Property fraud: checking a seller's representative before transferring money

Buying Bulgarian property through the owner's representative is a normal transaction structure. The owner's absence is not, by itself, evidence of fraud. Before transferring money, however, establish who owns the property, who may act on their behalf and who is authorised to receive payment.

A photograph of a title deed and a scanned power of attorney do not answer all three questions. They are the starting point for verification.

Check the owner before checking the representative

Request the title documents and information needed to investigate ownership and registrations. Other people may have rights in the property, including co-heirs or a spouse. A power of attorney from one person does not resolve the rights of the others.

Next, verify the representative's identity, the origin of the power of attorney and whether the authority remains effective for the transaction. For documents issued abroad, the required form, certification, translation and any legalisation depend on the country and applicable rules. Not every foreign certification is sufficient for every Bulgarian transaction.

A certified document does not grant unlimited powers

Article 37 of the Bulgarian Obligations and Contracts Act allows authority for a transaction requiring notarial form to be given in writing with simultaneous notarial certification of signature and content. Separately, Article 39 requires attention to the powers actually granted.

Read whether the document covers the agreements to be signed, negotiation of the price, receipt of funds and delivery of possession. Examine any permission to appoint another representative or to contract with oneself or another represented party. None of these should be assumed merely from the document's title.

Authority can be withdrawn or end on another legal ground. An old check therefore does not replace verification for the forthcoming transaction. Bulgaria's Ministry of Foreign Affairs publishes a procedure for checking certifications made by Bulgarian consular officials. Other documents require the appropriate verification route.

If payment is requested to someone else's account

Ask who holds the account and why paying that person will discharge your obligation. Confirm changed bank details through a previously verified communication channel. An email supplying a new account shortly before completion calls for further checks.

The agreement should connect the recipient, the amount and the basis for payment. A bank transfer proves that money was sent; it does not automatically establish that the recipient had the required authority.

Documents to assemble

• Title documents and current property details.
• The complete power of attorney and its certifications.
• The draft agreement and payment schedule.
• Correspondence about the recipient and bank account.

If funds have already been sent and evidence of fraud emerges, contact the bank immediately, preserve the correspondence and seek legal assistance regarding the appropriate steps and a report to the competent authorities. Recovery of the transfer cannot be guaranteed.