Voluntary division of property between co-owners in Bulgaria

Imagine the following situation - three heirs inherit a family house in Bulgaria. One of them lives abroad and has no practical access to the property, the second occupies it without the consent of the others, and the third insists on receiving a financial equivalent instead of a physical share. Or former spouses who acquired real estate as part of a marital community wish to divide the property after divorce, but want to avoid court proceedings. It is precisely in such real-life scenarios that the need for voluntary partition (voluntary division) of real estate in Bulgaria arises — a legal mechanism that can prevent years of litigation, high legal costs, and serious personal conflict.

The topic of a voluntary partition agreement is closely connected to a number of practical questions that frequently arise in practice: What does it cost to prepare a voluntary partition agreement? What fees apply for registration? Is there a standard template and can it be safely used? What is the role of a preliminary agreement for voluntary partition? And most importantly — how can nullity of the agreement be avoided by strictly complying with statutory requirements and the applicable notarial form?

In this guide, we examine in detail the legal framework under Art. 34 of the Bulgarian Ownership Act, Art. 18 of the Obligations and Contracts Act (concerning form requirements), as well as the registration procedures before the Property Register under the Cadastre and Property Register Act and the Regulations on Registrations. We also address the specific features of voluntary partition between heirs, including limitation issues and legal consequences, and explain the role of the notary when certifying a voluntary partition agreement.

The BSLC team provides full legal assistance in drafting, reviewing, and registering voluntary partition agreements — from initial consultation and preparation of a tailored legal structure, to notarial coordination and registration support. Our approach combines strong doctrinal expertise with practical risk prevention, ensuring that clients are protected not only formally, but in substance as well. Because voluntary partition is not just paperwork — it is a way to organise property rights and preserve relationships ⚖️.

⚠️ Important warning
Before deciding that a “free consultation” with a notary is sufficient when preparing a voluntary partition agreement, it is essential to understand the following: notaries in Bulgaria are not attorneys. They do not have a general obligation to examine the transaction in all its legal aspects — including whether it is null, voidable, relatively invalid, or subject to pending invalidity. Bulgarian court practice contains numerous cases in which notaries have been held liable for damages after certifying legally defective voluntary partition agreements. Even a notarised agreement prepared using a standard template does not automatically guarantee legal validity. If the agreement contains substantive defects, it may be declared null or challenged in court.

What is voluntary partition of real estate under Bulgarian law?

A voluntary partition agreement is a multilateral legal transaction concluded between co-owners, through which existing co-ownership over a property is terminated and each party acquires exclusive ownership over a specifically determined asset or part thereof, pursuant to Art. 34(1) of the Ownership Act. In practical terms, this means that instead of owning “ideal shares” jointly, after the agreement each party becomes the sole owner of a clearly identified property or portion, with full disposal rights 🏠.

Under Art. 18(2) of the Obligations and Contracts Act, a voluntary partition agreement involving immovable property must be in writing with notarised signatures, but does not require a notarial deed. This distinguishes it from a sale or donation, which must be executed in full notarial form. Voluntary partition has constitutive effect, meaning that the agreement itself creates the new ownership structure and transfers rights between the parties.

The key advantage of voluntary partition is that it avoids judicial proceedings and the associated costs, delays, and uncertainty. In a typical inheritance scenario, for example, heirs can quickly and consensually decide who receives a specific apartment, land plot, or financial compensation, without resorting to court litigation.

The cost of preparing such an agreement includes notarial fees, registration fees before the Property Register, legal drafting fees, and potential tax implications depending on the structure of the partition. These costs are calculated based on the market value of the properties involved. At BSLC, we provide a detailed cost breakdown before any document is signed.

It is crucial to emphasise that if not all co-owners participate, the voluntary partition is null and void under Art. 26(2) of the Obligations and Contracts Act — meaning it produces no legal effects whatsoever. Additionally, if a participant is later judicially evicted from the property (for example due to a pending ownership claim), they may seek compensation from the other parties under Art. 73 of the Inheritance Act.

