Law firm Kolibanekova & Partners provides a wide range of legal services specialized in the field of real estate in Bulgaria. One of the most important and frequently asked questions from our clients is related to checking a property for property encumbrances, including foreclosures, mortgages, registered claims and more. In this article we will look at the procedure and importance of checking property for encumbrances in Bulgaria and property, as well as answer frequently asked questions such as “What are encumbrances?” and “What is the role of the notary in this process?”.

Our clients are often interested in the possibility of an online check for property weights. Is it possible to carry out a property inspection according to the EGN? What is the cost of a property burdens check? In addition, a frequently asked question is where a certificate of encumbrances is obtained and what is the role of the Registry Agency in this process. Questions about the electronic certificate of encumbrances and the deadlines for registering a notarial deed in the Registry Agency are also among the frequently asked by our clients.

If you are looking for a good real estate lawyer to terminate a contract for the purchase and sale of real estate in Bulgaria, we can help you. We will provide you with detailed information on the verification of inheritance according to the personal identification number, the verification of the lot number of the property and the possibility of electronic verification in the Land Registry. Often, clients ask us how to establish the owner of a property by address and what is the role of the notary in issuing a certificate of encumbrances of property.

Land register issues, including the entrance to the electronic land register and other electronic services, are also of great interest to our clients. This article will look at all these aspects to provide you with complete and detailed information about checking a property for property encumbrances and related procedures.

What does the term “tangible weights” mean?

The term “pecuniary encumbrances” in property law refers to restrictions on the right of ownership of immovable property that may affect the ability to use and dispose of that property. Property encumbrances are related to the property and follow it, regardless of how many times ownership of it is transferred. They are retained regardless of the change of owner, and the new owner must respect the rights under the previous entries.

Property encumbrances include various limited property rights such as building rights, use rights and easements. According to Art. 59, para. 1 of the Law on Cadastre and Land Registry, the lot of any real estate consists of several parts that reflect various aspects of the legal status of the property, including encumbrances on it. In part “D” of the lot, mortgages are entered, and in part “D” foreclosures.

A mortgage is a type of encumbrance that secures a claim, being established through an entry in the property register. It gives the creditor the right to be satisfied preferentially with the price of the mortgaged property in case of default of obligations by the debtor (Art. 173 of the Law on Obligations and Contracts). This means that regardless of the change of owner, the mortgage remains valid and the new owner must respect it.

Seizure is a judicial or administrative measure that prohibits the disposal of property until the completion of a certain procedure or until a certain obligation is fulfilled. It is entered in the land register and limits the owner's right to sell, pledge or otherwise dispose of the property.

Easements are limited property rights that entitle one person (the ruler of a dominant property) to use someone else's property (serving property) in a certain way, such as the right of passage or the right to lay water pipes and other facilities. Easements are established by contract or by law and are entered in the property register in order to be opposable to third parties.

The right to build (superfition) allows a person to build and own a building on someone else's property. This right is established by contract and entered in the land register, and the new owner of the land must respect the right to build if it was registered before the acquisition of the property.

The right of use is a limited right in rem that grants the user the right to use someone else's property for its intended purpose and to receive the proceeds from it without substantially altering it. This right is temporary and non-transferable and is entered in the property register.

It is important to note that property encumbrances are of a public-legal nature and are countervailable to all subsequent purchasers of the property if they are duly entered in the land register. This means that each new owner of the property must comply with those burdens and restrictions that were entered before his acquisition of the property.

What types of property and bond encumbrances exist under Bulgarian law? Can they all be seen in the property register?

In Bulgarian law, there are various types of property and obligation burdens on property that affect the right of ownership and use of the property. These burdens are important for legal certainty in real estate transactions and are subject to registration and verification in the Land Registry. Let's look at the main types of property and bond encumbrances and whether they can all be seen in the land registry.

Tangible weights

1. Mortgages: A mortgage is a tangible asset that secures a claim and is established by an entry in the Property Register. It provides the creditor with the right to preferential satisfaction of the price of the mortgaged property in case of default on the part of the debtor. Mortgages are entered in part “D” of the lot of the property (Art. 63 of the Law on Cadastre and Land Registry).
2. Confiscated: Seizure is a measure imposed by a court or administrative authority that prohibits disposing of property until the completion of certain proceedings or performance of an obligation. Seizures are entered in part “D” of the lot of the property (Art. 64).
3. Easements: Easements are limited property rights that grant a person (the owner of a dominant property) the right to use someone else's property (service property) in a certain way, such as the right of passage or the right to move facilities. Easements are entered in the Property Register, but not all types of easements are necessarily visible there, especially if they are not duly registered.
4. Construction law (superfiction): It is a limited property right that allows a person to build and own a building on someone else's property. The right to build is entered in the Property Register and is enforceable against all subsequent purchasers of the property.
5. Right of use: It is the right to use someone else's property according to its intended purpose and to obtain the yields from it without substantially modifying it. The right of use is temporary and non-transferable, and is entered in the Property Register.

