Management companies in Bulgaria

Management companies in Bulgaria are a very difficult topic, relevant for many homeowners. Conflicts with such organizations are not uncommon. We raise this issue at the request of our clients who had to personally encounter local management companies.

Our compatriots – owners of apartments in complexes, faced with the irresponsible work of the management company, are ready for decisive action in the fight for their rights. Unfortunately, many owners of residential real estate in Bulgaria are not aware of their real rights and obligations related to real estate. This leads to various abuses on the part of management companies.

We want to remind you that in the local The Law "For the Management of Property" (On the Management of Condominium Property) There is an approved regulation, according to which until 30.06.2010 the owners of apartments in existing complexes had to convene a general meeting of the Condominium Property*, elect a management board, adopt a budget and register the book of owners. According to Article 44, all decisions of the General Assembly must be registered in the register by submitting an application to the Community. In the new complexes, the general meeting must be held within 6 months after the receipt of Act 16.

If the owners do not know about this obligation, or do not want to, cannot hold a meeting, then everything is done for them by the authorities – the mayor of the municipality, district.

The developer (which in most cases is also an Investor) or an affiliated management company conceals this information from the owners, does not inform about the need to perform the actions specified in the Law. It is not uncommon for representatives of management companies to by cunning, deception or even force, they force the owners to sign onerous contracts for the support of the complex, which are contrary to the Law. Homeowners who do not know their rights often follow the lead of intruders – representatives of the Developer or the Management Company.

Here is an example of the Developer's illegal actions.

When buying real estate in a new (under construction) complex, the owners are first offered to sign a preliminary purchase and sale agreement. This document certifies your intention to pay the full price of your apartment. There is a clause in the preliminary contract according to which you undertake to sign a "complex support agreement" with the management company.

By signing this document, you have no idea what the content of the contract for the support of the complex will be. And later, when drawing up the Notary Deed (the main document certifying the fact of your ownership of the property), you are offered to sign this support agreement. Usually this is done at the last moment, sometimes even directly in the notary's office.

After reading the enslaving contract with the management company, you decide not to put your signature on it yet, but to take a break and consult with lawyers. In response, the Developer, as a rule, refuses to draw up a notarial deed for your real estate, which you have already paid for in full by this time.

In practice, the execution of a real estate purchase and sale agreement (notarial deed) is carried out either by power of attorney or as soon as possible. This is due to the fact that the owners usually do not live in Bulgaria permanently, but come for the sake of registration of the transaction for a couple of days.

Only a few refuse in such a situation to sign the onerous contract proposed by the management company (Developer). If the transaction is executed under a power of attorney, the signing of this document is not discussed with the owner at all. If the owner of the property himself participates in the transaction, then he is usually prevented by the lack of time to fight for his rights – few people are ready to fly to Bulgaria again for this.

What does the signing of the contract lead to?

As soon as you formalize the purchase and sale transaction and sign the contract for the support of the complex, the obligations of the Developer and the Management Company end. From now on, you are responsible for everything with your own money, time and nerves.

We can cite many such examples. However, not everything is as bad as it may seem at first glance. You just don't need to blindly trust the Developer and rely on his promises. In order for life and vacation in Bulgaria to be a joy for you, and the purchase of your own housing in a resort complex does not cause trouble, you need to consult with Bulgarian lawyers in advance.

If you have already fallen into a trap, and now you want to restore justice, then you need to unite as a friendly team with your brothers in misfortune – other owners of apartments in your complex. And after that, again, contact professionals who will help you to begin with to organize a general meeting according to all the rules.

We are ready to help you organize such meetings!

We offer everyone to purchase Bulgarian real estate. Professional advice from lawyers who have a thorough knowledge of Bulgarian laws and experience in holding general meetings of residents will help you with this.

*(ES) Luxury property in Bulgaria. In Russia, for example, this is an HOA (Homeowners' Association).