BSLC provides end-to-end legal services for voluntary partition agreements — from ownership analysis and document review, through drafting and coordination, to registration and post-transaction protection 📑.

What happens if the partition concerns a single property that must be divided into several separate parts?

Dividing a single immovable property into multiple independent units — whether through voluntary or judicial partition — is a complex process combining property law with urban-planning and technical regulations. Whether real division is possible depends on the legal status of the property (regulated or non-regulated land), applicable zoning rules, and the rights of the co-owners or heirs.

Under Art. 201(1)–(2) of the Spatial Development Act, when a regulated land plot (UPI) is subject to judicial partition, the court must obtain an opinion from the municipality’s chief architect regarding divisibility. This opinion is not required if the parties agree to allocate the entire property to one party with financial equalisation, or if the property is objectively indivisible due to size or frontage limitations.

Real division in kind is permitted only if new plots meeting minimum requirements can be created. Under Art. 19(1) SDA, for urban areas this generally requires at least 14 metres of frontage and 300 sq.m. of area, with variations for resort, villa, or rural zones. Art. 19(3) SDA allows limited reductions (up to one-fifth) subject to municipal approval.

If divisibility is confirmed, the court may require the parties to submit a project for amendment of the detailed development plan (PUP) under Art. 134(2)(7) SDA, prepared by a licensed architect and approved by the mayor under Art. 201(3) SDA. Once the partition decision becomes final, newly formed regulated plots are allocated to the parties.

The same requirements apply fully to voluntary partition. If the property is regulated and parties seek real division, a zoning amendment and creation of new plots must precede the partition agreement. All co-owners must actively participate, including filing applications under Art. 15(3) SDA.

If the property is not regulated (e.g. agricultural land), partition is still possible. Contrary to common belief, regulation is not mandatory. In such cases, a licensed surveyor prepares a subdivision sketch. For inheritance partitions, minimum sizes apply under Art. 72 of the Inheritance Act (e.g. minimum 3 decares for arable land). These restrictions do not apply to non-inheritance partitions.

When real division is impossible due to planning or physical constraints, the court proceeds with alternative mechanisms: allocation to one party with compensation (Art. 353 CPC) or public sale (Art. 348 CPC). This is common for old urban buildings or encumbered properties.

🛠️ Practical implementation requires full legal and technical due diligence — cadastral status, zoning, divisibility, encumbrances, and title history. BSLC coordinates legal strategy with surveyors, architects, and municipal authorities to ensure valid and enforceable outcomes.

Is it possible to divide inherited property during the lifetime of the future decedent?

Yes — but not through classic inheritance partition. Bulgarian law allows inter vivos distribution under Arts. 77–80 of the Inheritance Act, aimed at preventing future co-ownership rather than dissolving it.

Under Art. 77(1) IA, a property owner may distribute their assets among future heirs during their lifetime. This may be done through:

Partition by donation
A contract whereby the owner distributes assets through donations taking immediate effect.
Example: a parent donates separate apartments to each child.
⚠️ The donor may only distribute assets they own (Art. 77(2) IA).

Partition by will
Distribution through a testamentary act effective upon death.
Example: allocating specific properties to different heirs via a will.
⚠️ Reserved shares must be respected (Arts. 30–32 IA).

‼️ A critical requirement in both cases is inclusion of all heirs entitled to a reserved share. Excluding even one renders the arrangement null under Art. 80(1) IA.

BSLC assists clients in structuring inter vivos distributions that comply with mandatory inheritance rules and prevent future invalidity 🛡️.

Are there other ways for a future decedent to transfer property to heirs and avoid partition?

Yes. Bulgarian law provides alternative legal mechanisms that effectively remove property from the inheritance mass.

Donation (Arts. 225 et seq. OCC)
Immediate transfer; subject to reduction if reserved shares are infringed.

Maintenance and care contract (Arts. 258 et seq. OCC)
A remunerative contract where property is transferred in exchange for lifelong care. It is generally immune from reduction as a donation and may only be rescinded for non-performance.

