REPUBLIC OF BULGARIA LAND ADMINISTRATION REVIEW BACKGROUND INFORMATION

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1 REPUBLIC OF BULGARIA LAND ADMINISTRATION REVIEW BACKGROUND INFORMATION I. GENERAL INFORMATION Geography and demography Republic of Bulgaria is located in the eastern part of Balkan Peninsula. It is in a moderate latitude area between and northern latitude. The state borders of Bulgaria have a total length of 2245km. The northern border with Romania runs along the Danube River and is 609km long, the eastern border with Black Sea is 378km, the southern border with Turkey is 259km, and with Greece 493km, western border with Macedonia is 165km, and with Serbia 341km. The total territory of the country is ,9 sq. km. By the population of Bulgaria was 7,679 million, out of which 5, 425 million live in cities and towns, and 2, 254 million in village regions. The average density of population is 69,9 people per squire km. The birth-rate is 9,6 %, and the death-rate 14,7%. Bulgaria is among the countries with very high degree of demographic ageing. In terms of age structure, the number of young people under 15 years of age form only 13,6% of the population. The average duration of life has a trend of raise and in the period between 2003 and 2005 is 72,5 years. The demographic problems, such as negative population growth rate, ageing of population and internal migration, are the same for the whole country, however these problems are most salient in the village regions. All researches, carried out in the last years show solid trend of intensification of these problems. In 2003 the population growth rate per 1000 population was -5,7 % for the country as a whole, while there is a considerable difference of the figures between the villages and the towns the rate for the villages is much lower (- 12,2 %), while in towns this value is - 2,9 %. The largest cities in the country are: the capital Sofia ( inhabitants), Plovdiv ( inhabitants), Varna ( inhabitants), Burgas ( inhabitants), Ruse ( inhabitants). Politics and government The beginning of democratic changes in Bulgaria is marked by the date 10 November The political and social systems of the country are based on the Constitution of Bulgaria, passed on 13 July The powers of the state are legislative, executive and judicial powers. The country is governed by the National Assembly (Parliament), The President, the Government (Council of Ministers) and judicial power. The administrative system of Bulgaria consists of three levels: central government level, the level of regional (oblast) administrations and the municipal level. The Government is headed by a Prime Minister. The structure and the composition of the Council of Ministers is decided by the National Assembly decision, following a proposal by the Prime Minister. Bulgaria is subdivided into 28 regions (oblast), each headed by Regional Governors, 1

2 appointed by the Government. The Regional Governor pursues the state policy for the respective region and ensures correspondence between national and local interests in implementation of the regional policy. The number of municipalities in Bulgaria is 264, each municipality covers one or more neighbouring settlements (towns or villages) and settlement formations. The settlements themselves are classified as towns or villages. The total number of settlements in Bulgaria is 5 333, 246 of them are towns, and are villages. Economy in transition During the last decade Republic of Bulgaria achieved macroeconomic stability and gross domestic product (GDP) growth. GDP based on market prices (Market Exchange Rates) for the last years grew steadily with about 5,5 % per year. The inflation is under control, it is stable and goes down as seen from statistics: for 2000 it was 10,3%, and for 2005 it was 5,0%. According to provisional operational data from the National Statistical Institute, the gross domestic product for the first quarter of 2007 is , 4 mln. BGN, calculated on the basis of current prices. This makes BGN per capita of this indicator. The unemployment rate have dropped and in 2005 it was 10,1 %, in terms of regional structure it was respectively 13,7 % in the villages and 9,0 % in towns. The trend of dropping the employment rate continues. During the first quarter of 2007, the employed people were with thousands more in comparison of the same period of The reduction of unemployment since the beginning of the current year feeds the expectation, that the targeted 9% registered unemployment at average for 2007 is feasible. A stable fiscal position and stable and foreseeable macroeconomic environment are maintained in Bulgaria. The risks of the macroeconomic stability during the last years are mainly influenced by external factors growing deficit of the balance of payment s current account, strongly influenced by significant worsening of the trade balance. This requires implementation of tight fiscal policy as an extension of the adopted strategy for tightening of the fiscal position and realisation of budget surplus as opposed to the increasing foreign trade disbalance and deficit in current account balance of payments. As a result the budget balance during the last two years was positive and reached the level of 3.1 % of the GDP by the end of 2005 and 3.6 % of the GDP by the end of The resulting surplus in the consolidated fiscal programme for the first half of 2007 amounting to 2.2 bln. BGN shows, that the targeted surplus in the consolidated budget to be at least 2 % of GDP for 2007 will be achieved. The economic infrastructure in the country is improved, the real estate market is developing very quickly, the direct foreign investments have grown considerably. Based on the high growth of economic development new working places were opened. Social-economic and political factors influenced the development of the agricultural sector in Bulgaria. As a result of the reform of the agriculture and forestry from the period between the right of ownership in farm land and forests was restored to the original owners or to their heirs. In parallel to the restoration of the right of ownership of land a process of alteration of the organised forms of production was carries out. During the period , the old cooperatives were closed, but the setting up of new forms of cooperation was delayed. Still large part of the land is scattered, the effective consolidated farms, operating with good equipment and efficiently are only few. There are various forms of organisation of agricultural production in Bulgaria now both public 2

