ROMANIA Law and Practice Contributed by: Monia Dobrescu and Mădălina Trifan, Mușat & Asociații
The warranties against eviction and against hid - den defects are not limited in time. The parties may agree to exclude or limit the seller’s liability, but it is forbidden to exclude or limit liability if the damage is caused by an act committed inten - tionally or through gross negligence. Moving forward, the parties may agree on addi - tional representations and warranties, depend - ing on the specifics of the deal and the conclu - sions of the due diligence report. For example, a commercial real estate transaction may include warranties relating to the absence of any litiga - tion and restitution claims, compliance with any environmental regulatory requirements or com - pliance with urban planning and building per - mits. If the seller does not observe its contractual obligations, the buyer is entitled to apply to the competent courts for the following: • in case of eviction – termination of the con - tract, refund of the purchase price and pay - ment of damages; or • in case of hidden defects – their removal, asset replacement, corresponding reduction of the purchase price or termination of the contract. The parties may agree that one party’s failure to comply with certain obligations entitles the other party to terminate the contract by written notice. In this way, court intervention is not necessary. 2.6 Important Areas of Law for Investors Investors should first focus on the ownership title and chain, so the history of the real estate must be assessed in order to identify potential restitution claims or other aspects, such as relat - ed encumbrances or existing litigation.
In a sale by public tender of properties owned by the Romanian state or its administrative bod - ies, specific legal procedures must be performed and related conditions complied with. The use, limits and conditions of construction are established by or depend on the city plan - ning and construction regulations (zoning and general plans, urbanism certificates, building permits, etc), the environmental approvals and the rules applicable in order to protect historical monuments and archaeological sites. Separately, the taxes and possibilities of financ - ing the asset must be taken into consideration. 2.7 Soil Pollution or Environmental Contamination The “polluter pays” principle is applied in Roma - nia, which means that the person who caused the pollution is liable for the damage it has caused. If the buyer of a real estate asset did not cause the pollution or contamination, they need to prove that it was generated before the title transfer, by the previous owner or tenant. 2.8 Permitted Uses of Real Estate Under Zoning or Planning Law The urbanism certificate details the legal, eco - nomic and technical regime of the lands and constructions existing in a specific area at the date of the request. The zonal urban plan (PUZ) is the regulatory instrument through which the integrated urban development of certain areas is co-ordinated. These documents establish the permitted use of a piece of real estate and the conditions and restrictions to be observed in order to build, and are the preliminary documents to a building per - mit, which, in turn, provides much more specific
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