Buying a flat before the building is finished usually means a lower price and the pick of the units. It also means paying for something that does not exist yet, often to a company set up for this one project. The legal work comes down to one question: what happens to your money if the building is never finished? The answer depends on the documents behind the project and on when ownership passes to you.
Before you sign anything
- Who owns the land, and on what basis the developer builds — on its own land, or under a building right granted by the landowners, often in exchange for flats.
- The building permit and the approved design, and that the permit has entered into force. A permit lapses if construction does not start within three years or the rough construction is not finished within five.
- Mortgages and claims registered against the land or the project in the Property Register — and whether the bank has agreed to release your unit when you pay.
- The developer: its track record, any court cases, and whether it is a single-project company with no other assets.
- Exactly what you buy: the unit’s number, floor and net area, its share of the common parts, any storage room or parking space, and the finishing standard.
The three Acts — and what each means for you
Before Act 14
Nothing you can own exists yet. Your protection is contractual, through a preliminary contract — unless the deal is structured to give you a real right from the start, for example by acquiring the building right for your unit by notarial deed.
Act 14
When the structure, external walls and roof are complete and the municipality certifies the rough construction, your flat exists in law and can be transferred to you by notarial deed. This is the most important moment of the purchase.
Act 15
The builder hands the finished building over to the developer. Record the defects you find now; the statutory warranty periods run from commissioning.
Act 16
The authorities issue the permit or certificate for use. Only now can you lawfully move in, register your address and connect the utilities permanently.
Tying payments to progress
The less you pay before Act 14, the less you can lose. A schedule along these lines keeps the risk in proportion — an illustration, not a rule:
| Stage | Share of the price |
|---|---|
| Preliminary contract | 20–30% |
| Act 14, against the notarial deed for your unit | 40–50% |
| Act 15 | 10–20% |
| Act 16 | The balance, at least 10% |
If the developer insists on a large payment up front, ask for security: a bank guarantee, or an escrow account released only when the agreed Act has been signed.
Clauses that matter in the preliminary contract
- Deadlines for completion and for Act 16, a penalty for each month of delay, and the right to terminate and recover your money after a long delay.
- The developer’s obligation to sign the notarial deed for your unit within a fixed period after Act 14.
- The finishing standard, described in an annex — not “as per the developer’s catalogue”.
- How the area is measured, and what happens if the built area differs from the contract.
- Who pays the local transfer tax, the notary and the registration fees.
- The release of the bank’s mortgage over your unit.
If the developer refuses to sign the final deed, a preliminary contract that contains all the essential terms can be declared final by the court under Art. 19(3) of the Obligations and Contracts Act — one more reason to draft it with care.
Questions clients ask
Can a foreigner buy an off-plan flat?
Yes. Citizens of any country can own a flat in Bulgaria. Non-EU nationals cannot own land, which does not stand in the way of buying a flat in a building — see our guide for foreign buyers.
What happens if the developer goes bankrupt before completion?
If you already own your unit by notarial deed after Act 14, it is not part of the developer’s estate: you keep it and can finish the building together with the other owners. Before Act 14 you are usually an ordinary creditor for the money you paid — which is why payments before that point should be small or secured.
The developer says the building is “at Act 16”. What should I ask to see?
The permit for use — issued by the National Construction Control Directorate for larger buildings — or, for smaller ones, the municipality’s certificate of commissioning. The Act 15 protocol alone is not enough. Before signing, we also run the title checks that apply to any purchase.
This guide is general information about Bulgarian law as it stood on the date of publication. It is not legal advice for your specific case. Unfamiliar terms are explained in our glossary.
