without the consent of all co-heirs or with the exclusion of one of them. The buyer acquires a partial or disputable right, which may be the subject of a claim under Art. 30 ZN.
Precautions:
— Verification of the legal basis for ownership (not only the last act, but also the previous ones);
— Certificate of encumbrances from the Land Registry to the Registry Agency, issued on the day of the transaction;
— Verification of registered claims, foreclosures, mortgages and contracts under art. 112 ZH;
— Verification in the cadastre for identity and status of the property;
— Establishing the marital status and the applicable property regime of the owner;
— Preparation or review of the contract by a lawyer in real estate;
— Complete abstinence from payment of the caparo without prior legal verification.
Only a lawyer familiar with the system of registrations, property restrictions and judicial practice can guarantee real protection against these risks.
My broker wants an advance payment for the Bulgarian property deal and says that if I don't pay it, he won't take the property off sale! What do I do?
My real estate broker insists on an advance payment for a property in Bulgaria and claims that, without it, the property will not be taken off the market. Situations like this are common in practice, but they are not based on a legal requirement, rather on commercial and psychological pressure aimed at creating urgency and fear of losing a “unique opportunity” 🏠⚠️. Bulgarian law does not recognise any obligation for a buyer to pay money simply because a broker has advertised a property or arranged a viewing.
In most cases, such advance payments are requested to protect the broker’s own interest, typically to secure part of a future commission, even though no binding legal relationship has yet been created. These payments are often requested without a properly drafted contract, without clear terms, and without legal safeguards for the buyer. As a result, the paid amount remains outside effective legal protection and exposes the buyer to a significant financial risk.
Under Bulgarian law, any amount paid before the final notarial transfer has legal consequences only if it is expressly regulated in a written preliminary contract. According to Art. 19, para. 1 of the Obligations and Contracts Act, a preliminary contract binds the parties to conclude a final contract under agreed conditions. Furthermore, for an advance payment to qualify as a legally recognised earnest money (deposit), it must be explicitly agreed as such under Art. 93 of the Obligations and Contracts Act, which provides that if the party who gave the deposit is in default, the deposit is forfeited, and if the party who received it is in default, it must be returned in double amount. Without such explicit qualification, the payment does not automatically create rights, penalties, or guarantees for the buyer.
When money is paid without a valid contractual basis and the transaction does not proceed, recovery is extremely difficult. In theory, repayment may be sought on the grounds of unjust enrichment under Art. 55 of the Obligations and Contracts Act, but in practice such claims are complex, evidence-heavy, and uncertain ⚖️. Many buyers ultimately lose these amounts, especially when the deal fails due to the seller’s or broker’s conduct rather than their own.
What to do
Do not pay any amount without a signed preliminary contract that clearly regulates the purpose of the payment, deadlines, penalties, and consequences in case of default. Insist on a legal review of the title documents and a certificate of encumbrances before making any financial commitment, as this is a basic buyer’s right and a prerequisite for any informed decision. Engage a lawyer to draft or review the preliminary contract, as only this document can validly regulate a deposit, instalment, or reservation payment and provide enforceable protection. If you have already paid an amount without signing a contract, seek legal advice immediately to assess whether recovery is possible and what procedural steps can be taken.
In conclusion, no amount should ever be paid on the basis of verbal assurances, market pressure, or statements such as “there are other buyers” or “the property will be gone tomorrow”. These are commercial tactics, not legal facts. A real estate transaction in Bulgaria should be legally structured, transparent, and secure, not rushed through psychological pressure. BSLC provides full legal protection to its clients, eliminating the risks associated with speculative practices and ensuring that every property deal is concluded in a lawful and orderly manner 🔒.
Are you afraid of the honesty of sellers and realtors? Trust BSLC
Are you concerned about the reliability of sellers and real estate agents? In the Bulgarian property market, such concerns are not only understandable—they are often well-founded. Buyers frequently face unclear intentions, incomplete disclosure, hidden encumbrances, or misleading information, especially when communication is handled primarily by brokers who bear no legal responsibility for the consequences of the transaction. The lack of strict regulation of brokerage activity, the absence of a general duty of full transparency, and the commercial incentive to close a deal “at any cost” can place buyers in a legally vulnerable position.
BSLC provides exactly what is missing from many standard real estate transactions: independent legal protection, objectivity, and in-depth legal analysis. We do not act as intermediaries—we verify, assess, and protect. Our lawyers conduct comprehensive legal due diligence of the property, identify hidden encumbrances and risks, analyse the full ownership history, cross-check information from the Property Register, the Cadastre, and court records, and ensure legal clarity at every stage—from the preliminary contract to the final notarial deed.
If you have doubts about the statements made by a seller or broker, you are under no obligation to rely on them. You are entitled to independent legal advice and effective protection of your interests. By trusting BSLC, you ensure that your transaction is genuinely secure, transparent, and legally sound—not part of someone else’s scheme.
.svg)
.svg)
.svg)
.webp)
