bg
This article explains how staged payments work, how they connect to the key construction acts and how own funds, mortgage financing and possible developer payment plans can be combined. The goal is for the buyer to understand the logic behind the payment schedule and negotiate terms that protect both the budget and the buyer's interests.
What staged payment means
You pay according to construction progress, not in advance. The idea is simple: the total price is divided into instalments, each due when a defined stage of construction is reached. This spreads risk over time and ensures that the buyer pays for real work completed.
Why this model protects the buyer
When payments follow construction progress, the buyer does not transfer the entire amount before the building advances. This reduces risk and creates a natural incentive for the developer to keep the schedule moving, because the next instalment comes after the next stage. Staged payment means a schedule in which each instalment is linked to a specific, verifiable construction milestone, not to an arbitrary date.
When the payment plan is agreed
The payment schedule is negotiated in the preliminary contract, before the main instalments begin. This is where the amounts, deadlines and milestone links are set. That is why this document is one of the most important in the entire transaction. Before signing it, it is worth understanding the clauses in the preliminary contract, because they define what happens in the event of construction delays or changed plans.
Construction stages and linked payments
Each instalment should correspond to a clear stage. A typical structure follows the progress of the building, from the initial deposit to the final payment at commissioning or ownership transfer. The exact percentages are negotiated, but the sequence is recognisable.
Deposit and preliminary contract
The process starts with a deposit, an initial amount that reserves a specific apartment and commits both parties. The deposit is recorded in the preliminary contract together with the full payment schedule. This is the moment when the buyer fixes the price and terms before the building has advanced further. The deposit amount varies, but it is the first binding step.
Shell stage and Act 14
The next instalments are often linked to reaching shell stage and the signing of Act 14, the document confirming acceptance of the building structure. At this stage, the building already has its visible form and the buyer pays against measurable progress. Linking an instalment to Act 14 is a strong way to make the payment follow the real construction process.
Act 15 and finishing works
Act 15 marks the completion of the building as a construction object and its formal handover from the contractor to the developer. Instalments around this stage are usually linked to installation and finishing works. The building is almost complete, technical systems are installed and the apartment is getting closer to its final condition. Payment at this stage reflects the advanced progress of the project.
Act 16 and the notarial deed
Act 16, in everyday speech, refers to the commissioning stage that confirms the building is fit for use. The final payment usually coincides with the transfer of ownership through the notarial deed. This is the final step, when the buyer becomes owner and can move in. To understand what each document actually proves, review the guide to Act 14, Act 15 and Act 16 when buying, which sets the stages in the right order.
Financing: own funds and mortgage
A staged payment plan works well with financing. Most buyers combine own funds for the first instalments with a mortgage for the main part of the price. The bank enters the process according to the building's progress, which naturally matches staged payments.
How the bank disburses the loan in tranches
For an apartment under construction, the bank often releases the loan in parts linked to the construction stages, rather than all at once. This means the loan drawdown follows the same logic as the instalments: funds are released when the building reaches the agreed stage. It is useful for the buyer to understand how a mortgage for an apartment in central Sofia works, so financing can be aligned with the payment schedule.
Deferred payment directly from the developer
Some developers offer deferred payment directly, without a bank, for the construction period. This gives flexibility to buyers who will use funds gradually or who are waiting to sell another property. The terms are negotiated individually and recorded in the preliminary contract. Deferred payment from the developer is an additional option that can be more accessible in direct developer transactions than buyers often expect.
Additional costs outside the instalments
Beyond the apartment price, the buyer must plan for notary fees, local transfer tax and loan-related costs. These are not part of the instalments to the developer, but they belong in the overall budget. Underestimating them is a common reason for financial stress at the final stage. A detailed look at taxes and notary fees helps account for these amounts from the beginning.
Price by stage: early or late purchase
The earlier you enter, the better the price usually is. An apartment bought at an early construction stage is generally cheaper than the same property in a completed building. The buyer accepts some waiting time and a little more uncertainty, but gains from a lower entry price and a wider choice of available apartments.
At the completed stage, the price is higher, but the risk and waiting time are minimal: the buyer sees the finished product and can move in quickly. The choice between early and late purchase depends on risk tolerance, housing needs and budget. Both approaches are reasonable as long as the payment schedule and deadlines are clearly agreed.
