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Sat, Feb 04 2012
Boom in real estate deals in Sofia before New Year's Eve
The number of real estate deals in Sofia at the end of the year has doubled because of a new law that from January 1 2010 will ban all real estate payments made in cash, Bulgarian-language Trud daily said on December 29 2009.
Up until December 15 2009 the number of real estate deals registered in Sofia was between 300 and 350. In the final two weeks of the year, however, their number rose to 500 a day with the highest rate recorded just before Christmas at 764.
Trud quoted Sofia’s Registry Agency as saying that most of the real estate deals involved buying or selling apartments.
The amendment’s aim, first raised a year ago, is to reduce real estate fraud and money laundering. The move is part of the Justice Ministry’s policy of adopting legislative amendments to a number of laws as a way of reducing corruption and crime as well as ensuring that all fees and taxes owed to the state are paid.
"Such a boom in real estate deals is not something new at the end of the year. The difference now is that the main reason is the amendment to the Notary Act that as of January 1 2010 will make all payments on real estate deals go through bank transfers and many people who are still part of the ‘grey economy’ are trying to catch the last train," Dobromir Ganev, head of Foros real estate agency told Trud.
Tsvetelina Taseva, of Address real estate agency, agreed. "It is true that many deals have been started earlier in the year and people are just trying to close them before January 1 2010, fearing that the amendment will add to the cost of the deal," she said.
Up until December 15 2009 the number of real estate deals registered in Sofia was between 300 and 350. In the final two weeks of the year, however, their number rose to 500 a day with the highest rate recorded just before Christmas at 764.
Trud quoted Sofia’s Registry Agency as saying that most of the real estate deals involved buying or selling apartments.
The amendment’s aim, first raised a year ago, is to reduce real estate fraud and money laundering. The move is part of the Justice Ministry’s policy of adopting legislative amendments to a number of laws as a way of reducing corruption and crime as well as ensuring that all fees and taxes owed to the state are paid.
"Such a boom in real estate deals is not something new at the end of the year. The difference now is that the main reason is the amendment to the Notary Act that as of January 1 2010 will make all payments on real estate deals go through bank transfers and many people who are still part of the ‘grey economy’ are trying to catch the last train," Dobromir Ganev, head of Foros real estate agency told Trud.
Tsvetelina Taseva, of Address real estate agency, agreed. "It is true that many deals have been started earlier in the year and people are just trying to close them before January 1 2010, fearing that the amendment will add to the cost of the deal," she said.
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It is extremly positive that through implementing this law-deals came at an explosive and EXCITING rate! Lets keep pushing what works, by KEEP doing the RIGHT thing
The implimentation of this act has been posponed until later in the year as its second reading did not go through Parliament before the Christmas break as expected. They are now predicting that it will not come into force until June 2010 at the earliest !
People do actually believe something will change? Maybe if people would be little less greedy things could change a little. Things are not made more easy by just adding few new laws or rules. Putting the right people in the right places could do the trick, pay them a decent salary so they don't have to take bribes to pay the bills.
We, humans are destined to never learn..
Tacitus remarked about the Late Republic:
"corruptissima republica plurimae leges",
meaning "when the republic is at its most corrupt the laws are most numerous"...
Still applicable.
under bthe table deals happen in france everyday everybody tries to avoid excess tax payments on profits and also to have some cash in their pockets. it is ofcourse a way to wash your money whiter than white.
Excellent - now just concentrate on deals made in November/December.
The law should also cover the purchase of any item that requires a registration process - vehicles, boats, Mobile Phones, etc.
All they have to do is use their new communications interface; hell they don't even have to leave the office anymore!
The police now know where to look for money being laundered.