Monday, September 30, 2013

Draft law on the sale and purchase of Romanian agricultural land outside the built up area

The project on transactions with agricultural land outside the built up area, in Romania, was modified several times on September 3, September 17 and September 23, 2013, making visible a number of issues of immediate importance proposed to be analyzed from various perspectives. Persons in question nominated by this project who actually have the right for acquisition are Romanian citizens, EU citizens, all those who are considered stateless persons but residents in Romania or EU. Last version of this draft law also introduces a category referring to individuals who are considered stateless persons on the territory of EEA (European Economic Area). After the last update of the project the individual who can purchase land in Romania, located outside the built up areas, must meet a number of conditions. One of the most important aspects, concerning the acquisition of land in Romania, is related to the importance of proving general knowledge regarding the agricultural field and also evidence of the fact that he/she worked in this area for the past five years, at least.

Authority for Land Market Management and Regulation

The authority which shall be responsible for checking individuals is the Authority for Land Market Management and Regulation. This institution is responsible for all measures required for law enforcement whose foundation is laid through the drafts nominated above. This authority will also be the one which will handle the database that will contain information regarding agricultural lands. All buying and selling details will be published through this institution’s help also intended for supervising the exercise of preemption right.

Special circumstances are also indicated limiting the transactions with agricultural land outside the built-up areas. This includes land located within 10 kilometers from the border that may be used only with the consent of the Ministry of National Defense. Agricultural lands which can be defined as areas of archaeological potential are accessible only through approval of the Ministry of Culture. Agricultural lands with irrigation infrastructure must be preserved, at least, in the same state as purchased. The National Agency for Land Improvement (ANIF) keeps reports on the status of these lands at the time of their purchase. There are also some ​​remarks on the quality of the tenant who can purchase such lands. The new Civil Code through the Article No. 1838 indicates legal procedures to be followed by tenant to register with local authorities. There are some important stipulations introduced concerning the maximum area to be purchased which is of 100 hectares. Until the 2nd of October 2013 the final form of this project should be subject to public debate. Our team of attorneys is available to provide further information on this topic. We are also able to offer legal assistance necessary to clarify any misunderstanding raised by this draft law regarding the acquisition of land in Romania.

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