Real Estate Due Diligence in Bulgaria
Real Estate Due Diligence in BulgariaUpdated on Monday 18th April 2016
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Due Diligence in Bulgaria is a term used to refer to the inspection and investigation of real estate property before making a final decision in matters of buying it or not.
The main factors to check before acquiring a property are environmental factors, the compliance and physical condition, the title issues and the approvals necessary for the acquisition.
The environmental factors consist in various reports on the position of the Bulgarian property and its characteristics. For instance, the individual will check from a historic point of view the property and will try to find any information from the regulatory databases regarding the land on which the property is situated. It will also make an inspection of the place the property is located.
It is one of the most important steps and it is advisable to be initiated it in the beginning of the due diligence in order to have enough time in order to solve any issue which may be encountered.
A second stage of the environmental checking it is usually necessary only if in the first instance various problems may raise which requires a detailed research. In this phase, various samples are taken from the property in order to check the issues stated in the phase one of the studies.
In this stage is also mandatory to check if the property requires environmental operating permits or asks for any reporting obligations related to air or water quality. If there are any, the buyer is entitled to receive any previous permits and any reports related to the above.
Other environmental factors to consider before making a decision on buying a property on environmental factors refers to the presence of endangered species in the area, the presence of wetlands, the presence of watersheds, flood zones or seismic areas.
Other areas of research are related to the fact that the property must respect certain building and life safety codes specific to Bulgaria. In order to do that, you are advised to check the planning department and building department files and records related to the real estate.
What else you should be careful at
It is also advisable to check whether the Bulgarian property has adequate access from public streets or not and if it has enough parking space.
Other things to consider before purchasing a property is checking are the copies of the leases, licenses and contracts attached to the property.
If the new owner will change the property designation it is advisable that during the due diligence to start the process of requesting the necessary permits and entitlement. In this phase, the buyer can check if the new designation of the property is allowed and if he can obtain the necessary permits.
Our lawyers in Bulgaria can help you take the best solution when it comes to buying a Bulgarian property and can initiate all the procedures of due diligence in this country so you don't need to handle the red tape or long waiting times necessary for this procedures.