Real Estate Investments

Real estate is defined as a legal term for anything that is permanently affixed or built in to a land such as buildings, or house. It is any property that is stationary and fixed in location. There are many categories involved when talking about real states. Buying, renting, building a real estate includes so many process and legalities. Let’s take a closer look on its legalities, or legal formalities.

Legal formalities include the do’s and don’ts in owning a certain real estate property. It contains the entire necessary real estate investment guide that a buyer needs to be aware of if he or she wanted to buy a certain property. Depending on the country or location, there are certain, specific legalities that are being implemented where a person or company wanted to get real estate investments. When buying or selling a property, there are experts or specialist who can help you when it comes to legal formalities. We called them as solicitor or license conveyencer. Individuals should be qualified and licensed.

There are many agencies or real estate agencies who offer a complete set of service. They have a licensed conveyencer that would do an in house conveyencing service and offer a no move, no fee service. If you just wanted to speed up the process, you can consider getting their service.

Let’s take legal formalities in Bulgaria. Foreigners visiting Bulgaria are not allowed to buy or own a land in Bulgaria. A usual Bulgarian foreigner that is interested in real estate investment here uses an excuse of getting or paying a Bulgarian company to do the transaction. It means they need to get a local lawyer to set up the company, which is allowed to buy the land or property. You have to maintain your deal to that company permanently and have them do the rest of the deal for you. You must also get an accountancy company to submit annual tax returns, because the land is considered as an investment. You have to pay the initial capital (5,000 levs or 75% thereof) into a bank account, but the good thing is that you can afterwards withdraw it once the purchasing process is over. There will be legal fees as well which includes a total fee for court and lawyer who handles you. They usually range from 400-1000 Euro.

Real estate investment such as buying an apartment here is and should not be different in buying apartment in Europe. But things are not as easy as that. The following are the list of real estate investment guidelines in buying a property.

First of all, the buyer will pay the owner 10% of the total purchase price as a down payment. Because of this, buyer is allowing the owner to get the necessary documents needed to sign the Title Deed before a Notary Public. The owner then will let the buyer signs a preliminary contract for the purchase of the estate. After about one month, the buyer will pay the remaining 90% of the purchase price and will have the Title Deed for the ownership on the said property. All buyers should make the deal done before a Notary Public. Deals such as conditions in transfer of Deeds must be done in legal writing to avoid coming into a dead-end situation, buyers must be aware of all the laws and regulations in Deed of Transfer.