Conned

[roythepower]

I brought my place at the entrance of bansko at the start of a road called Rila. Its on the right of a road called tsar simeon, as it bends to the left to go over the bridge towards the town square, near the scond petrol station. I took the agents advice and did not use a solicitor. That was a wrong move because i have since found out that he lies about everything and i had been set up.

It cost me 57,000 Euro. but on the noteary deeds after i noticed that the figure 27,000 lev had been put down for the sale price, meaning when i sell it i will have to pay capital gains tax on the difference between 27,000 lev and 57,000 euro which the builder should have paid. does anyone know what i can do about this.

Also i paid 4750 Euro to this agent to furnish my apartment. This has not been done and they don't answer the phone to me.

I feel really stupid but now i know how they are towards buyers especially the English. DOES ANYONE KNOW ANYTHING ABOUT WHAT I CAN DO.

I have just joined this site so i dont know if i can name names, does anyone know if i can. Bec`use i want to warn people about this agent and builder

[Jain and Chris]

Hello Roythepower, welcome on board

We had this question from one of our subscribers and the lawyer who writes for us, Asja Mandjukova of GPNG law firm in Sofia, posted the following reply which I hope will be of help to you :

"Dear (name removed)

I just wrote you a personal answer in response to your e-mail, but I will put it here too for information of everyone having this really very widespread problem:

I assume that for the purchase of the apartment you have used the services of a real estate agency by way of a Power of attorney. They have finalised the deal on your behalf, telling you that putting the lower price on the notary deed is absolutely fine, being the common practice in Bulgaria and is for your profit only, or they have not even bothered to give you any explanation and have done what is profitable for them. The result of this is that you don't really know what was the real price of the appartment - they have put a lower price and most probably have kept a substantial part of the price that you know, for themselves, thus increasing the actual fee for the representation. Secondly, by the time you decide to resell the apartment and have the full price on the Notary deed, you will have to pay tax on a profit that you never made - the difference between the full new price and the false purchase price. I have a client with the same problem now and he will be at a great loss because of this.

Without knowing what arrangements you have with that agency and what POA you have given them I can advice you on two options:

1. File an appeal at the Prosecutor's office for a cheat;
2. Ask for return of the difference between the amount you have transferred and the price pointed on the Notary deed, claiming that they have no legal ground to keep that difference provided that they have only paid the amount under the Notary deed. This option may also lead to court, but the Civil division.

Both options entail long process of preliminary negotiations with the defaulting agency and court proceedings if the negotiations are not satisfactory, but both are opportunities to influence them to compensate you somehow. Both options also require solid evidence in support of your claim - bank transfer receipts, written correspondence, documentation.


I hope I was of use to you.

Kindest regards,
Asya"


I hope that will give you something to go on. Meanwhile, please do not post the name of the agent/solicitor involved on this forum as we really don't want a libel case against you.

All the best

[David howe]

The answer to this question will lye in where you transferred the money to. There is unjust enrichment somewhere along the line and the difference in the money must be accounted for criminally or Fiscally. your chain of continuity holds the key.


David Howe

Investment Romania - Property Romania, Invest Romania, Investment Romania

[roythepower]

Thanks jain and chris and david howe for your advice.

First of all i did not give the power of attorney to nobody, i signed the contract and transfered the money straight to where it had to go from England. The aent had said that he would watch the developement for me but he obviously did not because he must have been in on this with the builder who he knew personally.

This agent was a freelance agent. On the contract i was told to make 5 payments for the property. Two into the account of the building company and three into the private account of the owner of the company who was the agents friend.

When i queried it I was told that that is common practice to do business that way in Bulgaria.

I was told that the lower figure was for my benefit.

I have found a English speaking Bulgarian lawyer. Do you know how long the court process will go on for.

[roythepower]

Thanks jain and chris and david howe for your advice.

