Sofia District Prosecutor’s Office Investigates “Off-Plan” Property Scams

A pre-trial investigation into property fraud has been launched by the Sofia District Prosecutor’s Office. According to investigators, affiliated companies were signing preliminary contracts for “off-plan” apartments, only to later unilaterally cancel them, causing significant financial losses to their clients.

The investigation covers the period 2021–2024 and concerns multiple individuals allegedly misled into signing preliminary agreements for apartments that never became their property. This, prosecutors say, resulted in property damage of particularly large scale.

“They are undermining economic security in a highly risky way, eroding citizens’ guarantees that when they purchase an apartment via a preliminary contract, it will be transferred to them according to the terms of the agreement,” explained Nikolay Nikolaev, spokesperson for the Sofia District Prosecutor’s Office.

Delian Dinev, Head of the “Industry” Sector at the Economic Police of the Sofia Directorate of the Ministry of Interior, added: “We are working to promptly identify affected individuals, carry out investigative actions, interviews, and operational searches, in order to clarify the profile of the companies mentioned in the complaint and their associated persons.”

Authorities have ordered the National Revenue Agency to audit five companies and several individuals. The Consumer Protection Commission is tasked with determining whether unfair clauses exist, the State Agency for National Construction Control (DANAK) will check the construction documentation and the stage of completion, and the State Agency for National Security (SANS) will examine potential violations of anti-money laundering legislation.

Experts in the real estate sector note that such cases are exceptional. Risks are higher when buying “off-plan,” but many can be mitigated under certain conditions, such as using an experienced intermediary to investigate the developer and review the documentation.

“We advise clients, whenever possible, to transfer construction rights or property ownership as early as possible during the building process, and to make payments according to construction stages—keeping as much of the payment until the end and at the point of ownership transfer,” said Anton Andonov, CEO of a real estate agency.

The number of affected clients and the total financial losses are still being determined, and the Sofia Police Directorate urges anyone impacted to come forward.