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Selling to a mortgage buyer in Bulgaria: plan the payment

Buyer approval, property valuation and release of funds are separate steps. The agreement needs to connect them to the seller’s deadlines.

Kalchev Law FirmA law firm publication
2 min readLegal review pending

The essentials

  • Preliminary approval is not receipt of the sale price.
  • Identify own funds, mortgage funds and release conditions.
  • Address delay, a funding shortfall and refusal of finance.

Start with “When do I actually receive the price?”

The seller needs to know how the price will reach their account, not merely whether the buyer has applied for a mortgage. The bank may impose documentary, registration or security conditions. The actual sequence must be clarified with the financing bank.

Identify the required documents, expected stages and conditions for drawing down the loan. An initial assessment of the buyer’s ability to borrow does not guarantee approval of the particular property or every transaction term.

Put the payment into one clear schedule

The agreement should connect the total price, payments already made, the buyer’s own funds and the loan. For each part, specify the amount, recipient, deadline and payment condition. If the seller has an existing mortgage, repayment and discharge must be coordinated with the banks involved.

Do not confuse signing before the notary with receiving all funds. If the dates differ, the legal arrangements need to address the interval and protection of the seller. There is no universally safe payment structure suitable for every bank and transaction.

Plan for a lower valuation too

Illustrative example: the agreed price exceeds the valuation used by the bank to determine financing. The buyer must provide additional funds or the parties must discuss a change. The seller should not assume the shortfall will necessarily be covered.

Agree a deadline for evidence of finance and a procedure for delay or refusal. Extending a deadline, terminating the agreement and deciding what happens to money already paid are separate issues that need express answers.

Handover is part of the transaction

Specify when possession, keys and documents are handed over and how this relates to payment. A handover record can include meter readings, items delivered and arrangements for expenses.

For an initial legal assessment, prepare the draft agreement, available financing information and title and encumbrance documents. The lawyer coordinates the legal conditions; the lending decision remains with the bank.

Practical guidance

What to do, step by step

01 / 04

Map the entire sale price by source

The seller should be able to see clearly where each part of the price comes from and when it is due.

  • Separate payments already made, the buyer's own funds and mortgage finance.
  • For each part, state the amount, recipient, deadline and payment condition.
  • Do not treat preliminary borrower approval as equivalent to receiving the sale price.
02 / 04

Clarify the bank conditions before the notarial signing

The loan may depend on documents, registrations and security relating to the specific transaction.

  • Make the required documents, stages and release conditions clear in advance.
  • If the seller has an existing mortgage, coordinate repayment and discharge with the banks involved.
  • Distinguish the date of signing before the notary from the date on which all funds actually arrive.
03 / 04

Plan for a shortfall, delay or refusal of finance

A lower bank valuation or refusal of finance should not leave the parties without a contractual answer.

  • Set a deadline by which the buyer must evidence the financing.
  • State what happens on delay, a lower valuation or refusal of finance.
  • Address separately the consequences for payments already made and any extension or termination.
04 / 04

Link handover to actual payment

Keys and possession are part of the payment structure, not an administrative detail.

  • State when possession, keys and documents will be handed over.
  • Use a handover protocol where useful to record meters, items and agreed costs.
  • Check what must have happened before the seller gives up possession.

Legal coordination of a mortgage-funded sale

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.