The promissory note is a common legal security tool in Bulgaria. Usually it is used by the banks, when providing loans to companies and persons. This way they increase the money payback, because both the loan agreement and the promissory note are used as securities of the debt.
The advantages of the promissory note are:
You can obtain a court order for execution within 20 days. This way you will skip the long and cumbersome civil litigation process.
No need to summon the defaulting party to court. It has the surprise element, and the debtor won't be able to dispose of its property.
No notary certification needed. A simple signature by the debtor is enough.
Of course the promissory note is a formal deed. There are certain rules that should be followed when drafting one. Contact a solicitor to draft a promissory note for you.
Application of the promissory note:
- Preliminary agreement when purchasing property
- Construction works (both reconstruction and finishing works)
- Loan agreements etc.