Buying a property with a tenant in Bulgaria
Selling a rented property does not automatically terminate the lease. What binds the buyer depends on registration, a legally reliable date, the tenant's possession and the contract. An occupied apartment is therefore acquired with more than a deed. You also acquire a relationship that must be understood and handed over properly.
Bulgarian law sets three main outcomes. A registered lease remains effective against the buyer. An unregistered lease with a legally reliable date binds the buyer for the agreed term, but for no more than one year after transfer. If it lacks such a date but the tenant is in possession, it binds the buyer as an indefinite lease. Obligations and Contracts Act (ZZD), Article 237, Bulgarian text
The legal sources were checked on 21 August 2026. “Legally reliable date” is a technical Bulgarian-law concept, not simply the date printed on a contract. A Bulgarian lawyer must apply the rules to the lease, annexes and actual occupation.
Check both the register and the home
A Property Register search may reveal a registered lease, but a clean search does not prove vacant possession. Registry Agency: Property Register Obtain the lease, annexes, payment history and termination correspondence. During the inspection, establish who occupies the property and on what basis.
Review the parties, term, rent, due date, deposit, indexation and termination provisions. Check for subletting, arrears, notices or disputes. If the seller promises vacant possession, make the deadline and evidence of vacancy a completion condition rather than an oral expectation.
Rental income needs a handover date
The buyer and seller should allocate rent for the completion month, prepaid periods and outstanding claims. State when the tenant begins paying the new owner and who gives notice. Otherwise both owners may claim the same payment, or neither may take responsibility for an old issue.
Treat the security deposit in the same way. Article 237 does not by itself prove that the money automatically passed to the buyer. Record the amount, deductions and how the seller transfers or credits it in the completion account.
Where possible, use a tripartite handover record signed by seller, buyer and tenant. It can confirm contacts, keys, meter readings, paid rent, the deposit and the account for future payments.
If you need vacant possession
Do not assume the new owner can remove the tenant immediately. The statutory rule for an indefinite lease is generally one month's notice, but the contract and facts require review. ZZD, Article 238 A fixed-term or registered lease may offer less flexibility.
If vacancy is essential for occupation or renovation, make it a completion condition. If the purchase is an investment, assess the existing lease and actual payment history rather than treating the advertised rent as guaranteed income.
Valuing an occupied investment property
An existing tenant may avoid an initial vacancy, but the lease may lock in below-market rent or inconvenient terms. Review payment history, remaining term, indexation, landlord costs and repairs. Calculate yield from money actually received, not asking rents for vacant listings.
Check rights of access for inspections, repairs and emergencies. Resolve arrears and damage before transfer. Buying income works only when you understand how it is produced and which obligations support it.
Frequently asked questions
Can I end the lease immediately after purchase?
Not automatically. Registration, legally reliable date, term, clauses and possession all matter.
Does the deposit automatically transfer to the buyer?
Do not rely on that without express documentation. Record the amount and transfer in the completion papers and notify the tenant.
Is a clean Property Register search enough?
No. An unregistered lease or actual occupation may still have legal consequences. Review the documents and inspect the property.
Verified primary sources
For the operating side, use the separate landlord and letting guide. This article remains focused on acquisition risk.
View Pirotska and compare an occupied acquisition with a new investment property in central Sofia.