ROMANIA Law and Practice Contributed by: Monia Dobrescu and Mădălina Trifan, Mușat & Asociații
The most recent real estate deals have proved a sense of consolidation and economic stability despite tougher fiscal and political predictability, especially in the industrial and logistics market, where investors continue to show great inter - est in leasing activity due to Romania’s visible position as a regional distribution hub. The retail segment was the leader in commercial property transactions, followed by office, industrial and hotel properties, reflecting an attractive and vibrant market. Even though the increase in financing costs has indeed impacted trading volume, the Romanian real estate market currently ensures a stable environment for investors, who remain positive and are looking to expand their portfolios with great confidence over the long term. While inter - est rates and rising inflation continue to be the primary concerns, a certain alleviation is antici - pated during 2024, leading to reduced pressure on the construction sector. The Romanian real estate market is expected to progressively embrace highly technological solutions to keep up with the digitalisation of the traditional investment landscape, especially in relation to the transfer of ownership through the tokenisation of land. As regards alternative sources of financing, both investors and devel - opers are increasingly turning to real estate investment platforms, along with traditional bank financing. 1.3 Proposals for Reform The Civil Code stipulates that the ownership right over properties will only be considered as having been acquired after it is registered in the Land Book. However, this provision is not yet in force; it will become applicable country-wide only after the
completion of the cadastral works for each ter - ritorial administrative unit. Until then, the regis - tration of real estate rights ensures opposability towards third parties, and the Land Book provi - sions have an informative effect.
2. Sale and Purchase 2.1 Categories of Property Rights
Property rights include several attributes: pos - session, use and disposition. In addition to exclusive ownership, common ownership (two or more persons holding quotas over the prop - erty) is also possible, which can be either co- ownership, where the quotas are divided, or joint ownership, where the quotas are undivided. The attributes of property rights are as follows: • the usufruct right – using an asset owned by another person and benefiting from its products; • the right of use – using an asset owned by another person and benefiting from its prod - ucts only for family and own needs; • the right of habitation – similar to the right of use, but applicable where the property is a dwelling; • the easement right – owning a plot of land (the dominant tenement) and having certain rights in connection with another person’s plot of land (the servient tenement); and • the superficies right – owning or constructing a building on another person’s land and also using the relevant land. In addition, assets that constitute the public or private property of the municipality or the Roma - nian state can be used on the basis of a conces - sion right.
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