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Thu, Feb 09 2012
Britons to march on Bansko against alleged property theft
Bansko, Bulgaria
Photo: Julia Lazarova
The Mail on Sunday has reported on a group of British investors who poured millions of pounds into the Bulgarian Alpine resort town of Bansko only to be subsequently conned out of their property.
They have now accused a local property firm of illegally appropriating the building and denying them entry.
The investors purchased the property through the Rockarch Estates, a London agency dealing with Bulgarian property. However, Rockarch claimed it was subsequently defrauded by a Bulgarian business partner who had access to its accounts and who has allegedly transferred 29 of the flats, plus a restaurant, swimming pool and spa, as well as a conference hall equipped with 30 parking spaces, over to a Bulgarian firm, Zekom, "for a fraction of their real value".
"They were an investment and also intended as a holiday home for us and our four children. Instead, we’ve suffered two years of financial stress and worry because of this dispute," Sharon Hassall, one of the investors, was quoted as saying by the Mail on Sunday.
The title documents for the property, however, were not released to their owners because apparently there is no proof of ownership. Subsequently, the Zekom firm has taken over the property, denied any wrongdoing, installed guards around the perimeter and told the British buyers that they cannot enter the flats.
‘We have no complaint against Rockarch, which has done nothing wrong. But it’s hard to make progress in a dispute in a country as corrupt as this," Hassal said.
Reportedly, the problem for the British buyers is exacerbated by the fact that Zekom is run by Roman Romanov, who is said to have "significant political and economic influence among the elite in Bulgaria".
Apparently, when the foreigners complained that they could not get into their own property, Romanov wrote to them: "All issues are to be resolved under Bulgarian law. This means only one thing – God help you!" the Mail on Sunday reported.
A protest is planned in Bansko in March 2010.
Source: propertywisebulgaria.
They have now accused a local property firm of illegally appropriating the building and denying them entry.
The investors purchased the property through the Rockarch Estates, a London agency dealing with Bulgarian property. However, Rockarch claimed it was subsequently defrauded by a Bulgarian business partner who had access to its accounts and who has allegedly transferred 29 of the flats, plus a restaurant, swimming pool and spa, as well as a conference hall equipped with 30 parking spaces, over to a Bulgarian firm, Zekom, "for a fraction of their real value".
"They were an investment and also intended as a holiday home for us and our four children. Instead, we’ve suffered two years of financial stress and worry because of this dispute," Sharon Hassall, one of the investors, was quoted as saying by the Mail on Sunday.
The title documents for the property, however, were not released to their owners because apparently there is no proof of ownership. Subsequently, the Zekom firm has taken over the property, denied any wrongdoing, installed guards around the perimeter and told the British buyers that they cannot enter the flats.
‘We have no complaint against Rockarch, which has done nothing wrong. But it’s hard to make progress in a dispute in a country as corrupt as this," Hassal said.
Reportedly, the problem for the British buyers is exacerbated by the fact that Zekom is run by Roman Romanov, who is said to have "significant political and economic influence among the elite in Bulgaria".
Apparently, when the foreigners complained that they could not get into their own property, Romanov wrote to them: "All issues are to be resolved under Bulgarian law. This means only one thing – God help you!" the Mail on Sunday reported.
A protest is planned in Bansko in March 2010.
Source: propertywisebulgaria.
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@BG, you never miss a key?
Well said Jim!
People should just understand there is not such a thing as easy money!
The point is you have to know the people you deal with. And of course the local "boss" that you can better ask permission to buy. Just think of pre wwII south Italy. If you pay and pay respect you can avoid it all
hey all
some savage stories and savage replies.
i didnt come to bulgaria to make a quick buck ,i came here to buy an old building,fix it up,and like many people wanted to live a simple honest life,growing veggies and making lutinitsa.
we bought the place and when i came back 6 months later,someone was living in it,had documents to say he owned half the building(made by the then mayor,him and the notary),we have been to court,we won the case,he appealed-didnt come to court and neither did his [...]
