Buying property in Bulgaria
Contract killer
Q
I am buying in Bulgaria and need details about stage
payments. The developer says I must pay the final installment before completion,
including €8,000 (£5,435) for furniture; only then will I get the surveyor’s
report I’ve paid for. So I’m paying in full before I know if it’s all OK. Is
this normal? William Vent, bolton
A
This is a tricky situation. Most purchase
contracts state that the last payment is made at the time of signing the title
deed and the handing over of the keys. This allows you to view the property and
do a snagging list before making the last payment. It also gives you a certain
amount of leverage over the developer.
However, some contracts state that the last payment is made on a certain date, which means that if the property is finished then contractually you have to pay the full purchase price before the property is finished. Plainly, once the last payment is made there is little incentive for the developer to sort out any problems. If there are any barriers (legal or otherwise) to the property being delivered (eg, if the Habitation Certificate cannot be issued) then you have little room for manoeuvre as you’ve already paid all of the purchase price. Some contracts state that once you’ve paid the final instalment you have accepted the condition of the property and lose your right to have any snagging issues resolved.
Having said all that, it may be possible to negotiate with the developer and withhold the final purchase instalment until the property is finished. But make sure that your lawyer gets the correct paperwork from the developer or you might find that you are in breach of contract. The best solution is to have a good contract in place from the beginning to avoid problems.
On the road
Q
I am planning to move abroad and want to take my car with me. What will I need to do once I get to the new country? David Harrington, Grimsby
A
In most countries, you will have to re-register the car within six months of your arrival. You are likely to have to have the car inspected to make sure it conforms with local regulations and
it may require some modifications. However, I tend to think that it is better to
sell your car before you move and then to buy another one when you get to the
new country. The steering wheel will be on the correct side of the road and it
will therefore be safer. You will stand out as a foreigner less and it will be
cheaper to get insurance, parts and servicing. In addition to this, the type of
car that you have over here may not be suitable for the country you move to.
Greece
Q
My husband and I have
recently been house-hunting in the Pelion area of Greece. We’re about to put in
an offer on a renovated stone cottage in Pinakates, one of the mountain villages
of the Pelion. We have been working with Pelion Properties,
which advertised the property, and on our recent visit have given a lawyer power
of attorney to act on our behalf. We were advised this was sensible as we cannot
make regular trips to Greece for signings. What do you think of this? Julie Murphy, by e-mail
A
Power of Attorney is a piece of paper that
allows somebody to do something on your behalf – eg, sign the title deeds. There
are a number of reasons why you might do this.
Firstly, signing title deeds is not that thrilling – most people prefer to use their time off work enjoying the property rather than signing pieces of paper. Secondly, if you have flown out to sign the title deeds and a delay occurs then your journey is wasted. Thirdly, there’s more to transferring the title than just signing the title deeds – there are taxes to be paid and the title to be registered in the land registry; you’re unlikely to want to get involved in this.
It is vital that you only give Power of Attorney to somebody you trust and who is acting independently – for you, not the seller, agent or developer.
Spain
QI have children from a previous marriage with whom I’m no longer in contact. I’ve heard that if I buy a place in Spain then I have to leave my property to my children when I die. Is this correct? Peter Griffin, Liverpool
A
No. Spanish
Law says that if you are not Spanish then you can apply the law of your own
nationality. So if you are British then you are able to leave your property to
whoever you wish.
