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Termination of Rental Contracts

Posted by Admin on May 21, 2019
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In respect to immovable properties, Bulgarian law recognises two types of rental contracts, namely, definite and indefinite contracts. Definite contracts are concluded for a specific term (e.g., 15 days, 6 months, or 2 years). Indefinite contracts are concluded for an undefined period of time.

Definite Contracts

A definite contract is automatically terminated upon the expiration of its term. Nevertheless, if, after the expiration of the applicable term, the tenant continues using the property without the opposition of the landlord, the definite contract will be considered to be renewed for an indefinite period of time. If the tenant continues using the property despite the opposition of the landlord, the tenant must pay a compensation to the landlord and needs to comply with all obligations set forth in the terminated rental contract.

Indefinite Contracts

An indefinite agreement can be terminated by either party to that agreement upon a one month’s prior notice. There is one exception to this rule. If an indefinite agreement stipulates that the tenant must pay the rent on a daily basis, it can be terminated by either party upon a one day’s prior notice to the other party.

In case an owner of a rented property transfers that property to another person, the rental agreement related to that property will not be automatically terminated if it is registered in the Bulgarian Property Registry. More specifically, it will remain in force after the transfer for the period stipulated in the rental agreement but for no more than one year. However, if the rental agreement does not include a credible date, it will still remain in force after the transfer, but will be regarded as an indefinite agreement.

Tenants renting properties in residential flat buildings are obliged to comply with the rules governing those buildings. If such tenants refuse to comply with those rules, they may be evicted from the residential flat buildings.

Rental relationships created through acts of governmental institutions also need to comply with the rules above, unless a specific law states otherwise.

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