Legal Blog

Changing the property management company

If you are not satisfied with your current property management company, there is a way you can replace it with another, diligent one. The process is regulated by the newly adopted Condominium Ownership Management Act. First you need to know that if you are owner in closed apartment complex, the only valid form of the management agreement is written notarized agreement. Agreement which are simply signed are not legally valid. This agreement shall also be registered with the Land Registry.

The 'trap' of the preliminary agreement

If you read this you have probably had experience with signing a preliminary agreement with Bulgarian developer. This agreement usually binds the developer with the obligation to finish the property and provide you with the title deed by certain deadline. Well, this seems too good to be true. The preliminary agreement is regulated in only 1 article in the Agreements and Obligations Act and nowhere else: (1) A preliminary contract preceding the conclusion of a final contract for which a notarial deed or notarial certification is required shall be concluded in writing.

New company or off-the-shelf company in Bulgaria

Off-the-shelf companies are not popular in Bulgaria. This is due to the fact that additional accounting expenses are involved. Off-the-shelf companies are dormant companies with nominee directors/shareholders and a registered business address in Bulgaria. The additional expenses are for filing annual tax declarations and annual accounts in the Commercial Register. Having the baove in mind, foreigners and Bulgarians, prefer to register a brand new company, rather than buy off-shelf one. Moreover, registration of a new LLC in Bulgaria takes just about 2 days.

LTD minimum capital reduced to 1 Euro

As from 20th October 2009, the minimum capital for registration of limited liability company (LTD) in Bulgaria is 1 Euro. The amendment in the Commercial Act will allow easier and less cumbersome registration of companies in Bulgaria.

Interlink Management changed since 27 August 2009

Maria Georgieva is removed from Interlink’s management. The new management of the company promises that they will do their best to finish the projects that are already started. I’ve been in contact with them and they are far more cooperative than the previous ones.

Company financial statements should be announced in the Commercial Register

All companies has to prepare annual financial reports according to the Bulgarian and International Financial Reporting Standards. The reports of companies with turnover above EUR 1,000,000 are subject to compulsory audit. Pursuant to Article 40 of the Accountancy Act all companies shall announce their financial reports to the Commercial register. You can read the provisions below: Article 40 (Supplemented, SG No.96/2004, amended SG No. 105/2006) (1) By 30 June on the following year, enterprises shall publish their annual financial statements and their consolidatedfinancial statements, their annual management report and their annual consolidated management report as adopted by thegeneral meeting of partners/shareholders or by the relevant body as follows:

New facts about 'Windows to Paradise' case

On 10th August 2009 a new record appeared in the Commercial Register. “Interlink BG” Ltd - developer of Windows to Paradise - has 1/3 of its shares seized by a creditor. I warned several times that such thing can happen. The creditor is Raiffeisen Bank and they have seized Ivan Stanchev’s (one of the shareholders) shares in the company. Obviously, the reason for the share seizure is that Interlink BG hasn’t paid the mortgage loan (EUR 4 000 000) to Raiffeisen Bank.

Bulgarian lawsuit guide

This article is aimed to be a short FAQ, explaining the “nuts-and-bolts” of the Bulgarian court proceedings. I’ve been asked these questions thousand times, so I decided to write a brief description of the claim process in Bulgaria. Q: What are the court expenses? A: The court expenses are separated in several subcategories: Court fee/State fee - the court fee in Bulgaria is fixed. It is calculated on the basis of the amount you claim.

Bulgarian Debt Portfolios

Now’s a good time for buying debt portfolios in Bulgaria. Why is it a good idea? Remember the property baloon in Bulgaria. Yes, the one just like in Spain. Well, the situation is as follows: Developers got big amounts of mortgage credits so they can build holliday homes. Well, the calculations were wrong and the developers are now short in money. The developments are almost finished but the mortgages are not paid.

Why some Bulgarian Dreams' properties will probably never be finished

A massive fightback of Bulgarian Dreams is taking place in the Internet. It’s conducted by RG Jenkin. The failure to complete Windows to Paradise development brought him the BBC Prime attention as well as the buyer’s anger. However now he convinces the same buyers, who he deceived with the completion dates, so they put more money in the “concrete pile” called Windows to Paradise. In order to backup my words with facts, all of you should know that “Interlink BG” Ltd.