Testamentary dispositions
While not eliminating inheritance, well-structured wills significantly reduce disputes when aligned with reserved shares.

Each mechanism has distinct legal and tax consequences. At BSLC, we assess the client’s family structure, assets, and long-term objectives to recommend the safest solution.

How is voluntary partition of agricultural land carried out in Bulgaria?

Voluntary partition of agricultural land in Bulgaria is carried out through an agreement between all co-owners, executed in the legally required form and registered with the Property Register, in accordance with Art. 18(1) of the Obligations and Contracts Act and Art. 34(1) of the Ownership Act. This means that the parties must not only reach agreement on how their shares will be distributed, but must also comply with a number of procedural and substantive requirements specific to agricultural land, especially where such land is included in consolidated use blocks or subject to land consolidation regimes.

The procedure typically involves several key stages 📄:

Preparation of a partition project
This is usually carried out by a licensed surveyor based on cadastral sketches issued by the Cadastre, Cartography and Geodesy Service. The project must take into account the permanent use designation of the land, its location, access, and any existing easements.
➤ While not expressly mandatory in every case, such a project becomes practically indispensable when the partition is carried out in kind, as it determines how the land will be physically divided into separate parcels.

Clarification of inheritance rights (if applicable)
When the agricultural land is inherited, the parties must first prove their status as heirs by presenting a certificate of heirs and/or a registered inheritance title in the Property Register.
➤ Example: if the land belonged to a deceased parent and passed to three children, their heirship must be duly established and registered before partition can take place.

Execution of a voluntary partition agreement in notarial form
The parties agree on which parcels or shares are allocated to whom, whether any financial equalisation is required due to differences in value, and the agreement is signed before a notary.
➤ There is no legally approved standard template. At BSLC, we prepare customised agreements, tailored to the specific land, ownership history, and interests of the parties.

Registration of the agreement
The agreement must be registered with the Property Register at the Registry Agency in order to produce real (in rem) legal effects vis-à-vis third parties.

💸 Fees and costs
Notarial fees are calculated under the Tariff to the Notaries and Notarial Activity Act and depend on the value of the land and the number of deeds involved. Additional costs include registration fees, cadastral sketches, and surveyor or project preparation fees.

⚠️ Common practical issues
– unsettled inheritance rights or missing registrations;
– agricultural land included in consolidation or collective use schemes, limiting real division;
– lack of access roads or necessary easements for newly formed parcels;
– unequal allocation of value, creating future disputes.

👨‍⚖️ BSLC provides comprehensive assistance — from legal analysis and coordination with surveyors, to drafting the agreement and representing clients before the notary. We ensure that the partition is valid, enforceable, and future-proof, including for subsequent sale or inheritance.

What are the advantages of voluntary partition? And what are the risks for co-owners with a larger share?

Voluntary partition is the preferred method for terminating co-ownership when agreement between the parties is achievable. It is governed by Art. 34(1) of the Ownership Act and Art. 18(1) of the Obligations and Contracts Act, under which a voluntary partition involving immovable property must be executed in notarial form. Through voluntary partition, co-owners distribute properties or ideal shares by mutual consent, without court intervention — which offers several significant advantages.

📌 Key advantages of voluntary partition
– Flexibility and contractual freedom — parties decide which properties are allocated to whom, whether financial equalisation applies, payment deadlines, and whether rights of use, easements, or disposal restrictions are agreed;
– Lower overall costs — no court fees, expert witness fees, or prolonged litigation expenses;
– Speed — with cooperative parties, partition can be completed within days;
– Preservation of relationships — particularly important between heirs or former spouses;
– Legal certainty — a registered notarial partition agreement has the same evidentiary and proprietary effect as a final court judgment in judicial partition.

