Recently, many of our clients have shared that they are not entirely sure when exactly they need to pay a deposit for purchasing a property or the commission fee to a real estate agency if the property is being bought through one. That’s why we decided to explain the key points and best practices related to payments to help you better navigate the process.
Deposit when purchasing a property
The deposit is an initial payment made by the buyer to demonstrate their serious intent to purchase the property. It is deducted from the total price of the property and does not represent an additional cost. Typically, the deposit is paid in the following cases:
- Upon signing a preliminary contract. In most cases, the deposit is required when the buyer and seller reach an agreement and sign a preliminary contract. This contract outlines the terms of the sale, such as price, deadlines, and other clauses. The deposit amount is usually between 5% and 10% of the agreed sale price.
- When reserving a property from a developer. If you are purchasing a newly built property, the construction company or investor may require a deposit to reserve the property. In this case, the deposit may be a fixed amount or a percentage of the property’s value.
- By agreement between the buyer and seller before signing the preliminary contract. In some cases, the buyer and seller may agree on a deposit even before signing a preliminary contract. This arrangement can be verbal or written and serves as a guarantee of the seriousness of the transaction.
When is the commission fee paid?
The commission fee is the compensation for the services provided by the real estate agent (broker) during the transaction. It is a separate obligation and is not deducted from the property’s price. The buyer or seller (depending on the agreement) is required to pay it to the agency. The payment timing depends on the terms outlined in the contract between the parties. Typically, the fee is due in the following circumstances:
- Upon signing a preliminary contract. Most commonly, the commission fee is paid when the buyer and seller sign the preliminary contract.
- Upon signing the final contract (notarial deed). In some cases, the agency may require the fee to be paid only after the transaction is officially completed and the notarial deed is signed.
- Installment payment. Although rare, it is also possible for the commission fee to be paid in installments, depending on the agreement between the seller or buyer and the agency.
The Expertissimo team is available to provide advice and professional mediation to make the process easier and help you make an informed decision.
Purchasing property for foreigners in Bulgaria (2026) – Expertissimo
