Due Diligence on Bulgarian Property: Property Register, Encumbrances, Act 16 and Maintenance-Fee Debts

1Why is due diligence in Bulgaria different from what you know in Israel?

Because there is no single land registry extract ("Tabu extract") that tells the whole story. Two systems operate in parallel in Bulgaria: the cadastre, which records the property's location, boundaries and area, and the Property Register, which records rights, liens and attachments. The notary who approves the transaction checks that the seller is the currently registered owner, but is not obliged to check the chain of title. An old defect in the chain, for example an inheritance that did not include all the heirs or a sale under a defective power of attorney, can harm even a good-faith buyer.

Our general legal guide to Bulgaria sets out the basic list of documents. Here we go deeper into the questions on which transactions actually fall apart, and into the changes that took effect in 2026.

2What do you check in the Property Register?

The current ownership, the chain of title and all entries on the property. The Property Register is managed by the Registry Agency and records the deeds that create, transfer, change or cancel property rights, as well as attachments and mortgages. The professional recommendation is to examine at least ten years back for a residential property, and longer for a commercial property or land for development.

A technical point worth knowing: in many districts where a cadastral map has not been completed, the register is in practice organized by owners' names and not by property. This means that searching by the name of the current seller is not enough, and you must also search by the names of previous owners. Old entries sometimes require a manual search in the archive.

The central document is the certificate of encumbrances (удостоверение за тежести), which lists all entries on the property or on the owner as of a given date. Every certificate issued since 19 March 2018 carries a unique 12-character code that can be verified on the Registry Agency's website. An "old" certificate does not protect you, so one is obtained at the due diligence stage and another as close as possible to signing.

3Which liens and attachments should you look for?

• Mortgages (ипотека) - including their ranking. A mortgage registration is valid for ten years and can be renewed, so an "old" mortgage may still be in force.
• Attachments (възбрана) by a private enforcement agent, by the tax authority or by a court.
• Registered claims - a claim registered in the register against the property prevails over rights acquired after it.
• Limited property rights - a right of use, a third party's building right, easements and rights of way.
• Registered long-term lease - a registered tenant may be protected even against a new owner.
• The seller's insolvency. Where the seller is a company, check the Commercial Register. In 2026 a "Register of Insolvency of Natural Persons" also began operating at the Registry Agency, allowing a public search.

4How do you make sure the property on the ground is the property in the documents?

Through the cadastre. The Geodesy, Cartography and Cadastre Agency operates the KAIS portal with the cadastral map, and issues a cadastral sketch (скица) for each property with a unique identifier. Check that the identifier is the same in the title deed, in the cadastre and in the building permit, and that the area and boundaries match the actual situation. For a private house and for land, it is worth commissioning a surveyor to compare the registered data with the situation on the ground, including fences, outbuildings and extensions.

5What is Act 16, and why must you not waive it?

Act 16 is the common name for the protocol that determines that the building is fit for use, following which a use permit (разрешение за ползване) or a certificate of commissioning is issued. This is the document that turns a structure into a property that may be used. As a rule, for buildings in the higher categories the permit is issued by the National Construction Supervision Directorate (ДНСК), and for smaller buildings the municipality issues a certificate. In a new apartment, the absence of Act 16 is one of the most common problems in transactions with foreigners.

A property without a use permit cannot be lawfully used, and it is hard to register an address, connect utilities in the owner's name, obtain bank financing or sell it in the future. Beyond that, you also check for deviations from the permit: balconies that were enclosed, attics converted into living space or floors that were added. Building without a permit can lead to a demolition order, and Bulgaria currently has no general legalization law for such construction. In that case, the owner who holds the property at the time the order is issued bears the cost of demolition.

6Which debts can pass to the buyer?

The debts that endanger the buyer are those attached to the property and not to the person. Four main types:

7Maintenance fees in resort complexes: why are they a focus of disputes?

Because in gated complexes on the Black Sea coast and at ski resorts, private management contracts operate alongside the general law. The Condominium Management Act (ЗУЕС) regulates the management of the building through an owners' assembly, and according to a common interpretation, owners who do not stay in the property for more than 30 days a year are not required to bear part of the ongoing management costs. On the other hand, when buying in a resort complex the buyer is often asked to sign a direct contract with a management company, and there the obligations are set by the contract.

Over the years there have been many disputes between apartment owners and management companies, including cases of complexes where services were stopped. Therefore, before buying, request the management contract, the management fees in recent years and the scope of debts of the entire complex, and not only of the apartment. You should also obtain written confirmation that the apartment has no open debts, and check whether the contract binds a new purchaser as well.

8And what do you check about the seller himself?

• Marital status - a property acquired during marriage is usually joint property and the spouse's consent is required. The Registry Agency operates a dedicated register of spouses' property relations.
• Inheritance - where the sellers are heirs, check that all the heirs sign and that there is an up-to-date certificate of inheritance.
• Power of attorney - if the seller is represented, check the validity and scope of the power of attorney, and where it was signed abroad, the apostille as well.
• Selling company - the authorized signatories in the Commercial Register, the company's corporate resolutions and the absence of insolvency proceedings.

9In what order is the check carried out?

1. Obtain the property's full details: cadastral identifier, title deed and the seller's details.
2. Run an initial check in the Property Register and the cadastre, before any payment.
3. Check the chain of title for at least ten years, including a search by the names of previous owners.
4. Check building permits, Act 16 and deviations, with the municipality or the construction supervision directorate.
5. Collect certificates of no debts: municipality, suppliers and the condominium or management company.
6. Visit the property, and for a private house or land, also survey it.
7. Draft conditions precedent and indemnities in the preliminary agreement according to the findings.
8. Obtain an up-to-date certificate of encumbrances on or near the day of signing.

10The Israeli aspect: checking remotely without compromise

An Israeli investor cannot himself enter the archive of the Property Register in Burgas, and since 2026 online access to copies of deeds is limited as well. Therefore, in practice, due diligence is carried out by a local lawyer. The question is who supervises him and who translates the findings into a business decision. The cost of a professional check is a fraction of the cost of the transaction itself, whereas a defect in title, a demolition order or an old debt to a management company can cost a far higher sum.

11What to do before signing, and how we accompany you

Do not pay a deposit and do not sign a preliminary agreement before an initial check in the register and the cadastre. We manage the due diligence together with lawyers, surveyors and notaries in Bulgaria with whom we have worked for many years, consolidate the findings into a report in Hebrew with a clear recommendation, and translate each finding into a contract term: a condition precedent, a payment holdback or an indemnity. In this way the check actually affects the transaction and is not merely an appendix in the file.

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The information in this guide is general in nature and does not constitute legal or tax advice on any specific transaction. Every transaction is assessed on its own facts.