Every real estate transaction goes through various stages of research and negotiation, but to be successfully concluded, it must be attested before a notary.
In this publication, we have summarized the most basic documents for a transaction that should be provided. We have also paid attention to some commonly encountered specific cases.
As a seller in a real estate transaction, you should know that you must provide most of the documents so that the notarial proceeding is completed successfully.
When you are a buyer, you should know what to demand from your seller in advance to verify their ownership rights.
We have systematized the necessary documents as follows:
- Essential documents without which the transaction cannot be completed;
- Mandatory documents drawn up on-site
- Other documents that might be necessary depending on the specific case;
The deal cannot be completed without:
A. Document of ownership of the seller.
Most often, this might be a notarial deed registered with the Registry Agency (for purchase-sale, establishment of a right to build (superficies), donation, exchange, notarial act confirming ownership, etc.). It may also be another notarized contract (e.g., for voluntary partition), a notarial or handwritten will.
There is an option for the ownership document to be a sales contract concluded by the State or Municipality on one side. Typically, it is not created as a notarial deed.
For restored agricultural lands, the ownership document might be a decision of a land commission. After a court dispute – that might be the court decision and if the property is obtained as a result of a public sale – the bailiff decree for the assignment of the property.
If the owner is a trading company that has become the owner by contribution, the memorandum/ articles of association will be considered a title document.
The document should be submitted during the property transfer in its original version or a certified copy (official copy, certified by the Registry Agency or another State Body).
B. Certificate of Tax Assessment
The certificate is issued by the municipal tax office where the property is located. It certifies how the municipality assesses the property for local tax purposes.
The certificate must list the properties subject to the transaction, with their exact parameters. The owners should be specified, and any duties to the municipality should be paid.
It should not surprise you that this assessment is often significantly lower than the property market value. It must be submitted in this case, because it is the minimum basis for determining transaction fees.
In case the actual price subject to the transaction is higher, the fees will be calculated based on this higher actual price, not on the value in the tax assessment certificate.
If the sale price or the tax valuation of the property are already known, you can calculate the notary fees and costs on the calculators of LegalMasters.bg completely free of charge!
C. Sketch/scheme of the property
The sketch (for land properties – plots, agricultural lands) and/or the scheme (for separate objects – residential buildings, garages) is issued by the Cadastre Agency. It provides information on the limits, the area and other important characteristics of the specific real estate.
This document is important as it graphically depicts the property subject to the transaction and the parameters by which it will be described in the notarial deed for the transaction.
On-site at the notary
Certain mandatory declarations will need to be signed and certified when the transaction is executed, but you can also sign them immediately before the transaction in the notary’s office:
Declaration under Art. 264, para. 1 of the Tax and Social Security Procedure Code – for the absence of obligations to the State. It is filled out only by the seller.
Declaration under Art. 25, para. 8 of the Notaries and Notarial Activity Act – filled out if the parties are individuals and by this declaration circumstances regarding marriage, citizenship, and other circumstances of the civil status of the parties are declared.
Declarations under the Measures Against Money Laundering Act – for occupying high state positions, for the origin of funds, etc.
Documents to prove certain circumstances:
Certificate of Succession – mandatory when the property subject to the transaction is acquired by inheritance. Then the certificate supplements the ownership document of the legator;
Power of attorney with notarized signature and content – when one of the parties acts by power of attorney. Please note that when the power of attorney is notarized, the declarations mentioned above should also be notarized.
Certificate of Encumbrances (COE) – certifies the recorded deeds on the property lot. From a preliminary analysis of this certificate, conclusions can be drawn about the ownership right and whether there are encumbrances on the property.
Construction documents -a conditional term in transactions involving a property under construction or newly constructed – includes the approved construction documents for the building, building permits, certificate of occupancy if any, and other acts relevant to the legality of the construction.
Certificate of Tolerability – shall be submitted in case the buildings, which are the subject of the transaction, are constructed without approved building permits, but meet the specific requirements of the Spatial Planning Act.
Certificates of marital status/kinship/marital status and others – presented to prove certain circumstances that are important for the ownership right, and sometimes for exemption from the transaction tax (e.g., in transactions between relatives in a direct line).
Declaration of waiver of the right to exploit – you will need this if there is a right to exploit registered on the property that the buyer does not want to burden his property with. In case the user has passed away, an extract from the death certificate or another document certifying this is submitted.
Declaration of consent under Art. 26 of the Family Code – in cases where the real estate being sold is the individual property of one spouse, but it is the family home and the other spouse is registered at the address of the property being sold.
Important
Other documents might also be required depending on the specifics of each real estate transaction. Therefore, it is important that before proceeding with the execution of the transaction, the documents related to it are reviewed by an attorney.
——————————————————————————————— If you need a consultation in connection with an upcoming real estate transaction, review and preparation of documents for a transaction or overall assistance with it, you can contact us at tel. 089 30 50 449, by email: contact@legalmasters.bg or on our Facebook page. ———————————————————————————————
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