Purchase expenses?

How the purchase expenses are formed

CLIENT'S GUIDE

Expenses in a real estate property purchase deal

1. The announced price of the real estate property

The announced price for each property on our site is the price that our company negotiates with the owners of all proerties entered in the database.

In many cases the announced price is negotiable with the vendor depending on the specific terms of the deal.

It often happens that the announced price is not further commented on in harmony with the vendor's desire, in which cases we shall inform you of the situation in advance.

Do feel free to contact our brokers who manage the order for each real estate property.

The announced property price DOES NOT INCLUDE :

• the intremediary remuneration for the transaction (commission)
• the service fee (charged only for transactions with no commission from the buyer)
• the amounts due from the parties in the form of local tax, notarial fees and court fees for the inscription of the notarial deed.

1. Intermediary remuneration (commission)

The remuneration is 3% (three percent) due only in case the buyer purchases the desired property through Property Market's agency.

The buyer DOES NOT owe remuneration to the company if he purchases a real estate property on his own or through another agent.

The intermediary remuneration (commission) includes the following services :

• inspection of the property documents for encumbrances and past transfers of ownership ( inlcudes the issuing of an official document by the Registry Agency);
• attorney's fee for the preparation of the noatrial deed and all other necessary documents (the client has the right to choose a lawyer to represent him );
• hiring a public notary (the client has the right to choose a notary public);
• advice on the current market situation and the prices for the specific market segments;
• initial consultation on the rules in realizing the transaction;
• consultation on the necessary documenation and legal requirements concerning the transaction;
• introducing the client with the best terms for obtaining a BANK CREDIT  

In transactions for which Mirela does not charge a commission, the buyer pays a service tax of 300 EUR.

• the commission is due upon closing the transaction;
• Property Market. does not claim preliminary payment of the commission or parts thereof;
• Property Market. organizes the purchase  at its own expense and finances all actions and enterprises related to the search of the suitable real estate property;
• in unusual cases and  commitments beyond the formal agency of the company, property Market charges a fee, approved by the manager.

1. Local tax, notarial and court fees

We feel obliged to inform you of the usual practice for expenses (local tax and state fees) on real estate property purchases and sales in Bulgaria to be paid from seller. There are exceptions to the rule depending on the conditions and compromises negotiated between the parties.

Our role of consultants and agents is to offer you the most successful solutions through existing practice.

Local tax- 3%

Each real estate property deal, transfer or establishement  or real right on immovable property on the territory of Bulgaria is liable to taxation (local tax) under the Law on Local Taxes and Charges.

For puchase and sales transactions the amount of the tax is 3% of the selling price for the property and is calculated (on the announced price according to the notary deed) by the notary public engaged for the transaction.
 
Notarial fee (collected on the basis of a tariff by the notary legalizing the transaction according to material interest- the price of the property in the notarial deed)

The notarial fee is collected in accordance with the NOTARIAL FEES tariff under the Notary Act. You can learn the exact amount of the fee provided that you have gathered all the required documents or have already negotiated the selling price of the property.
Feel free to contact our agent on this matter, he will provide you with a figure for the fee.

Registration fee- 0.01% (collected by the Registry Agency after the notarial attestation)

The registration fee is collected for each document with certified material interest, such as the notarial deed. According to the REGULATIONS ON ENTRIES, subject to entering are all acts for transferring the ownership (sale, grant, exchange etc.) or for establishing, transferring, changing or terminating other real right on the immovable property, as well as acts recognizing such rights (ascertaining notarial deeds, acts for state and municipal property etc.).
Acts, subject to entering, and entered are given publicity, thus becoming examinable for encumbrances and previous transactions for each separate property.  Verification of the property status is an inalienable part of Mirela's obligations.
According to the Tariff of State Fees, collected by the Registry Agency (effective 25.11.2005 and published in issue 94/ 25.11.2005 of State gazette):
For the registration of acts and documents a fee is charged either on the price on which the document or act has been taxed or on the price of the claim in the amount of 0.1% but not less than 5.00 lv.

Addressing a professional real estate agent will prove nerve saving and will spare your money and effort.