Qualified real estate agent – this legal phrase refers to the figure of sales agent, whose legal activities are being regulated by the local authorities and holds business insurance for damages to clients, as provided by the legislation. But in developing countries like Bulgaria for example, the business of real estate agents is still non-regulated in 2013 with a legislative act; they don’t have necessary professional insurance for damages caused to clients and considering that a local real estate agency could be formed with 1 (one) Euro raising capital only, you can’t actually achieve something when claiming their liability. Unfortunately this has been the sadly outcome for many overseas off-plan holiday apartment buyers, who have been promised to invest in price-bubbles but ended up with no apartments, and in the less painful situation – with useless apartments and no guaranteed rental income, due to over-building and huge drop 2-3 times of prices of completed holiday apartments at the local resorts. Many overseas buyers have been advised by various local Bulgarian real estate agents, who charged them 10% commission fee in 2004-2008 to invest 100 000 Euro for apartments faced a reality where their brand new apartments cost 30 000-40 000 Euro only, in 2013; other never received a completed apartment at all.
Read more about failed Bulgarian off-plan developments: www.bulgariandeals.com