Selling a real estate asset

Any real estate sale is concluded by a notarial deed, the authentic form being mandatory for the validity of the sales contract. In order to ensure full efficiency of the sales contract, the notary carries out a series of checks in the interest of the parties. According to the information collected, the sales contract is drawn up accordingly. Other formalities provided by law for the publicity of the act will be carried out after the signing of the sales contract.

 

Before the sale: what are the checks that are required and what are the preliminary stages?

In order to authenticate the legal acts constituting or transferring real estate rights, the notary public is required to verify the legal situation of the real estate, the encumbrances on the property and, where applicable, the matrimonial regime of the parties.

To alienate the property right over the real estate, the owner must present the tax attestation certificate attesting the payment of all tax obligations owed to the local public administration authority in whose jurisdiction the property being alienated is registered.

Another procedure prior to concluding the sales contract is to obtain an extract for authentication from the land register of the property to be alienated, from the Real Estate Cadastre and Advertising Office. This document includes a description of the property, data regarding the owner of the property right, the method of acquiring the property and the encumbrances encumbering the property, if applicable.

The owner of a building or apartment will be obliged to provide the potential buyer, prior to the execution of the contract, with a copy of a energy performance certificate, so that he/she can become aware of the energy performance of the building. The energy performance certificate of the building contains data on energy consumption. Energy performance is expressed by being classified in one of seven classes, from class A, characterized by the lowest energy consumption, to class G corresponding to the highest consumption.

In the event that one of the parties to the act cannot be present at the signing of the sales contract, it may be represented by an agent who will present the notary with the authenticated power of attorney, in original. The power of attorney must include all the clauses of the contract, including the price. The powers of attorney used to authenticate the sales contract will be verified in the RNNEPR, on the day of authentication of the notarial deed, regarding their existence, authentication and non-revocation.

 

Right of preemption​

In some limited cases, the law allows a determined person to acquire the property with priority. The sale of the property in respect of which there is a legal or conventional right of preemption can be made to a third party only under the suspensive condition of the non-exercise of the right of preemption by the preemptor.

The notary must verify, before any sale, whether or not there is a right of preemption to purchase the real estate. If this right exists, the beneficiary must be notified in order to be given the opportunity to express his intention to purchase the property with priority. The right of preemption is exercised, in the case of real estate, within a maximum period of 30 days from the notification. This formality is fundamental because, if omitted, the sale concluded in breach of the right of preemption could be annulled.

The legal holders of the right of preemption are the following:

Lands in the forest fund that are privately owned may be sold in accordance with the right of preemption of co-owners or neighbors;

In the case of agricultural assets, the lessee has the right of preemption with respect to the leased agricultural assets;

Assets included in the list of historical monuments, owned by natural or legal persons under private law, may be sold only under the conditions of exercising the right of preemption of the Romanian state, under penalty of the absolute nullity of the sale.

 

Price

The sale price is set in money, it must be determined or determinable, honest and serious. If the value of the good sold were not established in money, the contract would no longer be a sale-purchase contract, but of a different nature. Therefore, it is of the essence of the sale that the price be set in money.

The price is determined when the parties, upon concluding the contract, have established the exact amount of money to be paid. The price is determinable when elements are established with the help of which the parties can establish the price upon the execution of the contract or when the parties leave the determination of the price to the discretion of a third party. In no case can the determination of the price be left to the subsequent discretion of the parties or depend on the will of only one of them.

The honest price is the real one, established by the parties, therefore it is not fictitious and must be effectively requested and paid. If the price is fictitious, then the contract is void as a sale-purchase, but may be valid as a donation to the extent that the transferor intended to make a gift and if the other legal conditions for validity are met.

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Taking possession of the property​

The sales contract must specify the date of the buyer's actual possession of the property. The seller's main obligation is to hand over the property to the buyer along with the delivery of the title deeds and the keys.

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Payment of taxes​

The notary public who authenticates the sale contract of a real estate property is obliged to calculate the tax owed by the seller to the State, which tax he will collect and transfer to the beneficiary.

The expenses related to the authentication of the sales contract remain the responsibility of the buyer.

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Formalities after signing the contract  ​

The notary public who authenticated the deed is obliged to transmit it ex officio to the competent land registry office, so that the buyer's property right is registered in the land registry. 

Within 30 days at the latest from signing the sale-purchase contract, the buyer is obliged to appear at the financial administration in whose territorial jurisdiction the purchased property is located, where his registration as the fiscal role holder for the property is carried out.