3 and private. The share of the public ones if very small, the larger part of farms and farm land belongs to private sector. The fragmentation of land ownership is an obstacle for a long term investment in agriculture, land consolidation and melioration activities, improvement of soil fertility and efficient operation of farming equipment. In 2003 there were thousand farms operating in Bulgaria, 75 % of them farming up to 1 ha, 19,8 % - were farming between 1 and 5 ha, 2,4 % - farming between 5 and 50 ha and only 0,8 % operating on over 50 ha of farm land. The relative share of agriculture and forests in the total revenue, generated by the Bulgaria economy in the last few years, from 18,8 % in 1998 went down to 10,9 % in In spite of the obstacles, the agriculture remains important sector of the economy in the country. In the period between 2000 and 2004 the export of agricultural production was doubled as a result of which, the foreign trade balance was increased by 23 %. The total area of forests in Bulgaria is mln. ha which makes 34 % of the territory of the country. More than a half of the forestry area is designated for timber industry. In the last years new ha of forest were created, to compensate wood cutting areas or to restrict erosion processes. Biodiversity and environment protection projects are ongoing at the moment. European Union accession The diplomatic relations between the European Community and Bulgaria were established in The strategic aim to European Union integration of the country was strongly supported by all governments since The application of Bulgaria for EU membership, which was voted solid by the National Assembly, was submitted on 14 December The negotiations for European Union accession of Bulgaria started on 15 February 2000 and were finalised on 15 June The accession of Bulgaria to the European Union was signed on 25 April 2005 in Luxemburg. Bulgaria is a European Union member state since 1 January One of the main aims of Bulgaria still is to continue the strengthening of the administrative capacity, stability, adequate operation of the public administration and transparency. II. LEGAL AND INSTITUTIONAL FRAMEWORK Legal Framework 1. Constitution of the Republic of Bulgaria The Constitution of the Republic of Bulgaria, passed by the Seventh Great National Assembly on 13 July 1991, regulates the most important relations in the society, reflecting the democratic and legal system established after 10 November1989. It forms the basis for setting up and operation of the most important state authorities, the rights and obligations of citizens, the structure and forms of ownership as well as the relations between the state and its citizens. The Constitution of 1991 played the role of a normative basis for the transition from totalitarian state with socialist economic system to democratic, parliamentarian, social government of law with "market economy". It also provided the normative basis for transition from collectivism to 3

4 stimulation of private initiative. The Constitution introduced the distinguishing of public and private types of ownership in Bulgaria. The immovable properties in the territory of the country can be owned by the state, by the municipalities, by physical persons or juridical persons. According to Art. 17 of the Constitution the right of ownership shall be guaranteed and protected by law. The Constitution provides for particular protection of the object of exclusive state ownership such as the underground resources; beaches and national thoroughfares, as well as waters, forests and parks of national importance, and the natural and archaeological reserves established by law (Art. 18). According to the Constitution the land is a chief national asset, which shall enjoy particular protection on the part of the state and society, and the arable land shall be used for agricultural purposes only. The last amendments of the Constitution of , prompted by the accession of Bulgaria to the European Union, created possibility and conditions, ensuing from the law and the Bulgaria s Treaty for Accession to the European Union, provided for the foreign citizens and foreign juridical persons citizens of the European Union to have the right to acquire right of ownership over land (including farm land) from the territory of Bulgaria (Art. 22). 2. Administrative Territorial Structure of the Republic of Bulgaria Act According to Art. 2 of ATSRBA the basic administrative territorial units in the country are the regions (oblast) and municipalities, where each region consists of a number of municipalities, and each municipality consists of mayoralties and quarters. Art. 3 of the Act provides a definition for the territorial units settlements and settlement formation, and specifies their basic characteristics. An Unified Classifier of Administrative-Territorial and Territorial Units is established, in accordance to which every settlement (town or village) is assigned an unique identification code. This identification code (UCATTU) is a part of the cadastral identifier of immovable property. The Act regulates the routines for establishing the regions (oblast), municipalities, mayoralties, and quarters (Art. 4-17), as well as the administrative-territorial changes with them such as changes of boundaries, changes of names or change of the municipal or mayoralty centres, closing down (Art ). 1, it. 8 of the Additional Provisions of the Act provides the legal definition for the term zemlishte ( землище in Bulgarian, TBS Territory Belonging to Settlement) of a settlement. 3. Ownership Act The Ownership Act regulates relations, connected to the right of ownership and the other real rights over immovable properties, acquisition, loss and protection of the private ownership. In Art and respectively Art the Act regulates the joint ownership (right of ownership belonging to two or more persons) and the condominium ownership (an ownership, where floors or parts of floors, together with belonging to them premises in the attic or basement belong to separate owners). The Act also provides definitions of the terms right of use and tenure. The Act also provides for the possibility of a land owner to cede to another person the right to construct a building on his land, whereby the other person becomes an owner of the building (Art. 63). The Ownership Act (Art. 112) specifies the types of document about immovable properties, that are subject to registration in the entry books. The entry of the document of ownership makes the taken action and acquisition of ownership 4

