Legal Support for Property Transactions in Romania: The Complete Guide for Foreign Buyers

Part 1. Who Can Buy Property in Romania — and the Ownership Structure Decision

Foreign buyers can purchase property in Romania, but the rules differ by nationality and property type. EU and EEA citizens can purchase buildings and land on the same terms as Romanian citizens — no special permits or restrictions apply. Non-EU/EEA citizens can generally purchase apartments and buildings directly as individuals, but direct ownership of land is subject to international treaty provisions and the principle of reciprocity, which may limit or preclude direct land acquisition depending on the buyer’s nationality. The standard solution for non-EU buyers — and frequently the recommended structure for all foreign investors — is to acquire property through a Romanian SRL (limited liability company), which can purchase any type of property without restriction.

The ownership structure must be determined before the property search begins — not at the notary’s office on signing day. The lawyer’s first task is to assess the buyer’s nationality, tax residency, the type of property being considered (apartment, house with land, vacant plot, commercial property), the intended use (personal residence, rental, development, resale), the source of financing, and the succession implications. Based on this assessment, the lawyer recommends whether the buyer should purchase as an individual, jointly with a spouse, in co-ownership, or through a Romanian SRL — and prepares the chosen structure before any property commitment is made.

Part 2. Why an Independent Lawyer — Not Just a Notary or Agent

Part 3. Buyer Documentation and Tax Registration

Part 4. Legal Due Diligence: Ownership and the Land Book

The Land Book (Cartea Funciară) is Romania’s official register of property rights. Every property purchase begins with obtaining a current extract (extras de carte funciară pentru informare) and systematically verifying its contents. The extract is valid for a limited period and reveals the complete legal status of the property at the date of issue.

What the Land Book Extract Reveals

Cadastral Verification

The cadastral plan defines the physical boundaries and dimensions of the property. The lawyer verifies that the registered boundaries correspond to the actual boundaries on the ground (discrepancies are common, particularly for older properties and rural land), that the registered area of the building matches the physical structure (including all floors, extensions, and outbuildings), that there are no boundary disputes with neighbours, and that the property has legally documented access to a public road — either through direct frontage or a registered servitude. If the cadastral data is outdated or inaccurate, the buyer may need to commission an updated cadastral survey before the transaction can proceed safely.

Seller Verification

The lawyer verifies the seller’s identity and legal capacity to sell. If the seller is married, Romanian law may require the spouse’s consent for the sale of family property or property acquired during the marriage — regardless of whose name appears on the Land Book. If the property was inherited, the lawyer verifies that the succession procedure (succesiune) is complete and that all heirs have agreed to the sale. If the seller is acting through a power of attorney, its validity, scope, and authentication are checked. If the seller is a company, the authorised representative’s powers and any required corporate approvals are verified. The lawyer also checks for any pending litigation, bankruptcy proceedings, or enforcement actions against the seller that could affect the transaction.

Part 5. Construction and Planning Due Diligence

A building in Romania is legal only if it was constructed under a valid building permit (autorizație de construire), in accordance with the approved architectural project, and has received a completion and acceptance certificate (proces-verbal de recepție la terminarea lucrărilor) confirming that the construction was completed as permitted. The lawyer verifies each of these documents and checks for common problems: extensions, attic conversions, garages, pools, and outbuildings constructed without permits; changes to the approved plans that were never authorised; buildings that were permitted but never received a completion certificate; and structures that were built under a permit that has since expired.

The lawyer also checks the property’s urban planning status: the land category (intravilan — within the settlement boundary, or extravilan — agricultural), the applicable zoning regulations (PUG/PUZ), building coverage limits (POT), total floor area ratios (CUT), height restrictions, and setback requirements. For buyers planning renovation or extension, these checks determine what can legally be built — before the purchase, not after. The urban planning certificate (certificat de urbanism) provides an official statement of what is permitted on the specific plot.

Part 6. Developer Purchases: Additional Due Diligence

Purchasing from a developer — whether off-plan or a completed new-build — requires additional verification beyond the standard property checks. The lawyer should verify the developer’s legal right to the land (ownership or a valid development agreement), the building permit and its scope (does it cover the specific unit being purchased?), the developer’s corporate and financial status (financial statements, shareholder structure, litigation history, completed projects), the technical specification and delivery timeline, penalty clauses for delay, the mechanism for advance payments and their protection, the process for connecting utilities, and the procedure for registering individual apartments and transferring proportional land shares to buyers.

