Property without Act 16 in Bansko: Why is a mortgage impossible in 2026?

You go for a viewing. The building looks completely finished – there is insulation, the windows are new, the common areas are painted, and in some apartments you can even see curtains and lights in the evening. It looks like a home. But when you ask the broker about the documents, he responds with that classic “I don’t know” attitude. Bansko replica: „"The building is with Act 15, "Act 16 is expected any moment, the documents are with the municipality."“

In this detailed analysis, we will explain why the commissioning documents are the most important asset of a property in a mountain resort and why the bank will not lend you a single leva without them, regardless of your income.

1. The Construction Alphabet: What Do the Acts Actually Mean?

To understand why banks are so conservative, you need to understand the terminology behind it. Many buyers get confused, thinking that Act 15 is „almost Act 16.“ However, the difference is a legal gap.

• Act 14 (Rough construction)

  The building has a built structure, walls and a roof. This is the „skeleton“ of the property. At this stage, the ownership of the right to build is transformed into the ownership of separate objects. In Sofia, banks lend at this stage, but in Bansko – absolutely never.

• Act 15 (Constative Act)

  The construction is physically completed. The builder hands over the site to the investor (the client). The building looks ready to live in, it has doors and windows. But legally it is still „"construction site"“. It is not fit for official habitation, there is no permission to use the elevators, and the electricity and water are temporary (industrial).

• Act 16 (Certificate of commissioning)

  This is the building's "passport." The state acceptance committee has passed and confirmed that everything is safe and legal - installations, fire safety, construction. Only then does the property become a full-fledged residential object.

2. The historical context: Why are the banks in Bansko afraid?

Bank policy is not a random whim. It is the result of the „trauma“ of the housing bubble in 2008-2010. Back then, hundreds of grandiose projects were launched in Bansko. When the global financial crisis hit, lending stopped and many builders went bankrupt or fled.

The result? Dozens of buildings remained „frozen“ at the Act 15 stage. They were physically built, but the investor did not pay the fees for connecting to the Western Electric Power Grid (CEZ), did not build a substation, or did not fix the documentation with the municipality. These buildings have been standing like this for over 15 years now – beautiful on the outside, but „dead“ legal assets.

Banking logic in 2026: For the bank, a property without Act 16 in a resort area is high-risk asset with zero liquidity. If you stop paying the mortgage, the bank has to sell the property. But who will buy a property that has no legal electricity and cannot be used legally? Nobody. That is why banks refuse to enter into such deals as a precaution.

3. Hidden risks for the buyer (Even when buying in cash)

We often meet clients who say: „"I have the cash, the price is 600 euros/sq m, I'll take the risk."“ Here's why this is a bad idea, even without the intervention of a bank:

The trap of the "Eternal Industrial Current"„

Without Act 16 (Permit to Use), it is legally impossible to open individual household electricity accounts. The entire building remains on "temporary construction electricity". This means:

• Electricity prices that are 2-3 times higher than household prices.
• Risk of power outages to the entire building if your neighbors don't pay their dues or if the investor disappears.
• Constant uncertainty in the winter when bills skyrocket.

The Address Registration Problem

By law, you cannot register at a current or permanent address in a building that is not in use. If you plan to live in Bansko year-round or are a digital nomad who needs residency documents, this property is useless for you.

The Impossible Resale (Liquidity)

By buying such a property, you are „locking up“ your money. When you decide to sell it in 5 years, you automatically lose 80% to potential buyers – all the young families and people who rely on credit. You will be forced to sell again for next to nothing to some other „thrill seeker“ with cash.

4. Exceptions: When can the bank say „Yes“?

In the interest of objectivity, there are extremely rare scenarios where a bank can finance an Act 15 deal in Bansko, but the terms are draconian:

1. Proven builder: The investor must be a large, reputable company with an impeccable credit history that has a special agreement with the specific bank. There are only a few of these in Bansko.
2. Degree of completion: The bank can only grant a loan for finishing work (renovation), but not for the purchase of the property itself.
3. Additional collateral: The bank will require you to mortgage other, a fully completed property (e.g. an apartment in Sofia) to allocate the money for the one in Bansko.

Conclusion

Buying a property without Act 16 in Bansko is a financial gamble, not an investment. The low price always has a reason. If you are counting on a mortgage loan, don't lose the weather Don't be fooled by such properties - the bank won't approve them. Focus on legal buildings with proper documents to ensure that your mountain home will bring you joy, not legal headaches.