Updated last 26.03.2021
Often, when a company starts its operations, it has to rent a real estate, production premises or office building. It is also possible for an entity owning property and buildings to rent them out in order to generate income. In situations like these the parties have to sign a rental agreement. In order to avoid unpredictable situations and ensure long-term legal certainty, it is recommended that the rental agreement of a real estate property (regardless of the type of premise rented or rented out) be registered with the Property Register.
When is the registration of a rental agreement with the Property Register required?
The registry of real estate rental agreements is required for agreements with a term exceeding one year.
How is the rental agreement registered?
The registration of the agreement with the Property Register is performed through filing an application with the respective Registry Office of the Registry Agency at the location of the property. The filing of the application for the registration of the agreement may be performed by the tenant, landlord or a person authorised by them.
What is required for the registration?
It must be filled-in by the person filing the documents to the Registry Office (template is available on the website of the Registry Agency.
Rental agreement with notary certification of the signatures
In order to be registered, the rental agreement has to be with notary certification of the signatures of the parties. All the data of the parties to the agreement, correct description of the property, subject matter of the agreement, as well as the amount and term of the agreement, have to be set out in the agreement.
Cadastre drawing (plan1)
A current cadastre drawing/plan of the property in original/certified copy has to be enclosed to the application. The plan or drawing is issued by the respective territorial office of the Geodesy, Cartography and Cadastre Agency (GCCA). The service is also available online. The documents required, the deadlines and the fees due for the issuance of the drawing/plan may be found on the website of the GCCA.
Notarized power of attorney (when the application is filed by a person who is not party to the agreement)
A document for the paid state fee
How much would it cost?
The state fee depends on the amount that will be paid by the tenant during the entire term of the agreement – 0,1 % of the total sum of payments throughout the term of the agreement, but not less than BGN 10 (art. 2 and the following of the Tariff on the State Fees Collected by the Registry Agency).
Example: If the rent per month is BGN 100 and the agreement is for a term of two years, the payments due over the entire term of the agreement would amount to BGN 2400. The state fee would be BGN 2.40, but since this is below the minimum threshold, ten Bulgarian leva will have to be paid. Payment may be made via bank transfer to the accounts of the Property Register . Transfers and payments to the bank transit accounts and the escrow account of the Property Register may be made in the offices of all commercial banks throughout the country, via the internet banking services, by the ePay system or in the offices of Easypay. In addition to the above listed means the Registry Agency has POS terminal devices at its counters to facilitate the payments of fees.
What are the benefits from the registration of the agreement?
The registration of the agreement with the Property Register results in a number of benefits for the parties to it. According to the provision of art. 237, para 1 of the Law on Obligations and Contracts, in case of transfer of a real estate the rental agreement remains into force for the acquirer (the new owner), if the agreement was registered with the Property Register prior to the registration of the transfer.
This means that the new owner is obliged to accept the rent agreed between the tenant and the previous owner. An agreement with notary certification of the signatures is acceptable ground for the issuance of an enforcement order with respect to the liabilities for payment of monetary sums due or other substitute items, as well as obligations for handing over of certain items, which are set out in the agreement.
|For more information|
More information is available on the website of the Registry Agency
1 A plan is issued for a stand-alone unit in a building or technical infrastructure facility.