The Nordis Law 2025 in Romania: Obligations for developers

How the new amendments protect buyers: Obligations and responsibilities of real estate developers The entry into force of Law no. 207/2025, commonly referred to as the “Nordis Law”, represents one of the most significant legislative reforms in the field of real estate law practice in recent years, fundamentally changing the manner in which buyers of off-plan apartments are protected. The law introduces enhanced obligations for developers, starting with construction quality standards and extending to the requirement of concrete financial guarantees, the establishment of a separate bank account for advance payments, and the proper execution of pre-apartmentisation procedures. These new provisions establish a clear legal framework designed to prevent risks historically generated by stalled, unfinished, or improperly executed real estate projects, which frequently resulted in real estate disputes in Romania and complex real estate litigation in Romania. In this context, the Romanian Law Firm Pavel Mărgărit and Associates provides specialised legal services through a real estate lawyer, a property lawyer, and a defense attorney in Romania, offering comprehensive legal assistance in transactions involving future properties and in managing potential conflicts with developers. Early legal guidance from our real estate law firm, a civil lawyer in Romania, and a conveyancing lawyer is essential in order to safely navigate the sale process, verify legality through a due diligence report, and ensure compliance with all statutory guarantees introduced by the Nordis Law, while preventing exposure to developer insolvency, accumulated debts, or the need for enforcement in Romania, enforcement proceedings in Romania, or even forced execution in Romania. Civil lawyer in Romania. Sale and purchase promises and future apartments: Developer obligations, authentic form, and land book registration The first major legislative innovation introduced by Law no. 207/2025 concerns the technical and legal framework governing real estate development, imposing clear obligations on developers with respect to construction quality standards, the obtaining of permits and approvals, and the completion of acceptance procedures. Developers are also required to remedy construction defects arising during execution and to deliver the technical documentation of the building to the owner. These requirements are essential for protecting buyers’ interests, as properly drafted, verified, and registered documentation directly determines how the future ownership right will be recognised and enforced. In a context where real estate projects may be affected by financial difficulties, debt accumulation, corporate insolvency, or even the risk of corporate bankruptcy, strict regulation of enforcement and transfer procedures helps maintain the stability of the legal relationship and the guarantees associated with future title to the property, thereby reducing the likelihood of real estate claims and subsequent civil litigation in Romania. A key amendment introduced by Law no. 207/2025 is the mandatory authentic form of sale promises, purchase promises, or bilateral sale-purchase promises concerning units within future condominiums or individual future dwellings. The public notary is required to ensure the registration of the sale promise in the Land Registry on the same day or, at the latest, the next business day, making such registration a precondition for the validity of the instrument. These safeguards significantly increase legal certainty in real estate disputes in Romania, granting enforceability against third parties and protecting buyers even in critical scenarios such as the opening of insolvency proceedings, where registration and publicity measures become decisive for preserving ownership rights and limiting exposure to real estate litigation in Romania. At the same time, reservation agreements may only be concluded for a maximum of 60 days, and reservation amounts may not exceed 5% of the sale price, any excess being sanctioned by absolute nullity pursuant to Article 22 (5) of the law. Where the developer is solely at fault, all sums received must be reimbursed within 30 days. Another relevant risk concerns disputes between neighbouring property owners and the developer, which may result in court actions seeking annulment of the construction authorisation, potentially suspending the project. Such litigation can paralyse development activity, delay completion, and expose buyers to financial losses, enforcement risks, or complex proceedings, making essential involving a real estate litigator in Romania, or even intervention by an insolvency solicitor. In this situation, assistance from a civil lawyer in Romania, a defense attorney in Romania, and a real estate attorney experienced in real estate disputes in Romania ensures verification of statutory compliance and protection of buyers’ interests, particularly by preventing future conflicts related to contractual performance, ownership registration, or enforcement risks arising from developer insolvency, with the help of an insolvency lawyer near me. Real estate lawyer in Romania. Segregated bank account and use of advance payments: Financial safeguards for buyers In order to safeguard buyers’ funds, Law no. 207/2025 requires that advance payments made under sale-purchase promises be deposited into a separate bank account of the developer, dedicated exclusively to the project for which the advance was paid, as provided under Article 22 (6) – (7). The use of these funds is strictly regulated and subject to approval by the site supervisor, with clear percentage thresholds allocated to structural works and installations. Any misuse of advance payments is expressly prohibited and sanctioned with substantial fines. These measures aim to prevent the risk of the developer becoming insolvent or bankrupt due to misappropriation of funds, which is a major risk for the buyer. Where the developer fails to comply with statutory or contractual obligations regarding the handling of advance payments, or where there are substantiated concerns regarding imminent insolvency, the legal framework allows buyers to seek judicial remedies equivalent to contractual enforcement under Article 1669 of the Romanian Civil Code. Thus, the legal framework provides buyers with additional protection, offering not only civil remedies for the recovery of amounts paid, but also preventive tools against the risk of losing advances in the event of non-performance of obligations by the developer. In such circumstances, assistance from a real estate lawyer, a property lawyer, or a real estate attorney is essential to verify compliance with statutory requirements and prevent misuse of funds that could lead to future real estate litigation in Romania. Moreover, intervention by an enforcement lawyer in Romania and an insolvency lawyer ensures appropriate legal strategies are implemented to prevent escalation toward enforcement proceedings in Romania, forced execution in Romania. This ensures enhanced protection not only through civil remedies for recovery of funds, but also through preventive mechanisms designed to avoid losses