Bond burdens

1. Rental agreement: A rental agreement is a binding legal relationship that grants the tenant the right to use the property for a certain period of time in return for payment of a rental price. The rental agreement can be entered in the Property Register, but this is not mandatory. If the contract has only a valid date, it is binding on the new owner until the expiration of its term, but not more than one year (Art. 237, paras. 1 and 2 of the Law on Obligations and Contracts).
2. Lease agreement: The lease agreement is a binding legal relationship that grants the lessor the right to use agricultural property for a certain period of time against payment of the rental price. The lease agreement may be entered in the Property Register. If it is registered, it is binding on the new owner for the entire period specified in it, and if it is not registered, the new acquirer is bound for a period of no more than two business years (Art. 17, para. 2 of the Agricultural Lease Act).

Can all encumbrances on real estate be seen in the Property Register?

Not all types of encumbrances on a property are necessarily visible in the Land Registry. Major encumbrances such as mortgages, foreclosures and building rights are entered and visible in the register. However, easements and the right of use can be detected upon a thorough inspection of notarial deeds. Bond encumbrances, such as a lease, are also not necessarily visible in the register unless they are entered. Only the lease agreement is necessarily entered in the property register.

Why is it necessary to carry out a property inspection for property encumbrances?

Checking for property encumbrances is a fundamental and extremely important step that must be carried out before acquiring a property. It protects future owners from the occurrence of unexpected legal cases and financial losses. Knowing the possible restrictions and obligations associated with the property is key to making an informed decision about the future purchase. Without a thorough check, new owners may face unexpected restrictions in the use of the property or be liable for debts and other obligations of their nature assumed by previous owners. This highlights the need for this verification before any real estate transaction. For example, it may turn out that, despite the acquisition of ownership, the new owner has to endure certain restrictions on the use and disposal of the property, or even risks losing ownership of it due to the presence of rights that act in favor of third parties.

Such situations include enforcement on the property for debts of the seller or previous owners. A common hypothesis is when the buyer liked a property, but does not know that the seller or previous owners have assumed certain obligations and pledged the property as a guarantee for their fulfillment, that is, the property is mortgaged in favor of the creditor. The risk is real and third parties who were not owners at the time of the transaction, but have owned the property long enough, can file a lawsuit and acquire ownership of the property through a court decision.

Where a statement of claim is filed, but the case on which it is based has been terminated or terminated in favour of the owner, that statement of claim may remain registered with the Registry Office as a 'encumbrance. ' The scenarios associated with property listings are many and varied, and while it can be difficult to cover them in their entirety, it is possible to check the listings for a particular property in detail and determine whether the property is “clean” or not. A common mistake when inspecting a property is to ask for an inspection only for a period of 10 years back, which corresponds to the acquisition limitation period by an unscrupulous landlord. This can be problematic especially if the property was public state or municipal property, since for such properties the acquisition limitation period may not apply. In such cases, even if more than ten years have passed, the property may still be owned by the state or municipality. This means that everything built on the land/property can end up being the property of the state or municipality if they later state their claims.

The main fear for the buyer when concluding a contract for the purchase and sale of real estate is whether it will not turn out that third parties will make claims in relation to the property and the buyer will be removed from the property - left without property and without money. Risks can be minimized if the buyer knows the basics about his rights in relation to the seller and possibly a third party claiming rights in relation to the property.

Mandatory when concluding a purchase and sale contract, a check is carried out at the Registry Agency whether the seller has not disposed of the property and whether there are registered claims against him in relation to the property being sold. If a third party claims to be the holder of the right of ownership or other rights in rem in respect of an immovable property and proves these rights, then that third party will have the right to recover the property, regardless of how many times the property has been transferred and in whose possession the property is located.

If the third person turns out to be the owner of the property, he will receive his property, and the buyer has the right to demand the money paid from his seller. In this case, the rights of the beneficial owner are preferred to those of the buyer. It does not matter when the claim for ownership was filed, respectively when the statement of claim was filed and when the buyer acquired the property. Even if the buyer purchased the property before the registration of the property claim with the registry office, the buyer will be removed from the property and the rights of the real owner will be recognized. If the action is initially brought against the person who owns the property, and in the course of the proceedings the latter disposes of the property, the beneficial owner should modify his claim against the new acquirer, unless a foreclosure is imposed on the property.

