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Right of use over real estate in Bulgaria: What do you need to know?

The right of use (usufruct) over real estate is a common property right that allows an individual to utilize another’s property without owning it. This right can arise through various means—contracts, legal provisions, or court decisions. Understanding its establishment, termination, and legal implications is crucial for both property owners and users.

1. What is the Right of Use?

The right of use is a limited property right granting the holder (user) the ability to use a specific property, including deriving benefits and income from it, without the authority to dispose of it (e.g., selling or mortgaging). According to Article 56 of the Property Act, this right can be established for a definite or indefinite period and applies to both individuals and legal entities. Common scenarios include:

  • Donations with Reserved Right of Use: An individual donates property but retains the right to use it for life.
  • Contracts for Support and Maintenance: The right of use may be granted as part of such agreements.
  • Court Decisions: In certain cases, courts may grant a person the right of use over a property.

2. How is the Right of Use Established?

The right of use can be established through several methods:

2.1. By Contract

The most common method is through a contract, which must be notarized and registered with the Registry Agency. The contract should include:

  • Details of the owner and user
  • Description of the property
  • Duration of use (definite or indefinite)
  • Conditions under which the user may utilize the property

To avoid future legal disputes, it is highly recommended that such contracts be prepared and reviewed by a real estate attorney.

2.2. By Will

The right of use can also be granted through a will. In this case, upon the opening of the inheritance, the right passes to the heir specified in the will.

2.3. By Law or Court Decision

In some instances, the right of use may arise by virtue of a specific law or court decision. For example, in family law disputes, a court may grant one spouse the right to use the family home, regardless of ownership.

3. Rights and Obligations of the User

The user has the following rights:

  • To use the property according to its intended purpose
  • To receive the fruits and income from the property (e.g., collecting rent)
  • To make improvements, provided they do not alter the property’s essence

However, the user also has several obligations:

  • To maintain the property in good condition
  • To refrain from actions that decrease the property’s value
  • Not to transfer the right of use to third parties unless the contract stipulates otherwise

If the user fails to fulfill these obligations, the owner may file a claim to terminate the right of use through the court.

4. How is the Right of Use Terminated?

The right of use can be terminated in several ways:

  • Expiration of the Term: If the right is established for a specific period.
  • Death of the User: If the user is an individual, the right of use is lifelong and cannot be inherited.
  • Waiver by the User: When the user renounces their right through a notarized declaration.
  • Non-fulfillment of User’s Obligations: If the user damages the property or fails to meet their obligations, the owner may file a claim for termination.

Understanding the nuances of the right of use over real estate is essential for both property owners and users. Engaging legal professionals ensures that such rights are established and exercised in compliance with the law, thereby preventing potential disputes and protecting the interests of all parties involved.

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