The Association of Prosecutors in Bulgaria presented the first analytical report of its newly established Scientific and Expert Council. The Council was established by a decision of the APB Management Board to unite prosecutorial practice with an analytical and systematic approach and to propose sustainable legislative solutions to key public problems.
The first topic on which the experts focused their work is fraud in the sale of “greenfield” property – a phenomenon that affects thousands of citizens and tests trust in the construction sector. The analysis shows that the lack of a register of preliminary contracts, the absence of guarantees for advance payments, slow security measures and weak consumer protection are among the main reasons for abuses and severe consequences for bona fide buyers.
“An isolated change in one law will not solve the problem – the schemes simply move to where control is weakest. A unified, package approach is needed to ensure predictability and transparency for citizens and investors. Only in this way can a sustainable infrastructure of trust be built and security restored in this important market“, the analysis emphasizes.
The report proposes the introduction of electronic registration of preliminary contracts, mandatory bank guarantees or insurance for all advances, the use of escrow accounts with phased release of funds, an electronic construction logbook, accelerated and group precautionary measures, a new section in the Criminal Code for fraud in real estate investments and stronger consumer protection by prohibiting unfair clauses.
The report places particular emphasis on prevention – the creation of transparent rules and mechanisms that would exclude the possibility of abuse from the very beginning. When contracts are registered and public, when advances are protected by guarantees and are released only upon real construction progress, the risk to citizens is drastically reduced, and the ground for fraud is limited.
“The new Scientific and Expert Council was created to translate practical problems into real and workable legislative solutions. With our first report, we show that we know what needs to be done and that it is time for action to protect citizens. Prevention is the strongest weapon against fraud, and that is why we are proposing measures that do not simply treat the consequences, but initially block the possibilities for abuse“, the Prosecutors' Association states.