An elderly parent, an aunt or a neighbour transfers their home to someone who promises to look after them for the rest of their life. In Bulgaria this is the contract for the transfer of property in exchange for maintenance and care (договор за издръжка и гледане) — one of the most common ways property changes hands within a family.
The contract looks simple, but it creates obligations that can end up in court years later. And when such a property is sold on, the questions reach the next buyer too.
In our guide to selling or gifting a property while keeping the right to live in it we noted that this is a separate contract. Here we look at it in detail.
Bulgarian law does not regulate this contract in a dedicated provision. It is governed by the general rules of the Obligations and Contracts Act (ЗЗД) and by an extensive body of case law.
The contract is aleatory — nobody knows how long the care will be owed. So if the acquirer knew the transferor's death was close and unavoidable, the contract is void for lack of cause (Art. 26(2) of the Act). Advanced age or poor health alone are not enough for that conclusion.
The contract is often combined with a reserved right of use for the transferor — they keep living in the home, and the care is an additional obligation.
| Gift | Sale | Maintenance and care | |
|---|---|---|---|
| What the transferor receives | nothing | a cash price | care and maintenance |
| Can it be terminated for non-performance? | — | if the price is not paid | yes, through the courts |
| Heirs entitled to a reserved share | the gift can be reduced | — | a contract for value, but sometimes challenged as a disguised gift |
The tax position and costs of a gift between relatives are covered in our guide to gifting property to relatives.
If the acquirer fails to provide the agreed maintenance and care, the contract can be terminated — but only through the courts (Art. 87(3) of the Obligations and Contracts Act). A unilateral letter or a notarial notice is not enough.
Termination works retroactively: the property goes back to the transferor. The acquirer cannot "get back" the care already given and can only claim its monetary value under the general rules.
From the case law of Bulgaria's Supreme Court it is worth knowing that:
This is the part that most often affects our clients. The property's title history includes a maintenance-and-care deed — what does that mean for you?
1. Is the transferor alive? While they are, there is a theoretical risk of a claim for termination. After their death, the heirs can bring a claim — but only for non-performance during the transferor's lifetime.
2. Has a claim been registered? Art. 88(2) of the Obligations and Contracts Act provides that termination of a contract subject to registration does not affect rights acquired by third parties before the statement of claim was registered. So we search the Property Register immediately before completion and make sure your deed is registered straight away.
3. Termination and nullity are not the same. The Art. 88(2) protection applies to termination. If the contract turns out to be void — for lack of cause, for example, or as a sham — it does not apply. That is why we look at the circumstances: when the contract was made, when the transferor died, whether there are other heirs and disputes between them. A buyer in good faith acquires the property by prescription after 5 years of possession (Art. 79(2) of the Property Act).
4. The bank. In our experience some banks are more cautious when the transferor is still alive and the contract is recent. If you are buying with a mortgage, tell the bank early.
The general checklist before signing is in our guide to legal checks before buying a property.
A maintenance-and-care contract does not make a property "bad". It makes it a property with a history that needs to be read. If you are considering such a contract within your family, or buying a property with one in its title history, call us or come into the office — we will go through the documents with you.
Verified October 2026. This is general information, not legal advice for a specific case.
