In litigation concerning the termination of a preliminary real estate purchase and sale agreement due to breaches of representations and warranties, Spasov and Bratanov Law Firm successfully defended its client’s interests and secured a favorable court ruling. This way we have contributed to the establishment of a consistent court practice on the pre-contractual liabilities of the parties and specifically for misrepresentation. By a ruling dated 21 July 2026, the Supreme Court of Cassation dismissed as inadmissible a cassation appeal against a judgment of the Sofia City Court, which had upheld in full a claim for the return of a deposit paid under a terminated preliminary contract for the sale and purchase of immovable property. The Supreme Court of Cassation fully upheld the reasoning of the Sofia City Court that the seller’s making of a false declaration (regarding the existence of a final ruling settling a dispute over ownership of the property covered by the preliminary contract) renders the seller a party in default and, accordingly, the buyer was justified in terminating the preliminary contract. Ultimately, the seller has been ordered to pay the buyer the deposit paid by the latter, together with statutory interest on the amount paid and all costs of the proceedings. The lead lawyers in the case were partners Boyko Bratanov and Kremena Yaneva-Ivanova.

Date: July 2026

Source: Spasov & Bratanov Law Firm