Real estate agency Relax Properties always follows the applicable regulations and laws, both in the EU and in the country in which the real estate deal is mediated.
When buying a property in Bulgaria you will encounter the following documents:
1. Before closing the deal, prepare a Contract for Assistance in the Purchase of Real Estate, where you undertake to complete the whole deal properly within a certain set timeframe and to develop the steps to the set purchase process. In the Contract there are the following elements: the RK’s details as stated in the Commercial Register, your details as per the valid documents, the price for the property, the RK’s commission, the amount including Taxes and Notary and Solicitor’s fees. I will summarize that in the Contract it is important to have the RK data, your data as a buyer, for what amount you are buying the property with what preliminary fees and by what time the whole purchase process will take place, description of the property as it is registered in the Cadastre. This Contract protects you because you have proof that the funds we have received for the reservation of the property will be returned to you in the event of non-fulfillment of the conditions or mediation of the purchase. Our obligation is in turn to pay taxes on the profit.
Furthermore, when you purchase a property, the real estate agency will prepare the documents required by the European Anti Money Laundering (AML) Act.
The following documents are based on the AML Law and are prepared in Bulgarian and local/domestic language.
2. Personal documents (KYC documents).
KYC stands for “Know Your Customer”. In general, it is a photo ID and an address document, where these two documents are the basic, mandatory KYC documents required to establish identity at the time of making a payment, which is subject to the rules under the Anti-Money Laundering and Anti-Terrorism Financing Act and the Amendment of Certain Acts (AML Act). An ID card or Passport is sufficient.
3. The third document is – Declaration of Origin of Funds (as per Section 66(2) of the AML Act).
It is necessary to prove the origin of the funds for the purchase of real estate from where they come, for example: earnings, or a bank statement from the bank where the funds are deposited.
4. Declaration of nationality and marital status according to Article 25, paragraph 7.
Nationality, status whether you are single, married or divorced. Alternatively, registration of ownership rights in only one of the spouses – a document of Joint Ownership of the Spouses (BSM).
5. Declaration of politically exposed person (pursuant to Section 42(2)(2).
Politically exposed person means a natural person who is or has been entrusted with a significant public function. Example: head of state, prime minister, deputy prime minister, minister, head of a central government body, state secretary or equivalent deputy minister, member of the legislature, judge of the Supreme Court, judge of the Supreme Administrative Court, judge of the Constitutional Court, and the like.
If the contract is signed without your personal presence, the authorities have the right to request additional documents to verify your identification, such as a travel document – passport or Mortgage Agreement. The verification of further documents is not subject to the GDPR for the AML Law. Know that all persons under Article 4 of the AML Law (including banks, notaries, real estate agents and many others) are obliged to identify their clients by checking their official identity documents and making copies of them (Article 53(1)). The processing of personal data for the purpose of preventing money laundering and terrorist financing is considered to be a matter of public interest and is therefore not subject to the GDPR.
6. Issuance of a Notarial Deed replacing the Title Deed
The notarial deed is considered to be a legal document certifying the ownership of the property. It is made by a local notary in the presence of the buyer and the seller, or his/her representative or attorney with a granted Power of Attorney. The notary certifies the deed and registers it in the Registry and from that moment the ownership of the property passes to the buyer. The property can be used immediately. Please note that the issuance of the Notarial Deed is in Bulgarian language only, as the Notary certifies the documents in the local language. It is important to note that even in our country the Title Deed is not in a language other than the local language. The registration of the property at the Tax Office is automatic upon transfer of ownership rights.
It takes approximately one to two weeks for the Notarial Deed to be issued.
Relax Properties real estate agency is obliged to ensure your protection of all documents and personal data you provide to us.
