Common pitfalls when purchasing property in Bulgaria as a UK or US buyer

Civil law vs common law foundations

Bulgarian property law is rooted in the civil law tradition, where ownership is treated as a real right with direct effect over the property itself, while UK and US systems follow common law logic, where ownership is more closely tied to title, registration, and procedural safeguards. This foundational difference explains why documents, registers, and even possession are understood and weighted differently across systems, and why foreign buyers often misinterpret what they are actually acquiring in Bulgaria.

In civil law jurisdictions such as Bulgaria, property law focuses on substantive rights and how they arise, change, or extinguish under the law. In common law jurisdictions, the focus is more heavily placed on title, record systems, and procedural certainty, which leads to different risk profiles even when transactions appear similar on the surface.

Why Bulgarian ownership is a real right, not a registered status

In Bulgaria, ownership exists independently of registration as a legal fact that arises from specific legal grounds, such as a valid transfer, inheritance, or acquisitive prescription. Registration does not create ownership; it makes the ownership opposable to third parties and publicly visible. This means that a person may legally be the owner even if the register has not yet been updated, or conversely, a person shown as owner in the register may later be displaced by someone who proves a stronger substantive right.

This approach is unfamiliar to UK and US buyers, who are accustomed to systems where the register itself plays a constitutive or quasi-guaranteeing role. In Bulgaria, the register reflects legal reality but does not define it exhaustively, which is why courts are willing to look beyond documents and examine how ownership actually arose.

How common law thinking misreads civil law property concepts

Foreign buyers often apply common law assumptions to Bulgarian transactions, expecting that a clean register extract or a notarised deed functions like registered title in England or recorded title backed by title insurance in the US. This can lead to a false sense of security, because civil law systems allow ownership disputes to turn on factors such as possession, good faith, and the underlying legal ground for acquisition.

Common law thinking tends to equate formality with certainty, while civil law places greater emphasis on material legal facts. When these mental models collide, buyers may overlook risks that are invisible in paperwork alone, such as long-term possession by a third party or defects in a prior transfer that registration did not cure. Understanding this conceptual gap is essential before assessing any specific Bulgarian property deal.

How ownership is acquired in Bulgaria

Bulgarian property law treats ownership as a substantive legal reality, not as a status granted by an authority or produced by registration. This approach is expressly reflected in art. 77 of the Property Act (ЗС), which provides that the right of ownership is acquired on legal grounds recognised by law, such as legal transactions, prescription, inheritance, and other statutory methods. The law therefore starts from the question why and how ownership arises, and only afterwards addresses how that ownership is made visible to third parties.

This logic is often counter-intuitive for UK and US buyers, because common law systems tend to anchor ownership more tightly to procedural milestones such as completion, registration, or recording. In Bulgaria, by contrast, ownership may exist fully and validly before any registration has taken place, and in some cases even without any formal document having initially created it.

When ownership arises before paperwork exists

Under Bulgarian law, ownership arises at the moment the legal ground is completed, not when the ownership is later documented or entered in the register. This is most clearly seen in three core acquisition mechanisms.

First, in contractual transfers, the decisive moment is the execution of the notarial deed. Art. 18 of the Obligations and Contracts Act (ЗЗД) requires that contracts transferring or creating real rights over immovable property be concluded in the form of a notarial deed, and provides that failure to observe this form leads to invalidity. When the deed is validly executed, ownership is transferred at that moment as a matter of property law. Registration does not create the ownership; it merely follows it.

Second, in inheritance, ownership arises automatically at the moment of death under the law of succession. Heirs become owners by operation of law, regardless of whether they have yet produced inheritance certificates, updated cadastral records, or registered their rights. These later steps serve evidentiary and opposability purposes but do not create the right itself.

Third, and most striking for foreign buyers, ownership may arise through acquisitive prescription. Under art. 79, para. 1 and 2 ZС, a person who has possessed an immovable property uninterruptedly for ten years, or for five years if the possession is in good faith and based on a legal ground capable of transferring ownership, acquires ownership by law. No court decision and no notarial act are required to “bring ownership into existence.” The legal fact giving rise to ownership is the expiry of the statutory period combined with qualifying possession.

