What kind of complications could I expect as a Buyer at the notary transfer of a real estate if I have a signed Preliminary contract?
Last update: 2008-05-09 06:29:59
If the parties have a signed Preliminary contract, they are bound with its clauses. There are some cases where the Buyers end up unpleasantly surprised by the request of the Seller to have a different price on the notary deed - not the real one according to the Preliminary contract but a price based on the issued by the local tax authorities certificate for tax evaluation. In case the Buyer wants the real price on the notary deed, the Seller would agree only if additional VAT (20% on the top of the already stipulated price) is added. The higher price on the notary deed would lead to higher expenses for transfer fees and taxes, traditionally paid by the Buyer. Each Buyer should decide which notary deal would be preferable for him: the notary deal that would involve less expense and become cheaper in the end (having in mind that the declaration of false information and failure to pay taxes is considered to be a criminal offence in Bulgaria) or the notary deal that would provide more security. You should consider that in case of a legal eviction, the evicted Buyer could seek a refund of the amount mentioned in the notary deed, not the amount mentioned in the Preliminary contract.