Bulgaria New Property Sale Rules Said to Benefit Banks, Notaries

Business » PROPERTIES | September 24, 2010, Friday // 09:01
Bulgaria: Bulgaria New Property Sale Rules Said to Benefit Banks, Notaries

New rules that envisage that all property transactions in Bulgaria must be carried out via bank transfer have been attacked by opponents, who say they serve the interests of banks and notaries.

"The law will trample on the interests of a large number of Bulgaria to the benefit of banks and notaries," comments Nikolay Pehlivanov from the nationalist Ataka party as the legislative amendments are about to be moved to parliament for their conclusive approval.

According to him the new rules mean more fees for the clients without any guarantees for their safety.

The rules that envisage that all property transactions in Bulgaria must be carried out via bank transfer were proposed in the hope that they will help reduce property fraud and money laundering, as well as ensure that all fees and taxes owing to the state are paid.

As well as reducing corruption, it also aims to ensure that all fees and taxes owed to the state are paid, through the creation of a State Depositary Bank which would serve as a guarantee for all payments in the form of the state acting as custodian for deposits.

The legislative changes will require that both the vendor and the buyer specify their bank accounts for conducting a property deal. Alternatively, they could use the account of their notary public.

The conditions for depositing money into bank accounts as part of the deal will be specified by the respective sides in written agreements.

There is also hope that the new laws may inspire more confidence from overseas property buyers.

But, there are risks to this new system, as sellers and buyers may want to avoid the new fee charged by the bank for servicing the transactions.

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Tags: property, real estate, notaries, banks

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