At Albei & Albei Law Offices we manage your property purchase every step of the way, from finding and negotiating with an estate agent to registering you as owner of your property with the Romanian Land Registry (Cartea Funciara).

       Purchasing a property in Romania typically involves the following stages, although prospective purchasers should take specific advice before entering into any transaction.

       These are the main questions and issues to be dealt with regarding a property purchase in Romania:

"        Why use an independent lawyer for Romanian property purchases?

"        Finding the property;

"        Conducting a survey;

"        Negotiating the selling price;

"        Signing the Contract;

"        Paying the purchase expenses & registering the Transfer Deed.

       Why use an independent lawyer for Romanian property purchases ?

       Some people will tell you that you don't need a lawyer to buy a property in Romania. This is true if you truly know what you're doing. For the vast majority of buyers, however, this is dangerous advice. Choosing the right lawyer is important to ensure you meet all Romanian legal requirements, that the property is registered in your name, and that once you own it you don't face any unwelcome surprises such as an outstanding mortgage or development plans for the area which affect your property adversely. By instructing an independent lawyer you ensure you are fully aware of all potential pitfalls - and how to avoid them.

       Your first and most important step should be to choose an independent and qualified lawyer. Estate agents may encourage you to take advantage of their "free legal service". However, the estate agent is the seller's agent and so will be acting for him, not the buyer. At Albei & Albei Law Offices we provide you with an entirely independent service comparable with that which you can expect to receive in other countries. We offer all the legal advice and assistance you need, in fluent English, which avoids the linguistic and cultural problems you are likely to encounter with large numbers of other Romanian lawyers.

       The most common way to find property is to consult a number of estate agents. In Romania estate agents typically charge the seller between 3% and 5% of the total sale price. As you may expect, there are a great many estate agents competing for such a high rate of commission. In order to avoid wasting your time it is essential to take advice about the best agents to use for the type of property you are seeking. At Albei & Albei Law Offices have extensive local knowledge and can assist you with this important first step.

       An alternative to using an estate agent is simply to visit the area where you are seeking a home and look for "for sale" signs. These signs always display a telephone number. If you speak basic Romanian you can usually find out the selling price from one telephone call. Alternatively, Albei & Albei Law Offices will be pleased to make the call on your behalf and to negotiate a selling price.

       It is also very common to purchase new properties directly from the property developer. The property may have already been built. Alternatively, you may wish to purchase from plans alone. Unless you are certain you know precisely who you are dealing with, and you can ensure that all the correct procedures to protect your financial interest have been followed, this can be a hazardous way of doing business. At Albei & Albei Law Offices we ensure that any payments made by clients are protected by full legal requirements.

       Conducting a survey

       Developers and builders of new properties are legally required to have insurance covering any structural or other latent defects in the property. When you buy a new property, we will take steps to ensure the developer has this insurance and, if a problem arises, we can help you get an effective remedy.

       However, a new owner is liable for structural defects in older properties not covered by insurance policies or guarantees. In many EU countries it is common practice for a structural survey to be conducted by a prospective purchaser even before agreeing on the final purchase price. This is not as commonplace in Romania as in other EU countries, but Albei & Albei Law Offices strongly advise all our clients to instruct a surveyor ("topograf") to produce a report dealing, at the very least, with the physical condition of the property. This is particularly important where the property is detached. Surveyors in Romania also advise on the likely cost of any structural or other renovation which may be needed. The final purchase price may depend on how much needs to be spent on the property in order for it to be fit to live in, or you may perhaps want to install a new kitchen and bathroom, extend the living area, or build a swimming pool. A surveyor can also advise on the true market price of the property. Money spent on a surveyor's report is never wasted. We work closely with local surveyors whom we trust and to whom we regularly introduce our clients.

       It has been common practice throughout Romania for many years for a seller to understate the purchase price so as to reduce his tax liability. Prospective purchasers may be told that such practice will reduce their initial outgoings by a saving in stamp duty. However, you should be aware that any saving you make at the beginning is likely to be more than lost when you sell the property, as capital gains tax will have to be paid on the additional profit.

       Once you have found a home you want to buy and have settled on the price, you must then calculate your expenses, which should amount to no more than 10% to 12% of the purchase price. Albei & Albei Law Offices provide clients with comprehensive and detailed advice about likely expenses before the purchase agreement is settled. Purchase expenses will include the following:

"        Notary's fees

"        Land Registry Fees

"        Legal Fees

               Notary's fees.

       Notaries charge according to a fixed scale. The higher the selling price of the property, the lower the percentage charged. A property with a selling price of  €115,000 will attract a notary's fee of €1.110 plus €210 VAT (€1.320).

               Land Registry Fees ("Cartea Funciara").

       You will also have to pay fees to the Land Registry ("Cartea Funciara") to register the Transfer Deed. The Land Registry Fee for a purchase of a property with a selling price of €115,000 would be approximately €160.

               Legal Fees.

       It is provided that the tax under art. 77 item 1 and item 3 of the Romanian Fiscal code (i.e. the tax afferent to the transfer of the ownership right and its parts, over the buildings of any kind and over the land safferent to such buildings, as well as over the lands of any kind without constructions, through deeds concluded between living persons) shall be calculated upon the value declared by the parties of the transfer deed. In case the value de-clared by the parties is inferior to the guiding value established by the appraisal drafted by the notary oublic association, the tax shall be calculated upon the value establised by the aformentioned appraisal, except for the transactions between relatives until the second grade inclusively and between espouses. In such latter cases, the tax shall be calculated upon the value declared by the parties in the trans-fer deed.

       At Albei & Albei Law Offices we do not base our professional fees on the value of the property. Instead we charge an hourly rate in order to keep the cost to our clients at an absolute minimum. We are pleased to provide clients with an estimate of our professional fees in respect of their property purchase as well as the other expenses they are likely to incur.

       Signing the Transfer Deed

       The sale and purchase of all property in Romania must be registered at the Land Registry ("Cartea Funciara"). The Land Registry maintains details of the property and records financial charges over the property. The Romanian Notary Public prepares the Transfer Deed in accordance with Romanian law. We ensure that the Transfer Deed is drafted in accordance with the intentions of the parties, as reflected in the private contract. It is usual for buyer and seller, together with their lawyers or agents, to meet in the Notary's office to complete the transaction.

       We handle all matters on behalf of our clients including:

"        checking the property is in fact registered in the name of the seller without any mortgages or other charges;

"        ensuring any existing mortgages or charges are cleared before completing the transaction;

"        completing the purchase on your behalf if you are unable to travel to Romania for the completion meeting. (This requires you to grant us a "specific power of attorney", which we can help you to organise.)

       Paying the purchase expenses and registering the Transfer Deed

       Once the parties have signed the Transfer Deed with the Notary and the purchase price has been paid to the seller, the buyer has to pay all the taxes (see above). After that is done, the Transfer Deed can be delivered to the Land Registry and the new owner entered on the Land Register.        

       Albei & Albei Law Offices handle payment of all taxes and other charges for our clients.

       A marketplace of almost 21 million, 37 million acres of arable land, a vibrant oil and gas industry, breathtaking landscapes, an expanding economy, a well-educated workforce with more than 55,000 specialists in information technology, access to the Black Sea and Asia.

       This is the country you are about to "conquer" ... in an euphemistic way, of course !