This is why Bulgarian law can recognise ownership that is not yet reflected in any document, and why reliance solely on paperwork can be misleading.

Why contracts and ownership are legally distinct moments

A key civil law principle, often unfamiliar to common law lawyers, is the distinction between the obligational relationship and the right in rem  effect. Even when both are contained in the same notarial deed, Bulgarian law treats them as conceptually separate.

The contract records the parties’ agreement to transfer ownership, while the right in rem effect is the legal consequence recognised by property law. This distinction has important consequences. A contract that is invalid due to lack of form under art. 18 ЗЗД cannot transfer ownership, even if it is later registered. Conversely, a validly executed notarial deed transfers ownership even if registration is delayed.

Registration itself is regulated by the Rules on Entries. Art. 1 of the Rules on Entries defines entry as giving publicity to acts subject to registration, and art. 2 makes clear that only acts expressly listed by law are entered. Nowhere does the regulation state that entry creates ownership. Its legal function is to make the right opposable to third parties, not to constitute it.

This explains why Bulgarian courts consistently examine the legal ground behind ownership claims rather than relying exclusively on the register. A person shown as owner in the register may still lose a dispute if another party proves a stronger substantive right, such as ownership acquired by prescription.

For foreign buyers, the practical implication is crucial. Due diligence in Bulgaria cannot stop at verifying what is written in the register or who appears as owner on paper. It must also assess whether the ownership shown there rests on a valid and uncontested legal ground, and whether there are facts, such as long-term possession by another person, that could undermine it.

The role of the notary in property transactions

In Bulgaria, the notary plays a central but often misunderstood role in real estate transactions. For foreign buyers, especially those familiar with UK solicitors or US closing attorneys, the presence of a notary can create a false sense of security. Bulgarian law assigns the notary an important formal and preventive function, but the notary is not a guarantor of ownership, nor a substitute for full legal due diligence.

The notary’s role is defined by substantive civil law and procedural rules, and understanding its exact limits is essential to avoiding incorrect assumptions about what has been verified and what has not.

What a Bulgarian notary actually verifies

Under Bulgarian law, a notarial deed is required for the transfer or creation of real rights over immovable property. This requirement follows directly from art. 18 of the Obligations and Contracts Act (ЗЗД), which makes the notarial form a condition for the validity of such contracts. Without it, no ownership can be transferred.

In performing the notarisation, the notary verifies a limited but legally important set of elements, including:

• the identity and legal capacity of the parties
• the declared will of the parties to enter into the transaction
• the formal title documents presented by the transferor
• the existence of required documents, such as tax certificates and cadastral identifiers

The notary also checks whether the act is legally admissible on its face and whether the statutory form requirements are met. This preventive control aims to exclude manifestly unlawful or formally defective transactions, not to investigate the full ownership history of the property.

Crucially, the notary relies on presented documents and official registers, rather than conducting an independent factual investigation into possession, hidden claims, or long-term use of the property by third parties.

Why notarisation does not cure ownership defects

A common misconception among foreign buyers is that a notarised deed confirms that the seller is the true owner in a substantive sense. Bulgarian law does not support this assumption.

The notarial deed confirms that the parties have validly expressed their will in the required form. It does not guarantee that the seller’s ownership is immune from challenge. If the seller’s title is defective, derived from an invalid transaction, or overridden by a stronger legal ground, the notarisation itself does not “repair” that defect.

This follows from the civil law principle that a person cannot transfer more rights than they have. Even though this principle is not stated in a single codified provision, it underlies the entire structure of Bulgarian property law and is consistently applied by courts when resolving ownership disputes.

In practical terms, this means that:

• a notarised deed cannot defeat ownership acquired earlier by acquisitive prescription under art. 79 ЗС
• registration of a notarised deed cannot cure invalidity of the underlying legal ground
• later buyers may be exposed to disputes despite having a formally perfect notarial act

The Rules on Entries reinforce this logic. Art. 1 of the Rules on Entries defines entry as a publicity measure, while art. 4 lists acts subject to entry, including notarial deeds. Nowhere is entry described as conferring ownership or guaranteeing title. Its function is to make acts visible and opposable, not to validate them substantively.

