A notary's special bank account in a Bulgarian property purchase

A Bulgarian notary's special bank account can hold the purchase price and release it under written conditions agreed by the parties and the notary. It can reduce the timing risk between signing, registration and payment. It does not, however, guarantee good title, remove encumbrances or cure a poorly drafted transaction document.

Bulgarian law permits this account for transactions that create, transfer, amend or terminate rights in real estate. The deposit and payment instructions are set in a written agreement between the notary and the parties. That is the core of Article 25a of the Bulgarian Notaries and Notarial Practice Act.

The legal sources were checked on 1 September 2026. This article explains the mechanism and is not a substitute for advice on the actual agreement.

What the account solves

With an ordinary bank transfer, the buyer pays the seller in the sequence stated in the contract. With the notary's special account, the money first reaches an account in the notary's name. The notary then sends it onward when the written release conditions are satisfied.

This is useful when signing, registration and final payment do not happen at exactly the same moment. The buyer does not want the price released prematurely. The seller wants evidence that the funds are available. A properly drafted arrangement can connect those interests through an objective payment process.

The account does not replace title due diligence, a check of construction documents, tax advice or source-of-funds verification. It cannot correct a wrong property description. Payment security is one layer of the transaction, not the entire legal structure.

The written agreement controls the release

The phrase “notary account” can sound like a standard product with standard protection. Bulgarian law instead makes the written agreement central. It should identify who deposits the money, the deadline, the evidence required for release and the outcome if a condition is not met.

“After completion” is usually too vague for a substantial payment. The parties should know whether release follows execution of the deed, submission for registration, completed registration, a registration certificate, discharge of an encumbrance or another specified document. If money is split between a seller, a lender and a third party, each payment route needs its own instruction.

The agreement should also deal with bank charges, any interest, cancellation and a dispute between the parties. Do not assume every notary uses identical terms.

When the mechanism is most useful

The account has its clearest role when release must follow a verifiable documentary event. Registration of the deed is one possible event. Another may be the satisfaction of a specific condition that the notary can verify in the manner described in the agreement.

A mortgage-funded purchase often has lender requirements as well. The buyer may contribute part of the price, while the loan is drawn only after registration of the bank's security. The lender, notary, buyer and seller need one consistent sequence. A special account should not be inserted into a bank's approved flow without aligning all documents.

For a new-build purchase, this mechanism is different from stage payments during construction. It may govern a particular transfer, but it does not replace the preliminary contract, completion milestones or proof that a stage has been reached.

What to check before sending money

Ask for the final agreement, the account details and the exact payment reference. Confirm the payee and IBAN with the notary's office through an independent channel. Do not rely on bank details that appear only in a last-minute email.

Read the process as a timeline. When does the money enter the account? Who confirms the condition? What evidence permits the notary to pay? What happens to the funds if the transaction does not proceed? If one sentence supports two different answers, the arrangement is not ready.

Finally, compare the agreement with the deed, the preliminary contract and the lender's instructions. A conflict between documents is more dangerous than the absence of another general protection clause.

This is not an unlimited escrow promise

The account is sometimes described informally as escrow. That label does not import every feature of an escrow arrangement from another jurisdiction. The applicable rights and obligations come from Bulgarian law and the signed agreement.

Nor should a buyer assume that the notary is responsible for every commercial risk. A notary performs statutory duties, while each party still needs independent review of the property and transaction. Notarial involvement does not remove ambiguity from a vague release condition.

Verified sources

• Bulgarian Ministry of Justice: Notaries and Notarial Practice Act
• Bulgarian Registry Agency: Property Register

Before deciding the payment route, map the full costs of a mortgage purchase. If the documented price differs from the real bargain, also read the risks of understating the price in the deed.

Contact TV Property to coordinate the documents and payment schedule for a specific purchase.