Three types of agreement arise in developer transactions, each with different legal consequences. A reservation agreement is typically a simple, short-form document that reserves a specific unit — it may or may not be legally binding and may or may not protect the buyer’s payment. A promissory sale-purchase agreement (antecontract de vânzare-cumpărare) is a binding commitment by both parties to complete the sale — it should contain detailed conditions protecting the buyer. The final sale-purchase agreement (contract de vânzare-cumpărare) is the notarial deed that transfers ownership. The lawyer’s role is to ensure that the buyer does not commit significant funds based on a reservation form without proper legal protections, and that the promissory agreement contains conditions covering delivery, specification, delay penalties, deposit return, and the buyer’s right to withdraw if due diligence reveals problems.

Part 7. The Preliminary Agreement and Deposit Protection

The preliminary agreement is the most legally significant document before the final sale — and the point at which most buyer losses occur. A well-drafted preliminary agreement protects the buyer’s deposit and creates enforceable obligations on both sides. A poorly drafted agreement — or one signed under pressure without legal review — exposes the buyer to losing the deposit if problems emerge later.

The lawyer should ensure the preliminary agreement includes a precise description of the property (cadastral number, Land Book reference, registered area), the agreed price and payment schedule, the deposit amount and the conditions under which it is refundable, the deadline for the notarial sale, the seller’s obligation to deliver all documents required for due diligence, the buyer’s right to withdraw with full deposit return if legal or technical defects are discovered, a financing condition if the buyer is applying for a mortgage, the seller’s obligation to clear any encumbrances before closing, a prohibition on the seller marketing or selling the property to third parties during the agreement period, and clear consequences for breach by either party.

The preliminary agreement does not legally require notarial authentication — it can be a private document signed by both parties. However, a notarially authenticated preliminary agreement can be registered in the Land Book (as a notation), providing additional protection against the seller selling the property to someone else or creating new encumbrances during the agreement period. The lawyer advises whether notarial authentication of the preliminary agreement is warranted based on the specific risk profile of the transaction.

Part 8. The Sale Contract, Mortgages, and Encumbrances

Reviewing the Sale Contract

The final sale contract (contract de vânzare-cumpărare) is the notarial deed that transfers ownership. The lawyer reviews every clause before signing day — not at the notary’s office. Key elements include the exact property description (must match the Land Book exactly), the price and payment mechanism (bank transfer, split payment if mortgage is involved, escrow arrangements), the date of possession transfer, the physical condition of the property (warranties about structural condition, installations, and freedom from defects), confirmation that the property is free from encumbrances (or that specified encumbrances will be discharged simultaneously), the seller’s declarations and warranties (truthfulness of information, no pending disputes, no undisclosed liabilities), responsibility for defects discovered after completion, allocation of transaction costs between buyer and seller, and governing law and dispute resolution.

Handling Existing Mortgages

If the property has an existing mortgage (a common situation when the seller has an outstanding bank loan), the transaction requires careful coordination. The lawyer verifies the outstanding balance, obtains a payoff letter from the seller’s bank, and structures the payment so that part of the purchase price is paid directly to the seller’s bank to discharge the mortgage — with the remaining balance paid to the seller. The mortgage cancellation must be submitted to the Land Book simultaneously with the buyer’s ownership registration. If the buyer is also taking a mortgage, the buyer’s bank will register a new mortgage against the property. This simultaneous discharge-and-registration process requires coordination between both banks, the notary, and both lawyers — and should be planned in advance, not improvised on closing day.

Part 9. Source of Funds, AML, and Mortgage Financing

Romanian notaries and banks are required to verify the source of funds for property purchases under EU anti-money-laundering regulations. The buyer must demonstrate the legitimate origin of the purchase funds through bank statements, employment or business income records, asset sale documentation, inheritance records, or other verifiable sources. Funds should be transferred from the buyer’s own account (or the SRL’s account if purchasing through a company). The lawyer can assist in assembling the source-of-funds documentation in advance to prevent delays or complications at the notary’s office.