This means that in the event of a property claim, the rights of the beneficial owner are preferred to those of the buyer, regardless of whether the property was first purchased by the buyer or the property claim was first filed by the beneficial owner. As much as checks are made at the registry office regarding encumbrances on the property, there are no guarantees that the buyer will not be removed from the property. It is therefore extremely important to trace ownership of the property in order to assess whether it would be likely that a third party would assert rights in respect of the property at a future time, as well as to agree clauses to commit the seller's liability to recover at least the actual selling price of the property in the event of removal of the buyer from the property.

What is the procedure for inspecting a property for encumbrances and why do we need a good lawyer to carry it out?

Checking a property for encumbrances is an essential step in any real estate transaction that requires careful execution of a number of procedures and legal actions. This check ensures the peace and security of the future owner that the property is “clean” and there are no hidden burdens or legal issues. Here is the procedure for checking property for encumbrances and why a good lawyer is needed for its implementation:

The first step in the procedure for checking a property for encumbrances is to make an inquiry to the Registry Agency. This includes filing an application for the issuance of a certificate of encumbrances, which reflects all registered mortgages, foreclosures, claims and other encumbrances on the property. The encumbrance certificate contains information about all legal facts and circumstances related to the property that may affect the right of ownership and use of the property.

The second step is the verification of the cadastral map and cadastral registers. This check is carried out at the Agency of Geodesy, Cartography and Cadastre and aims to establish the exact boundaries of the property, as well as to make sure that there are no discrepancies between the data in the cadastral map and the real state of the property. This is important because discrepancies can lead to future legal disputes or problems with the use of the property.

The third step is the review of all documents of ownership of the property. This includes notarial deeds, purchase and sale contracts, donation agreements, court decisions and other documents that prove the seller's ownership right. This check is intended to establish that the seller is the actual owner of the property and that there are no third parties with claims to the property.

The fourth step is the verification of the existence of other limited real rights to the property, such as the right of use, the right to build (superfition) and easements. These rights may limit the ability of the new owner to use the property or dispose of it freely. It is important to find out whether such rights exist and what are the conditions for their exercise.

The final step in the procedure is the consultation of a good lawyer specializing in property law. A good lawyer will be able to carry out all the necessary checks and analyze the results to make sure that the property is “clean” and ready for purchase. The lawyer will provide you with legal advice on all aspects of the transaction, draw up the necessary contracts and documents, and represent you before the notary at the confession of the transaction. In addition, the lawyer will be able to identify potential risks and suggest solutions to minimize them, such as including special clauses in the contract of sale to guarantee your rights in the event of the occurrence of legal disputes or claims from third parties.

Having a good lawyer is essential because the legal inspection of a property for pecuniary encumbrances requires specific knowledge and experience in the field of property law. The lawyer will make sure that all legal aspects are duly verified and that the transaction is carried out in accordance with Bulgarian law. It will protect you from potential legal pitfalls and provide the legal certainty necessary to successfully complete the transaction.

How to get a certificate of encumbrances from the Land Registry, incl. and online? Is it enough in itself?

To obtain a certificate of encumbrances from the Land Registry, you can follow a few basic steps, which include both a visit to the relevant institution and the possibility of carrying out the verification online. The certificate of encumbrances is an important document that contains information about all registered mortgages, foreclosures, claims and other encumbrances on the property. This certificate is an essential tool for verifying the legal status of the property before entering into a transaction.

The first step in obtaining a certificate of encumbrances is to apply to the Registry Agency. This can be done in person, through an authorized person or electronically. If you choose to file the application in person or through an authorized person, you must visit an office of the Registry Agency, where you can submit a completed application containing the necessary information about the property, including its identifier, location and owner details. Copies of title documents must also be attached to the application.

The ability to apply online greatly facilitates the process. To do this, you must have an electronic signature and be registered in the electronic system of the Registry Agency. After logging into the system, you need to fill out the electronic application form for a certificate of encumbrances, attach the necessary documents and pay the appropriate fee. The system will provide you with information about the current status of your application, and after issuing the certificate, you will be able to download it in electronic format.

