Interpretative decision № 3/2014 of 28.06.2016 of the Supreme Court of Cassation of the Republic of Bulgaria
The General Assembly of the Civil College of the Supreme Court of Cassation has adopted an interpretative decision regarding controversial case law on the issue whether the contract for transfer of actually determined parts of a real estate is void pursuant to Art. 26, Para. 2, Item 1 of the Law on Obligations and Contracts - because of the lack of a subject, if at the time of the conclusion of the transaction the relevant objects have not been existing in fact and have not been differentiated as independent ones with a view to the established requirements in the applicable zoning law.
If at the time of the conclusion of the transaction the actually determined parts of a real estate (building, housing or other objects) are not factually differentiated, but it is possible to be differentiated as an independent object, as required in the applicable zoning law at that time, the contract is not void because of an impossible subject.
If at the time of the conclusion of the transaction an investment project is not drafted and is not approved, the contract is valid, but his rem effect will occur after the implementation of the other constituent elements of the acquisition: differentiation of an actually determined part as a separate object or as an imparted part to another separate object according to the concluded contract and the approved investment project in compliance with the building regulations and norms.
The legal impossibility for differentiation of an actually determined part of a real estate (building, housing or other objects) occurs when during the conclusion of the transaction exists an insurmountable legal obstacle for approvement of an investment project for differentiation of this part. If, on reaching an agreement, the subject is factually or legally impossible, the transaction is void due to an impossible subject.
