Why checks before signing matter
A property can look perfect and still have legal problems: a mortgage, a pending lawsuit, a co-owner who was never asked, or an unregistered building. Most of these risks can be uncovered before you pay anything, if you know where to look.
Checks should be made before signing the pre-contract and paying the deposit, not only before the final contract.
The land register extract
The land register (carte funciara) is the public record of a property's legal status. An information extract can be obtained by anyone, including online, from the national cadastre and land registration system. The extract shows:
Ask for an up-to-date extract just before signing; do not rely on one that is several weeks old. The authentication extract, requested by the notary when the contract is concluded, blocks the registration of other transactions in the land register for a limited period and gives you extra protection. If the property is not registered or the land register data do not match reality, discuss the situation with a lawyer before going further.
- The registered owner and their shares, if there are several.
- A description of the property: area, cadastral number, any buildings.
- Charges: mortgages, bans on sale, seizures, easements.
- Notes on lawsuits, promises to sell or other third-party rights.
Other useful checks
The land register extract does not tell you everything. Ask for and review other documents too:
- The seller's title deed and the property's history (how it was acquired).
- The seller's marital status: if married, the spouse's consent may be required.
- The tax certificate showing local taxes are paid.
- A certificate from the owners' association, for flats.
- The energy performance certificate.
- Whether the actual property matches the documents (extensions, internal changes).
The pre-contract and the deposit
The pre-contract, legally a promise to sell and buy, is the agreement by which the parties commit to signing the sale contract later. It is advisable to sign it in authenticated form before a notary and to have it noted in the land register. If one party refuses without good reason to sign the final contract, the other may ask the court, under the conditions set by law, for a judgment that takes the place of the contract.
The pre-contract should clearly set the price, the signing deadline, the condition of the property, what happens to the deposit and who bears the costs. The deposit (arvuna) is the sum paid on signing as a guarantee of performance. As a rule, if the buyer fails to perform, the seller may keep the deposit; if the seller fails to perform, the buyer may claim double the deposit. The parties may also agree a withdrawal deposit, which allows either side to walk away. The type of deposit must be stated expressly.
Before signing the pre-contract, ask for a draft of the final contract or, at least, a list of its essential terms. If you are paying with a mortgage loan, state in the pre-contract what happens if the bank does not approve financing by the agreed date. Without such a clause, the risk of losing the deposit increases.
Buying from a developer
With new homes, especially those bought off-plan, the risks are different. Check the developer's rights over the land, the building permit, whether the land is mortgaged to a bank and the completion deadlines.
Developers' contracts are often standard, but clauses can be negotiated. Pay attention to late-delivery penalties, the instalment payment structure, guarantees for construction quality and when the flat can be registered in your name.
In short
Do not pay a deposit before checking the documents. Do not sign a hastily drafted pre-contract. If you notice inconsistencies between the documents and reality, clear them up before signing. A timely legal review costs far less than a later dispute.
The information in this article is general. Every property transaction requires an individual review of the documents.
If you are about to buy a home in Romania, the Law Office of Bocse Marian-Mihaita can review the property documents and the pre-contract terms before you sign. We explain the risks identified and assist you in negotiations with the seller or the developer.
This article is for information only and does not constitute legal advice. For an analysis of your specific situation, contact a lawyer.