in the event of insolvency proceedings involving insolvency lawyer near me, insolvency solicitor, or insolvency law firms. Property lawyer in Romania. Pre-apartmentation and updating of land registers: Cadastral procedures for future units Pre-apartmentisation represents one of the most significant legal safeguards for buyers of off-plan apartments. Pursuant to Article 26 (9) – (11) of the Romanian Cadastre and Land Registration Law no. 7/1996, pre-apartmentisation is carried out on the basis of an authentic deed prepared in accordance with cadastral documentation approved by the competent Land Registry Office and issued on the basis of the construction authorisation. Through this procedure, individual land registry files are opened for all future units within the condominium, expressly marked as “future assets”. Where subsequent modifications occur regarding the number of units, the land registers are updated through a new authentic deed, without requiring the prior consent of the prospective buyer, except where the total surface area or the location of the unit is altered. Only after completion of the construction works, confirmed by the acceptance report and the certificate attesting completion, is the final apartmentisation performed and the land registers updated with definitive data. Consequently, the developer bears the obligation to complete the project and may promise the transfer of individual ownership only after registration of the construction authorisation, completion of pre-apartmentisation, and opening of individual land registry records. These steps are fundamental in preventing future real estate disputes in Romania and ensuring legal certainty for buyers, particularly in scenarios where enforcement risks. In addition to these safeguards, buyers are entitled to initiate enforcement in Romania against the developer, including account attachment, as a means of protecting their rights and recovering advance payments, especially where delays, financial difficulties, or contractual breaches occur. In such situations, assistance from a property lawyer, a real estate lawyer, or a real estate attorney becomes essential in coordinating enforcement proceedings in Romania, mitigating exposure to forced execution in Romania, and managing risks associated with real estate claims. These measures aim to prevent financial mismanagement that could lead to insolvency, thus the absence of assitance from insolvency law firms, or intervention by insolvency attorneys, may result in significant losses for buyers and complex real estate claims. Litigation lawyer in Romania. Legal remedies available to buyers in case of the developer’s non-performance Given the inherent risks associated with real estate development projects, such as construction delays, challenges to the construction authorisation, or the most serious risk, namely the developer’s entry into insolvency proceedings, buyers benefit from a comprehensive set of legal remedies. The legal framework governing these remedies is essential where developers fail to meet contractual obligations, exposing buyers to the risk of losing advance payments, suffering significant delays, or being unable to acquire ownership of the apartment. Available remedies include contractual termination, obtaining a court decision substituting a sale agreement under Article 1669 of the Romanian Civil Code, initiating enforcement proceedings in Romania, attaching the developer’s bank accounts, claiming damages, and filing a statement of claim in the event of the opening of insolvency proceedings. Where the developer becomes subject to insolvency, buyers may file a claim and request enforcement of the sale promise, subject to strict statutory conditions under Article 131 of the Insolvency Law: the price has been paid in full or can be paid on demand, and the goods are already in the buyer's possession the price is not lower than the market value of the goods the goods are not essential to the reorganization plan the promise to be entered in the Land Registry in the case of real estate These mechanisms frequently involve civil litigation in Romania, coordinated by an experienced litigator in Romania, and may require collaboration with insolvency solicitor, or specialised insolvency law firms. “No matter how robust the new buyer protection mechanisms may appear, they must be applied with great caution in order to prevent substantial financial losses, especially in situations involving a company subject to insolvency.” stated Dr. Radu Pavel, Managing Partener of Pavel, Mărgărit and Associates Romanian Law Firm. The Romanian Law Firm Pavel Mărgărit and Associates, real estate law firm, has extensive experience in real estateand civil litigation in Romania, and our team includes a litigator in Romania, defense attorney in Romania, and enforcement lawyer in Romania, capable of assisting clients with contractual termination actions, recovery of debts, enforcement in Romania, forced execution in Romania, and proceedings related to developer insolvency. Failure to meet the specific requirements may expose buyers to complex disputes requiring representation by insolvency attorneys or an insolvency lawyer near me. Don't navigate these challenges alone. Contact Us today for expert assistance tailored to your needs. Contact Us In conclusion, the Nordis Law 2025 introduces a comprehensive set of legislative safeguards for buyers of off-plan apartments, imposing strict obligations on real estate developers, including mandatory registration of construction authorisation, pre-apartmentisation, and the use of segregated bank accounts for advance payments under a strictly regulated regime. Nevertheless, the primary cause of buyer losses remains developer insolvency, and although legal remedies exist, they are contingent upon strict procedural compliance and the existence of enforceable, registered agreements. Accordingly, Pavel, Mărgărit and Associates recommends engaging a civil lawyer in Romania, a real estate lawyer, an insolvency lawyer, ad an enforcement lawyer in Romania, capable of providing specialised legal assistance from the negotiation of the sale promise stage through representation before courts and authorities in enforcement proceedings in Romania, forced execution in Romania, and insolvency-related disputes. Pavel, Margarit and Associates Law Firm is one of the top law firms in Romania, providing high-quality legal services. The firm’s clients include multinational and domestic companies of great magnitude. In 2025, the law firm’s success stories brought it international recognition from the most prestigious international guides and publications in the field. As a result, Pavel, Margarit and Associates Law Firm ranked 3rd in Romania in the Legal 500’s ranking of business law firms with the most relevant expertise. The law firm is internationally recognized by the IFLR 1000 Financial and Corporate 2025 guide. Additionally, Pavel, Margarit and Associates Law Firm is the only law firm in Romania recommended by the international director of Global Law Experts in London in the Dispute Resolution practice area. All relevant information about Pavel, Margarit and Associates Law Firm can be found on the website www.avocatpavel.com.