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Improvements to property you must return: what can you recover?

Necessary expenses and improvements when returning another person’s property: good faith, valuation and retention under Bulgarian law.

Kalchev Law FirmA law firm publication
1 min readPublished: Legal review pending

The essentials

  • Expenditure and added value are different measures.
  • The possessor’s legal position determines the rules.
  • Retention requires a specific legal basis.

Money spent on another person’s property is not necessarily recoverable at its invoiced amount. In disputes between a possessor and the owner, Articles 70–74 of the Ownership Act distinguish good faith, necessary preservation expenses and the increase in value attributable to improvements.

Establish your legal position first

A good-faith possessor relies on a legal basis capable of transferring ownership but is unaware of the statutory defect. Believing “nobody will ask me to leave” is insufficient. A tenant acknowledging another person’s ownership does not automatically acquire a good-faith possessor’s rights: the lease and rental rules provide a different starting point.

Which amount matters?

Under Article 72, a good-faith possessor may claim the increase in value caused by improvements, assessed at judgment, together with necessary preservation expenses. Under Article 74, for improvements, a bad-faith possessor generally receives the lower of expenditure and increased value. Where the owner knew about the improvements and did not object, the Act refers to Article 72 rights.

Expensive personal preferences or an inconvenient alteration may therefore produce a smaller claim than expected. Expert evidence should distinguish the original condition from the works’ actual effect on value.

Return and retention

Article 72 also provides a right of retention for the specified claims. It must be properly raised and supported; it is not a general entitlement to block recovery whenever repairs have been made.

Practical guidance

What to do, step by step

01 / 03

Classify the relationship

An agreement may lead to different rules.

  • Collect the basis on which you entered the property.
  • Establish when you learned of the competing title.
02 / 03

Document the works

Their nature and timing affect valuation.

  • Collect invoices and photographs before renovation.
  • Separate preservation expenses from improvements.
03 / 03

Prepare the claim

Invoices do not replace a valuation.

  • Obtain technical assessment of the actual added value.
  • Consider a retention defence in good time.

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This article is for general information only. It does not constitute or replace individual legal advice.