In Sofia, there are about 300,000 residential units that are sitting empty. A large part of them are heritage properties that often remain neglected, especially in the central part of the capital. Whether the reason is a lack of consensus among the heirs, simply disinterest or emigration, it does not matter, since the case remains available and influencing even third parties. That is why in the following lines the main possibilities for solving it will be shared.
Good options for the division of inherited property, in the presence of more than one heir, are the following:
1. All co-owners agree to sell the property, with each receiving a proportional portion of the sale price corresponding to his ideal portion of the property.
2. One of the heirs to acquire the property in its entirety by buying the ideal parts from the other co-owners.
3. In some cases, property may be divided.
“This option most often happens when there are two heirs and the property allows it to be divided into two new properties according to the land use law”, comments Tsvetoslav Hristov, managing partner at Antre Real Estates.
According to Art. 40 para. 1 of the ZUT, this means that after the division, each apartment must have a separate entrance, at least one room, a kitchen or kitchenette, a bathroom with a toilet and a storage room inside or outside the apartment. For this purpose, an architectural project is prepared, which is submitted for approval by the municipal architect. In the event that the division of property is possible, but one of the heirs does not cooperate in its realization, then it is done legally by means of judicial division.
4. Each co-owner may sell the ideal part of his property to a third party. Before that, however, the co-owner is obliged to offer his ideal part to the other heirs at the same price at which he would sell it to a third party. Only after receiving a refusal can he proceed to the sale. Naturally, this entire process with the invitation to purchase and refusal of the heirs must be notarized. In case it is not notarized, the heirs can make claims to the ideal part up to 2 months after the sale to a third party.
5. Naturally, each of the co-owners can donate or replace the right to an ideal part of the property at any time.
In all other cases, the division of inherited property brings bad taste and damages to the property and the heirs. Following are 3 of the most common situations:
1. Co-owners let the property fall into disrepair. This not only has a negative impact directly on the heirs, as the market value of the property decreases, but mostly on the neighbors, which is a reason for many disputes. Also, a crumbling property affects the overall vision of the building and the city, thus the theme of “Dark windows in the center of Sofia” was born.
2. When the heirs cannot agree and one of them decides to sell anyway, a public sale is reached. It is a disadvantageous option for all parties, since often such sales are well below the real market price of the property and accordingly all the heirs are financially damaged.
3. There is a case where a co-owner may decide to donate a small part of his ideal parts to a third party and then legally sell the rest of his ideal part. In this way, dubious entities can be brought into the inheritance to pressure the other co-owners and sow intrigue.
Hook To get the most out of your inheritance, Antre Real Estates recommends that co-owners consult with a trusted realtor who can provide realistic expectations and projections regarding the property's potential. In case, after such a meeting, the co-owners have different intentions for the future of the property and the tension between them is felt to increase, it is good to involve a lawyer or a mediator to balance the manifestation of some of the bad scenarios described above.
You can see detailed statistics on average property prices in Bulgaria by cities and neighborhoods HERE