5 right public. Only documents, which are entered in due course can withstand claims of third parties and enjoy state protection (Art. 113). 4. State Ownership Act The acquisition, management, use and disposition of real estate, owned by the state, are regulated by the State Ownership Act. Pursuant to Art. 2 the state ownership could be public and private. Subject to public state ownership are: objects of exclusive state ownership, as specified in the Constitution; the properties, consigned to the authorities in order to fulfil their functions; the properties, determined by a law or an act of the Council of Ministers; the properties of national importance, designated for long term satisfaction of public needs, through common use. Private state ownership covers all other properties which are under state ownership. According to Art. 70 of the State Ownership Act, acts of state ownership shall be compiled for the immovable properties which are owned by the state, so that the state can prove its rights over them. In view of the legal security, the State Ownership Act makes the registration of acts of state ownership at the entry offices compulsory. The Act also specifies the routines and conditions for transformation of public state ownership into private state ownership and vice versa. Having the considerable public importance of objects exclusive state ownership, they are not transformable into private state ownership. The Act specifies the routines and conditions for compulsory expropriation of properties subject to private ownership, in order to satisfy needs of the state. The provisions follow the principle that private properties can be compulsory expropriated only in the presence of enacted detailed development plan and for meeting state needs, which are impossible to be met in any other way. The expropriation is requitable it is done in return of equivalent cash compensation. The procedure for expropriation is regulated in Art Municipal Ownership Act The acquisition, management, use and disposition of real estate, owned by the municipalities, are regulated by the Municipal Ownership Act. Pursuant to Art. 3 the municipal ownership could be public and private. Subject to public municipal ownership are: properties, determined by a law; properties, designated for fulfilment of functions of local self-government and local administration authorities; properties, designated for long term satisfaction of public needs of local importance. Private municipal ownership covers all other properties which are under municipal ownership. Pursuant to the Act, acts of municipal ownership shall be compiled for the immovable properties which are owned by the municipality, so that the municipality can prove its right over them. In view of the legal security, the Municipal Ownership Act makes the registration of acts of municipal ownership at the entry offices compulsory (Art ). The Act also specifies the routines and conditions for compulsory expropriation of properties subject to private ownership, in order to satisfy needs of the municipality. The provisions follow the principle that private properties can be compulsory expropriated only in the presence of enacted detailed development plan, which is envisaging construction of buildings public municipal ownership, as well as for meeting municipal needs, which are impossible to be met in any other way. The expropriation is requitable it is done in return of equivalent cash compensation. The procedure for expropriation is regulated in Art

6 6. Cadastre and Property Register Act The Cadastre and Property Register Act provides the contemporary rules and conditions for implementation of activities, related to cadastre and property registration if Republic of Bulgaria, as well as arrangements for the organization, funding, creation, administration and use of the cadastre and the property register. Two bodies are established following the provisions of the Act Cadastre Agency (with the passing of the Geodesy and Cartography Act the agency was renamed to Geodesy, Cartography and Cadastre Agency) and the Registry Agency. They carry out the state policy in the field of cadastre and property registration. Art. 12 and Art. 58b of the Act specify the basic functions and responsibilities. The Act stipulates, that all the activities in the filed of cadastre shall be performed by licensed persons, and provides requirements that persons shall comply with, in order to obtain a license (Art. 16 and 17). The Act (Art ) specifies what are the cadastral objects as well as the content of the cadastral map and cadastral registers (types of data and characteristics, that have to be depicted in the cadastral map and filled in the cadastral registers). The cadastre also keeps data about the ownership, the other real rights and documents of ownership, which shall be entered in the property register are specified (Art ). CPRA makes arrangement for the legal status of the cadastral map, cadastral registers and the property register. The Act provides for the rules, conditions, functions and responsibilities along production of cadastre and property register, their maintenance, and the routines for supply of cadastre and property register data to authorities, individual citizens and juridical persons. Pursuant to Art. 8 the cadastre and property register shall be public and everyone can obtain data regarding the immovable properties upon request. The CPRA requirement for introduction of the Property Register is the basis for the reform in the field of registration, and transformation from person based to property based registration. The Act makes provisions for establishment of information systems of cadastre and property register, which are to be used for storage, maintenance and supply of cadastral data and data about the real rights. The Act regulates the cooperation of the two agencies, the exchange of information between them, required for achievement of the main goal - modern, operational, up-to-date and accurate cadastre and property register, containing data about all properties on the territory of the country. 7. Geodesy and Cartography Act The Geodesy and Cartography Act provides for the organisation, management, financing and fulfilment of the activities in the field of geodesy and cartography, implemented by the bodies of the executive authority, the bodies of local government and by the corporate bodies and the individuals. It specifies the types of geodetic and cartographic activities, sets the rights and obligations in implementation of geodetic and cartographic activities among the various bodies. The Act specifies the conditions and principles for setting up of geographic information systems databases, as well as the ownership over geodetic and cartographic materials. The Act specifies the materials and data that are to be kept by the State Geodetic, Cartographic and Cadastral Fund and the conditions for supply of data from the fund. The Act provides for setting up of a Chamber of Geodetic Engineers as a body of the geodesists in the country, which protects their professional rights and interests. 6