The certificate of encumbrances is an important document, but in itself it is not enough for a complete and detailed inspection of the property. This document provides information on the encumbered burdens, but does not give a complete picture of all possible legal problems that may arise. Therefore, it is important to conduct an additional check of the cadastral map and cadastral registers, as well as review all property documents to make sure that there are no discrepancies and hidden problems.

In addition, attention should also be paid to the presence of registered claims, which may pose potential risks. For example, even if the lawsuit based on the statement of claim is terminated or closed in favor of the owner, the statement of claim may remain registered as a “burden” with the Registry Office. Ev dikare bibe sedema tevliheviyên qanûnî yên nedilxwaz û girîng e ku van navnîşan werin rakirin da ku “paqijiya” milkê misoger bikin.

Finally, in order to be completely confident in the legal status of the property, it is advisable to consult a good lawyer specializing in property law. The lawyer can conduct a thorough inspection and analyze all legal aspects of the property, including the certificate of encumbrances, cadastral data and any other relevant documents. He will be able to identify potential risks and suggest solutions to minimize them, thereby protecting you from future legal and financial problems.

How are property encumbrances removed from the Property Register?

Property encumbrances such as mortgages, foreclosures and other restrictions on the right to property may be removed when they are no longer current or valid. The procedure involves several basic steps and requires cooperation with the competent authorities. This is how the write-off of tangible encumbrances is carried out:

The first step in the erasure of encumbrances is to submit an application for cancellation to the Registry Agency. The application must be completed correctly and contain information about the property, the encumbrance to be written off and the legal basis for the deletion. The application must also be accompanied by all necessary documents proving that the burden has been lifted.

To cancel a mortgage, the consent of the lender is required. This consent must be given in a notarized form. The creditor issues a document stating that the obligation has been fulfilled and the mortgage can be written off. This document, together with the application for deletion, shall be filed with the Registry Agency. Based on these documents, the mortgage is written off from the lot of the property.

When expunging a foreclosure, the application for cancellation must be accompanied by a court decision or other document proving that the seizure is no longer necessary. This may be a court decision that the obligation has been fulfilled or that the seizure has been canceled. This document shall be filed with the Registry Agency together with the application for deletion.

The cancellation of other types of pecuniary encumbrances, such as building rights, rights of use or easements, also requires the presentation of documents proving that the encumbrance has fallen off. This may be a notarial deed of termination of the right, a court decision or other document that establishes that the burden is no longer relevant. These documents shall be submitted to the Registry Agency together with the application for deletion.

After the submission of the application and the necessary documents, the Registry Agency shall examine the application and verify that all the requirements for the removal of the burden have been met. If the documents are regular and the encumbrance can be erased, the entry for the encumbrance is removed from the lot of the property.

It is important to note that the write-off of encumbrances must be carried out correctly and in accordance with all legal requirements in order to ensure the legal certainty of future transactions with the property. For this purpose, it is advisable to consult a good lawyer who can help you with the preparation of the necessary documents and represent you before the Registry Agency.

Why choose the law firm “Kolybanekova & Partners” when inspecting property for property encumbrances?

The choice of the law firm “Kolybanekova & Partners” when inspecting a property for property encumbrances offers numerous advantages that guarantee reliability and professionalism in every step of the process. That's why you should trust our team:

Law firm “Kolybanekova & Partners” has many years of experience in the field of real estate and property law. Our team of lawyers is highly qualified and familiar with all current legal norms and procedures related to property verification for encumbrances. This experience and expertise allows us to provide our clients with accurate and timely legal assistance, in line with the latest requirements of the legislation.

The office is distinguished by an individual approach to each client. We understand that every real estate transaction is unique and has its own specific requirements and challenges. Our lawyers carefully analyze each situation and provide customized solutions that best meet the needs and interests of the client. This includes a detailed inspection of the property, analysis of all property documents and legal advice to minimize risks.

One of the main advantages of working with our office is our commitment to transparency and clear communication. We always inform our clients about every step of the process and provide clear and understandable explanations of legal terms and procedures. This helps our clients make informed decisions and feel confident in their legal actions.

We at Kolibanekova & Partners also provide full legal protection and representation in the event of legal disputes. If during the inspection of the property legal problems or burdens are identified, our lawyers are ready to provide competent legal assistance and protect the interests of the client before the court or other competent authorities. This includes the preparation of legal documents, representation before a notary and assistance in negotiations.

Choosing a law firm “Kolybanekova and Partners”, you choose reliability, professionalism and commitment to your interests. We are here to give you the peace of mind and security that your real estate transaction will be carried out smoothly and in compliance with all legal requirements. Our mission is to provide you with the best legal service and help you make the right decisions for your future.