Complete Guide to Buying Off-Plan Apartments: Risks and Steps (2026)
Guide to buying off-plan property. Learn about the risks, how to check the builder, payment schemes, and the importance of Act 14, 15, and 16.
Mister Imot
•6 min read
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Buying off-plan apartments remains one of the most popular ways to acquire property in cities like Plovdiv, Sofia, and Varna. The main reason is price – often 20% to 30% lower than ready-to-move-in homes.
Despite the financial benefit, buying property under construction carries specific risks. In this article, we'll examine the entire process – from checking the investor to final transfer – to help you make an informed choice and protect your investment.
What does "off-plan purchase" mean?
The term "off-plan" means purchasing a property that has not yet been built or put into operation. In practice, you are buying a "right to build" or a future asset.
The process is tied to three key construction stages, regulated by the Spatial Planning Act (ЗУТ):
Act 14 (Rough Construction): The building structure is complete, the roof is installed. At this point, the property exists as a separate object and ownership can be transferred with a notarial deed.
Act 15: The building is fully completed. A document is signed certifying that construction complies with approved plans.
Act 16 (Occupancy Permit): This is the final seal. The building is habitable, has electricity and water connections, and is put into operation.
Important: Banks finance properties that already have Act 14 or Act 15 much more easily. Financing a property at an early stage (excavation) usually requires a down payment or collateral with another property.
Step 1: Checking the investor and property
Before paying any deposit (earnest money), you must conduct thorough research. Searching for "off-plan apartments Plovdiv" or "property Sofia" will give you hundreds of results, but not all offers are secure.
What to check about the builder/investor?
Commercial Register: Check the company's history in the Commercial Register. Are there any seizures? Who is the owner?
History of completed projects: Visit older buildings by the same builder. What is the construction quality after 5 years? Are there leaks or cracks?
Forums and reviews: Look for opinions on "bg-mamma" or specialized "property" groups on Facebook.
Land check (Plot)
The biggest risk is if the land on which construction is taking place is mortgaged in favor of a bank that has lent to the builder.
Request an up-to-date sketch and ownership document for the land.
Check the Property Register (through the Registry Agency) for encumbrances on the plot.
Close-up of hands holding a magnifying glass over blueprints and legal documents, checking details, office environment, warm lighting
Step 2: Preliminary contract for property purchase
This is the most important document in off-plan transactions. Since notarial transfer often happens at a later stage, the preliminary contract is your only protection.
What clauses must be present?
Clear payment scheme: Exact dates or stages (e.g., "10% at Act 14") when amounts are due.
Completion deadlines: Specific dates for issuing Act 14, 15, and 16.
Penalties: What does the builder owe if delayed by 6 months? What if the building is never completed?
Completion level: Detailed description – what will the windows be, the insulation, will there be interior doors, how will the apartment be delivered (plaster and screed or turnkey).
Price indexation clause: Beware of clauses that allow the builder to raise the price due to inflation or material cost increases. Try to negotiate a "fixed final price."
Advice: Never sign a preliminary contract without consulting a lawyer specializing in property law. Standard investor forms always protect their interest, not yours.
Step 3: Off-plan payment schemes
When buying apartments from a builder, payment schemes vary, but the most common are:
1. Standard (Balanced) scheme
10-20% when signing the preliminary contract (groundbreaking).
30-40% when reaching "roof level" (roof/Act 14).
30% at windows and facade (before Act 15).
10% at Act 16 and notarial transfer.
2. Large upfront payment scheme (lower price)
Some investors (especially in areas like "Ostromila" or "Smirnenski" in Plovdiv) offer a discount if you pay 80-90% upfront.
Risk: If the builder goes bankrupt, you lose almost the entire amount.
Benefit: Lower price per sq.m.
3. Bank financing scheme
If you use a mortgage loan, the bank usually pays the money in installments directly to the builder, after its experts certify that the respective stage is completed.
Isometric 3D illustration of an apartment floor plan being constructed, different stages of completion shown in sections, piles of money or coins representing payment stages
Risks when buying off-plan property and how to avoid them
Risk 1: Builder goes bankrupt or stops construction
This is every buyer's nightmare.
Protection: Don't pay large amounts upfront. Tie payments to actual completed work.
Risk 2: Property turns out to be mortgaged
The investor may have mortgaged the right to build or the land to finance the project. If they don't repay their loan, the bank can take your apartment, even if you've paid it in full.
Protection: The preliminary contract and notarial deed must explicitly state that the property is transferred "free of encumbrances." Request a certificate of no encumbrances on the day of the transaction.
Risk 3: Square footage discrepancy
Often "common areas" are disproportionately large or the actual living area is smaller than expected.
Protection: Request an architectural plan with exact dimensions before signing.
Required documents for the transaction
When the time approaches for property transfer (usually at Act 14 or Act 15/16), you will need:
From the builder:
Land ownership document/right to build.
Cadastral plan of the property.
Tax assessment.
Certificate of no encumbrances.
Building permit and corresponding Acts.
From the buyer:
ID card.
Declaration of citizenship and marital status.
Declaration under Art. 264 of the Tax and Social Security Procedure Code (for absence of tax obligations).
Document of origin of funds (for amounts over 30,000 BGN).
Happy young couple receiving keys to a new modern apartment from a real estate agent, empty room with large windows, bright sunlight, blurred city view outside
Conclusion: Is the risk worth it?
Buying off-plan apartments in cities like Plovdiv and Sofia is an excellent investment that can yield high returns after building completion. The key to success is not luck, but good preparation.
Careful document checking, lawyer consultation, and choosing a reputable builder are mandatory steps.
Looking for property in Plovdiv or the region? Browse our current off-plan property offers from verified investors at https://mrimot.com/en/listings.
