ROMANIA Law and Practice Contributed by: Monia Dobrescu and Mădălina Trifan, Mușat & Asociații
6. Commercial Leases 6.1 Types of Arrangements Allowing the Use of Real Estate for a Limited Period of Time The right to use a piece of real estate for a limited period of time without buying it can be acquired via: • a free-use agreement for a property ( contract de comodat ); • a concession agreement; • a lease agreement; • a lease of a dwelling; or • a lease of agricultural land. 6.2 Types of Commercial Leases In Romania, there are three types of lease: • a lease agreement; 6.3 Regulation of Rents or Lease Terms Rent is one of the terms of a lease agreement that can be freely negotiated between the par - ties. In the context of the COVID-19 pandemic, the Romanian government adopted some meas - ures to sustain the business sector, including the postponement of payment of rent and utilities for, but not limited to, small and medium enter- prises. The measures were applied during the state of emergency, but could only be benefitted from when certain cumulative conditions were met. Under certain conditions, tenants who were economically affected during the state of emer - gency had the possibility to defer on request the payment of rent for the use of buildings regis - tered as offices, workplaces or dwellings. • a lease of a dwelling; and • a lease of agricultural land.
Rent payments were made by the competent territorial tax authority to the account of the land - lords at the tenants’ request. Tenants who ben - efitted from deferment had to pay the deferred amounts, representing the amount of rent paid by the authorities to the landlord, to the compe - tent territorial tax body by 31 December 2020. 6.4 Typical Terms of a Lease Length of Lease Term Romanian legislation provides for a maximum duration of a lease agreement (49 years), but no minimum. If the parties establish a longer dura - tion, it will be automatically reduced. If the par - ties did not provide an expiry date but did not intend to conclude the agreement for an indefi - nite period, the duration may be determined on the basis of the provisions of the Civil Code. Maintenance and Repairs The costs of any major and necessary repairs are paid by the landlord. The expenses related to the day-to-day maintenance of the property are paid by the tenant. As an alternative, these may initially be borne by the landlord and then recharged to the tenant. Rent Payment Unless the parties agree otherwise, the rent is paid according to the common practice. If there is no common practice, the rent is paid as fol - lows: • in advance for the entire duration of the con - tract, if it does not exceed one month; • monthly, if the duration of the lease is longer than one month but less than one year; or • quarterly, if the duration of the lease is at least one year. However, the parties may agree on a different payment schedule.
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