7 8. Civil Procedure Code The Code (Art. 465) specifies the types of notary procedures, including transactions with immovable properties, certification of the right of ownership of immovable property, certification of a date, signature or content of private documents, notarised invitations, entries, noting and deletion from the entry books, supply of information from the notary books etc. The Code specifies the rights of notaries and these of entry judges in the processes of transactions with immovable properties. A basic obligation of the notary in the case of issuance of a notary deed for transfer of a right of ownership, or establishing, transfer, alteration or discontinuation of another real right is to check if the person transferring the right is the actual owner of the property (Art. 482). The parties and participants in this process are defined, as well as the rules for carrying out the procedure itself, the legal form and content of the notary deed, in view of its conformity with the law, the routine and conditions for pledging objections against refusal for carrying out of a notary procedure. 9. Regulations of Entries The Regulations of Entries regulates the basic principles and rules for entries in cases of transactions with immovable properties, as well as refusals (ruling out) of entries, in cases when the requirements of the law are not met. In Art. 4 the acts and documents, subject to entry, are specified. These are all acts transfer of a right of ownership or establishing, transfer, alteration or discontinuation of another real right in immovable properties, as well as the acts of recognition of such rights (notary deeds, contracts, fact finding notary deeds, acts of state or municipal ownership etc.). Pursuant to the Regulations of Entries a personal based system of registration of immovable properties is applied in the country. According to this system, in the case of transaction or acquisition of an immovable property, a lot is opened at the entry office operating for the area of the property. This lot is named after the name of the owner and carries description of the act, on the basis of which, the person is identified as an owner. The entries at the respective Entry Office are made following the ruling of the entry judge by filing the respective acts in special books (Art. 9). Through one of the last amendments of the Regulations of Entries in Art. 6, para. 3 it was introduced the requirement for the cases, when a transaction takes place for an immovable property, located in area, covered by the approved by the Geodesy, Cartography and Cadastre Agency cadastral map, the notary deed, subject to entry, has to be accompanied by a sketch from the cadastral map. 10. Notaries and Notary Procedures Act This Act provides for the routines of operation and function of notaries. The notary is a person, who has the right to perform this role and to whom the government has assigned to perform the notary operations, envisaged by law. Despite of the fact, that the operation has been assigned by the government, the notary is not a state authority or civil servant. He performs his duties personally and on his own behalf. The notary bears personal material responsibility for the damages, caused due to his illegal operations. 7

8 11. Obligations and Contracts Act The Obligations and Contracts Act (Art ) provides for the legal status and procedures regarding mortgages. This Act regulates the objects, eligible for mortgaging, types of mortgages, ways of establishing mortgages, transactions with mortgaged properties, entries of mortgages. 12. Ownership and Use of Farm Land Act The administration of farm land is managed in accordance with OUFLA. This Act is the basis for the restitution (restoration of the ownership) of the private farm land in the period These land has been either nationalised or been submitted to the former cooperatives some 50 years ago. The Act provides the legal framework for implementation of farm land restitution procedures and compensation of owners, where restoration is impossible due to legal obstacles. The Act gives definition to the term farm land the land designated to agricultural production, which are not within the boundaries of the urbanized territories, not included in the forest entirety, not built with buildings, not occupied by open mines and quarries, by energy, irrigation, transport or other facilities for common use, neither adjacent parts of such facilities. The farm lands can be owned by citizens, by the state, by the municipalities and by corporate bodies. The Act specifies the routines and conditions for management, use and disposition with farm land. The Act specifies the authorities, implementing the state land policy and their functions. These authorities are the Ministry of Agriculture and Food Supply, regional (oblast) Directorate Agriculture and Forests and the Municipal Office Agriculture and Forests. The activities, related to restitution of farm land are carried out on the basis of contracting and production of the land reallocation plans in digital format. By the amendments of the Ownership and Use of Farm Land Act of 2007 the possibility for consolidation of farm land by preparation of land consolidation was arranged. 13. Farm Lands Protection Act The Farm Lands Protection Act provides for the protection of farm lands against damages, recovery and improvement of fertility of farm lands. According to the Constitution the land is chief national asset, which is enjoying particular protection on the part of the state and society, and the arable land shall be used for agriculture only. The change of destination of land is allowed as an exception in presence of a proven need for that, and following routines and under conditions, specified by the Farm Lands Protection Act. The authorities, empowered to carry out change of destination of farm land procedures are commissions of the Regional Directorates Agriculture and Forests areas of up to 5 ha, and the Farm Land Commission in all the other cases. 14. Restoration of Ownership of Forests and Forestry Domain Act This Act regulates the routines and conditions for restoration of ownership over forests and forestry domain lands, that have been nationalised. The Act is based on the principle of restoration of the same lands and forests at the same place, with the same area and boundaries, as they were by the date of expropriation of the ownership. In cases when this is not possible, due to impossibility to ascertain the location of boundaries by the moment of restoration of ownership, the restoration is done by equal areas, and the same type 8

