Before signing and making a substantial payment, identify the exact company, representation, filings, security interests and land rights — without mistaking due diligence for a guarantee.
In a Bulgarian off-plan purchase, the marketing name of the development, the “investor” in the brochure and the company signing your contract may not be the same legal person. The first step is therefore not a general reputation search but identifying your exact counterparty and the entity controlling the rights needed for the project.
Request the company name, Unified Identification Code and draft contract before making a substantial payment. In the Commercial Register, check current status, authorised representatives, publicly relevant ownership or corporate information, capital, filed changes, published documents and circumstances such as liquidation where applicable.
If one company offers the contract, another owns the land and a third performs construction, map their roles. Common branding or group affiliation does not automatically make one company liable for another company's obligations.
The Commercial Register publishes annual financial statements for traders required by law to file them. They can indicate scale, assets, liabilities, results and historical development, but they are backward-looking information. A filed statement does not certify that the company will have sufficient funds to complete your particular project.
Compare several periods where available and investigate abrupt changes, missing filings or a corporate profile that appears inconsistent with the promised project's scale. These are reasons for further questions, not automatic proof of misconduct.
The Central Register of Special Pledges records special pledges and provides searches and certificates concerning a pledgor's file. Financing or security is not inherently negative; the point is to understand what is secured, for whose benefit and whether it affects payments or assets on which your transaction relies.
Separately check the Property Register for title and encumbrances over the land and relevant property rights. Strong-looking company accounts cannot substitute for missing or unclear rights over the development site.
Identify the developer or contracting authority, the owner of the land or building right, the company signing with you and the account receiving your payments. Review construction documentation and project stage separately. Payment milestones should be connected to clearly defined and verifiable contractual facts rather than only calendar dates or marketing promises.
Registry due diligence reduces information risk; it is not a credit rating and does not guarantee solvency, timing or quality. Its purpose is to identify inconsistencies early and decide what evidence, contractual safeguards or payment changes are needed before you commit.
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This article is for general information only. It does not constitute or replace individual legal advice.