⚠️ However, voluntary partition is not equally advantageous for all parties, especially co-owners with a larger share, who face specific risks:
– Pressure to compromise — because unanimity is required, the larger shareholder may be pressured to concede more than would be awarded by a court;
– Limited valuation control — without court-appointed experts, property valuation may be inaccurate, leading to unfair equalisation;
– Finality of effects — a voluntary partition agreement has the force of a settlement; later claims of unfairness or mistake are rarely upheld;
– Vulnerability to manipulation or pressure — especially where one party has superior information or legal knowledge.

👨‍⚖️ In BSLC practice, voluntary partition is always preceded by ownership analysis, professional valuation, encumbrance checks, and clear structuring of rights and obligations. For clients with larger shares, we develop specific defensive strategies to preserve economic value while still avoiding litigation. This ensures legal durability, financial fairness, and long-term satisfaction ⚖️.

What are the hidden pitfalls of voluntary and inter vivos partition?

Voluntary and inter vivos partition are powerful tools for avoiding future disputes between heirs, but both carry significant legal risks that are often underestimated. These risks may lead to nullity, challenges by dissatisfied heirs, or reduction of legal effects. Therefore, they must be addressed at the planning stage.

For voluntary partition, the primary risk is the exclusion of any co-owner. Under Art. 34(2) of the Ownership Act, all co-owners must participate. If even one is excluded, the agreement is entirely null under Art. 26(2) of the Obligations and Contracts Act.
➤ Example: if three heirs divide property but a fourth is omitted, the entire agreement is legally ineffective.

⚠️ Another major risk is incorrect valuation and unequal allocation without financial equalisation, which can later be contested.

📑 Registration is critical — failure to register the agreement deprives it of enforceability against third parties and creates legal uncertainty.

For inter vivos partition under Arts. 77–80 of the Inheritance Act, the main pitfall is infringement of reserved shares.
➤ Excluding a reserved heir renders the arrangement null in its entirety under Art. 80(1) IA.

In donation-based partition, disproportionate transfers may later be reduced by the court under Arts. 30–32 IA.
⚖️ Partition by will is frequently challenged due to defects in form, unclear intent, or ambiguous clauses.

What should we do if we cannot agree with the other heirs on how to divide the property?

When agreement cannot be reached, the only lawful solution is judicial partition, regulated by Art. 34 of the Ownership Act and Arts. 341 et seq. of the Civil Procedure Code. Proceedings are initiated by filing a claim with the district court competent by property location or inheritance opening.

🔍 Judicial partition has two phases:
In the first phase, the court determines who the co-owners are, what shares they hold, and which properties are subject to partition.
In the second phase, the court carries out the actual division — in kind if possible, or through public sale if not.

⚠️ Judicial partition entails higher costs, longer duration, and often damaged relationships. Partial settlements or court-approved division plans may mitigate these effects.

📘 BSLC provides full litigation and out-of-court representation, focusing on protecting your share efficiently and without unnecessary escalation ⚖️.

How and where is a voluntary partition agreement registered?

Registration of a voluntary partition agreement is carried out under the Regulations on Registrations. Under Art. 4(g), agreements for partition of immovable property are subject to mandatory registration.

The agreement is registered with the Property Register at the Registry Agency for the district where the property is located, ensuring enforceability against third parties.

What are the risks of using AI tools, notarial “consultations”, or template agreements?

Many owners believe they can rely on AI tools or online templates to prepare voluntary partition agreements. This is strongly discouraged and carries serious legal risks that may result in nullity or future litigation.

🔍 The most common risks include:
– inaccurate property descriptions;
– exclusion of a co-owner;
– unequal allocation without compensation;
– omission of critical clauses (easements, use rights, maintenance obligations);
– incompatibility with agricultural land regimes or consolidation rules.

⚠️ Crucial reminder
A notary in Bulgaria is not an attorney and does not fully examine legal validity. Bulgarian case law contains numerous judgments holding notaries liable for certifying null partition agreements.

👨‍⚖️ At BSLC, we never use templates. Each agreement is individually drafted, based on title history, registrations, third-party rights, and the client’s objectives — ensuring durability, enforceability, and long-term security 🛡️.