Monday, January 13, 2014

Legal Support for Real Estate Investing in Romania

The real estate market in Romania may be considered as one of the most challenging investment environments and approaching this area involves profound understanding of legal terms regulating dynamics for this particular field

Our clients involved in complex commercial real estate projects are permanently dealing with juridical technicalities that play essential roles for various phases of the business development plans. In order to be as accurate as possible and as well being concerned with creating a complete image of all legal aspects involved in such approaches, our team focused on bringing together the basic law proceedings that closely regulate the juridical coherence implied by real estate investing in Romania. Conducting preliminary due diligence audits, managing the transaction itself, identifying possibilities for financial support, writing contracts, subcontracts – all these stages in a real estate development process require precise attention to law stipulations that handle procedures for such cases.

Real Estate Development in Romania – basic regulatory framework

The general legal format that manages most features regarding the real estate development in Romania involves terms described by the Law no. 50/1991 which provides the legal background for authorizing the construction works and some other juridical matters regarding implementation of provisions. This is actually our primary concern when introducing a new client to various features regarding real estate development projects: explaining basic functions of this specific law. Even if these are standard procedures that involve issuance of urban planning certificate and building permits and as well conducting evaluation programs able to illustrate the impact on the environment, we are still strictly approaching it due to its vastness and also to its regulatory fundamental character. The urban planning certificate has to be provided before the building permit since it contains a wide range of details regarding mandatory permits, landowners’ rights, surroundings and some other aspects related to the technical part of the building project. We are also drawing attention to particular features that might be interfering as a result of some specific traits characteristic for each project.

More specific legal terms related to real estate development

Apart from the Law no. 50/1991, real estate investing in Romania involves some legal features provided by the Law 190/1999 which offers the needed stipulations related to mortgage loans intended as an exceptional rule for encouraging business approaches in this filed. This particular legal tool comes as a second alternative for real estate development in Romania since it provides a juridical template for obtaining a mortgage loan, it explains the role of authorities able to finance such projects, the conditions imposing to list the mortgage in the Land Book. This law also comes with essential details regarding the chance of negotiation of the value of the interest rate and also the dynamics of mortgage receivables. Some other legal stipulations offer supplementary features regarding the energy performance certificate which must be used when buyers request such a paper and also the functionality of the insurance agreements. We are simply pointing out some regular legal elements that should offer a more informative perception on what real estate investing in Romania really means in terms of legal approach. Our lawyers are perpetually improving strategies and manage to identify optimal ways of dealing with such aspects but our main interest is to always maintain a transparent connection with our clients and that is why we want to deliver all needed support when it comes to very specific characteristics in the Romanian legal system. For any further legal technicalities our team is available to come with more elaborate statements.

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