Registration of a notarized rent agreement with the Property Register
 

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 rent agreement. I order to avoid unpredictable situations and ensure long-term legal security, it is recommended that the rent agreement (regardless of the type of premise rented or rented out) is registered with the Property Register.

When is the registration of a rent agreement with the Property Register required?

The registry of real estate rent agreements is necessary for agreements with a term exceeding one year.

How is the rent agreement registered?

The registration of the agreement with the Property Register is performed through filing an application with the Registry Office at the Registry Agency. The filing of the application for the registration of the agreement may be performed by the tenant, landlord or a persons authorised by them.

What is required for the registration?

Registration application

Registration application

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.

Rent agreement with notary certification of the signatures (3 copies)

Rent agreement with notary certification of the signatures (3 copies)

All the data of the parties under the agreement, comprehensive information of the property, subject to the agreement, as well as the amount and term of the agreement is set out in the agreement.

Cadastre drawing (plan1)

Cadastre drawing (plan1)

The cadastre drawing/plan represents an original/certified transcript of the property. The plan or drawing is issued by the territorial Geodesy, Cartography and Cadastre Agency (GCCA). The service is also available online. The documents required, the terms 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)

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

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 lev should 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, using online payment tools. In addition to the above listed means the Registry Agency has POS terminal devices at its counters to facilitate the transfers.

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 rent agreement remains into force for the acquirer (the new owner), if the agreement was registered with the Property Register.

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 execution order with respect to the liabilities for payment of any amounts due or other substitute items, as well as obligation for the submission of certain chattels which are set out in the agreement.

 

For more information
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.

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