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Property purchase

Land ownership laws

Under Romanian law, land cannot be purchased by foreign nationals, so in order to buy any sort of property that comes with land the buyer needs to establish a Romanian company through which the land can be purchased. The right of foreigners to own land in Romania will be granted in 2012 (for most residences), and 2014 (if the land in question is agricultural or forest land). Allowing EU residents to purchase land in the country is a standard condition for membership, and one that encourages further investment.

Buying steps: checks

The seller of the property must prove that the property has been registered for tax and that payment of all taxes is up-to-date, by presenting a fiscal certificate. He must also present another certificate showing that the property has no financial or legal encumbrances (for example, a mortgage) and that it belongs to him.

Buying steps: completion

The buyer may be required to put down a holding deposit, and to sign a preliminary agreement. In this case, the terms of subsequent payments will be covered in this agreement. The buyer’s solicitor will make any remaining checks to ensure the property is ready to change hands, and if all is as it should be, the notary will prepare a deed of sale. The final contract will be signed in front of the notary, and the buyer will make the final payment. The transfer of ownership will be recorded in the Land Register or Real Estate Register, as appropriate.

Costs of purchase

The standards transaction costs that the buyer of a Romanian property will be faced with will usually amount to between 4.1 – 9% of the house value. The following shows a breakdown of the usual costs:

• Stamp duty of 0.5 – 3%
• Notary fees of 0.5 – 2%
• Registration fees of 0.1 – 1%
• Real estate agent’s fees of 3%

The seller will also pay 3% in real estate agent’s fees, so the cost of the agent is split equally between buyer and seller.

Related items

Documents and Reports

	Romania property investment report (368Kb)
Documents and Reports

Other related pages

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