Notarial Deed and Registration: How Ownership Becomes Yours

The Obligations and Contracts Act is categorical: contracts for the transfer of ownership or for the creation of other property rights over real estate must be executed by notarial deed (Art. 18 of the Obligations and Contracts Act). A contract signed only between the buyer and the seller does not transfer ownership, no matter how detailed it is.

In practice, the transaction often goes through two stages. First, the parties sign a preliminary contract, in which they agree on the price, the deadlines and the conditions. It must be in writing and contain the essential terms of the final contract (Art. 19 of the Obligations and Contracts Act). If one party refuses to conclude the final contract, the other may bring a claim asking the court to declare it concluded.

The second stage is the signing of the notarial deed before a notary from the district in which the property is located. The notary verifies the identity of the parties, the seller's ownership and the documents presented, and then formally executes the transaction.

After signing, the deed is entered in the Property Register, which is maintained by the Registry Agency. Registration makes the transaction visible to everyone and protects the buyer against any subsequent disposals of the property by the seller. According to the Registration Rules, only deeds executed in notarial form or with a notarised signature, as well as deeds of the competent state authorities, are subject to registration.

The application for registration is usually submitted by the notary himself or herself immediately after the transaction. The deed is presented in at least three copies: one for the register, one for the notary file and one for the party. According to the Agency's guidelines, the third and any further copies, marked with the registration details, are returned to the entitled person within three days of receipt of the application.

The specific list depends on the type of property and the way the seller acquired it, but most transactions involve the following documents:

• Proof of ownership of the seller – a previous notarial deed, contract, court decision or certificate of heirs.
• Tax assessment certificate from the municipality. According to the Registry Agency, it is valid until 30 June or until the end of the calendar year if the taxes for the whole year have been paid.
• Cadastral map extract, when the property is in an area with an approved cadastral map. It is valid for 6 months from issue, unless there is a change in ownership.
• Declarations by the parties, which the notary requires depending on the type of transaction.
• Power of attorney with a notarised signature, if either party is represented by another person.

The state fee for registration is determined by the Tariff of State Fees Collected by the Registry Agency. According to Art. 2(1) of the Tariff, the fee is 0.1 percent of the price on which the deed is charged, but not less than BGN 10. When the price is not specified, the fee is calculated on the basis of the valuation under Appendix No. 2 to the Local Taxes and Fees Act. The Agency states the minimum fee as EUR 5.11 (BGN 10).

A document proving payment of the fee is attached to the file: a bank transfer order, an internet banking document or a receipt for payment via the Agency's POS terminal.

Separately from the registration fee, you pay the notary fee under the Notary Fees Tariff, which depends on the financial interest in the transaction, and the local tax on the acquisition of property, which is paid to the municipality. We have separate articles on these.

Before paying a deposit, it is sensible to request from the Registry Agency a certificate of encumbrances for the specific property. It shows the registered mortgages, distraints and claims. A mortgage entered in the register is effective for a period of 10 years and may be renewed before it expires.

If the buyer does not pay the full price when signing the deed, the seller may request the registration of a statutory mortgage for the remainder. In this way, the seller's claim is secured, and the buyer becomes the owner as soon as the notarial deed is signed.

• Conclude a written preliminary contract with the essential terms of the transaction.
• Check the ownership and encumbrances in the Property Register.
• Request the tax assessment certificate and the extract in good time.
• Clarify the fees and the method of payment of the price with the notary.
• Make sure the deed is registered, and keep your copy.

• Registry Agency – How to register a deed for real estate
• Registry Agency – How to register a mortgage
• Tariff of State Fees Collected by the Registry Agency (Art. 2)
• Obligations and Contracts Act (Art. 18 and Art. 19)

This article is not legal or tax advice. The information is general and current as of the date of publication; before a transaction, check the specific conditions with a notary or a lawyer.