Advantages of staged payment over one-off payment
Distributed payment works for the buyer in several ways. Beyond reducing risk, staged payment brings financial and practical benefits that are often underestimated when only the final price is compared.
Easier budget planning
Spreading the amount over time allows the buyer to align payments with income, savings or the sale of another property. Instead of securing the entire sum at once, the buyer prepares it in parts while construction progresses. This makes the purchase accessible to more people and reduces financial pressure.
Time to prepare for moving in
The construction period gives time to organise financing, furnishing and the move itself. The buyer is not forced to solve everything at once, but can prepare the next steps while the building advances. This is a hidden advantage of buying under construction that a completed property does not offer.
Incentive to keep deadlines
When the next instalment comes after the next stage, the developer has a direct interest in moving the project forward. This link works as a natural discipline mechanism. For the buyer, it is an additional safeguard that construction progress and payments move in the same direction.
Common questions about the payment plan
A few questions clarify the whole process. Buyers often ask similar things about how the payments actually work. Clear answers before signing prevent tension later.
How large is the deposit
The deposit is the first instalment and reserves the specific apartment. Its amount is negotiated between the parties. It commits the transaction and fixes the price at the agreed stage. It is important for all conditions around the deposit to be clearly written in the preliminary contract, including what happens if one party withdraws.
What happens if construction is delayed
When instalments are tied to stages, a construction delay should delay the relevant instalment rather than require the buyer to pay in advance. A well-drafted contract also sets out what happens in the event of significant delay, including the buyer's rights. This is why linking payments to verifiable stages is safer than linking them only to calendar dates.
Can the payment plan be negotiated
The payment schedule is not fixed in stone. It is discussed before the preliminary contract is signed. The buyer can propose a structure that matches their financial capacity, especially when buying directly from the developer. Willingness to discuss such terms is a good sign of transparency.
Off-plan apartment versus completed apartment
Both routes lead to a home, but in different ways. The choice between an apartment under construction and a completed home is not only about price. It is also about payment method, risk and time. Understanding the differences helps the buyer choose what fits the specific situation.
Flexibility versus certainty
An apartment under construction offers a lower price and staged payment, but requires waiting and carries a degree of uncertainty. A completed home offers certainty and quick move-in, but usually at a higher price and without the flexibility of instalments. A buyer with time and planning capacity can benefit from construction, while a buyer who needs a finished home immediately may choose the completed option.
Which option suits which buyer
A family selling its current home in order to buy a new one often benefits from payments spread across the construction period, because it can coordinate both transactions. A buyer with ready funds and a need for quick move-in usually prefers a completed apartment. An investor may focus on the earlier stage price and the potential for appreciation by completion. The right choice depends on the goal, not on a universal rule.
Risks and how to protect yourself
Security comes from a clear contract and a reliable developer. Staged payment reduces risk, but it does not remove it entirely. The main risks are construction delay, unclear terms and weak developer reputation. All of them are managed through proper preparation.
Link instalments to stages, not only to dates
The strongest protection is to make payments follow real, verifiable construction stages, not only calendar dates. If construction is delayed, the relevant payment should move with the stage rather than force the buyer to pay for work not yet completed. A clear link between money and progress protects the buyer throughout the process.
Check the developer and documentation
The builder's reputation, delivery record on previous projects and clarity of documentation matter more than promises. Buying directly from the developer gives access to full information from the source and reduces the risk of filtered or incomplete communication.
Checks before you sign the payment schedule
A good schedule is clear, linked and realistic. Before signing, go through the key points of the payment plan to make sure it protects you:
· Each instalment is linked to a stage such as deposit, Act 14, Act 15 or commissioning, not only to a date.
· Amounts and deadlines are written explicitly in the preliminary contract, without vague wording.
· The contract clearly states what happens if construction is delayed and what rights the buyer has.
· Financing is aligned, meaning the bank drawdown follows the instalment schedule.
· Additional costs are planned, including fees, tax and loan expenses outside the purchase price.
In short: pay against progress, not against promises
A staged payment plan makes buying an off-plan apartment more accessible and more secure because it distributes the price alongside real construction progress. The deposit reserves the apartment, the following instalments are linked to Act 14, Act 15 and commissioning, and the final payment comes with the notarial deed. Financing can be aligned smoothly: the bank releases loan funds in tranches, while the developer may also offer deferred payment. The buyer wins when every instalment is tied to a verifiable stage, the preliminary contract is read carefully and the developer has a proven track record.