S
saaj
New Member
Does anyone have any experience of suing a Bulgarian Estate Agent?
Address Bg are one of the largest real estate chains in Bulgaria and I thought I'd share my experience with them to date.
I approached one of their offices in Varna (they have several in this town) in 2006 with a view to purchase an off-plan apartment (which was all the rage then) in Central Varna.
Eventually I found what I was looking for, and the project had already started and was due to be completed by July 2008.
To cut a long story short, all went well and according to plan for the first 12 months or so, and I was obliged to pay all but the final installment, which was due upon completion. However, problems started in 2007 when work slowed down and eventually ground to a halt. After initial assurances that everything was fine, I was finally told that the builder had run out of funds and was unable to complete. The building,I was informed was completed up to Act 14, so a considerable amount of work remained to be done.
As I had had previously (in 2003) bought a property via another estate agent in Varna (Atrium),who handled the entire sale faultlessly, including acting as ours and the vendors solicitor (which is odd and illegal elsewhere, but apparently normal practice in Bulgaria),I had therefore assumed (naively) that I would likewise be taken good care of by Address Real Estate, them being the largest and presumably with a reputation to protect. They drew up the contracts, and in the presence of their English speaking lawyers, I signed, after cautiously seeking verbal assurance that all my interests had been considered and properly documented. I was told that they were.
Anyway, it has now been made clear to me via some independent lawyers in Varna that the contracts are a 'complete mess', and that I was being sold only the 'right to build' that did not include any apartment (as it legally did not exist then as Act 14 had not been obtained). Not only that, but the contract was a complicated affair in which the vendor had assigned the building responsibility to a third party, and no details as to how the builder was to fund the project were documented.
In short, Address had been extremely negligent at best and possibly totally irresponsible or worst...but I can't go into that at this stage.
The vendor, however, insists that I have to pay the remaining 10% buying price despite the fact that he has not fulfilled his end of the contract, and there seems to be little I can do about it as all the lawyers I have seen so far advise against me taking on Address in the courts as they do not think I can win because I signed the contracts in good faith, and therefore am stuck with the terms, even though they make no sense, contradict several clauses within it, and are a 'mess'.
Long and short of this is, beware of Address and ALWAYS get reliable independent legal advice before signing any contracts.
I am currently in the process of trying to either come to some agreement with all the other apartment buyers to get the building completed or considering suing the builder and vendor, which i have been told I have every right to do so and should win, but only worthwhile if their assets (if any) can be established and frozen.
Beware of Bulgarian Estate Agents and Bulgarian property law... however do not presume that all the agents are the same, as my initial good experience with Atrium (on General Kolev St) had proved...
If anyone can advise or share a similar experience, I'd be grateful.
Address Bg are one of the largest real estate chains in Bulgaria and I thought I'd share my experience with them to date.
I approached one of their offices in Varna (they have several in this town) in 2006 with a view to purchase an off-plan apartment (which was all the rage then) in Central Varna.
Eventually I found what I was looking for, and the project had already started and was due to be completed by July 2008.
To cut a long story short, all went well and according to plan for the first 12 months or so, and I was obliged to pay all but the final installment, which was due upon completion. However, problems started in 2007 when work slowed down and eventually ground to a halt. After initial assurances that everything was fine, I was finally told that the builder had run out of funds and was unable to complete. The building,I was informed was completed up to Act 14, so a considerable amount of work remained to be done.
As I had had previously (in 2003) bought a property via another estate agent in Varna (Atrium),who handled the entire sale faultlessly, including acting as ours and the vendors solicitor (which is odd and illegal elsewhere, but apparently normal practice in Bulgaria),I had therefore assumed (naively) that I would likewise be taken good care of by Address Real Estate, them being the largest and presumably with a reputation to protect. They drew up the contracts, and in the presence of their English speaking lawyers, I signed, after cautiously seeking verbal assurance that all my interests had been considered and properly documented. I was told that they were.
Anyway, it has now been made clear to me via some independent lawyers in Varna that the contracts are a 'complete mess', and that I was being sold only the 'right to build' that did not include any apartment (as it legally did not exist then as Act 14 had not been obtained). Not only that, but the contract was a complicated affair in which the vendor had assigned the building responsibility to a third party, and no details as to how the builder was to fund the project were documented.
In short, Address had been extremely negligent at best and possibly totally irresponsible or worst...but I can't go into that at this stage.
The vendor, however, insists that I have to pay the remaining 10% buying price despite the fact that he has not fulfilled his end of the contract, and there seems to be little I can do about it as all the lawyers I have seen so far advise against me taking on Address in the courts as they do not think I can win because I signed the contracts in good faith, and therefore am stuck with the terms, even though they make no sense, contradict several clauses within it, and are a 'mess'.
Long and short of this is, beware of Address and ALWAYS get reliable independent legal advice before signing any contracts.
I am currently in the process of trying to either come to some agreement with all the other apartment buyers to get the building completed or considering suing the builder and vendor, which i have been told I have every right to do so and should win, but only worthwhile if their assets (if any) can be established and frozen.
Beware of Bulgarian Estate Agents and Bulgarian property law... however do not presume that all the agents are the same, as my initial good experience with Atrium (on General Kolev St) had proved...
If anyone can advise or share a similar experience, I'd be grateful.
