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Never thought selling an apartment would be cumbersome

Last activity 12 July 2021 by gwynj

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Daiime

I just need to went a little frustration here. Here's my story:

Got married with a prenuptial agreement. Inherited money. Bought an apartment in Sofia (Lozenets) in 2015 for 85 000 €
90 square metres, two bedrooms, two balconies, bathroom with a toilet, guest toilet, kitchenette.

Moved from Bulgaria two years later, and the apartment has been leased since then.
Been eager to sell it. Got in touch with a real estate agent who wants to buy it for himself, for 90 000 €.
So much for "invest in property".

Had a lichna karta while in Bulgaria, which has expired. Have/had a bank account too (likely without online banking), with details long forgotten.

And the documents required...! Oh, the documents!
Bulstat, taxation documents...
Despite the prenuptial agreement, the husband still needs to approve the sale, and provide a tonne of documents for that, apparently.
I need a Bulgarian bank account, because the notarius can't transfer the first part of the money to any foreign account (after signing this preliminary document).

Creating a Bulgarian account isn't easy either, and takes five work days (and I will stay for four). I can potentially come back to Bulgaria to complete that process, but I seriously don't have time during autumn.
I can't create an account online, because that requires a Bulgarian phone number and EGN (which I don't have).

The real estate agent says he can get a power of attorney and do this for me. However, that sounds sketchy. Not only that, but the signing of the power of attorney needs to be witnessed by the staff of the Bulgarian embassy, a 3 hour commute away. It needs to be in Bulgarian, I'm not sure they will translate from English to Bulgarian either. I'm not fluent in Bulgarian, especially in bureaucratic Bulgarian. Then I probably need to send the power of attorney with DHL or something equally expensive to Bulgaria.

Whyyyy is this so complicated?

(I've not sold property in Norway before, but can't for the life of me imagine it'd be that complicated here)

kristiann

Your case is complicated, that's the main reason.

Daiime

I don't understand why my husband has to approve the sale when we have this prenutptial agreement, and why it's impossible to transfer money to a foreign account.

janemulberry

Ouch! So sorry things are complicated and frustrating! Bulgaria seems more bureaucratic in some aspects than most EU countries, so I totally understand why you need to vent!

Unfortunately many legal systems don't recognise pre-nups. I believe Bulgarian law requires that both spouses are joint owners of property, which is for the protection of both. And it sounds as if you bought the apartment at the height of the last property boom, prices dropped, then picked up again. I'm guessing after being rented out for a while, the apartment will need money spending to bring it back up to a good standard. Also, agents who want to buy for themselves are always looking for a good deal. That's the price of selling quickly rather than having the apartment on the market mo0nths waiting for a buyer. The bank thing - yes, so frustrating. I've had similar experiences here in the UK trying to open a new account.

I hope it all works out for you!

gwynj

Bureaucracy is always frustrating, all over the world (and funnily enough there's always more for selling than buying)... and it probably feels good to vent a little steam. But, generally, you just gotta knuckle down and do whatever it is that the faceless bureaucrats want you to do. :-)

Selling property remotely is always a pain, because of the principal issues you mention (not there to sign, don't have a local bank account).

(a) You've had rental income for a few years, plus the price has gone up. Maybe it's not London house price inflation, but it could have been far worse!

(b) My guess is that if a realtor wants to buy it himself, then he's offering a price on the low side. I'd say property in Sofia is well over 1,000 euros per m2. I've seen new stuff at 1,200 - 1,500 (and that's unfinished, "Bulgarian standard"). So if it's a nice apartment in a nice area... and it's presumably nicely finished and nicely furnished (as it was rented out)... it should be worth significantly more than 90k. (And if it has a parking space, that's extra too.)

(c) Power of Attorney is not "sketchy", and is usually what's needed for a remote sale. But the person you give it to MIGHT BE! And... if you give it to the person who wants to buy the apartment... that sounds like a huge no-no! But it's a challenge, 'cos 100k euros is enough for some people to forget their principles for.

Really, it comes down to: find someone (probably a lawyer) who you think is trustworthy enough to give your POA to. They can sign all documents, receive the funds, and then send to your overseas account.

Or come out to Bulgaria for a few days, and just do it yourself. If you had a bank account, you can probably get the info if you show your passport. (And, if not, there are some banks that will still open a new account based on a passport.) But in this case, I would still recommend using a lawyer to help you organize everything (including the contracts, and whatever POA/documents are needed from your husband).

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