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Buying Your Dream Home by Auction

A wealth of information can be obtained from the internet on the subject of buying property/land in Bulgaria.

Many of us opt for the standard procedure of buying through an estate agent; mainly due to the simplicity of this preferred option, however, few of us are aware of an alternative and cheaper method which involves purchasing through a bailiff.

This is similar to the re-possession auctions which the U.K and other countries adopt.

Quest Bulgaria's legal partner in the city of Veliko Tarnovo states that not only property and land but also vehicles can be purchased via auction in this way, with huge savings compared to the conventional methods. The majority of auctions are for properties, with around 95% of these being re-possessed due to the non payment of mortgage loans.

The whole process is strictly regulated under Bulgarian law to ensure a clean stress free purchase, and is said to be even more reliable than purchasing through a notary.

What is the Procedure?
The Bailiff starts the process on the request of the creditor, usually a Bank. He then sends to the debtor an invitation issuing a set time for voluntarily payment of the debt. If the debtor doesn't pay back the debt in the defined term, the Bailiff continues with execution as required by Bulgarian Law to release the property and possessions of the debtor to use in payment of the debt. The bailiff will instruct a professional to value the property and possessions, and 75% of the total value will then become the starting price of the intended sale in the first auction. If the auction is not successful it will again take place after 1 month when the starting price will be reduced to 60% of the total price. The auction will continue to be held at monthly periods if the property is not sold and the starting price will have further reductions, 45%, 30% and so on until a successful sale is achieved.
Example; A property valued at 100,000 EUR will have a starting price of 75000 EUR and a deposit of 10000 EUR is to be paid in advance by all involved. If the auction is not successful the second auction will have a starting price of 60000 EUR with a deposit of 60000 EUR, and so on.......

How to participate in the auction?
If you have seen a property that you are interested in, the next step will be to pay a deposit of 10% of the starting price, this is payable by all bidders and will be refunded in full to all losing bidders. You will then have to place your bid which should be at least the starting price stated in the Auction Documentation. As with any other auction, the winning bidder is the one who places the higher bid.
The winning bidder will have to pay his balance within 7 days of the auction; if he fails to pay he will lose his deposit.
Virtually anything can be purchased by this procedure in Bulgaria.

Please contact us with your requirements and we will help you to find your dream home at the best price possible.