Right to build

A right to build in the private law sense is a limited real right under which its holder may build a building on a foreign property and acquire ownership thereof. The right to build is regulated in Art. 63-67 of the Bulgarian Property Act.

Any civil law subject can be a holder of a right to build - both individuals and legal entities. Objects of the building right can be undeveloped property (Art. 63 (1) PA) or an underground construction (Art. 66 (3) PA).

The right to build consists of several rights. The first is to construct a building on another's property, such that the building must meet all legal requirements. It should be noted that until the completion of the rough construction, the right to build may be transferred because upon completion of the rough construction it becomes a right of ownership. Another component of the right to build is the power to acquire ownership of the building - Art. 63 (1) PA. The holder of the right to build becomes the owner of the building right after the completion of its construction, while the landowner has no such rights. The owner of a building may use the land to the extent that is necessary for the use of the building according to its purpose - Art. 64 PA. An example of this is to spend plumbing.

According to Art. 55 PA, real rights over another's property, to the extent that they are provided for by laws, may be acquired or created through legal transaction, prescription or other methods provided for by law. The most common method of acquisition of the right to build is a legal transaction. In this case, the contract is concluded in the form of a notarial deed - Art. 18 of the Obligations and Contracts Act. In order for the contract to have the desired effect, the party conferring the property rights should be the owner of the property. The other party can be any legally capable entity. Another theoretically possible, but rare alternative for the acquisition of the right to build is expiration of the limitation period. Such is the case when someone within the prescribed period intends to build for themselves and takes action to implement the substance of the ownership right. Such actions may be storing of construction materials or carrying out various construction activities. The beginning of the limitation period is the moment when the first such action occurs.

The right to build may be terminated in different ways. Firstly, the right may be extinguished upon the expiry of the period agreed by the parties. The building right is generally unlimited, but Art. 65 PA allows for the parties to contract for a fixed time period, after the expiration of which the ownership of the building may pass gratuitously to the owner of the land.

According to Art. 67 PA, the right to build is extinguished in favour of the owner of the land through limitation if it is not exercised within 5 years. The beginning of the limitation period is considered the moment when the exercise of construction works in the property is actually possible. The right to build may not lapse if the building or a portion thereof is lost, unless otherwise provided in the in the act for the creation of such right - Art. 66 (2) PA. Extinguishment of the right can be a consequence of termination of the contract or the rescision of the transaction.