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The seller backs out after a preliminary contract: can you still obtain the property?

When a Bulgarian property seller backs out after a preliminary contract: review performance, remedies and the consequences of accepting a refund.

Kalchev Law FirmA law firm publication
2 min readPublished: Legal review pending

The essentials

  • A preliminary contract may support a claim for a final contract.
  • Recovering money and obtaining the property are different objectives.
  • Check your own performance and the consequences before withdrawing or settling.

You have signed a preliminary agreement, paid the agreed amount and are waiting for notarial completion. The seller says a better offer has arrived and proposes returning your money. That proposal alone does not necessarily terminate the agreement or oblige you to accept it.

First decide what you want: the property or an exit with an appropriate settlement of the consequences. The answer guides the next steps.

What Article 19 makes possible

A preliminary agreement for a future transaction requiring notarial form must be in writing and contain the essential terms of the final contract. Bulgarian law allows either party to seek a court judgment concluding the final agreement.

This is a legal remedy, not an automatic guarantee of ownership. Relevant questions include validity and terms, whether performance is due, the seller's title and the other requirements for transfer. The buyer's obligations also matter: what has been paid, what remains payable and when.

A missed appointment is not necessarily termination

Expiry of the agreed date does not invariably make the contract disappear. Clauses concerning deadlines, termination and breach must be read together. A demand for performance and a notice seeking rescission can have different effects.

If you still want the property, an unconsidered statement that you are withdrawing and demanding your money back can complicate that position. Do not sign a full settlement before understanding which claims it releases.

Double the deposit is not a universal answer

Article 93 requires earnest money and the relevant legal conditions. Not every payment called a deposit or Bulgarian kaparo has that legal character. Choosing performance is also different from withdrawing and claiming double earnest money.

Contractual penalties or damages may be relevant, but their basis, compatibility and amount require assessment. The remedies mentioned in an agreement should not simply be added together.

If a sale to someone else is possible

Seek review promptly. Registration of the statement of claim and possible interim protection may matter. They do not retrospectively defeat every earlier transfer and cannot be replaced by a letter to the estate agent.

Assemble the signed agreement, amendments, payment records, correspondence, completion arrangements and available finance documents. Preserve evidence of your readiness to perform your own obligations.

Practical guidance

What to do, step by step

01 / 04

Decide what outcome you want

Before sending notices, decide whether you want the property or an exit with an appropriate settlement.

  • Do not automatically accept the seller’s proposal simply to refund what you paid.
  • Compare your objective with the clauses on deadlines, breach, termination, earnest money and penalties.
  • Do not sign a full settlement until you understand which rights it releases.
02 / 04

Check the agreement and your own performance

A claim for a final contract also depends on what you undertook and whether you performed or were ready to perform.

  • Collect the agreement, amendments, payment evidence and arrangements for notarial completion.
  • Identify what the buyer owed, when it was due and how it was performed or tendered.
  • Check the seller’s title and the other requirements for the intended transfer.
03 / 04

Keep the available remedies distinct

Obtaining the property, rescinding the agreement and recovering money are different legal positions.

  • Do not assume every payment described as a deposit or kaparo is automatically statutory earnest money.
  • Check the compatibility of performance claims, penalties, damages and rescission consequences.
  • Do not send an unconsidered withdrawal if your objective remains acquisition of the property.
04 / 04

Act promptly if another sale is possible

Timing may matter for court protection and the effect of rights against third parties.

  • Seek review promptly if there is evidence of a new buyer.
  • Assess registration of the claim and any appropriate interim protection.
  • Preserve correspondence and evidence showing your readiness to perform.

Review after a seller backs out

Discuss your circumstances with a lawyer. Leave a phone number or email, or call us directly.

This article is for general information only. It does not constitute or replace individual legal advice.