9 of forest and land where possible in the same territory of settlement, or in the territory of neighbouring settlement in the same municipality. The Act also provided for restoration of forests and forestry domain lands to persons, who have received indemnification for their properties as well as to former owners who have paid their debts to the state conceding ownership in their properties after they give back to the state the received indemnification or the extent of the paid liability. The Act provides also the routines and conditions for compensation of owners of forests and forestry domain lands when their properties are located or the properties are now forests, which are exclusive state ownership, designated to purposes, related to the defence, civil protection and state security, lands that have been added to reserves, mines and objects of energy production, mineral springs etc. 15. Forests Act The Act regulates the ownership and management, reproduction, use and protection of forests in Bulgaria. The main purpose of the Act is the preservation of Bulgarian forests as national wealth, by their reproduction and sustainable development and use to the interests both of their owners and the society. The ownership of forests and forestry domain lands can be state, municipal and private. The Forests Act defines the term forest land, occupied by wood vegetation with an area of minimum 1 dekar. Urbanised territories and agricultural lands are not forests. 16. Spatial Planning Act The Spatial Planning Act regulates the public relations, concerning the regional planning, design for investment purposes and construction in the Republic of Bulgaria, and specifies the restrictions on land parcel ownership, resulting from implementation of regional development activities. The Act specifies which central and regional government bodies shall implement the policy on the field of regional development, their rights, duties and manner of cooperation. The Act specifies the types of territories depending on their destination, provides for the manner of their nomination and alteration. The Act specifies the requirements regarding spatial planning, the types of spatial planning plans and schemes. In view of synchronisation between the cadastre and spatial planning, Art. 16 of the Act stipulates that the spatial planning schemes for territories with approved cadastral map shall be developed on the basis of the cadastral map. Any change in the spatial planning scheme shall be reflected in the cadastre. 17. Black Sea Coast Planning Act This Act regulates the public relations concerning the routines and conditions for establishment of the territory of the Black Sea coast and the beach strip, requirements, rules and normative specifications for their planning, use, building up, and protection, as well as the rights of the central and local government authorities in implementation of the state policy in realisation of these activities. The Act specifies the range, the order and conditions for use of the coastal beach strip and operating it under concessions. The Act bans transformation of sea beaches, coastal fortifications and cost protection systems and facilities, coastal lakes, lagoons, firths and damp areas, sand dunes and islands, from public to private state ownership. 9

10 18. Protected Territories Act Article 5 of the Act specifies the categories of protected territories. The Act also provides for their destination, protection and use administration, announcement and management of protected territories. The protected territories are: reserves, national park, natural landmarks, maintained reserves, natural parks and protected country sides. The protected territories may also include forests, lands and water areas. The Act regulates the ownership of protected territories, and the restrictions on the use of the properties, construction on and the sale of properties, located in protected territories (Art. 8-15). 19. Concessions Act This Act provides the conditions and the order for granting, fulfillment and termination of concessions. Concession is the long term right of operation of an object of public interest, in return of obligation of the concessionaire to construct and/or manage and maintain the object of concession at own risk. The Act specifies the types of objects of state or municipal ownership, that can be subject of concession. These objects can be the sea coast beach area, republican and the municipal roads, waters and water objects public municipal ownership, forests state or municipal ownership. 20. Copyright and Related Rights Act This Act regulates the relationships related to the creation and distribution of literary, artistic and scientific works. Art. 3 specifies the subject matter of copyright protection, where the cadastral map and state topographic maps are explicitly listed. The Act provides for the methods of protection in case of piracy. 21. Local Government and Local Administration Act The Act provides for the public relations, connected with the local government and the local administration. The local self government body is the Municipal Council, which is elected by the population of the respective municipality. Pursuant to Art. 17 of LGLAA the Municipal Council develops the policy for the structure and the development of the municipality related to the implementation of activities in the region, in the sphere of: - the municipal property, the municipal enterprises, the municipal finance, taxes and fees; - the structure and the development of the territory of the municipality and of the settlements in it; - healthcare, education and culture; - public works and communal activities, the social support; - protection of environment and rational use of the natural resources; - the maintenance and the preservation of cultural, historic and architectural monuments; - the development of sports, recreation and tourism. The Municipal Council s decisions on implementation of the policy of the municipality are fulfilled by the Mayor, who is the body of executive power in the municipality. His operation is controlled by the Municipal Council and the Regional Governor. The functions of the Mayor of a municipality are regulated by Art. 44 of LGLAA. Here are listed some of them: 10

