What legal aspects should you pay attention to when buying land or a house?

Legal solutions for a risk-free property purchase

When looking to purchase land or a house, a prior legal verification of the real estate in Romania is essential. Buying real estate in Romania represents a significant investment, which is why a thorough analysis of all relevant aspects of the purchase of real estate in Romania is required, involving numerous documents and procedures that demand heightened attention. To complete this transaction while avoiding potential risks, it is necessary to conduct detailed checks, such as analyzing documents that certify the right of ownership in Romania, obtaining an excerpt from the land book in Romania, verifying the town planning certificate in Romania, the fiscal certificate in Romania, and the cadastral plan extract, as well as carrying out any necessary procedures to ensure a legally clear situation. The Romanian law firm Pavel, Mărgărit and Associates recommends consulting a real estate lawyer in Romania to conduct due diligence regarding the purchase of real estate in Romania, with the purpose of identifying potential risks or hidden issues. A property lawyer in Romania will draft a due diligence report in Romania detailing the conclusions of the conducted verifications. It is crucial for a buyer to have a clear legal perspective regarding their investment and to ensure that there are no impediments that could affect the transaction. A due diligence report in Romania contributes to the buyer’s decision to either continue negotiations or withdraw from the purchase. Additionally, a due diligence lawyer in Romania can assist in drafting a pre sale purchase agreement in Romania and, subsequently, sale and purchase agreements in Romania for real estate (SPA in Romania), ensuring that no abusive contractual clauses in Romania are included or that issues leading to the contract cancellation in Romania or contract termination in Romania arise.

Real estate litigation lawyer in Romania. Verification of property documents in Romania

Before completing a purchase of real estate in Romania, it is essential to know the current owner of the property being sold to ensure that the transaction is legally valid. Therefore, verifying the documents that attest the right of ownership in Romania is required, such as sale and purchase agreements in Romania (SPA in Romania), a donation agreement, an heir certificate if the land or house was inherited, or a final court decision if ownership rights were granted by a court ruling.

There are cases where the right of ownership in Romania was granted decades ago through a court decision, and the documents may have been lost. In such cases, steps can be taken at national archives that hold the respective court ruling. This analysis serves as a confirmation that the seller is the rightful owner and that no other individuals have claims to the land or house. Before signing sale and purchase agreements in Romania (SPA in Romania), a property lawyer in Romania can assist in reviewing the property documents in Romania, eliminating the risk of purchasing a property with legal issues or becoming a victim of real estate fraud. This prior verification is necessary to avoid situations where sale and purchase agreements in Romania must be annulled.

Property lawyer in Romania. Extract of land book in Romania

Analyzing the cadastral situation and property registration is another crucial aspect when purchasing real estate in Romania. This process requires obtaining an excerpt from the land book in Romania, as it is an official document issued by the Office of Cadastre and Real Estate Publicity that provides an updated overview of the land or house. By obtaining an excerpt from the land book in Romania, details such as the current owner, any encumbrances on the property (mortgages, transfer restrictions) that may hinder the sale, the property’s area, and more can be confirmed.

It is important to ensure that the seller is the sole owner, as if there are multiple co-owners, their consent is also required. Furthermore, another document that can be obtained from the Office of Cadastre and Real Estate Publicity is a cadastral plan extract. A cadastral plan extract complements the excerpt from the land book in Romania and contains clear information about the positioning, area, and boundaries of the property. Analyzing this document is essential to verify positioning, potential overlaps with other properties, and access to public roads, thus determining exact boundaries. A real estate lawyer in Romania can help review the cadastral documentation before signing sale and purchase agreements in Romania to prevent potential legal disputes arising from real estate issues.

Due diligence lawyer in Romania. Verification of construction authorization in Romania and town planning certificate in Romania

If the sale involves a house, it is necessary to check whether it has a construction authorization in Romania. A construction authorization in Romania confirms that the building was legally constructed and approved by local authorities. If such a permit does not exist, potential disputes with neighbors or local authorities may arise, posing risks to property rights.

Additionally, analyzing an town planning certificate in Romania is crucial, as it provides information regarding the land’s urban zoning regulations. A town planning certificate in Romania indicates construction restrictions, such as the type of buildings allowed, permissible construction height, connections to sewage, gas, and water networks, as well as whether the property is classified as a historical monument. It is recommended that a real estate litigation lawyer in Romania conduct a thorough analysis of the construction authorization in Romania and town planning certificate in Romania to ensure that the construction was carried out in compliance with the law.

Real estate lawyer in Romania. Signing a pre sale purchase agreement in Romania

A preliminary step in the process of buying or selling land or a house is signing a pre sale purchase agreement in Romania, which is a contract where the parties commit to signing a future sale-purchase agreement, typically including an advance payment as a guarantee for finalizing the contract. A pre sale purchase agreement in Romania includes details regarding the transaction price, the date of property transfer, the obligations of the parties, the refund conditions of the advance payment in case the transaction does not go through, and any other relevant aspects for concluding the final contract.

It is important to note that a sale promise does not transfer ownership rights; it only ensures that the transaction will take place. The signing of an SPA in Romania represents the final step in a real estate transaction, having the legal effect of transferring property ownership. A real estate sale-purchase agreement must be concluded in an authentic form before a notary and must include details such as the identity of the parties, the agreed price and payment method, and the obligations of both the seller and the buyer. A property lawyer in Romania can assist in drafting a pre sale purchase agreement in Romania or a sale-purchase agreement to ensure that no abusive contractual clauses in Romania are included and to eliminate the possibility of contract cancellation in Romania or contract termination in Romania.

“When purchasing a house or land, it is necessary to conduct a thorough verification of the property documents in Romania to avoid future risks and disputes. A comprehensive due diligence process is required before signing a sale-purchase agreement,” stated Dr. Av. Radu Pavel, Managing Partner of the Romanian Law Firm Pavel, Mărgărit and Associates.

In conclusion, purchasing real estate is a significant investment, making it essential to thoroughly analyze the documents that establish ownership rights, as well as cadastral, registration, and construction-related documents. Due diligence conducted by a due diligence lawyer in Romania is crucial before signing a real estate sale-purchase agreement, and legal assistance can play an important role throughout the entire real estate acquisition process.

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 2024, 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 2024 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.