Set-off is not simply withholding payment. Check mutual debts, enforceability, the declaration and the remaining price.
If the seller owes you money, a Bulgarian property's price may be discharged by set-off where the statutory requirements are met, or through an expressly agreed settlement. Saying “the seller also owes me” does not itself establish payment or prevent default consequences.
Article 103 of the Obligations and Contracts Act requires mutual monetary or fungible obligations, with the claim used for set-off due and sufficiently established. A debt owed by the seller's company is not automatically the seller's personal debt. A disputed damages claim does not become established merely because you calculate it.
Set-off requires a declaration to the other party. Check Article 105 restrictions and any assignment or limitation issues. If a different settlement mechanism is agreed, describe it expressly rather than using inconsistent explanations of payment.
Identify the source of the counterclaim, the amount discharged and the remaining price. Do not acknowledge a full bank payment which never occurred. With mortgage finance, check whether the arrangement fits drawdown conditions. Any unpaid balance needs its own due date and security arrangements.
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.