11 - to manage the whole executive activity of the municipality; - to organise the fulfilment of the municipal budget; - to organise the fulfilment of the acts of the municipal council and reports to the municipal council on their fulfilment; - to organise the fulfilment of the tasks, ensuing from the laws, from the acts of the President of the Republic of Bulgaria and of the Council of Ministers; - to assign or permit the working out of development plans and their amendments for the territory of the country of for parts of it and approve certain development plans under the conditions and by the order of the Law for spatial planning, as well as organise their implementation; 22. Local Taxes and Fees Act The Act regulates the taxation of real estate landed properties and buildings - and the bodies, responsible for collecting the due taxes. The Act regulates also the obligations related to payable real estate taxes and fees in cases of sales, inheritance and grants. According the Bulgarian tax legislation, taxes are payable for every landed property and building to the amount, established by the respective municipal administration by location of the real estate. Farm lands and forests, streets, roads of national road network and railway network, land properties of water objects state and municipal ownership, as well as immovable properties with low value according to the tax evaluation are excluded from taxes. 23. Electronic Document and Electronic Signature Act This act regulates the legal status of the electronic document and electronic signature, the routines and conditions for provision of electronically certified services. The Act provides for the rights and duties of persons, who use electronic services and the regulatory bodies in the field. Institutional framework Currently the institutions with functions in the field of land administration are as follows: 1. Ministry of Regional Development and Public Works The Ministry of Regional Development and Public Works is a central authority of the executive power, which pursues the state policy and develops the goals and priorities of the state strategy in the field of regional development and public works. The Minister of Regional Development and Public Works performs the following functions: - fulfilling the state policy on regional development and housing policy; - management and control of overall operation in the field of cadastre, geodesy and cartography; - fulfilling the state policy in the field of administrative-territorial system and local authorities, construction, water supply and sewerage sector, public works, road network, concessions, expert investigations, spatial planning and construction control. - ensures conditions for application of the principles of energy-efficient operation and protection of the environment in the field of regional and urban development, construction works, construction industry; - Overall governance of the management and disposition with real estates state ownership etc. 11

12 2. Geodesy, Cartography and Cadastre Agency The Cadastre and Property Register Act served as a basis for the reform of the cadastre institutional framework. The established in 2000 Cadastre Agency undertook the implementation of tasks in the field of geodesy and cartography pursuant to the Geodesy and Cartography Act passed in 2006 and was transformed into Geodesy, Cartography and Cadastre Agency. The Agency is a corporate body with headquarters in Sofia and 28 territorial units geodesy, cartography and cadastre offices, seated in the administrative centres of regions (oblast). The Agency provides cadastral information services to the public also through the 19 offices, seated in these municipal centres, with strong investment interests and considerable demand of cadastral information. With the passing of the Cadastre and Property Register Act and the creation of the cadastral map for the territory of the country, the Geodesy, Cartography and Cadastre Agency will be the only institution providing services with cadastral information, no matter if the properties are from the urbanised territories, farm land, water or other type of territory. The Agency becomes the sole authority, having the right to issue sketches (excerpts) from the cadastral map for issuance of acts which acknowledge or transfer the right of ownership in real estate (Art. 49b of Cadastre and Property Register Act). Once the cadastral map is created, the currently operating municipal technical services and municipal offices Agriculture and Forests of the Ministry of Agriculture and Food Supply will discontinue their cadastral operations. The main functions of the Geodesy Cartography and Cadastre Agency in the field of cadastre are as follows: - creation and maintenance of cadastral map and cadastral registers for the whole territory of the country; - administrative and technical servicing the public, state administration, municipalities and other users of cadastral information; - drafting acts and regulations in the field of cadastre and geodesy, as well as programmes and concepts on future development; - maintenance of the state geodetic, cartographic and cadastral fund; - maintenance of register of physical and juridical persons, licensed to carry out activities in the filed of cadastre, geodesy and cartography; - implementation of cadastral activities in close coordination with these of the property register, UCATTU (Unified Classification of Administrative-Territorial and Territorial Units), BULSTAT (Unified Classification of identification of juridical persons), ESGRAON (Unified System for identification of physical persons), registers of state and municipal properties. The Agency fulfils the following tasks in the field of geodesy and cartography: - creation and maintenance of topographic maps in scales 1 : 5000 and 1 : for the territory of the country; - maintenance of the state levelling network and the mareographic stations network; - maintenance of the geodetic networks of local purpose; - creation and maintenance of topographic databases and the geographic information system; - implementation of technical activities related to establishment of the geographic names in the Republic of Bulgaria, keeping a register of names, creation and maintenance of databases and information system; - cooperation with the state administration, and other organisations in the country and abroad. 12

