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House Purchase

Written by Zac Mahoney
Here are some of the most important points about the legality of property purchase. One of the biggest problems for foreign investors and private house purchasers is acquiring the title of ownership to land. According to the government, non Romanian citizens and stateless persons cannot acquire land ownership in Romania.This may be seen as being very similar to a leashole or rental agreement,where one has fully entitled use of the land,but does not yet own it in a litteral sense. Persons may still buy and sell their 'leased' land though,as they wish. Though foreigners may establish a Romanian legal entity, or company, and avoid this because even if 100% foreign owned it is still seen as a Romanian company. This can be quite simple to do,and many firms work specifically in aiding foreign persons in opening and registration of such an entity. Thereby,one can indeed achieve title of ownership over any land purchased. This restriction applies only to the purchasing or acquisition of land. It does not apply to structures or buildings,which foreign individuals or companies may acquire title over,as well as the use of the land they are situated on for the time of the structure or buildings existence.This law is expected to be abolished with Romania's entry into the E.U. but it is worth noting that the government has stated that the law wont in fact be changed until five years after the entry of Romania. Though it is indeed possible that this may be over-ridden when the actual entry takes place. How to acquire title to land and structures; The more typical form of transfering property rights over real estate is via a sale and purchase agreement. For the validity of the transfer of ownership, the agreement made transfering the title to land must be notarized by a notary. Although,this is not the case with buildings or structures which,once again,differ in this respect, though most prefer to use this simpler means,due to the excessive complexity of the procedure for registration with the Real Estate Registry,which is the other option.
Last Updated ( Tuesday, 20 December 2005 )

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