Episode 18 - New Features in Notarization of Real Estate Transactions

In the last two years we have seen a lot of changes in the notarization of transactions, so here I have decided to draw your attention to a few things to keep in mind before and during the notarization.

First of all tax assessments. It was quite common practice in the past for transactions to be settled on a tax assessment. However, in many places now the tax assessments are equal to, and even in some places higher than the market valuations of the properties, for example in the Plovdiv district of Karshyaka this is a fact in many places. Another point to be made is that the government pays a lot of attention to real estate transactions and does everything possible to lighten all the amounts beyond the sale price such as finishing and furnishing costs and to pass on the higher value, and a lot of attention is paid to what value the transaction is passed on and what the real market prices of similar properties are at the moment. The NRA has been doing a lot of transaction checks lately, I even think every 7th transaction is checked, so passing on tax valuation is a bit risky.

Apart from that, if you have paid some money beyond the amount written in the deed and it turns out after a while that there is a problem and the deal is reversed you cannot claim compensation for that money against the seller. You are now done writing penalties in double and triple amounts. At the moment the compensation limit is 30% of the amount lost, so if you bought a property for £100,000 and wrote £50,000 in the deed you can claim £65,000, £35,000 you lose it irretrievably as you have no property. You won't save much cost if you claim on a tax valuation, at the moment they are so close, as I said we are talking in most cases about sums of 300 - 400 lv.

The second very important thing I would like to draw attention to is the declarations of origin of funds. At the moment, they are no longer a simple declaration that says savings. The new provisions are about full specificity - savings from salary with employer X for period Y to Z. The situation with proving funds is getting very serious, the provisions of the MIPA are very strict and the penalties downright fantastic, you need to be prepared in advance exactly what you are going to write and how you are going to prove that you have the funds to purchase the property in question. There are two separate declarations of source of funds - one is where you have the funds to buy the particular property and the second is where you have the funds to normally live and spend on ordinary needs. This is another reason for the NRA to check and fine you.

Under the MIPA, notaries are obliged to write a report on how risky the transaction is and whether they suspect money laundering. That is, if you whisper something to your seller about sundry funds outside of the stated ones, this is reported and you have a good chance of getting on the report - this one doesn't look like he can afford this property. Be very careful even how you go dressed, what jewellery , phone and watch you wear - it all falls under the scope of whether you can afford this property. For example, a grandmother comes and sells land in Pamporovo - she can prove provenance, but the same grandmother comes and says - a pension, it is 250 leva - it does not work, she cannot prove that she can buy a property. For people coming from abroad - you have to be able to prove them too, keep your declarations, contracts, receipts, everything that can prove that you have the means to afford a real estate purchase.

Tia Estates

Plovdiv 4000,
92 Hristo Botev Blvd
Mon-Fri: 09:00 - 18:00
Saturday: 10:00 - 14:00
© Tia Estates 2024. All rights reserved