Buying property from the municipality

Everyone has seen those big run-down properties former schools or kinder gardens in the center of a pretty Bulgarian village with vast gardens of thousands of sq m. No doubt they are a promise to become spectacular new homes or bed and breakfast business for a ridiculous low price.

But what exactly is involved in purchasing real estate that belongs to a Bulgarian municipality or state?

There are two types of classification of municipal properties – public municipal property and private municipal property. The public municipal property is designed to serve the needs of the municipal administration and the community – like schools, kindergartens, town halls etc. Private municipal property is everything else that belongs to the municipality.

At any point the Municipal Council can change the status of a property from public to private if they decide that the property no longer serves the needs of the community.

Only private municipal property can be subject to sale or lease. The title document for such properties is called “Act of Municipal Property”. This act contains information on the type of property – public or private and all actions taken by the municipality in respect to this property.

Once a private municipal property is announced for sale a contest should be organized by the mayor of the village. The procedure is based on local regulations. An independent licensed expert estimates the property. If the evaluation indicates a price lower than the market price the property is sold on the higher market price.

After a buyer is nominated the mayor of the municipality issues a Resolution containing this decision. Then a written contract is made that acts as a title deed. This contract is then registered in the Act of the Municipal property.

Another common practice is to exchange municipal property for a property owned by a physical or juridical person.

The necessary documents in this case are copy of your notary deed and a standard request form. Of course both properties must be equal in value. Then the Municipal Council decided whether to accept or to deny the exchange offer. Usually this procedure takes about 2 months.

In any case you should be armed with patience as Municipal council can act extremely slowly.