Contracts and Guarantees in Romanian Real Estate Law

Published on May 4, 2026 and written by Cyril Jarnias

Exploring real estate law in Romania opens a fascinating window into the legal mechanisms shaping the real estate market of this dynamic country. At the heart of this ever-evolving environment, contracts and guarantees play a crucial role in securing real estate transactions, offering essential protections for the parties involved. Whether you are an investor, a potential buyer, or simply curious about the legal aspects of this sector, understanding the specifics of these legal instruments can provide a decisive strategic advantage.

Real Estate Law in Romania: Overview of Legislation

Real estate law in Romania is based on a structured set of laws governing the purchase, sale, and rental of properties, while precisely defining the rights and obligations of the parties involved.

Main Laws Governing Real Estate:

• Constitution of Romania (Art. 44): guarantees the protection of the right to private property.
• Civil Code (Art. 555 et seq.): general framework on property, sale, rental, real rights, and contractual obligations.
• Law No. 7/1996: organization of the cadastre and real estate advertising.
• Law No. 175/2020: governs the sale of agricultural land, especially outside built-up areas, and imposes restrictions and preemption rights.
• Law No. 71/2011: implements the Civil Code.

Summary Table of Main Real Estate Transactions:

Transaction	Applicable Law	Specifics / Required Documents
Purchase	Civil Code, Law 7/1996, Law 175/2020	Sales contract authenticated by a notary, extract from the land register, tax certificate, energy certificate, due diligence report, compliance with preemption rights (for agricultural land)
Sale	Civil Code, Law 7/1996, Law 175/2020	Same as purchase; sale void if preemption rights or formalities are not respected
Rental	Civil Code	Written contract, recommended fiscal registration, rights and obligations of parties defined by law

Land Ownership Regulations:

• Access to Property: open to Romanian citizens, EU nationals, and, under conditions, to non-EU foreigners (especially for land, more restrictive for agricultural land).
• Owner’s Rights: use, disposition, and enjoyment of the property, subject to compliance with urban planning regulations and public easements.
• Owner’s Obligations: payment of taxes, property maintenance, compliance with condominium rules and environmental regulations.

Tenant Rights and Obligations:

• Peaceful use of the property according to the contract.
• Payment of the agreed rent and charges.
• Obligation to return the property in good condition at the end of the lease.

Property Registration Procedure:

1. Drafting the sales contract before a notary.
2. Verification of the legal status of the property (land register extract, absence of mortgages or encumbrances).
3. Payment of taxes and registration fees.
4. Filing the dossier with the National Agency for Cadastre and Real Estate Advertising (ANCPI).
5. Final registration in the land register.

Tax Implications:

• Real Estate Transfer Tax: exemption for transactions under 450,000 lei, 3% above that (after deducting the non-taxable amount).
• Registration Fees: 0.15% of the value for individuals, 0.5% for companies.
• Other Fees: notary fees proportional to the transaction value.

Role of Notaries and Competent Courts:

• Notary: authenticates deeds, verifies document compliance, ensures real estate advertising, collects due taxes.
• Civil Courts: jurisdiction over disputes related to property, validity of deeds, or in the absence of an agreement between parties.
• ANCPI: registration of property rights, issuance of land register extracts.

Recent Reforms and Developments:

• Law 175/2020: strengthened control over the sale of agricultural land, introduced preemption rights and specific authorizations.
• Trend towards digitalization of cadastral procedures and real estate advertising to speed up transactions.
• Gradual opening of the market to foreigners, subject to certain conditions for agricultural land.

Purchase Contracts in the Romanian Real Estate Sector

Common Types of Real Estate Purchase Contracts in Romania:

• Definitive Sale-Purchase Contract
  This contract transfers ownership of the real estate property from the seller to the buyer. It is drafted and signed before a notary, guaranteeing its validity and enforceability.
  Main characteristics: immediate transfer of ownership, fixed price, clear obligations for the parties.
• Preliminary Sale Contract (Promise to Sell/Purchase)
  Used to reserve a property before the final contract, it commits the parties on the essential conditions (price, deadline). Often accompanied by a deposit paid by the buyer.
  Characteristics: preliminary commitment to the final transaction, mention of penalties in case of non-completion.

Legal Steps When Signing a Real Estate Purchase Contract in Romania:

1. Verification of titles and legal status of the property (due diligence).
2. Obtaining mandatory documents:
   • title deed
   • tax certificate
   • land register extract
   • energy certificate
   • cadastral plans and location
3. Negotiation and drafting of the contract (preliminary contract then authentic deed).
4. Signing before a public notary.
5. Payment of the price or deposit depending on the contract type.
6. Registration in the land register.
7. Payment of associated taxes.

