Purchase property: never fully trust a developer

It seams that the so-called "construction boom" in Bulgaria begins to take its victims. Personally I have three clients that have similar cases. They all wanted to buy a property, either for investment or for a second home. The common between all the cases is that the developers have breached the agreement with the buyers: the built property is not what it was agreed on. In short, they got not what they expected. Probably there are other people out there who just accept the problems, but it shouldn't be like that. The developers in Bulgaria are illegally earning money from cases like this.

The core of the problem is the unjustified trust of the buyer in the developers' solicitor. Always remember that if you sign an agreement that has two or more parties, you should never use the solicitor that the other party offers, to consult you on the purchase deal. Always trust your own lawyer! In Bulgaria we have a saying: "The cheaper one is the more expensive one". Paraphrased, it means that initially you will give to your own solicitor a retainer, but if you spare it, you'll probably soon face a problem at a much greater cost.

Some of the things that your own solicitor will do prior to the date of signing the purchase agreement:

  • check the status of the land, where your house/apartment will be build
  • check the ownership of the land/building
  • check for land encumbrances (mortgages, ownership claims)
  • check the credibility of the developer etc.
The above are some of the necessary checks that have to be performed. Furthermore the solicitor have to check the content of the agreement: is it legal, is it drafted in your favour or there is some catche, the way of payment, realistic deadlines, penalty amount etc. This is a necessary assistance that will save you troubles in the future.

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