Documents in a transaction
Buying or selling a home is an extremely exciting event, but the process of pulling together the paperwork is quite the tedious task. The list is never short - and getting them is not always easy. It's a good idea to have trusted help with this process. We can save you the time in walking around and hanging out in lines, and pull all the documents for you with just one power of attorney. If you do decide to go it alone let us guide you.
Different institutions have different deadlines for issuing documents, and sometimes it can take much longer than you think to get a document - especially if the property is older or if there are any encumbrances on it. It is therefore a good idea to know exactly what you will need and to start the procedure as early as possible. The list is individual and varies depending on the circumstances of the transaction, here we will focus on the universal documents needed.
In case of a mortgage loan
If you are planning to take a loan to finance the purchase of your new home, it is advisable to research the best deals from banks by consulting a licensed credit counselor. Credit counselors can compare offers from different banks to find the best terms in your specific case- and as much as your "personal" banker tells you that your current bank's terms are the best, it doesn't hurt to check. The consultation is completely free. Additionally, a pre-professional credit intermediary can save you a lot of fees and prepare your documents so that you can draw down the loan much faster and without any problems. We are available for a casual meeting to introduce you to credit financing. And if you work with us, we'll save you a lot of those annoying visits to the bank branch.
In order to start the process of collecting bank offers, you need to fill in a personal data notification.
After selecting the best mortgage offer to submit a claim for prior approval you need the following documents:
- Application for mortgage loan on the bank's form
- Copy of identity document
- Sometimes documentation verifying your income is also required.
When you choose the right home for you and sign a preliminary contract with the seller, the actual procurement of documents to finalize the transaction begins.
Documents to claim credit:
- Copies of identity documents of the applicants
- Declaration of related parties in accordance with the Bank's template
Sometimes an income statement, copy of employment contract, management contracts, annual tax returns may be needed. In the case of rental income - lease agreement, deed to the property being rented, receipts, tax return. For income from own business - accounting statements, current status, certificate of no tax liability.
Personal documents for all participants in a transaction:
- Certificate of absence of tax liabilities (issued by the National Revenue Agency (NRA)- (often referred to as Article 87)
- Certificates of marital status from the loan applicants and the owners of the property that will serve as collateral for the loan (certificates of civil marriage, marriage contracts, divorce decrees) - Issued by the municipal office of the ESGRON to the area of address registration of the seller.
A certificate of civil marriage, a prenuptial agreement if available or a divorce decree is also always required. If the property was not acquired during the marriage, it is not a family property, but is the personal property of the seller. However, if the non-owner spouse is registered at the address of the property, his/her consent to the sale of the property is required, which is given in the form of a notarised declaration.
When buying a ready home with permission for use are required:
- Preliminary contract
- Property ownership documents
- Certificate of permission to use the building
- Certificate of tax assessment of the property - from the territorial directorates of the NRA at the location of the property.
- Certificate of Encumbrances on the Property (CET) - from the Registry Agency at the location of the property
- Cadastral scheme or sketch of the property - from the Office of Geodesy, Cartography and Cadastre
- Market valuation of the property
When purchasing a home under construction, in addition to the above:
- Sketch-visa for design
- Building permit
- Approved architectural design for the property
- Certificate of completion of rough construction
- Area distribution - area formation
Before you go to a notary to sign the deed, you must make sure you have all the necessary documents. Sometimes additional documents such as a "certificate of similarity of address", for example, or a specific document of ownership such as a donation, exchange, deed of title or deed of easement are also needed. In the case of an inherited property, the owner must provide the death certificate of the heir and a certificate of heirs or probate, together with the testator's title deed. Proof of ownership may also be provided by a number of court judgments and decrees - a partition agreement, a decision declaring a preliminary contract final, the decree of foreclosure at a public sale of property, etc.
Regarding the property tax assessment, note that all co-owners of the property must be listed and it must be noted that the owner and co-owners have no tax liability to the state.
Regarding the TDR - for its issuance the following are required: an application form in which all the data about the property are entered; a current scheme/sketch of the property from the Office of Surveying, Cartography and Cadastre, a copy of the property ownership document; copies of previous ownership documents describing the history of the property (for a period of at least 10 years back). If the property is under construction or is a new building, two encumbrance certificates are required - for the property itself and for the land on which the building is built.
A cadastral sketch or cadastral diagram of the property is issued depending on whether the property being bought/sold includes land or ideal parts thereof or only an apartment which is a separate object in a building.
Also pay attention to the deadlines for issuing the documents - they vary from 3 to 14 working days depending on the type of document and the issuing institution. It is advisable to start preparing the necessary documents a month before the transaction date if you are going to do it yourself.
When there is a legal entity involved as a seller or buyer then the specifics are different. Such as the need for a certificate of the company's state, minutes of a general meeting, etc.
You can save yourself a lot of time and hassle in obtaining the necessary documents for buying and selling a home if you choose to work with a professional real estate broker. Experts know exactly what documents are needed according to the specifics of the transaction and are aware of the deadlines and requirements for obtaining them. Your broker will be able to prepare much of the necessary paperwork and help you get hold of those that are only served in person, in the fastest and most efficient way possible. Good real estate agencies also have a department of lawyers who will check the documents and protect your rights in the transaction. With us, this is done by lawyer Todor Nyagolov.
Look who the lawyer Todor Nyagolov is.
The last thing you bring on the day of the transaction is the mortgage loan agreement, if any, and the seller's bank account certificate. The last declarations are filled in on the spot in front of the notary and the transaction is confirmed. The actual payment takes place either immediately after the signing if it is with personal funds or after the registration of the title if it is with a bank loan. This registration takes between 3 and 7 days. The registrar orders the deed to be entered in the Land Registry, after which the notary provides you, the seller and the bank (if any) with copies of the deed.
It is good to have a supporter in this complex and cumbersome process. We are here to prepare all this for you.
