Buyer's Guide

Interested in buying property in a Hanroc Developments project, but want to know what's involved. Here we provide a basic overview of the buying process for each county.

Remember, you will be fully supported by our vetted partners in the area you purchase in. They will ensure that you are looked after and that the legal process goes as smoothly as possible.

One general note to UK buyer's: On the continent and certainly in the countries we operate in there, a buyer is required to sign a "Preliminary Contract" early in the buying process. It's not like in UK, where all legal work is done before any legal commitment is required (at exchange). This has the great advantage that both parties know where they stand at an early stage.

Hanroc Developments has negotiated a No Fees deal with our sales partners - saving you the 3 to 5% buyers commission typical in Eastern Europe.

Bulgaria

How To Buy Property in Bulgaria

This section gives important information. If you're thinking of visiting to buy Bulgarian property, please read it carefully before you go. There are two main ways our sales partners sell Bulgarian Property. Firstly, when clients visit and purchase. Secondly, by Remote Purchase. This is when the client doesn't visit Bulgaria immediately, but buys from UK. This latter option is very popular with lower priced and off plan property and enables people to secure a bargain in a fast moving market.
Full information on these two options are below.

Choose Your Property

Select to the Bulgarian properties for sale that you would like to view and send us the reference numbers to bg@uaproperty.com. Please note that it is not usually feasible to view more than 4 or 5 properties in one day, if the properties are in different locations.

Arrange Your Visit

We can agree a date and time for your visit. Then you need to arrange your own flights and let us know your arrival time at Varna or Sofia Airport (or train/coach stations). Pick up from Airport/Station and transport to your hotel can be arranged for 20 or 30 Euros. This fee is refundable if you purchase. For more information on flights, please see our "Travel to Bulgaria" section on the websites of our sales partners, www.blackseavillas.net and www.Skipropertybg.com

How long should you stay? That depends, of course, on your plans, but allow about 2 days to view property and 1 day to do the legal paperwork if you want to buy. Please note: As the solicitor and Notary office aren't open on a week-end, make sure you stay for at least one weekday to do any legal paperwork.

If you already have plans to be in Bulgaria, such as a package holiday to one of the Varna area resorts like "Golden Sands" (a cheap way to see the area), then all we need to do is fix a time for you to meet one of our representatives. All our sales partners' staff speak English and Russian. They are friendly, with expert local knowledge, and will look after you well.

What to Bring

This is very important if you wish to buy property on your visit, so please read this section carefully. Please bring with you cash or travellers cheques in Euros (or Bulgarian Lev) to the value of the reservation fee (typically, 1000 Euros). Also, if you aren't planning on returning within a few months, you'll need to do your company set-up during your visit, if you wish to buy Freehold, as it's something that can easily be done in Bulgaria. This is charged at 775 Euro company set up charge. Important note: Please bring the traveller's cheque numbers with you to get the best conversion rate And you will need to bring 5000 Lev (or 2600 Euro equivalent) to open your company account. This money remains yours and is only needed to open the account. It can be withdrawn after company is formed (about 21 days). Many clients use it to defray final balance payment on their property purchase. Also add about 200 Euro to cover small charge for opening company bank account charge and Preliminary Contract fee, and document translation costs if required. And, of course, don't forget to bring some local money (Leva) to cover living and travel costs during your visit. Please note that credit cards are of little use in Bulgaria for these costs as there is a modest daily withdrawal limit on most.

If you don't want to visit Bulgaria, it's possible to purchase a Freehold remotely, by POA validated by Apostille. Details on request.

Those choosing an "Endless Lease" option don't need to set up a Bulgarian company.

Transport

Once in Bulgaria, you can hire your own car and our representative will accompany you to view without charge. If you wish our sales Partners to arrange hire car for you, they can do this (for very modest service charge of 2 Euros a day) Or you can hire our car with driver for a maximum of 40 Euro per day, including petrol. Payment for this can be made to our representative. This charge is refundable if you purchase. There are no other charges, such as for viewings.

Accommodation

We can arrange accommodation for you. If you have a look at the Rental Section of www.blackseavillas.net , you will see villas that offer rental on a bed per night basis, for around 10 GBP. Or we can arrange hotel accommodation, for around 30 Euros per person per night to 45 Euros for hotels. Just indicate you preference and we shall arrange matters accordingly.

Once you have visited your selected properties and made your selection, it is the time to set in motion the legal process.

The Legal Process

For non residents in Bulgaria, buying property with land requires the setting up a limited liability company. This is not as daunting as it might sound and can all be done on the first visit if required. Allow a full day for these legal proceedings.

