The real estate lease is an informal contractual agreement under the law of obligations. He may have movable and immovable property as a subject. The provisions on leases are enshrined in articles 228 to 239 of the Law on Obligations and Contracts. The rules on leases are laid down in articles 228 to 239 of the Law on Obligations and Contracts. Previously, this chapter of the Act also laid down the rules relating to agricultural leases. Today, they are replaced by the last law – the Agricultural Leases Act. There are several formal differences between the two types of contract: this means that the new landlord is obliged to accept the rent agreed between the tenant and the previous owner. An agreement with the notarization of signatures is an acceptable reason for issuing an enforceable title in respect of obligations for the payment of sums of money due or other substitute items, as well as obligations to waive certain items specified in the agreement. Registration of the contract in the land register is carried out by submitting an application to the respective registration office of the registrar`s agency at the location of the property. The submission of the application for registration of the contract can be made by the tenant, the owner or a person authorized by him. Have you just moved to Bulgaria or are you planning to do so? I think the search for housing has already started for you. If you want to rent an apartment in Bulgaria, there are (at least) 10 things you need to know or do before and when signing the lease. Online search definitely makes things easier and is a big plus if you want to rent an apartment before you arrive in Bulgaria.
However, some listings available online (posted by random people or real estate agents) may be outdated. Therefore, do not rush to sign an agreement or pay anything. Especially if the case seems (too) beautiful (to be true). We recommend that you ask people who already live in Bulgaria for trustworthy real estate agencies that publish reliable and pleasant offers. The registration of the agreement in the land register entails a number of advantages for the parties. In accordance with the provision of Article 237, paragraph 1, of the Law on Obligations and Contracts, in the case of the transfer of property, the lease agreement of the purchaser (the new owner) remains in force if the contract was registered in the land registry before the transfer was registered. Under Bulgarian law, the lease cannot be signed for a period of more than ten years, unless it is a commercial transaction. Unfortunately, it is quite difficult to find an apartment without using the services of a real estate agent. Real estate agents in different cities charge you a different fee – their agency fees are usually between 50% and 100% of the monthly rent (the apartment you have chosen). The fees may only be one-time – later you have no obligation to the broker. However, it is good to stay in touch if there are problems in the future. We recommend discussing in advance with the real estate agent what their fees include – some may offer to show you the apartment via live chat, pick you up from the airport, or simply be more helpful than other real estate agents.
Don`t pay brokerage fees until you`ve seen the actual lease – if you pay for it and no longer agree with some of the terms of the lease, it`s very likely that you won`t get your money back. Finally, always ask for a receipt when you pay the fee. The state fee depends on the amount paid by the tenant during the entire term of the contract – 0.1% of the total amount of payments during the entire term of the contract, but not less than BGN 10 (Art. 2 et seq. of the tariff on state fees charged by the registrar). In the event of a transfer of ownership of the leased property, the rental contract is only valid vis-à-vis the purchaser if it has been registered in the land register. In order to also guarantee the rights of the owner, the law provides for fixed periods during which the lease binds the buyer. A lease entered into before the transfer of the property, which has a verifiable date, is binding on the buyer for the period specified therein, but not more than one year from the date of the transfer.
If it does not contain a verifiable date and the tenant is in possession of the property, the contract binds the assignee as a rental agreement for an indefinite period. The owner is liable to the tenant for damages if the use of the rental object is withdrawn before the end of the rental period, this withdrawal being due to the transfer of the property. One of the most frequently asked questions about the validity of leases in Bulgaria and their compliance with Bulgarian legislation is whether or not they should be signed before the notary (verified by a notary public). In most cases, the law does not require a notarized form for a rental agreement to be considered valid. In fact, even an oral agreement is acceptable under Bulgarian law. However, the simple written form is preferred because it is easier to prove and protects the rights of both parties. Verification of signatures by a notary public is recommended in the case of a commercial lease or in the case of renting large premises at a higher value, as it offers stronger legal protection to both the owner and the tenant, for example, each of the parties can obtain an enforceable title against the defaulting party for damages and loss of profit. Example: If the monthly rent is BGN 100 and the contract has a duration of two years, the payments due over the entire duration of the contract amount to BGN 2400. The state fee would be BGN 2.40, but as it is below the minimum threshold, ten Bulgarian leva must be paid. Payment can be made by bank transfer to the land registry accounts. Transfers and payments to bank transit accounts and the land registry escrow account can be made at the offices of all commercial banks in the country, via Internet banking, via the ePay system or at Easypay offices.
In addition to the means listed above, the Registration Agency has point-of-sale terminals at its counters to facilitate the payment of fees. Leases of indefinite duration may be terminated by either party, who may withdraw from them with one month`s notice to the other party. However, if it is a daily rental agreement, a notice period of one day is sufficient. If you are a party to a rental agreement in Bulgaria or are about to conclude such a contract and need legal assistance for its negotiation, signature, registration in the Bulgarian Land Register or termination, as well as if you already have problems under such a contract and need legal representation, please contact our real estate lawyers who can ensure maximum protection of your rights. To be registered, the rental agreement must be accompanied by the notarization of the signatures of the parties. All the data of the contracting parties, the correct description of the property, the object of the contract as well as the amount and duration of the agreement must be specified in the contract. By concluding a rental agreement under Bulgarian law, the owner undertakes to leave the property to the tenant for temporary use, and the tenant undertakes to pay him a fixed price. Before entering into an agreement, it should be checked whether the owner has the legal right to rent the property. This right is undeniable in cases where the owner is the owner of the title. However, there are cases where the owner is a co-owner or sole manager of the property. In these cases, the landlord has the right to sign contracts for up to three years.
A similar case is when signing a commercial lease with a company. Bulgarian judicial practice accepts that the CEO/manager of a commercial company can sign a lease on behalf of the company for a maximum period of three years. In the case of longer-term contracts, an express resolution of the Annual General Meeting is required. Of course, there are exceptions to the rule, for example if the rental property is co-owned in a marriage. In this case, each of the spouses has the right to rent the property for a maximum period of 10 years. The register of real estate leases is required for contracts with a duration of more than one year. Rental agreement with notary Certification of signatures If you decide to share an apartment with a friend, it is imperative that you make sure that both names are included in the contract (not just his). .