Pavel Mărgărit and Associates Romanian Law Firm

Why It’s Important to Seek a Lawyer’s Help Before Signing the Sale and Purchase Agreement Given the unstable context the real estate market in Romania is currently experiencing, many buyers are facing significant risks when choosing to purchase real estate that is still in the project phase. The Nordis case has become emblematic of such abuses by developers, serving as one of many reasons why, when deciding to make such an investment, it is imperative to consult a real estate lawyer in Romania and request a complete due diligence lawyer in Romania report. A real estate litigation lawyer in Romania or a property lawyer in Romania can easily identify any potentially abusive contractual clauses present in a sale and purchase agreement. These clauses often conceal unjustified deadlines, disproportionate penalties, and the absence of fundamental guarantees. A real estate litigation lawyer in Romania can provide detailed explanations regarding the legal implications of transferring the right of ownership in Romania under uncertain conditions. Additionally, checking the land registry and requesting an updated land book excerpt in Romania can help identify potential disputes involving the property or whether it is encumbered. Real Estate Lawyer in Romania for Construction. When Developers Fail to Deliver: What Are Your Legal Options? The Nordis case highlighted the consequences when buyers are not sufficiently protected. If, after signing a sale and purchase agreement, the developer fails to meet deadlines or contractual obligations, a real estate lawyer in Romania becomes indispensable for initiating legal action. In the absence of a valid construction authorization or a legitimate right of ownership in Romania from the developer, the entire transaction may be voided—hence the critical need for a due diligence report prepared by a due diligence lawyer in Romania. One of the most common issues in such disputes is the failure to register sale and purchase agreements in the land registry in Romania, thereby preventing the effective legal protection of the buyer’s rights. Property Lawyer in Romania. Due Diligence – What Documents to Request and What Questions to Ask? At the core of any secure purchase of real estate lies a correct and complete due diligence report in Romania. Whether you are a first-time buyer or an experienced investor, working with a due diligence lawyer in Romania can help you avoid costly legal traps and Nordis-type situations. The due diligence process in Romania is not a mere formality—it involves a thorough verification of all legal, technical, and administrative aspects of a property. First and foremost, the land registry in Romania must be verified. It shows whether the property is free of encumbrances, whether the right of ownership in Romania is clear, and whether there are no prohibitions or mortgages. It also reveals whether the property is involved in any litigation or foreclosure proceedings. Therefore, obtaining an updated land book excerpt in Romania is mandatory. The next step would be checking the existence of a construction authorization in Romania. Its absence or any deviation from it may lead to demolitions or the impossibility of connecting the property to utilities. A real estate litigation lawyer in Romania can identify such risks and help ensure the documentation is complete and valid. To receive full legal advice and assistance from a real estate lawyer in Romania, real estate litigation lawyer in Romania, or civil litigation lawyer in Romania in order to obtain a solid due diligence report in Romania, identify abusive contractual clauses, and protect your right of ownership in Romania, we invite you to contact us through the form on our website: https://avocatpavel.com/contact. A property lawyer in Romania will analyze not only the documents presented but also any ambiguities within the contract, giving you a complete picture of the risks involved. Furthermore, they can assist in renegotiating certain clauses or even in withdrawing from a risky transaction, thus avoiding unpleasant situations for buyers. In the end, a solid due diligence report in Romania provides the peace of mind that your investment is safe, legal, and protected—especially in a real estate market in Romania where most buyers only discover the risks they’ve taken after signing. Real Estate Lawyer in Romania. What the Nordis Law Provides and How Effective It Is in Protecting Clients Given the current state of the real estate market in Romania, the Nordis Law has been adopted. Once implemented, it could significantly change how purchase of real estate transactions in Romania are conducted. On April 14, 2025, the Romanian Senate adopted the Nordis Law in Romania, a legislative project aimed at reducing fraud in the real estate sector in Romania and protecting those interested in purchase of real estate in Romania. According to this new regulation, the advance that developers can request when signing a promise of sale and purchase agreement may not exceed 15% of the total value of the property, with the remaining payments staged—25% upon completion of the structure and another 25% when installations are finished. A particularly important aspect emphasized by the Nordis Law in Romania is the obligation to register promises of purchase of real estate in Romania in the land registry in Romania. The absence of this registration allows for the same property to be sold to multiple individuals, without the right of ownership in Romania being legally protected. Therefore, an updated land book excerpt in Romania becomes a fundamental tool in any due diligence report in Romania. Furthermore, the Nordis Law in Romania stipulates that advance payments must be kept in a bank account dedicated exclusively to financing building construction. Non-compliance with this condition results in severe penalties, including a fine amounting to 1% of the developer’s turnover. This measure aims to ensure financial transparency and reduce the risk of misappropriation of funds. In the event of the developer's bankruptcy, the Nordis Law in Romania offers buyers the status of privileged creditors. However, due to the lack of precedence over secured creditors, the applicability of this provision remains limited. “Considering the increasing complexity of real estate transactions in Romania and the risks associated with cases like Nordis, the assistance of a real estate lawyer in Romania, real estate litigation lawyer in Romania, or property lawyer in Romania is no longer a mere advantage but an essential requirement for a secure purchase of real estate in Romania and effective protection of the right of ownership in Romania,” stated Dr. Radu Pavel, Coordinating Lawyer at the Romanian Law Firm Pavel, Mărgărit & Associates. Nonetheless, the law does not eliminate the risk of abusive contractual clauses in the agreements offered, which is why it is crucial for all property documents in Romania, including the sale and purchase agreement, construction authorization in Romania, and land registry excerpt in Romania, to be thoroughly reviewed as part of a full due diligence report in Romania. Proper implementation of this law could encourage safe purchase of real estate in Romania, where rights are protected and access to information is transparent. Without consulting a real estate lawyer in Romania or thoroughly reviewing essential property documents in Romania such as the sale and purchase agreement, land registry in Romania, and town planning certificate in Romania, the risks remain. Pavel, Mărgărit & Associates Romanian Law Firm is one of Romania’s leading law firms, delivering top-tier legal services. Its clientele includes prominent multinational and local companies. In 2025, the firm's successful track record earned it international recognition from the most prestigious legal guides and publications. This year, Pavel, Mărgărit & Associates ranked 3rd in Romania in the Legal 500’s listing of business law firms with the most relevant expertise. The firm is also recognized internationally by IFLR1000 Financial and Corporate 2025. Furthermore, it is the only Romanian law firm recommended by the London-based Global Law Experts directory in the practice area of Dispute Resolution. All relevant information about Pavel, Mărgărit & Associates Romanian Law Firm can be found on their website: www.avocatpavel.ro.

Pavel Mărgărit and Associates Romanian Law Firm

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