{"id":46764,"date":"2025-01-16T09:20:05","date_gmt":"2025-01-16T09:20:05","guid":{"rendered":"https:\/\/my.legal500.com\/developments\/?post_type=legal_developments&p=46764"},"modified":"2025-01-16T09:20:42","modified_gmt":"2025-01-16T09:20:42","slug":"restricting-the-advance-payment-to-the-real-estate-developers-in-romania-maximum-10-draft-law","status":"publish","type":"legal_developments","link":"https:\/\/my.legal500.com\/developments\/thought-leadership\/restricting-the-advance-payment-to-the-real-estate-developers-in-romania-maximum-10-draft-law\/","title":{"rendered":"Restricting the advance payment to the real estate developers in Romania \u2013 Maximum 10% \u2013 Draft Law"},"content":{"rendered":"

In 2024, more and more\u00a0real estate developers in Romania\u00a0are building properties, making the\u00a0real estate market in Romania\u00a0continuously expand.<\/strong>Recently, a new draft law was proposed to restrict the advance payment to 10% of the total price for real estate transactions, which is paid to the <\/span>real estate developers in Romania<\/strong>\u00a0when a\u00a0<\/span>pre sale purchase agreement in Romania<\/strong>\u00a0is signed. In general,\u00a0<\/span>real estate developers in Romania<\/strong>\u00a0ask for a significant advance payment, which can be a crucial disadvantage for buyers. A relevant example in this regard is the Nordis case, where buyers paid nearly the entire price of the property in advance, only to lose the\u00a0<\/span>right of ownership in Romania\u00a0<\/strong>and not receive a refund. This proposed law aims to protect buyers\u2019 interests by limiting the advance payments for properties. The\u00a0<\/span>Romanian law firm Pavel, M\u0103rg\u0103rit and Associates<\/strong>\u00a0recommends consulting a\u00a0<\/span>real estate lawyer in Romania<\/strong><\/a>\u00a0to ensure that a\u00a0<\/span>pre sale purchase agreement in Romania<\/strong>\u00a0is concluded according to the law, protecting the buyer\u2019s interests against abusive clauses, hidden defects, and any issues that may arise regarding\u00a0<\/span>right of ownership in Romania<\/strong>, which could put buyers at a disadvantage in the\u00a0<\/span>sale and<\/strong>\u00a0<\/span>purchase agreements in Romania (SPA in Romania).<\/strong><\/p>\n

Property lawyer in Romania. Concluding a pre sale purchase agreement in Romania with real estate developers in Romania<\/u><\/strong><\/p>\n

A\u00a0pre sale purchase agreement in Romania<\/strong>\u00a0is a promise between the seller and the buyer of a property in which they mutually agree to complete the sale at a later date, establishing the specific terms and conditions. A\u00a0pre sale purchase agreement in Romania<\/strong>\u00a0is not an obligation required by law, but it is recommended when the sale will occur at a later date. In the\u00a0real estate market in Romania<\/strong>, concluding such agreements is common as it confirms both parties\u2019 intention to sell and buy the property, reserving the asset and clearly defining the sale conditions. Additionally, signing a\u00a0pre sale purchase agreement in Romania<\/strong>\u00a0facilitates obtaining a loan, as it expresses a firm intention to make a\u00a0purchase of real estate in Romania<\/strong>. A\u00a0real estate lawyer in Romania<\/strong>\u00a0can provide specialized legal assistance, offering services such as drafting or reviewing the\u00a0pre sale purchase agreement in Romania<\/strong>, analyzing abusive clauses, assessing risks, and ensuring the protection of the buyer\u2019s interests regarding\u00a0right of ownership in Romania<\/strong>.<\/p>\n

Due diligence lawyer in Romania. Assistance for concluding sale and purchase agreements in Romania (SPA in Romania)<\/u><\/strong><\/p>\n

