4 December 2009
From 1 January 2010, cash buyers will no longer permitted to buy property in Bulgaria as all transactions will have to go through the bank.
The rule changes comes after an amendment to the country’s Notary Act was forward by the Justice Ministry, which is expected to be approved by Parliament, with the aim of preventing money laundering and Bulgaria property fraud.
A new State Depositary Bank will be introduced and will serve as a guarantee for all payments, with the purchaser and vendor unable to complete the transaction of the property until the deal is approved by the bank. In the meantime, the bank will hold a deposit.
The Justice Minister Margarita Popova and Finance Minister Simeon Dyankov stated that they were confident that the bill will be approved before Christmas.
The draft is similar to the that of the system used in France, where the bank is used by notaries and lawyers irrespective of the deal, and is used for all French property related matters, whether the purchase of a home in France or other transfer of ownership or bankruptcy.
See Also: Marc Da-Silva (269), France (39), Bulgaria (11)
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