Read the full comment lawyer,BUT somehow he won the case??so now its been 3 years and im still waiting for the 3rd court date in sofia.
im just a poor young hippy,with no dreams of the fast life and easy money.
id only like justice
the guy owns 3 other buildings,why he want half of mine is absolutely ridiculous and why he legally still does,even more so
when is the protest?even if i have to hitch there cause im broke,id like to be there
my email is trhippy@hotmail.com
"The onus should be on the large developers and government to cooperate and invest in marketing this important area of the economy!"
Right on Jim - the problem lies in my view a severe lack of proper regulation!! There is no vision which is re-enforced by good and proper bylaws.
And is all easily done Jim, all it is take is basic motivation and common sense!! The main problem as you mentioned is that short term greed is hampering economic foresight.
Northern Cyprus will be next a lot of the people that have been kicked off there land are trying to get it back. Mainly from Brits who bought it cheap and built holiday homes on it I think test cases are going through Brussels as we speak watch this space.
Boom to bust, a merry dance on the BULGARIAN property market! The merry dance became increasingly frenetic as it reached its climax like a BULGARIAN ‘horo’ (wedding dance!) and when the music stopped Investors and Developers fell to the floor exhausted bringing Bansko and Sunny Beach down with them.
The problem about the BULGARIAN property market, and by this I mainly refer to OFF-PLAN developments, was that buyers heard only what they wanted to hear from the plethora of agents who were only too happy to oblige by indulging their clients speculative notions of fast capital [...]
Read the full comment return.
Apartments were churned out to fit the average budget of what were predominantly UK and Irish buyers rather than the needs of the local market or long term sustainable development in leisure and tourism.
Off-plan property sales were commoditised to meet the expectations of buyers surfing the wave of a massive web marketing machine. Shiny CGI’s (computer generated images) and call centres with free phone numbers and agents on massive percentages colluding to allow the (mainly) UK/IRE investor to buy in to the fantasy!
Inventors buying online, sight unseen, lest the first pot-hole or fragrant taxi driver shatter the illusion of their entitlement to massive and instant capital growth! Thus the dance wound its merry way along the yellow brick road to the peaks of Pirin and the cliffs of Balchik!
Developers believed they could sell anything, in fact for a while it seemed they could, with buyers believing they could purchase almost anything and it would turn them a handsome profit! 'Of course that 'nice' sales guy at the Milton Keynes call-centre told me Bansko is the next Austria and Sunny Beach is the new Spain' err…right?
Of course the investors do not escape without responsibility as many seemed to leave basic common sense and principles of sound investment firmly sealed in a locker at Heathrow Terminal 5!
In the long run, sadly, both sides have been left rather disillusioned with their respective dance partners. Their eyes met across ballroom Bulgaria, lit by the alluring sparkle of a green glitter ball promising quick money (burzi pari!) like many a popular ‘Chalga’ song! All financed on the back of easy credit and heavily re-mortgaged & eternally appreciating domestic property market!
The fall out of all this is a sadly negative FDI (Foreign Direct Investment) outcome for BULGARIA, all at the expense of short term speculation and greed. BULGARIA could have managed and controlled its development by coordinating and planning in line with underlying demographics for the benefit of long term development of tourism and infrastructure on accession to the EU and a wealth of funding. Of course in reality vested political interests, short-termism, localised corruption and an endemic lack of vision prevailed over the real chance to put BULGARIA on the map of Europe as a quality tourist destination specialising in Eco, viticultural and spa tourism. This has been lost or delayed and made far more difficult as BULGARIA now needs to re-brand and change its image, which I fear will be a long overdue but all too slow and painful process.
In the short term many investors have more chance of realising a ROI than they do of seeing a waitress in Sofia bringing the ketchup, with a smile, before the desert!....or seeing a black SUV stop at a crossing for a ‘babushka’!
Tourist property & no international marketing strategy! (Bulgaria)
Ultimately Bulgaria can offer value for money second homes and holiday property in a way that few other countries can.