For buyers using mortgage financing, the preliminary agreement should always include a financing condition: if the bank declines the mortgage application, the buyer can withdraw and recover the deposit. The lawyer coordinates between the buyer, the bank, and the notary — ensuring that the bank’s requirements (property valuation, legal review, insurance) are satisfied within the preliminary agreement’s timeline, that the mortgage deed is prepared for simultaneous execution at closing, and that the bank’s funds are available on the transaction day.

Part 10. Remote Purchases and Powers of Attorney

Foreign buyers who cannot be physically present in Romania for the notarial signing can complete the purchase through a power of attorney (procură). The power of attorney must be notarised in the buyer’s country of residence, apostilled under the Hague Convention (if the country is a party), and translated into Romanian by a certified translator. The document must specify exactly which property is being purchased, which actions the representative is authorised to perform (signing the contract, making payments, receiving keys, registering the property), and any limitations on the representative’s authority.

Some Romanian notaries and banks have specific requirements regarding the form and content of foreign-issued powers of attorney. The lawyer should verify these requirements before the document is prepared — a power of attorney that does not meet the specific notary’s requirements will delay or prevent the transaction. For this reason, it is advisable to have the Romanian lawyer draft or review the power of attorney text before it is notarised abroad — ensuring that the Romanian-side requirements are met from the outset.

Part 11. The Notarial Closing and Land Book Registration

The notarial closing is the formal ceremony at which property ownership transfers from seller to buyer. The process follows a defined sequence:

1. The lawyer confirms that all due diligence items are resolved and the contract is agreed.
2. The notary obtains a fresh Land Book extract (valid for a limited period) confirming no new encumbrances.
3. The seller provides a tax clearance certificate confirming no outstanding property tax debts.
4. The notary verifies the identities and legal capacity of both parties (or their representatives).
5. A certified translator is present if either party does not speak Romanian.
6. The notary reads the contract aloud and confirms both parties’ agreement.
7. Both parties sign the contract.
8. The buyer transfers the purchase price (typically by bank transfer confirmed on the day, or from a pre-funded escrow).
9. The notary submits the authenticated contract to the Land Book office (OCPI) for registration of the new owner.
10. The buyer receives the signed contract and, once registration is complete, an updated Land Book extract confirming ownership.

After registration, the buyer’s lawyer verifies that the Land Book correctly reflects the buyer’s name (or the SRL’s name), the property description, any new mortgage, and that no errors have occurred in the registration process. The buyer then registers with the local municipality for property tax, transfers utility contracts, and obtains mandatory earthquake insurance (PAD).

Part 12. Transaction Costs and Post-Completion Support

After completion, the lawyer can assist with post-purchase formalities: verifying that the Land Book registration is correct, registering the property for local tax, transferring utility contracts, setting up insurance, registering a lease agreement if the property will be rented, coordinating renovation permits if the buyer plans to modify the property, liaising with the homeowners’ association (for apartments), and — where necessary — pursuing warranty claims against a developer for construction defects or delayed delivery.

Part 13. Common Legal Risks and the Step-by-Step Checklist

The Risks That Cost Foreign Buyers the Most

Step-by-Step Legal Checklist

1. Determine the ownership structure (individual, joint, or SRL) based on nationality, property type, and intended use.
2. Obtain a Romanian tax identification number (NIF) or incorporate a Romanian SRL.
3. Engage an independent property lawyer who represents the buyer exclusively.
4. Obtain and verify the current Land Book extract — ownership, area, encumbrances, servitudes.
5. Verify cadastral records — boundaries, building registration, correspondence with physical reality.
6. Verify construction legality — building permit, approved plans, completion certificate.
7. Verify the seller — identity, marital status, inheritance status, litigation, corporate authority.
8. Commission a technical inspection for houses and older properties.
9. Negotiate and sign the preliminary agreement with due diligence and financing conditions protecting the deposit.
10. Prepare source-of-funds documentation and coordinate bank transfers in advance.
11. Review and agree the final sale contract — every clause, verified by the buyer’s lawyer.
12. Complete the notarial closing — authentication, payment, and submission for Land Book registration.
13. Verify Land Book registration — confirm the buyer’s name, property description, and any mortgage are correctly recorded.
14. Post-completion: register for property tax, transfer utilities, obtain insurance, and store all documents securely.

Frequently Asked Questions