Once you have chosen which property to buy, you will pay a reservation fee and be given a signed receipt and details. A Preliminary Contract is then drawn up, sent to you for signing and the first stage payment is paid.

To reiterate what has been mentioned above, if you are buying Freehold, it would be advised to set up your Bulgarian company whilst in the country.

You can have confidence in the legal process, particularly as our sales partners always employ the area's most experienced lawyer. It's normal for the Lawyer to represent both sides, as in France, for example, and the lawyer is legally bound to be diligent. If there is the slightest irregularity in a property's paperwork, you will be advised accordingly.

You can, of course, employ your "own" solicitor. But please bear in mind that's it's vital that you employ one who is experienced and capable in conveyance. Lawyers in Eastern Europe come in all shapes and sizes! We can offer you a choice of vetted lawyers, if you wish. Also, an obvious point but one that the odd person seems to miss, is not to expect a lawyer in your own country to be competent to advise you on the legal process in Bulgaria!

Commissions

It's common for buyers to pay commissions in Bulgaria, usually around 3% of sale price. However, we usually negotiate with our sales partners that you do not have to pay these commissions.

If a sale is not concluded for legal reasons, you will receive a full refund of your deposit, without deduction.

Money Transfer

Payment of funds from UK or elsewhere to Bulgaria can normally be done from your local Bank. You will need to fill in a "Priority Payment" or "Electronic Transfer" form and the payment should take about 3 days. When you fill in the form with the Bank staff, please bear in mind that the slightest error can result in the payment not being made. This can be critical when making payment for the deadline on a Preliminary Contract. So check the form carefully before signing it and give yourself plenty of time and transfer at least a week before the due date.

Better currency rate

Currency specialists Currency Solutions provide a friendly and supportive service for money transfers and offer savings on rates quoted by Banks. In fact, benefit can be considerable on larger sums, amounting to hundreds of pounds. Please call them on 0208 850 22 66 and ask for Ernie, or email info@currencysolutions.co.uk.

When using their services, please remind them to add your name to the transfer description, to help us identify it.

Summary of Buying Costs

To make these clear to you, here's a list of all the costs:

1. Purchase price
2. Land tax and Notary fee. Depends on value of property. Examples:
   Property value E 9,000 , about E 620 . Value 25,000 Euro, about E1600. For E 100,00 , it's E 4000.
   One point you need to know about the Land tax. If both buyer and seller agree, it's quite common for a lower declared price to be entered on the Contract of Sale. This can lessen the Capital Gains Tax liability for the seller and save the buyer quite a lot of Land Tax, especially on the more expensive properties. This may sound a little unorthodox, but is common practice.
3. Agency commission of 2 1/2% or minimum of 995 Euros - Usually exempt on our developments
4. Preliminary Contract fee: 150 Euro
5. Translation of Preliminary Contract fee: 20 Euros
6. If you don't already have a company set up in Bulgaria, then 775 Euro. Note that one company can own a number of properties.
   And that's, apart from some living expenses in Bulgaria. For this, take a quantity of Lev with you.
   Thomas Cook can provide this currency with a couple of days notice.

Ukraine

There are two main ways to buy Ukrainian Property. Firstly, when clients visit the country and purchase. Secondly, by Remote Purchase. This is when the client doesn't visit Ukraine immediately, but buys from their own country. This latter option is popular with lower priced and off plan property and enables people to secure a bargain and then plan their trip at leisure. However, we always recommend visiting before purchase.

Full information on these two options are below.

Choose Your Property

Select from this website or that of ours sales partner, www.uaproperty.com, the Ukrainian properties for sale that you would like to view

Arrange Your Visit

We can agree a date and time for your visit. Then you need to arrange your own flights and let us (or Uaproperty.com) know your arrival time at Kiev or Simferopol Airport (or train/coach stations). Pick up from Airport/Station and transport to your hotel can be arranged for $25 (refundable if you purchase). For more information on flights, please see the "Travel to Ukraine" section on www.uaproperty.com website.

How long should you stay? That depends, of course, on your plans, but allow about 2 days to view property and 3 days to do the legal paperwork if you want to buy. Please note: As the solicitor and Notary office aren't open on a week-end, make sure you stay for at least one weekday to do any legal paperwork.

All our staff meeting you in Ukraine will speak English and Russian. They are friendly, with expert local knowledge, and will look after you well.

What to Bring

This is very important if you wish to buy property on your visit, so please read this section carefully. Please bring with you cash or travelers cheques in Dollars (also bring cheque numbers) to the value of reservation fee (usually $1,500). Also add about $200 to cover charge for Preliminary Contract, and document translation costs if required. And, of course, don't forget to bring some money to cover living and travel costs during your visit.

