BULGARIA MAKES BANK PAYMENT MANDATORY FOR REAL ESTATE DEALS

Draft amendments to the Notaries Public Act are going to make bank payment mandatory for all real estate property deals in Bulgaria starting January 1, 2010.

The news has been announced by the government press service, which points out that this move is intended to curb money laundering by paying in cash for the purchase of property, and to counter real estate fraud.

The legislative changes will require that both the vendor and the vendee 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.

These legislative changes are seen as the first step to an all-out regulation of payment in purchase deals through a special law to be called Deposit Account Act.

This sounds like a step in the right direction to me, but it will probably mean we will all end up paying more but at least it should stop the unscrupulous REA's from robbing people

Good idea, as long as it's not used as yet another "
Big Brother"
excercise.

Sound like good news to me too but I wonder what the catch is these always something behind these things not matter what country it is

Yes BGTRAVELLER,

As you say, whenever beaurocracy becomes involved, there's a catch.
Usually an excercise to extract more money from people.
Or to control more and more of peoples lives. (Big Brother)

Even if bank accounts are used for the transaction on both sides, it still won't stop under declaration of sale price and a cash bung to top up the difference. There will just be less than the sale price going throught the accounts and no matter how risky, some people will still try and do as much as possible in cash, especially if they "
think"
it's saving them money.

Abra

It won't stop anything abracadabra,

The honest people will still be honest.
The cheats will still cheat.

It will only cost somebody more money and line somebody else's pockets.

Cumbrian wrote:

It won't stop anything abracadabra,

The honest people will still be honest.
The cheats will still cheat.

It will only cost somebody more money and line somebody else's pockets.

Thats about the long and short of

This is about Tax Collection....So I suppose all those who believe tax collectors to be honest, must be correct....

Role on Robin Hood...

lorka

[size=75:uj74b3lp]Dnevnik 19 January 2010

New real estate payment rules pass at 1st reading

The ban on cash payments in real estate transactions squeezed through at first reading at the Bulgarian Parliament yesterday. The proposed changes to the Notary Act will see parties in property deals presenting declarations that the price in the title deed is the actual amount that is paid. Further payments agreed in the deed will be guaranteed with a bank account in the declaration where money will be transferred. The proposal is aimed at preventing hiding the real cost of the transaction as formalities relating to the sale are currently performed on the property’s tax appraisal to evade taxes. Another goal is to stop money laundering through real estate transactions.

Another nail in the coffin of Common Sense.

Another victory for the beaurocrats.

Hi Cumbrian your right again, but will it really make any difference ? I doubt it, anyway glad to see you here again I was thinking you were trapped under a load of snow

Yes Ashley

My old pc got infected and is away with my friend who hopefully will fix it.
My ancient one was brought out of retirement and just about works but very slow.
I had all my stuff on the desktop and lost everything so just building up again.

Been under a bit of snow but more frost.
Back to normal now, grim grey and damp.

Typical you mean? its the same as always some snow and the the depressive weather well that what I call it, looking at the above I think it will give potential buyers some protection but it won's stop the wheeling and dealing that goes on with some estate agents

I think its a very good idea,i dont think you should be expected to draw such a large ammount of cash and be carrying it around with you,and it keeps everything above board and records kept,




Mike