For foreign buyers, the key takeaway is that notarisation in Bulgaria should be understood as a formal gateway, not as a comprehensive legal audit. It is a necessary condition for transferring ownership, but never a sufficient guarantee of undisputed title.

Registration and the property register

Registration of real estate rights in Bulgaria is one of the areas where foreign buyers most often project UK or US expectations onto a system that works on fundamentally different principles. Bulgarian law operates a publicity-based registration regime, not a title-by-registration system. This distinction is critical, because registration does not create ownership, does not guarantee title, and does not eliminate the possibility of competing real rights.

Understanding what registration does — and just as importantly, what it does not do — is essential for assessing real ownership risk in Bulgarian property transactions.

What registration proves and what it does not

The legal nature of registration is defined in the Rules on Entries (Правилник за вписванията). Art. 1 expressly states that entry consists in giving publicity to acts subject to registration, while art. 2 clarifies that entry, notation, and deletion are permitted only in cases expressly provided by law. These provisions make clear that registration serves an informational and opposability function rather than a constitutive one.

In practical terms, registration proves that:

• a specific act exists and has been executed in the required form
• the act is publicly disclosed and opposable to third parties
• later acquirers are deemed aware of the registered act

At the same time, registration does not prove that:

• the registered owner has an incontestable right of ownership
• the legal ground behind the act is valid and unchallengeable
• no third party has already acquired ownership through another legal mechanism

This is why Bulgarian courts do not treat the register as conclusive evidence of ownership, but rather as one element in determining who holds the stronger substantive right.

Why registration is publicity, not title insurance

Unlike England & Wales, where registration vests legal title in the registered proprietor under the Land Registration Act 2002, Bulgarian law deliberately avoids granting such constitutive effect to the register. The system assumes that legal reality exists independently of registration, and that the register reflects — but does not define — that reality.

This approach explains several features that surprise foreign buyers:

• ownership acquired by inheritance arises at the moment of accepting the inheritance, even accepting it with implied actions.
• ownership acquired by acquisitive prescription under art. 79 ЗС exists even before it is recognised in a court decision or declaratory notarial deed
• registration of a defective or invalid act does not “heal” the defect

In Bulgaria, art. 4 of the Rules on Entries (Правилник за вписванията) lists the acts that are subject to registration. Alongside classic transfer acts such as notarial deeds for sale, donation, or exchange, the provision also includes acts recognising ownership. Among these are declaratory notarial deeds issued after an “обстоятелствена проверка”, which is usually translated as a circumstantial check or fact-finding verification performed by a notary.

The Bulgarian term обстоятелствена проверка does not mean that the notary “creates” ownership or decides who the owner is in a constitutive sense. Instead, it is a formal procedure in which the notary collects and evaluates evidence about facts that have already occurred, most commonly long-term possession. The notary may hear witnesses, review documents, and assess whether the statutory requirements for acquisitive prescription under art. 79 ZС appear to be met. If the notary is satisfied, they issue a declaratory notarial deed (констативен нотариален акт), which states that, based on the established facts, the person has acquired ownership.

The key point is the legal nature of this act. A declaratory notarial deed does not create ownership. It merely recognises and documents an ownership right that has already arisen by operation of law. The ownership itself arises from the expiry of the statutory prescription period combined with qualifying possession, not from the notary’s act and not from its registration.

This is precisely why art. 4 of the Rules on Entries is so revealing. If Bulgarian law required registration in order to create ownership, there would be no logical need to register acts that merely recognise ownership. The fact that both:

• acts that transfer ownership, and
• acts that merely acknowledge pre-existing ownership,

are entered into the register shows that registration is conceptually downstream from ownership, not the source of it.

This logic is very different from common law systems.

In England and Wales, the Land Register has a constitutive effect for registered land. Registration vests legal title in the registered proprietor, and adverse possession after 2002 requires a structured application process to HM Land Registry before ownership can change. There is no equivalent of a notary issuing a declaratory act based on factual possession; the registrar’s decision is what ultimately changes the register and the title.