13 3. Ministry if Justice The Ministry if Justice pursues the state policy in the field of creation of maintenance of the property register, operating according to the provisions from Cadastre and Property Register Act. The Ministry is the leading institution in the implementation of the immovable properties registration reform from person to property based system of registration. The Ministry implements its functions through its Registry Agency and the Entry Offices. 4. Registry Agency The Registry Agency was set up following the amendments of the Cadastre and Property Register Act from It is an independent corporate body and implements its functions in the field of property registration through its headquarter in Sofia and 113 territorial units entry offices, seated at the regional courts. The Registry Agency is responsible for the following activities: - organisation, coordination and management of entry offices operation; - organisation of administrative control of the creation, maintenance and keeping of the property register; - organisation of the linkage between the property register and cadastre, as well as with other registers and control of their realisation etc. The Entry Offices perform the following activities: - make entries, notes and deletion upon an order by the entry judges; - prepare and submit to the registry Agency information about the immovable property lots and registered acts together with the attached documents for the central archive; - take information excerpts and issue certificates on the entries; - carry out activities related to the creation of the property register etc. The Registry Agency fulfil the orders of entry judges and carry out the actual works for entering, comprising of the noting of the date, volume, page in the lot book in the incoming register, as well as entering of these data on the act itself. 5. Entry Judges The Entry Judge is an entity of the judicial power, which pursuant to the law is given the right after checking the documents, concerning immovable property transactions to give an order or to rule out entries of notary deeds, state or municipal ownership acts, or other documents explicitly specified by law. The entry of the deed takes place immediately within the working day. The Entry Judge orders or rules out noting or deletion from the property register and passes judgement on issuance of information excerpts or certificates. The Entry Judges perform their obligations in regional courts. The Cadastre and Property Register Act designates a basic role for the Entry Judges in the process of creation of the property register and the property registration reform with the transformation from the person based to property based registration system. 6. Notaries The notaries in Bulgaria are private persons (individuals), who are given the capacity (hold the right) to be notaries and are assigned by the state the performance of envisaged by law notary functions. They witness and certify transactions with real estate, such as sale-purchase, grants, wills, opening of wills, perform activities, related to fact finding regarding right of ownership. The notaries prepare the notary deeds and contracts, documenting transactions with real estate or certify rights of 13

14 ownership or other real rights over immovable properties. The notary is obliged to submit immediately to the respective entry office the real estate transactions documents, issued by. Although the operation of notaries are assigned by the government, they are not governmental authorities or civil servants. They act personally and on their own name, and bear personal material responsibility for the damages, caused due to his illegal operations. 7. Ministry of Agriculture and Food Supply By a National Assembly decision of 18 July 2007 the Ministry of Agriculture and Forests was transformed into Ministry of Agriculture and Food Supply, while the forestry was set separately under a Forestry State Agency. The Ministry of Agriculture and Food Supply is the authority, which pursued the state policy for restitution of the nationalised before 1989 farm land, forests and forestry domain lands. The Ministry of Agriculture and Food Supply is responsible for the organisation and management of activities for creation and maintenance of the map of restored ownership of agricultural territories until the moment of approval of the new cadastral map and cadastral registers for the respective territory and the undertaking of this responsibility by the Geodesy, Cartography and Cadastre Agency. The Ministry of Agriculture and Food Supply is also responsible for management, use, sale and exchange of State Land Fund lands. The Ministry of Agriculture and Food Supply pursues the state policy, related to leasing farm land from the State Land Fund, provision of land to poor, support to owners of farm land in consolidation of land. In connection with the receiving the financial support from the European Union funds for agricultural development, MAFS carries the responsibility for setting up of the agricultural parcel identification system, which includes production of digital ortho-photo map. The Ministry of Agriculture and Food Supply issues decision regarding change of destination of farm land into non-farming land. The Ministry of Agriculture and Food Supply carries out its responsibilities through 28 regional (oblast) offices Agriculture and Forests and 237 municipal offices Agriculture and Forests. 8. Forestry State Agency With the decree of the Council of Ministers of the forestry sector was taken out of the structure of the Ministry of Agriculture and Food Supply, and the National Forestry Directorate was transformed into a Forestry State Agency. The Agency pursues the state policy regarding the state forestry fund management and control over all forests and forestry domain lands. The Agency is responsible for organisation of management of implementation of forestry development projects, plans and programmes for production, maintenance, keeping and use of specialised maps of forests and forestry domain lands. The Forestry State Agency is responsible for management and use of the lands and forest of the State Forestry Fund, as well as disposition, leasing and establishment of limited real rights over properties, which are not forests or state forestry fund lands, but are managed by the Forestry State Agency. 14

