Ownership of property after privatization

Bulgaria: How ownership of a property after privatization can be proved by a privatized company

In Bulgaria privatized companies usually have to face the difficulty of proving ownership of a property (e.g. location of operations). The reason for this is found in fragmented land registers. As a result, investors in privatizations may assume that proceedings are pending over the ownership of properties.

Clear evidence with regard to ownership is often missing.

bnt Sofia succeeded in proving property ownership by a company privatized in the 1990s and did so by critical analysis of the existing documentation of the annual financial statement. This was based on balance sheets of the company over several years and on changing measurement rules for land over time.
Due to these different assessment approaches indirect proof could be inferred that the property must have been noted in the balance sheets even if this was not evident directly.

In case of problems involving proof of ownership, the assessment and balance approach opens a new possibility for clarification.

The judgment was confirmed by Bulgaria’s Supreme Court of Cassation.

Author: Sebastian Harschneck
+49 911 569610

Subscribe to our newsletter

By pressing Subscribe you consent to our data processing terms