In the United States, while adverse possession exists, ownership is typically confirmed through a court judgment and then reflected in the recording system. Recording statutes govern priority and notice, but again there is no notarial mechanism equivalent to the Bulgarian declaratory notarial deed. The recognition of ownership flows from judicial determination, not from a preventive civil law authority.

Bulgaria therefore occupies a distinct position. Ownership may arise without any authority “granting” it, through facts recognised by law. The notary, through an обстоятелствена проверка, and the register, through entry under art. 4 of the Rules on Entries, merely provide official recognition and publicity of a legal reality that already exists.

For foreign buyers accustomed to title insurance in the US or register-backed title in the UK, this can feel unsettling. In Bulgaria, the system shifts the focus away from institutional guarantees and towards substantive legal analysis, factual history, and risk assessment.

The practical consequence is that a “clean” register extract is necessary but never sufficient. Proper due diligence must also examine:

• how the seller acquired ownership
• whether possession has been exercised by third parties
• whether prescription periods may already have run
• whether prior transfers were legally valid

Only by combining register review with substantive legal analysis can buyers approach the level of certainty they expect from common law systems.

Acquisitive prescription in Bulgarian law

Acquisitive prescription is one of the most conceptually difficult but practically important institutions for foreign buyers to understand, because it allows ownership of real estate to arise without a contract, without registration, and without an initial court decision. Bulgarian law treats prescription as a material legal mechanism, not as a procedural remedy, which is why it operates quietly in the background and can surface only when a dispute arises.

The statutory basis is found in art. 79, para. 1 and 2 of the Property Act (ЗС), which provides that ownership of immovable property is acquired through uninterrupted possession for ten years, or for five years when the possession is in good faith and based on a legal ground capable of transferring ownership. The provision does not require any intervention by a court or notary for the ownership to arise.

How possession quietly turns into ownership

Under Bulgarian law, the decisive factor is possession, not paperwork. Possession is defined in art. 68, para. 1 ЗС as the exercise of factual control over a thing as one’s own, combined with the intention to hold it as owner. The law further establishes a presumption in art. 69 ЗС that the possessor holds the property for themselves, unless proven otherwise.

When such possession is:

• continuous and uninterrupted,
• public and not hidden,
• exercised as ownership rather than on behalf of another,

the passage of time alone completes the factual composition required by art. 79 ЗС. At that point, ownership arises by operation of law. There is no moment of “granting” ownership; there is only the moment when the statutory period expires while all legal conditions are present.

This is why prescription is often invisible to third parties. A person may continue to appear as a mere possessor for years, while legally accumulating the elements that will later allow them to assert ownership. Until the issue is raised, nothing in the register necessarily signals that ownership has already shifted at the level of substantive law.

Why ownership by prescription does not need a court first

A critical point for foreign buyers is that Bulgarian law does not require a court judgment or a notarial act for ownership by prescription to come into existence. The ownership arises independently of any authority’s recognition.

This principle has been clarified by the Supreme Court of Cassation in Interpretative Decision No. 4/2012 of the General Assembly of the Civil Chamber, which explains that the expiry of the prescription period combined with qualifying possession is sufficient for ownership to arise under art. 79 ЗС. The decision further clarifies that courts and notaries cannot apply acquisitive prescription ex officio, meaning on their own initiative, but this does not mean that ownership does not already exist.

In practice, this leads to an important distinction:

• material ownership arises automatically when the statutory conditions are met,
• procedural recognition occurs only when the possessor invokes prescription, for example by filing a claim, raising it as a defence, or seeking a declaratory notarial deed after an обстоятелствена проверка.

The declaratory act or court judgment does not create ownership; it merely confirms and formalises a legal reality that already exists. This is fundamentally different from UK and US systems, where adverse possession typically requires a procedural step before ownership changes are recognised in the title system.

For foreign buyers, the practical consequence is significant. A person shown as owner in the register may have already lost ownership at the substantive law level, even though no court decision has yet been issued and no register entry reflects the change. This is why acquisitive prescription represents one of the most underestimated risks in Bulgarian real estate transactions, and why possession history must be taken seriously during due diligence.

