Each party to a property exchange is both seller and buyer. Review both titles, any cash balance, encumbrances and handover.
In an exchange of Bulgarian real estate, each party transfers ownership in return for another property rather than an ordinary purchase price. Under Articles 222–223 of the Obligations and Contracts Act, sale rules apply correspondingly: each party sells what they give and buys what they receive. Checking only the more valuable property is therefore insufficient.
Review ownership, spouses, co-owners, representation and encumbrances for both properties. A mortgage on one does not automatically move to the other. Bank release and any replacement security require separate coordination. For properties in different districts, the notary should confirm competence and registration arrangements beforehand.
A difference in agreed values may be settled through an additional payment. State its amount, due date and actual payment method. Distinguish contractual valuations from tax bases and fees, which follow their own rules.
Arrange possession and document each property's condition, particularly if one remains occupied or let. A title problem or physical defect affecting one property may have consequences for the wider contract. An oral assurance that “we will reverse everything” is not a substitute for assessing the relevant grounds and remedies.
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.