First of all i did not give the power of attorney to nobody, i signed the contract and transfered the money straight to where it had to go from England. The agent had said that he would watch the developement for me but he obviously did not because he must have been in on this with the owner of the building company who he knew personally.

This agent was a freelance agent. On the contract i was told to make 5 payments for the property. Two into the account of the building company and three into the private account of the owner of the company.

When i queried it I was told that that is common practice to do business that way in Bulgaria.

I was told that the lower figure was for my benefit.

I have found a English speaking Bulgarian lawyer. Do you know how long the court process will go on for.

[David howe]

Originally Posted by roythepower

Thanks jain and chris and david howe for your advice.

First of all i did not give the power of attorney to nobody, i signed the contract and transfered the money straight to where it had to go from England. The agent had said that he would watch the developement for me but he obviously did not because he must have been in on this with the owner of the building company who he knew personally.

This agent was a freelance agent. On the contract i was told to make 5 payments for the property. Two into the account of the building company and three into the private account of the owner of the company.

When i queried it I was told that that is common practice to do business that way in Bulgaria.


I was told that the lower figure was for my benefit.

I have found a English speaking Bulgarian lawyer. Do you know how long the court process will go on for.

Roy the price on your contract should be the price you were aware. Even if the builder will have to show why he received the money and produce a contract for same if you chase him. the law of restitution will not allow unjust enrichment.

[roythepower]

Thanks david. I am getting more info from you than this solicitor. She just says that the price on the notary deed cannot be changed once its on there. But you are saying that because the builder has unjustly enriched himself that i got a good case against him. This LAW OF RESTITUION, the solicitor shold know of this, yes?

[David howe]

Solicitors should know this in the same way someone you employ to brush your street should know how to clean it. Unfortunately Solicititors and street cleaners both need monitoring. Out of curiosity

Did you have an authorised translator when you signed it?

Was this the price that was on the contract you signed?

Have you a contract with the agent for furnishing?

What is law of Jurisdiction on the contract. If it does not say you can rely on postal rule for where contract was signed and take case in UK and then seek overseas enforcement order under doctrine of mutual acceptance.

[roythepower]

David I had a translator that they provided. On the contract it says that i was buying the place for 57,000 euro. I do not have a contract with the agent for furnishing, because i brought it off plan, i had got to know him well, but not well enough it seems. When i asked for on he went into one about how i did not trust him and i was insulting him, so i gave in and trusted him. The contract is in bulgarian but i insisted on an english translation.
I do not understand the last bit you said about law of jurisdiction. You seem to know more that the solicitors about these balken laws, HOW? If there is a way of getting the case heard here i want to know about it.

[David howe]

Originally Posted by roythepower

David I had a translator that they provided. On the contract it says that i was buying the place for 57,000 euro. I do not have a contract with the agent for furnishing, because i brought it off plan, i had got to know him well, but not well enough it seems. When i asked for on he went into one about how i did not trust him and i was insulting him, so i gave in and trusted him. The contract is in bulgarian but i insisted on an english translation.
I do not understand the last bit you said about law of jurisdiction. You seem to know more that the solicitors about these balken laws, HOW? If there is a way of getting the case heard here i want to know about it.

Was the final contract for purchase signed by you?

Was the contract stamped to say the translator was authorised by the State and did the translator sign it?

Is the English transation a cetrtified copy of the original Bulgarian contract?

Also correct me on this, but you say the contract said that youwere to make 5 payments for the purchase of the property, 2 to the builders company and 3to the builder?


This would show continuity of money and a chain that can be followed?

The agent for furnishing is putting you in a difficult situation. I was relying on a contract that had no jurisdiction for dispute and had you signed it in the UK you would have had a right to take a small claim, but as there iss no contract this will not be possible.


Out of curiosity can you confirm the nationality of your agent as many people reading will imediately assume that you are dealing with 2 Bulgarians as there is also no shortage of English & Irish rouges in the property markets.



David Howe

Investment Romania - Property Romania, Invest Romania, Investment Romania