Before concluding\u00a0sale and<\/strong>\u00a0purchase agreements in Romania (SPA in Romania)<\/strong>, it is important to perform a\u00a0due diligence report in Romania<\/strong>\u00a0to analyze and eliminate potential risks involved in\u00a0purchase of real estate in Romania<\/strong>. Documentation verification is a crucial step as it ensures that the seller has the legal right to sell the property and that there are no\u00a0real estate disputes in Romania<\/strong>\u00a0or encumbrances that could affect the completion of the\u00a0purchase of real estate in Romania<\/strong>. As it involves real estate, the\u00a0sale and<\/strong>\u00a0purchase agreements in Romania (SPA in Romania)<\/strong>\u00a0must be authentic and signed before a public notary. The new draft law supports buyers by ensuring that the majority of the price is paid at the actual sale, with the advance payment being limited to up to 10% of the total amount, thus avoiding potential\u00a0real estate disputes in Romania<\/strong><\/a>\u00a0or other issues that may affect the transaction. A\u00a0due diligence lawyer in Romania<\/strong>\u00a0or a\u00a0real estate litigation lawyer in Romania\u00a0<\/strong>can provide top-quality services by drafting the\u00a0sale and<\/strong>\u00a0purchase agreements in Romania (SPA in Romania)<\/strong>, verifying the documentation, preparing a\u00a0due diligence report in Romania<\/strong>, analyzing abusive clauses that could harm the buyer, assisting with negotiations and notary formalities, ensuring the transaction complies with the law.<\/p>\n

Real estate litigation lawyer in Romania. Termination of sale and purchase agreements in Romania (SPA in Romania) or issuance of a judgment substituting the contract<\/u><\/strong><\/p>\n

The termination of a\u00a0pre sale purchase agreement in Romania<\/strong>\u00a0is a sanction that occurs when the parties fail to fulfill their obligations, leading to the annulment of the agreement with retroactive effect. For a\u00a0pre sale purchase agreement in Romania<\/strong>\u00a0agreement to be resolved, there must be a partial but significant failure to perform the agreed obligation by the other party. The failure must be the responsibility of the debtor, the debtor must have been put in delay, and the non-performance must not be due to the party requesting the termination of the\u00a0pre sale purchase agreement in Romania<\/strong>. Additionally, the Civil Code also provides the possibility for the injured party to seek a court decision that substitutes the contract if all other validity conditions are met. In this case, the right to take action is six months from the date the sale contract should have been concluded. A\u00a0real estate litigation lawyer in Romania<\/strong>\u00a0can assist with the termination of a\u00a0pre sale purchase agreement in Romania<\/strong>, even in cases of real estate disputes in Romania, while ensuring compliance with legal requirements.<\/p>\n

\u201cIn the current context of the\u00a0real estate market in Romania<\/strong>, the new draft law that proposes limiting the advance payment to\u00a0real estate developers in Romania<\/strong>\u00a0to a maximum of 10% helps reduce the financial risks for buyers, providing greater protection against potential delays or failure to meet obligations by developers,\u201d said Dr. Radu Pavel, Managing Partner of\u00a0Romanian law firm Pavel, M\u0103rg\u0103rit and Associates.<\/strong><\/p>\n

The\u00a0Romanian law firm Pavel, M\u0103rg\u0103rit and Associates\u00a0invites you to contact a real estate litigation lawyer in Romania or due diligence lawyer in Romania to conclude a\u00a0pre sale purchase agreement in Romania\u00a0or to sign\u00a0sale and\u00a0purchase agreements in Romania (SPA in Romania)\u00a0by filling out the contact form at\u00a0<\/strong>https:\/\/www.avocatpavel.com\/contact-us\/<\/strong><\/a>.<\/strong><\/p>\n

In conclusion, considering the continuous expansion of the\u00a0real estate market in Romania<\/strong>, the proposed law limiting the advance paid to\u00a0real estate developers in Romania<\/strong>\u00a0to a maximum of 10% is a crucial measure to protect buyers\u2019 interests, reducing financial risks and providing better protection against possible abuses or delays. The\u00a0Romanian law firm Pavel, M\u0103rg\u0103rit and Associates<\/strong>\u00a0recommends consulting a real estate lawyer in Romania or a property lawyer in Romania to assist you throughout the sale process with services such as drafting or reviewing a\u00a0pre sale purchase agreement in Romania<\/strong>, analyzing abusive clauses, assessing risks, verifying documentation, and preparing a\u00a0due diligence report in Romania<\/strong>, as well as any other services aimed at protecting buyers\u2019 interests.<\/p>\n

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