Rights and Obligations of Buyers and Sellers within the Romanian Legal Framework:

Party	Main Rights	Main Obligations
Buyer	Receive a property conforming to the stipulations	Pay the agreed price
	Request legal verification	Comply with contractual terms
Seller	Receive payment on time	Provide all required documents
	Set preliminary conditions	Guarantee absence of mortgage/non-conformity

Key Points of Romanian Real Estate Contracts:

• Payment Condition Clauses
  • Precise terms: initial deposit then balance at final signing or possible installment plan by agreement.
  • Penalties provided for delay or default.
• Deadlines
  • Clearly defined deadline between the preliminary contract and the final deed.
  • Penalty clause if a party does not respect the agreed schedule.
• Guarantees
  • Warranty against eviction: obligation for the seller that the property is free from any undisclosed encumbrance or mortgage.
  • Warranty against hidden defects provided by Romanian civil law; action possible upon subsequent discovery.

Local Regulatory Compliance and Tax Implications:

Strict compliance with local laws:

• Mandatory land registration law,
• Specific law for agricultural land outside built-up areas (Law No. 17/2014),
• Special procedure regarding preferential rights for certain types of land.

Tax Implications:

Type	Rate/Tax
Transaction 450,000 lei	Property tax = value x3% after allowance
Land register registration	Individual: value x0.15% Legal entity: value x0.5%, fixed minimum

Important Additional Considerations:

• Foreigners must obtain a local tax identification number before any notarial operation.
• Systematic verification by a specialized lawyer is recommended, especially for acquisitions involving multiple sellers/co-owners or legal entities;
• Meticulous compliance with administrative steps ensures legal & tax security for every real estate transaction carried out in Romania.

Guarantees for Expats When Acquiring Property in Romania

Legal Guarantees for Expats in Romania During Real Estate Acquisition

Type of Guarantee	Description
Title Verification	The buyer, through their lawyer, must obtain a land register extract, ensure the absence of mortgages, verify tax documents and compliance with urban planning and environmental regulations.
Warranty Against Hidden Defects	The Romanian Civil Code protects any buyer, including expats, against hidden defects not disclosed during the transaction. The buyer can request compensation or annulment of the sale upon subsequent discovery.
Title Insurance	It is possible to take out title insurance with specialized companies, offering additional protection against legal risks not identified during the transaction.
Protection in Case of Dispute	Romanian courts have jurisdiction to settle disputes, with expats benefiting from the same access to justice as Romanian citizens in real estate matters.

Property and Title Verification Procedures

• Analysis of documents in the land register (ownership, mortgages, easements).
• Obtaining tax and energy certificates.
• Verification of the property’s compliance with building permits and environmental legislation.
• Checking up-to-date utility bills.

Role of the Local Lawyer

• Drafting and reviewing contractual documents.
• Conducting a comprehensive due diligence report on the property.
• Negotiating and securing transfer terms.
• Assistance with the notarial procedure and land registration.

Title Insurance

Optional but recommended subscription to cover potential irregularities not detected during title verification.

Provides compensation in case of a property dispute.

Regulations on Financing and Fund Transfers

Expats must obtain a Tax Identification Number (TIN) from the National Agency for Fiscal Administration.

Funds from abroad must go through official banking channels to ensure traceability and compliance with anti-money laundering rules.

Registration and tax fees vary depending on the amount and nature of the transaction, with specific thresholds for partial exemption.

Protections Offered by Romanian Law in Case of Disputes or Hidden Defects

Recourse to courts for annulment, price reduction, or damages in case of hidden defects.

Legal guarantee from the seller on conformity and the absence of undisclosed encumbrances.

Statutes of limitations for legal action are in accordance with Romanian civil law.

Differences Between the Rights of Romanian Citizens and Expats

Aspect	Romanian Citizens	Expats / Non-EU Nationals
Purchase of apartments/buildings	Without restriction	Same as Romanian citizens, no restrictions
Purchase of agricultural land	Free	Certain restrictions, especially for non-EU
Administrative procedure	Standard	Mandatory TIN acquisition
Taxation	Common scale	Common scale

Recent Reforms or Bills Impacting Guarantees

No major reform has recently changed the rights of expats for purchasing apartments or buildings, as these are aligned with those of Romanian citizens.

Specific restrictions remain for the acquisition of agricultural land, which may evolve according to European policy and bilateral agreements.

New transparency and tax compliance requirements strengthen transaction security, especially for international fund transfers.

Key Takeaways

Expats benefit from the same guarantees as Romanian citizens for the purchase of apartments, houses, and commercial properties.

The involvement of a specialized local lawyer is highly recommended to secure the acquisition and limit legal risks.

Taking out title insurance, although not mandatory, offers additional protection in case of future disputes.