From January 1, 2010 all payments for real estate transactions will be conducted only by bank transfer to modify the Law on notaries and notarial activity, prepared by the Ministry of Justice, which the Government will discuss at its meeting today.
From next year every transaction for which there is no document to transfer funds to a bank account will be considered null and void.
The purpose of the legislative change is to prevent opportunities for the use of real estate transactions for money laundering and to combat property fraud.
Confessed before the transaction, the notary can verify that the property has about foreclosures, mortgages, application or other circumstances surrounding the property. Only then will the money be paid to the seller.
Before the notary seller and the buyer will specify the bank and the account under which you will make payments (single or staggered) between each other.
This may be a special bank account or account of the notary in their chosen bank.
Conditions for the credit of the special bank account of the notary and orders for payment of notary will be governed by written agreement between the parties and the notary in the transaction. It was agreed to avoid execution on the funds in special bank account for the notary’s duties to safeguard the interests of the parties.
The bill represents a transition to a comprehensive system of relations connected with payments on reimbursable transactions and control them, to be governed by a separate special law for the deposit insurance fund.
According to Justice Minister Margarita Popova new procedure will prevent fraud in real estate, since it can not be simulated in the proxies, receipts themselves or deeds, that amount is received.