Types and Ways which immovable property can be transferred
There are several options for transferring property between relatives, and each of them has its own characteristics. One of the most common options for changing ownership of real estate is through donation and the distinctive thing about this process is that the taxes and fees are the lowest. An apartment can also be transferred by purchase and sale, but here the costs are significantly higher than when it is transferred by donation. The advantage of this approach is the greater security that the one who acquires the property receives. A large number of people choose to carry out the fictitious sale – a process in which there is no real payment and which can be sanctioned by law. Another option for the transfer of property is in exchange for alimony and care, and depending on how many persons it benefits, its term is determined. Perhaps the easiest option remains the transfer of housing through a will.
All of these ways of transferring ownership of real estate have their advantages, but each of them meets different needs, so it is good to familiarize yourself closely with each option that allows the transfer of property from one country to another. You can learn more about the different ways here.
DONATE
When it comes to transferring property by donation, it includes any type of immovable property. In this case, the transfer of the home is carried out completely free of charge by the donor to the donation, and the transaction is devoid of material character. Most often, the procedure is used when transferring housing between relatives, and the main feature is that the property becomes free personal property of the donate – this means that regardless of whether he gets married, the housing belongs to him and only him. in contrast to the purchase of property during marriage, when the home is owned by both spouses. Like any other procedure for transferring ownership of immovable property, this one is also carried out in front of a notary, and it must be done in the area where the property is located. The process is accompanied by documentation that must be prepared in advance and presented in order for the donation to be made.
In order for the transfer transaction to take place, it is necessary to pay taxes and fees regulated in the Law on Local Taxes and Fees. Both for the sale and exchange and for the donation, these fees are local tax, notary fee and registration fee and are significantly lower. The notary fee is paid to the notary certifying the transfer of the property by donation, calculated on a certain scale and paid as a percentage of the certified material interest, according to the Law on Notaries and Notarial Activities. The local tax, for its part, is determined based on an ordinance of the relevant Municipality, and the tax rate for a donation between spouses or direct relatives (parents, children, grandchildren) is 0 percent. It varies between 0.4 and 0.8 percent for a donation between siblings and their children, and for a donation between persons other than the above, the tax rate values are set between 3.3 percent and 6.6 percent. The last fee to be paid when transferring property by donation is the fee for registration and transcripts of the transaction, which amounts to 0.1% of the material interest to be certified, but not less than BGN 10, and is collected by The Registry Agency.
Purchase and sale
The transfer of property through sale and purchase is the second most popular way of carrying out the change of ownership. Here, the costs are higher than those of the donation, but at the expense of this, the person who acquires the real estate has greater security in the acquisition of the property. Its security is guaranteed in the long term and does not depend on any persons and circumstances. The buyer and the seller participate in the sales contract, and the change of ownership takes place on the basis of a predetermined specific amount, which the buyer is obliged to pay. The main advantage of this method is that the transaction cannot be spoiled by third parties in any way. The new owner is obliged to pay a local tax to the respective Municipality in which the newly acquired property is located.
In order to carry out the purchase and sale, it is necessary to draw up a preliminary contract to be signed by both parties. It contains all the information regarding the subject of the agreement, the price of the property, the conditions and term for its acquisition, the method and term for payment of the sale price, the moment of handover of the property, the amount of the deposit/deposit, rights and obligations of the parties and others . Before that, however, it is necessary to check the property for encumbrances, mortgages, foreclosures and more.
It is important to note that in this choice for the transfer of immovable property, it is advisable that the parties refrain from a fictitious purchase and sale, as this method resembles the concealment of a donation and such transactions are sanctioned by law.
Re-register
Re-registration of real estate through a lifetime alimony contract
Another possible option for transferring property is through a lifetime maintenance agreement, this approach is mainly used when a parent decides to transfer their home to their child and relies mainly on them for further care. In this way, the owner of the property retains the right to use it as long as he lives and at the same time retains his real right of use, i.e. the use is terminated only and only when his death occurs.
When transferring property through a lifetime alimony contract, it is key that the notarial deed contains the most accurate and clear description of the responsibilities of the parties. Alimony, for example, includes paying a specific amount monthly, paying household bills, buying food, medicine, and more. Watching, on the other hand, means taking care due to old age or illness on one side. In order to avoid potential misunderstandings when choosing this approach, it is necessary to detail all obligations in the notarial deed.
The contract is terminated only and only when the death of the owner of the property occurs, and when the obligation to look after is in favor of two or more persons, then upon the death of one, the contract remains in force in relation to the other persons and is not terminated.
Transfer of property by will
Transferring property through a will is the most common and easiest way to change ownership of a home. In this case, until the death of the testator, the apartment remains his property, and only after that it is acquired by the heirs, according to the will expressed by the owner of the property. The will can be of two types, the first of which is the notarial will, which is executed by a notary and in front of two witnesses. The handwritten, on the other hand, must be written entirely by hand and signed by the testator himself. When the will is handwritten and in the event of the death of the testator, it is crucial that the person in whom the document is located requests its announcement by a notary as soon as he learns of the event.
