Buying a flat in Sofia: checks before paying a deposit

The three terms sound similar, but their legal consequences differ and depend on the specific contract, not on common practice. A reservation deposit usually takes the listing off the market and may be refundable or non-refundable depending on the clause — check it explicitly. An advance payment is typically part of the future price, and whether it is returned if the deal collapses depends on the reason and the contract text. Earnest money (капаро) under Bulgarian practice generally has a security function: if the buyer withdraws, they may lose it; if the seller withdraws, they are typically expected to return double — but this, too, must be set out explicitly in the written contract, never assumed.

Before paying anything, request an up-to-date sketch and a property extract, and where possible an encumbrance certificate from the property register at the Registry Agency. It shows recorded mortgages, attachments, pending claims and other entries at the time of issue, but it only reflects entries existing at that moment and is not a guarantee beyond that scope.

• Who the registered owner is and whether it matches the seller named in the contract.
• Whether there is a registered mortgage that needs to be cleared before or at completion.
• Whether there are pending court proceedings relating to the property.
• Whether the actual area and layout match what the documents state.

Ask for the seller's title document (notarial deed or other basis), a current sketch, an encumbrance certificate, and — if the property is in a building with shared ownership — any outstanding dues on the entrance. For new-build property, also check the commissioning status (see what stands behind Act 16). If you are buying with a mortgage, find out in advance what documents the bank will need, so you are not caught out right before a deposit deadline.

The preliminary contract should clearly describe the property, the price, the payment schedule, the deadline for completing the deal before a notary, and the consequences of non-performance by either side. Avoid relying on verbal understandings — if something matters to you (deadline, refund if encumbrances are found, who bears transaction costs), it needs to be written down explicitly.

The notary checks the title documents before the actual completion, but this does not substitute for an independent legal review before you pay a deposit — a notary is typically not yet involved at that earlier stage. It is therefore sensible to have a lawyer familiar with the case review the reservation or deposit contract, especially for inherited property, co-ownership, or a sale handled by a proxy.

Before paying any sum, ask for a written draft contract and an ownership extract, and take time to review them calmly — ideally with a lawyer. If you are preparing a purchase and want a structured review of the documents, our team can help organise the process.