So why one asks is Bulgaria not pushed as a more mainstream destination?
Why are the big tour operators not falling over themselves to get a piece of the touted BGN miracle ....the new Spain?
Ultimately if big tour operators don't get behind Bulgaria it seems we are putting the cart before the horse with investments [...]
Read the full comment in leisure property?
The onus should be on the large developers and government to cooperate and invest in marketing this important area of the economy! However it seems they don't have the foresight or motivation. Why?
Bulgarian politicians are to busy looking for the best angle to exploit their seat in parliament in exchange for 'backshbish'!
The developers meanwhile only see short term cash flow projections, immediate valuations and instant forecasts that involve a quick turn-around for off-plan sale without so much as a thought as to how to drive sustainable tourism to Bulgaria to fill the golf courses, ski chalets and berths at new marinas!
Bulgarians themselves need to up-skill their service culture if their (fine!) country is ever going to compete with Turkey, Greece, Spain Portugal & Croatia as a holiday destination.
All Too often there is a sense of self pity that one perceives amongst Bulgarians. There is a sense that they have been hard done by historically and in more recent times.
Ultimately Bulgarians need to put their own house in order, take responsibility for their actions, clean up public life and apply themselves to a more dynamic future rather than dwelling on past grievances about the so called 'Turkish Yoke'.
All this is easier said than done & is not easily implemented when cynicism pervades and the rule of the lowest common denominator governs public life.
one dirty secret not discussed, how many 'Brit owned' real estate agencies were knee deep in the ripping off their countrymen? and how many of then advertised in the Sofia Echo?
This is a story about the here and now. HERE and NOW. Why bring up, "well this is not as bad as in this other place, ect."? Do not try to excuse this injustice.
I have quite a different experience. I sold parts of an hotel In Pomorie. It was build yes. But before it was done the Dutch developer was broke my customers lost their money, I lost my licence because of it. And everything was taken over by a British company. The Dutch lost their money and the British buyers that invested before the Dutch company was broke received their property. The Dutch developer and his Bulgarian girlfriend are still far away in Indonesia living like a king. So it happens everywhere.
@ gator
1. You do not even know how to write Bulgaria
2. If You want easy money - you get scam schemes
3. Bulgarians are far behind British in knowing what is and how to do corruption
Lets be honest here people flocked to Bulgaria hoping to make a quick buck, and Bulagrians alike thought they were going to become rich. There are a lot of happy investors in bansko people who went into the deals with their eyes open and without the flashing pound signs.
Please don't tar all Bulgarians with the same brush there are some extremly good honest developers who have delivered what was promised and many happy buyers enjoying their new apartments. I do feel extremly sorry for the people that are having problems and sincerly hope they get it all [...]
Read the full comment sorted but i think before you make statements like crime ridden country left to stew in their own crap i suggest you take a long hard look around the UK or are you still wearing rose coloured specs
the spaniards have been doing the same thing for years selling apparts not or never built taking your deposit with them selling land that never had building permission forbuilding then let you build and then the authorities tell you to knock it down. some people really are stool pigeons
Pursue criminal fraud and theft against Roman Romanov in the UK and EU where he can not manipulate the system. Get a conviction absentia if necessary. Then Mr. Roman Romanov can be extradidted out of Bulgaria.
Never buy off plan property in any country the risks are to great.Also in BG never pay all the money until act 16 and you get your title deeds.
where do you live Dianne?
This comment has been removed by the moderator because it contained foul, abusive or discriminating language
why am i not surprised? Like this is the first time something like this happens, maybe a warning for all future investors that there is NOT such a thing like EASY money. Specially NOT in Blgaria!
These types of transactions in the future are very easy solve/conduct.
Notaries to have trust accounts. When the apartment building is completed (schedule 16), the trust funds are released, protecting both the buyer and the seller.
The trust accounts are jointly audited every quarter by a Government agency or large accounting firm such as Price Waterhouse Coopers etc.
The investors I have spoken too are avoiding BG like the plague simply due to problems as cited in your news bulletin.