How can I own land if the appartment is on 2nd floor?

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ralph
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How can I own land if the appartment is on 2nd floor?

Postby ralph » Thu Dec 22, 2005 7:56 am

Dear all,
I am interested in an appartment in Burgas. The property is on the 2nd floor, and I am being told that the ownership of the plot of land on which the building was constructed will be transfered to me along with the ownership of the apartment.( the area directly below the app)

Could anyone give me advise on any loopholes or catches to be aware of?

Thanks!

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oldtimer
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Postby oldtimer » Thu Dec 22, 2005 8:03 am

For you to own the land you will have to make a company, has your agent told you this.

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scot47
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Postby scot47 » Thu Dec 22, 2005 8:18 am

I think there is a misunderstaning. Usually with apartmesnts each owner has a nominal ownership of a share in the land. If I recollect the wording in Bulgarian it is 'idealen'.

I would respectfully suggest that you check AND GET A COMPETENT INTERPRETER.
Last edited by scot47 on Fri Dec 23, 2005 2:42 am, edited 1 time in total.

Bo

Postby Bo » Thu Dec 22, 2005 8:59 am

Unless, you have set up a company (in BG, the UK, offshore or in another jurisdiction of your choice) you can only purchase an apartment as leasehold property (право на строеж in Bulgarian). In Bulgaria the lease period (unlike in the UK) is not commonly measured in decades but tends to be indefinite unless a term is expressly specified in the purchase contract/title deed.

What 'ideal' refers to is not something I've ever found to have a direct equivalent in English property law but it basically means that you acquire title in the common elements of the building in which your property is located, which corresponds to the ratio between the gross external area of your apartment vs. the gross external area of the entire building.

Get a lawyer!

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Batko
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Postby Batko » Thu Dec 22, 2005 9:36 am

Ralph,
I presume the apartment is in an old building. In this case, you will form a company, and the apartment will become an asset of your company.Your company will then own the apartment and however many square metres it says in the deeds, forever. No problems, no catches.

Bo is not quite right. First of all only a Bulgarian person, or a company set up and registered in Bulgaria can own land/property.
Either you buy the apartment with a percentage of the land through a Bulgarian company. Or as with most off plan developments, you buy the apartment in your own name, without a company. This way you are buying the "right to build" from the original land owner. They will, in effect still own the land that the apartment block is on, but will have sold their rights to build to the new owners/developers. The original owners will not be able to do anything with the land, even if the whole block collapses, because they have sold their rights to build on it.


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