Delayed construction: when can you claim a penalty or rescind the agreement?
Delayed construction in Bulgaria: review deadlines, the responsible party, penalties, rescission and the effect of a proposed extension.
Read article →A compensation percentage is not a complete deal. Define units, retained rights, construction obligations and financing risks before granting rights.
When providing land or building rights in exchange for future apartments, establish when your existing rights are transferred or restricted and precisely what you receive. A promised percentage of the future building does not adequately define units, quality or readiness for use.
Specify apartments, storage rooms, common-part interests and other rights allocated to you, the governing design and measurement method. Address design changes or inability to deliver a promised unit. Do not describe parking as a separate property where its legal status does not support that treatment.
Granting a building right and undertaking to construct are connected but have different effects. Check what the developer can sell or mortgage and whether that affects your retained units. A contractual prohibition alone may not provide the intended protection against third parties.
Define milestones, evidence, quality and final handover with the required lawful-use status. A penalty is a financial claim; if the developer cannot pay, collectability is a separate risk. Security must fit the project structure rather than appear as a generic clause.
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This article is for general information only. It does not constitute or replace individual legal advice.