Real estate transactions in Bulgaria: legal framework, types and formal requirements

Real estate transactions are among the most significant acts in private law. They transfer or create rights over immovable property. To give parties and third parties legal certainty, Bulgarian law regulates these transactions closely, principally through the Property Act, the Obligations and Contracts Act, the Notaries and Notarial Practice Act and the Registration Rules. The Property Register, maintained by the Registry Agency, also plays an important role.

A real estate transaction is a contract or unilateral declaration of intent that transfers, creates, modifies or extinguishes ownership or another right in rem over immovable property, such as a right to build, a right of use or an easement.

Types of real estate transactions

1. Sale (Article 183 et seq. of the Obligations and Contracts Act)

   This is the most common real estate transaction.

   The buyer acquires ownership in return for payment of an agreed price.

2. Gift (Article 225 et seq. of the same Act)

   The donor transfers ownership without receiving payment.

   The gift requires express consent and a notarial deed.

3. Exchange (Article 222 of the same Act)

   Two parties exchange properties, or one exchanges real estate for another asset.

   In substance, each party is treated as a seller of the asset given and a buyer of the asset received.

4. Creation of rights in rem

   A right to build (Article 63 of the Property Act), a right of use or an easement can be created by transaction. The applicable notarial formalities and registration requirements must be observed.

5. Co-ownership and disposal of undivided shares

   A co-owner may transfer an undivided share in the property to another person, including another co-owner.

Formal requirements

Under Article 18 of the Obligations and Contracts Act, contracts transferring ownership of real estate or creating other rights in rem over it generally require a notarial deed. A preliminary contract under Article 19 need not take that form and does not transfer ownership.

What does the notarial procedure involve?

• Preparation of the notarial deed;
• notarial verification of the signatures and the content of the instrument;
• completion of the procedure before a notary with territorial jurisdiction where the property is situated.

Registration in the Property Register

Once executed before the notary, the transaction must be registered (Article 112 of the Property Act and Article 4 of the Registration Rules). Registration has two functions:

• Declaratory effect: generally, registration is not itself a condition for acquiring ownership, but it serves to protect a purchaser acting in good faith in dealings with third parties.
• Public notice: it provides certainty and clarity for third parties.

Real estate transactions carry substantial legal and economic consequences. Bulgarian law therefore sets strict requirements for their form, procedure and content. Those taking part should understand these requirements or seek professional legal advice to avoid later disputes or loss of rights.

This article does not constitute a legal opinion or legal advice about any particular situation or person.