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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.

[size=75:h8ovt4a6]ClickPress, Thu Feb 11 2010


The new property law which will ban cash purchases of Bulgarian properties has been delayed until the summer of 2010, according to news from The Sofia Echo and other Bulgarian news sources. While the ban on cash purchases will be positive for the Bulgarian property market in the medium- to long-term, the delay means that buyers can pick up some real bargains in the next few months, reports House Sales Bulgaria ([You must be registered and logged in to see this link.]).

Earlier in January 2010, the Bulgarian government passed a law which banned all cash transactions for property in Bulgaria. Under the new rules, all purchases have to be made through commercial banks and not through private arrangements paid with cash. Reports suggest that the Bulgarian government has modelled the new system on one used in France to great success. The new law hopes to add transparency to the Bulgarian property market, as well as increasing municipal revenue which can be poured into infrastructure, which will in turn boost property sales in Bulgaria. It is also thought that the legislation will help bring stability to property valuations.

All of this is good news for the Bulgarian property market in general as it further solidifies the country’s position as one of the leading real estate investment locations in Europe, and in the short-term, it’s great news for all those looking to buy property in Bulgaria. The law was planned to be enforced by the end of January 2010 but the Bulgarian parliament failed to get the legislation passed fully before Christmas which will delay the ban coming into effect until May or June. That means that those wanting to sell property in Bulgaria and are willing to accept some part payment in cash are still free to do so and that the following few months will hold some fantastic property bargains in Bulgaria.

clickpress.com