Clearing the confusion.
In this article we discuss the legal nature of the Preliminary Contract in relation to purchasing property in Bulgaria. Starting with covering its definition, the form it should take, its enforceability and what it should contain.
Definition. For the purpose of this article, we shall give you a conditional definition of the Preliminary Contract. It is a bilateral agreement between two parties – seller/s and buyer/s, by way of which both parties agree that at a future point in time, the seller/s shall transfer the ownership in the property to the buyer/s. This definition can be found in the very name of the contract – Preliminary. Therefore, the first important point to note is the Preliminary Contract does not transfer ownership!