Thu09202018

Last update12:12:22 PM

Back You are here: Home Legal and Finance Legal Common Mistakes with Contracts

Common Mistakes with Contracts

Several common mistakes are often made by buyers of Bulgarian property. We take a look at the top five most frequently made errors with Preliminary Contracts and what to watch out for.

Not reading your preliminary contract at all
You may feel that this is absolute nonsense but believe us, there are many people who buy without reading even a single clause of their preliminary contract.

 

This is particularly dangerous with off-plan as there may be ”traps” set by the property developer which entitles him either to delay without paying a penalty and/or to decrease your chance of terminating the agreement.

Signing without being sure of what you sign
If you have any doubts that the clauses in the prelimin contract are vague or you don't understand any part of the contract, do not sign it. You should find a lawyer who can assist you. Independent professional advice is a must.

Accepting the lawyer recommended by the estate agent/developer
That’s an total mistake. You should have a lawyer acting solely on your behalf. A lawyer must not be connected with the seller in any way. Having your own lawyer is the only way to be sure you have clear and independent advice and someone acting in your interests.

Being confident once you have signed
You should not fool yourself that once you’ve signed a preliminary contract, the property is yours. The preliminary agreement is only a “promise” to conclude the final contract (the title deeds). It is a contractual relation which does not create some special connection between you and the particular property.

Transferring the property at the stage of Act 15
Act 15 is with no electricity and water. Often the developer will put a clause into the contract stating that the property ownership will be transferred at the stage of “rough construction” or “shell construction”. This means that the building will be transferred without being accepted by the Municipality construction audit commission. Consequently you will have a property without (or at least not legally connected to) electricity, sewerage and water supply. Do not sign a contract on this basis. Again, take independent legal advice.