15 9. Regional (oblast) administration There as 28 regional administrations in the country, headed by Regional Governors. The Regional Governors The Regional Governor implements the state policy and coordinate the operation of executive power authorities in the territory of the region. The Regional Governors are appointed by the Council of Ministers. The are the linkage between the national and local executive authorities and see for the balance between local and national interests in implementation of the regional policies. The Regional Governor pursues the state policy regarding the spatial planning in the respective region. For the implementation of spatial planning activities, the regional administration is supported by regional council of experts in the field of spatial planning. The Regional Administration organises the development and implementation of regional plans, strategies and programmes of regional development, organise the issuance of state ownership acts or their cancellation. The Regional Governors manage the state ownership in the region and the acquisition and disposition with properties private state ownership. 10. Municipal Administration The number of municipalities in Bulgaria is 264. The local self government is realised by municipal council, directly elected by the population of the municipality. The executive power of the municipality is exercised by the Mayor, who is responsible for organisation of the implementation of municipal council s decisions, and reports to the council. The Municipal Council decides the overall policy regarding the development of the municipality, sets and organises the collection of taxes on immovable properties, implement activities, related to acquisition, management and disposition with municipal ownership. MC implements activities, related to sale and leasing of municipal properties and dwellings and establishment of concessions over objects, owned by the municipality. The Municipal Council sets organisation for drawing up of the act of municipal ownership or their cancellation. MC carries out procedures for compulsory alienation of private properties for municipal needs. The municipal administration implements activities for maintenance, keeping and use of the cadastral plans of settlements, including providing information and services, until the announcement of the cadastral map and cadastral registers for the respective territory and the moment, when these functions are taken over by the Geodesy, Cartography and Cadastre Agency. The municipal administration carries out the activities, related to spatial planning for the territory of the respective municipality, considers and accepts investment projects, spatial development schemes and plans and their amendments. They provide administrative-technical services to the public in the field of spatial planning issuance of sketches of immovable properties from the development plans, design permits, construction of new and reconstruction of existing buildings, use permits for buildings and facilities. 11. Chief Directorate "Border Police" to the Ministry of Interior plans, organises and implements activities, related to designation of the border line of the state border of Bulgaria and the relevant geodetic measurements, se well as elaborating and maintenance of maps and documentation of the state border. 12. Ministry of Environment and Waters The Ministry of Environment and Waters pursues the state policy on protection of environment and waters, soils, protected areas, natural and national parks and reserves. The ministry is responsible for organisation of the development of the system of protected territories and controls 15

16 the relevant activities. It is organising the elaboration and maintenance of specialised map of the protected territories. The ministry performs monitoring of the waters and water objects. The ministry exercises control on the activities of the owners and users of forests, lands and water objects, located in protected territories, and sees for adherence to regulations on the use and disposition with these properties. The Ministry and its regional structures carry out ecological assessment and environmental impact assessment of plans, programmes and investment proposals for construction, activities and technologies, when their implementation may cause considerable impact on the environment and based on the results issues permits for their realisation. 13. Licensed surveyors Pursuant to Art. 16 of the Cadastre and Property Register Act and Art. 24 of the Geodesy and Cartography Act the cadastre and geodetic works shall be carried out by licensed (authorised) persons. The authorisation is given by the Geodesy, Cartography and Cadastre Agency and the Chamber of Geodetic Engineers. The Agency keeps the register of persons authorised to carry out cadastral, geodetic and cartographic activities. At the moment there are 1587 persons registered, out of them 511 are corporate bodies and 1076 are individuals. In practice the bulk of works is carried out by the corporate bodies. The authorised persons have the capacity to produce the cadastral map and cadastral registers, to survey boundaries of landed properties and outlines of buildings, to design divisions and amalgamation of immovable properties, to produce combined sketches for certification of identity of land property boundaries. The authorised persons have the capacity to produce specialised maps and registers, to carry out investigations and consult the courts. The authorised persons have the capacity to produce cadastral maps and cadastral registers for single properties and for large territories upon issuance of order by the Geodesy, Cartography and Cadastre Agency. 14. Real estate agents The real estate agents have advisory and intermediary functions in cases of purchasing, selling, leasing, or managing real estates. They help their clients to make their choice regarding real estate, preparation of relevant documents for the transactions of immovable properties, consult on the design and construction. 15. Valuers of immovable properties These are physical or juridical persons - companies, who have passed special training and have obtained a license form the Privatisation Agency thus acquiring the right to carry out valuations of real estate, establishing market values of immovable properties. The market value of an immovable property is used for bank crediting, mortgage contracts, sales, subdivision and establishment of other real rights, development of investment projects. The licenses for valuation of agricultural land are issued by the Ministry of Agriculture and Food Supply. III. CADASTRE AND PROPERTY REGISTER CADASTRE 1. Preconditions for new cadastral legislation In the period between 1990 and 2000 considerable amount of work was implemented in 16

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