Transport

Once in Ukraine, you can hire your own car and our representative will accompany you to view without charge. Or you can hire our car with driver for $50 per day, including petrol. This is a maximum charge and will be reduced if only a short trip. Payment for this can be made to our representative.

Accommodation

We can arrange accommodation for you, in a hotel or apartment

Once you have visited your selected properties and made your selection, it is the time to set in motion the legal process.

The Buying Process

Foreign citizens have the right to buy and own property in Ukraine. Your property rights are set forth in the Constitution of Ukraine and law of Ukraine "On Ownership".

1. If you are buying remotely or a visiting for less than 3 weeks, we recommend you having a Power of Attorney drawn up by your local solicitor, authorizing uaproperty Ltd to complete the legal formalities in your absence. It's quite a simple process with your local Notary Officer. Full details will be given to visiting clients.
2. Once you have chosen which property to buy, you will pay a reservation fee, usually of $1,500. A sale Contract will be drawn up, stating details of the Property Freehold and required stage payments. Unless you wish to return to Ukraine, it is advisable to give our sales partner, Uaproperty.com Power Of Attorney to proceed in your absence. This will take just a visit to a Notary Officer.
   It may be possible to sign the Sale Contract immediately during your visit, instead of just paying a reservation fee. In this case, a deposit will be required and you will need to be able to send the first stage payment (usually 30%) within a month.
3. Normally, buyers of Ukrainian property will be required to pay agents commission. In the case of our sales partner, www.uaproperty.com, this is from 4% to 5%. But we have negotiated a No Fees agreement with them for our development properties. But please note, if you wish to buy other property, they will require you to sign an Agency agreement to pay them this commission.
4. Registration of the purchase with state authorities. To save buyer's time is usually conducted by us by Power of Attorney.
5. When buying property in Ukraine, you have the option of insuring the contract for 1% of purchase price, as mentioned below in "Buying costs".

Documents you need to bring

To enter into a sale-purchase agreement, you need to have the following documents:

1. Your passport. And copy of birth certificate
2. Your tax payer number on the territory of Ukraine The tax payer number on the territory of Ukraine can be obtained at the Kiev Tax Administration. If short visit, you will need to give us Power of Attorney to receive it.
3. If a buyer has a registered marriage and he/she has come to Ukraine without wife/husband, he/she must have the following documents:
   
   
   • Marriage certificate (copy), if a buyer is married
   • Legalized copy (certified by Apostile) of husband's/wife's agreement to buy a property
   • husband's/wife's passport copy
4. Power of Attorney certified by Apostile (legislation certificate) authorizing our company's employee to receive the tax identification code in Tax Inspection. Apostile is an International legislation certification and means confirming that a signature, seal or stamp appearing on a document is genuine.

Address of Apostile legislation in London:
The Legisaltion Office
Foreign & Commonwealth Office
Old Admiralty Building
The Mall
London SW1A 2LG

By telephone:
020 7008 1111

Buying costs

1. Agency fee (3-5% of apartment price) No Fees for Hanroc Developments property.
2. Government tax - 1% of property price
3. Pension fund levy - 1% of property price (not for plots)
4. Notary expenses of 150$
5. Insurance policy - 1% of property price (if a buyer wishes).

You can have confidence in the legal process, particularly as our sales partners always employ the area's most experienced lawyer. It's normal for the Lawyer to represent both sides, as in France, for example, and the lawyer is legally bound to be diligent. If there is the slightest irregularity in a property's paperwork, you will be advised accordingly.

You can, of course, employ your "own" solicitor. But please bear in mind that's it's vital that you employ one who is experienced and capable in conveyance. Lawyers in Eastern Europe come in all shapes and sizes! We can offer you a choice of vetted lawyers, if you wish. Also, an obvious point but one that the odd person seems to miss, is not to expect a lawyer in your own country to be competent to advise you on the legal process in Ukraine!

Money Transfer

Payment of funds from UK or elsewhere to Ukraine can be done through a currency specialist (as noted below) or from your local Bank. You will need to fill in a "Priority Payment" or "Electronic Transfer" form and the payment should take about 3 days. When you fill in the form with the Bank staff, please bear in mind that the slightest error can result in the payment not being made. This can be critical when making payment for the deadline on a Contract. So check the form carefully before signing it and give yourself plenty of time and transfer at least a week before the due date.

For rates better than the high street banks, we recommend contacting Ernie Enver at Currency Solutions on +44 (0)208 8502266. He offers a friendly and great value service.