In August 2004 I entered into a disastrous agreement to purchase an off-plan apartment in Bansko, Bulgaria. I encountered numerous problems such as the sales literature being misleading, facilities not being included as thought, no real views from my balcony, late completion and so on. Eventually after around a year of heated correspondence with the developer and a court action with the agent, I did get the majority of my money back. Here you will find my top 5 tips for ensuring an off-plan purchase proceeds as smoothly as possible.
DO NOT RELY ON SALES LITERATURE ALONE – There is no substitute for travelling to the proposed development site yourself, taking a good look around the area and seeing what other developments are on offer. You may just find that the development you thought was only 30m from the beach is more like 300m, or the stunning ocean views are actually little more than a glimpse of the sea through the surrounding high rises. Do not simply believe everything you read on the agent’s website and in the glossy brochures or sales packs.
DEAL DIRECTLY WITH THE DEVELOPER – If you can, contact the developer directly and by pass the agent. This way you can be assured of more accurate and often more timely answers to queries but more importantly if you can negotiate a sale with the developer, you will save yourself a few thousand on commission usually charged by the agent.
INSTRUCT A LAWYER BEFORE YOU SIGN ANYTHING – Even if you are sure you have found the perfect off-plan apartment and are keen to get things moving and secure the property, do NOT sign anything until you have had your own lawyer go over the contract with a fine tooth comb. Make sure the contract is clear and unequivocal on points such as completion date and what completion means, what is included in purchase price, when instalments are due and so on. Ensure there is no room for confusion on your part of the developers or agent’s part.
GET EVERYTHING IN WRITING – While this may be easier said than done, try and ensure anything agreed outside the contract is put down in writing and signed by both parties. If changes are made to the layout of your apartment or when payments are due, make sure such agreements are in black and white and signed so the developer cannot back out of agreed changes.
MAKE REGULAR INSPECTION TRIPS – Do ensure you make time and budget for regular inspection trips to check on progress. You should, if possible, ensure you go and inspect the apartment before each and every instalment is due and particularly before the final payment is due. Ensure you are happy with the standard of the work and quality of the finish before you hand over payment.
For more tips and advice on buying property in Bulgaria visit thetravelbug.org or get yourself a copy of My Bulgarian Property Nightmare: A Cautionary Tale for Would-be Investors by visiting bookshaker.com . This ebook is full of useful tips straight from a Brit whose first Bulgarian property experience turned into a nightmare. It allows you to see what can go wrong and avoid the pitfalls as Rachel shares the benefit of her experience of buying off-plan. In this true account you'll learn what can go wrong, what to do if it does and why Bulgaria is still a great choice for people keen to invest, holiday or live there.
