Real estate—Romania—Q&A guide [Archived, 2020 edition]
Real estate—Romania—Q&A guide [Archived, 2020 edition]

The following Property practice note provides comprehensive and up to date legal information covering:

  • Real estate—Romania—Q&A guide [Archived, 2020 edition]
  • 1. How would you explain your jurisdiction’s legal system to an investor?
  • 2. Does your jurisdiction have a system for registration or recording of ownership, leasehold and security interests in real estate? Must interests be registered or recorded?
  • 3. What are the legal requirements for registration or recording conveyances, leases and real estate security interests?
  • 4. What are the requirements for non-resident entities and individuals to own or lease real estate in your jurisdiction? What other factors should a foreign investor take into account in considering an investment in your jurisdiction?
  • 5. If a non-resident invests in a property in your jurisdiction, are there exchange control issues?
  • 6. What types of liability does an owner or tenant of, or a lender on, real estate face? Is there a standard of strict liability and can there be liability to subsequent owners and tenants including foreclosing lenders? What about tort liability?
  • 7. How can owners protect themselves from liability and what types of insurance can they obtain?
  • 8. How is the governing law of a transaction involving properties in two jurisdictions chosen? What are the conflict of laws rules in your jurisdiction? Are contractual choice of law provisions enforceable?
  • 9. Which courts or other tribunals have subject-matter jurisdiction over real estate disputes? Which parties must be joined to a claim before it can proceed? What is required for out-of-jurisdiction service? Must a party be qualified to do business in your jurisdiction to enforce remedies in your jurisdiction?
  • More...

This Practice Note contains a jurisdiction-specific Q&A guide to real estate in Romania published as part of the Lexology Getting the Deal Through series by Law Business Research (published: November 2020).

Authors: Voicu & Filipescu SCA—Roxana Negutu

1. How would you explain your jurisdiction’s legal system to an investor?

Romania has a civil law system applicable nationwide. The majority of real estate norms are contained in the Romanian Civil Code, the Land Book Law and construction-specific legislation. The Civil Code regulates all aspects related to real estate, the enforcement of obligations, as well as the execution of contracts.

Judicial precedent is not binding before courts of law. However, all decisions of the Constitutional Court and certain decisions of the Supreme Court are mandatory, and, in recent years, there has been an influx of such decisions in the real estate domain.

Agreements regarding the transfer of ownership rights or establishment of encumbrances must be concluded in written authenticated form before a notary public and registered afterwards in the relevant Land Book. For other types of agreements (eg, lease or free use), the written form will suffice.

2. Does your jurisdiction have a system for registration or recording of ownership, leasehold and security interests in real estate? Must interests be registered or recorded?

Romanian real estate law is governed by the registration principle (ie, real estate rights are registered with an assigned Land

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