Adverse possession compared to Bulgaria

Although the terms acquisitive prescription and adverse possession are often treated as equivalents in cross-border discussions, they operate on very different legal logics. Bulgarian law treats prescription as a substantive mode of acquiring ownership, while UK and US systems treat adverse possession primarily as a procedural pathway that must be completed before ownership is fully recognised. This difference has major practical consequences for foreign buyers assessing risk.

Why UK adverse possession depends on procedure

In England and Wales, adverse possession exists, but it is deliberately constrained by the structure of the land registration system. For registered land, ownership does not quietly pass simply because time has elapsed. Instead, the possessor must follow a statutory application procedure to the Land Registry.

After the relevant period of adverse possession, the possessor may apply to be registered as proprietor. Crucially, the registered owner is notified and given the opportunity to object. In most cases, the registered owner can prevent the transfer of title simply by taking timely steps to recover possession. Only in narrowly defined situations does the possessor ultimately succeed despite an objection.

This procedural design reflects a policy choice: the UK system prioritises stability of the register and protection of registered title holders over silent shifts in ownership. Adverse possession therefore operates as an exceptional corrective mechanism, not as an automatic ownership engine.

This is fundamentally different from Bulgaria, where:

• ownership arises at the expiry of the statutory period under art. 79 ЗС,
• no notification to the registered owner is required for ownership to arise,
• procedural steps serve only to confirm, not to create, the ownership right.

For UK buyers, the key misunderstanding is assuming that long possession in Bulgaria merely creates a right to apply for ownership. In reality, Bulgarian law treats it as having already produced ownership at the material law level.

How US limitation rules differ state by state

In the United States, adverse possession is even more fragmented, because property law is largely governed at state level. While the core idea is similar across jurisdictions, the requirements, limitation periods, and evidentiary thresholds vary significantly from state to state.

Common elements typically include possession that is open, notorious, continuous, exclusive, and hostile for the statutory period. However, the legal consequences are shaped by each state’s limitation statutes and court practice. In many states, ownership through adverse possession becomes practically effective only after a court judgment confirms it, and recording that judgment is what aligns the legal reality with the public record.

The US system therefore tends to operate through:

• judicial confirmation as the decisive moment,
• recording as a reflection of a court-established right,
• widespread reliance on title insurance to manage residual risk.

This stands in sharp contrast to Bulgaria, where ownership by prescription may exist long before any court or notary becomes involved, and where there is no equivalent of title insurance to absorb uncertainty.

For foreign buyers accustomed to UK or US logic, the danger lies in assuming that Bulgarian prescription is merely an incomplete or inchoate right until formally recognised. In Bulgarian law, the opposite is true: the right is complete once the statutory conditions are met, and formal recognition comes later, if and when the issue is raised.

Good faith and bad faith possession

One of the most important distinctions within Bulgarian acquisitive prescription, and one that foreign buyers often misunderstand, is the difference between good faith possession and bad faith possession. This distinction directly affects how long possession must last before ownership is acquired and explains why some prescription claims mature much faster than others.

Bulgarian law does not treat good faith as a vague moral concept or a subjective belief. It is a strictly legal qualification, defined by statute and assessed against objective criteria.

What “good faith” legally means in Bulgaria

Good faith possession is defined in art. 70, para. 1 of the Property Act (ЗС). A possessor is considered in good faith when they possess the property on the basis of a legal ground capable of transferring ownership, without knowing that the transferor was not the owner or that the required legal form was defective.

Several elements follow directly from this definition.

First, good faith requires a legal ground (правно основание). This typically means a contract such as a sale, exchange, or donation that, if executed by the true owner and in the proper form, would have transferred ownership. Mere factual occupation or informal arrangements can never give rise to good faith possession.

Second, the possessor must lack knowledge of the defect. The test is not whether the person hoped or assumed they were the owner, but whether, at the moment possession began, they did not know and could not reasonably know that the transferor lacked ownership or that the form was invalid.

Third, good faith is assessed at the moment possession begins. Later discovery of defects does not retroactively destroy good faith for the purposes of prescription, provided the initial requirements were met.

