Spasov and Bratanov is pleased to share that we have established a court practice of particular importance to real estate transactions by winning a court case concerning the applicability of consumer protection law to preliminary real estate sale contracts – a matter, which was unclear in court practice previously. The dispute involved the validity of a deposit retaining clause in favour of a seller in case the buyer withdraws from the transaction on the grounds of an unilateral price increase by the seller during construction. The Supreme Court of Cassation did not allow a cassation appeal against the decision of the Sofia Court of Appeal, which upheld the decision of the Sofia City Court, honoring the claim of our client. The first and the second court instances found the disputed clause to be unfair within the meaning of consumer protection laws on the basis of our pleadings. Furthermore, both courts held that the disputed clause is null and void under the general contract law as well, since it contradicted to the good morals. The case was litigated by, Tsvetelina Lazarova, Senior Associate and Boyko Bratanov, Managing Partner.

Date: September 2025

Source: Spasov & Bratanov Law Firm