When these conditions are satisfied, ownership may be acquired after five years of uninterrupted possession under art. 79, para. 2 ЗС, rather than the general ten-year period.

Why belief alone is not enough

Foreign buyers often assume that honest belief or lack of intent to act unlawfully is sufficient to establish good faith. Bulgarian law expressly rejects this approach.

Subjective belief, even if sincere, is irrelevant unless it is anchored in a legally valid-looking transaction. For example:

• possession based on an informal agreement without notarial form cannot be good faith
• possession based on tolerance or permission from another person cannot be good faith
• possession taken with awareness of ownership uncertainty cannot be good faith

This strict approach reflects the civil law emphasis on legal structure over personal perception. Good faith is not about fairness in the abstract; it is about whether the possessor entered into possession through a legally recognisable pathway.

For foreign buyers, this distinction has two practical consequences. First, it explains why some prescription claims succeed after five years while others require ten. Second, it highlights why defective transactions, even if notarised later or registered, may still expose buyers to prescription-based challenges if possession history is ignored.

Understanding how Bulgarian law draws the line between good faith and bad faith possession is essential before assessing any property where third parties have used, occupied, or controlled the land or building over time.

Practical advice before signing a property deal in Bulgaria

The differences outlined above are not merely theoretical. They require foreign buyers to adjust how they approach risk, timing, and verification in Bulgarian transactions. Practical protection comes not from relying on a single document or authority, but from combining legal analysis with factual checks tailored to the Bulgarian system.

Do not rely on registration or notarisation alone

A notarised deed and a clean Property Register extract are mandatory starting points, but they should never be treated as final confirmation of safe ownership. As explained, registration under the Rules on Entries provides publicity, not a guarantee of title, and notarisation under art. 18 ЗЗД confirms form and consent, not substantive ownership security.

Foreign buyers should treat these documents as evidence to be tested, not as conclusive proof.

Investigate possession, not just ownership history

Before signing, it is essential to understand who has actually used, controlled, or occupied the property and for how long. This includes land, buildings, parts of buildings, and even common areas.

Practical checks should include:

• physical inspection of the property and surrounding area
• inquiries with neighbours or adjacent owners
• review of utility usage, access patterns, and visible improvements
• confirmation that no third party exercises exclusive control

These steps help identify potential acquisitive prescription risks under art. 79 ЗС, which will never appear directly in the register.

Be cautious with inherited and long-held properties

Properties acquired through inheritance or held within families for long periods often carry hidden legal and factual complexities. Ownership may have passed automatically at death, while possession may have shifted informally over time among relatives or third parties.

Such properties require enhanced scrutiny because:

• registration updates may lag behind legal reality
• possession may not align with registered ownership
• family arrangements may never have been formalised

In these cases, documentary clarity does not necessarily equal legal certainty.

Treat vacant land and unused buildings as higher-risk assets

Vacant plots and unused buildings are especially vulnerable to prescription-based claims, because long-term possession can occur without the owner’s active awareness.

Foreign buyers should assume that:

• lack of visible activity by the owner increases prescription risk
• fencing, cultivation, or informal use may already qualify as possession
• absence of disputes does not mean absence of legal exposure

Additional factual investigation is essential in these scenarios.

Involve local legal counsel early, not at the signing stage

One of the most common mistakes foreign buyers make is involving a Bulgarian lawyer only at the notarial signing stage, when options are already limited.

Effective risk management requires legal input:

• before price negotiations are finalised
• before deposits or preliminary agreements are signed
• before relying on assurances given by sellers or intermediaries

Local legal counsel can interpret possession patterns, assess prescription risk, and structure contractual protections that reflect Bulgarian law rather than common law expectations.

Adjust expectations shaped by UK or US practice

Finally, foreign buyers should consciously adjust assumptions formed in common law systems. In Bulgaria:

• ownership is a substantive right, not a registered status
• time and possession can outweigh paperwork
• legal certainty is achieved through analysis, not insurance

Approaching a Bulgarian transaction with UK or US mental models is one of the fastest ways to misunderstand risk. Approaching it on Bulgarian legal terms is the most reliable way to protect your investment.