ROMANIA Law and Practice Contributed by: Monia Dobrescu and Mădălina Trifan, Mușat & Asociații
COVID-19 Some tenants have recovered some costs under their business interruption insurance policies, as per the strict provisions therein. However, many insurance companies have re-evaluated their policies in order to add exclusions in case of COVID-19-related loss of business, or to expressly provide limited coverage for certain business interruption related to COVID-19. 6.12 Restrictions on the Use of Real Estate The tenant must use the leased property pru - dently and diligently, according to the purpose provided in the agreement or the use presumed on the basis of certain circumstances (eg, previ - ous use of the property). Otherwise, the landlord may claim damage compensation and even, as the case may be, termination of the contract. Under certain conditions, changing the leased property designation requires the approval of the neighbours. 6.13 Tenant’s Ability to Alter and Improve Real Estate If the tenant modifies the property or uses it in such a way as to cause damages, the landlord can claim compensation and, as the case may be, terminate the contract. The landlord has the right to keep the improvements to the proper - ty made without prior approval and cannot be obliged to compensate the tenant for such. It is the landlord’s choice to request the tenant to return the property to its original condition or the payment of compensation for any damage caused. 6.14 Specific Regulations The rules established by the Civil Code apply to lease agreements, while the law provides for specific provisions for dwellings, most of
which create additional protection for the ten - ant. Agreements for the use of agricultural land ( contractul de arendă ) also fall under certain spe - cific legal provisions. 6.15 Effect of the Tenant’s Insolvency According to the insolvency legislation, any agreements in progress are considered to be maintained at the date of the opening of the insolvency procedure, while any contractual clauses terminating ongoing contracts, forfeiting the benefit of the term, modifying the contract to the detriment of the debtor or declaring early enforceability for the reason of the opening of proceedings shall be deemed unwritten. However, in order to increase the value of the debtor’s patrimony, the judicial administrator/liq - uidator may terminate any agreement, unexpired leases or other long-term agreements within a limitation period of three months from the date of the opening of the insolvency procedure, as long as such agreements have not been fully or substantially performed by all parties involved. In this situation, the agreement is considered ter - minated as of the date of the notification sent by the judicial administrator of the debtor (tenant) to the landlord. The insolvency legislation also entitles the other contracting party (landlord) to notify the judicial administrator/liquidator of the termination of the agreement. The judicial administrator/liquidator must respond within 30 days, under the sanction of the contract being considered terminated at the end of such term. Accordingly, the judicial administrator/liquidator will no longer be able to request the performance of the contract. If the insolvency administrator/liquidator requests the performance of the contract, they shall state quarterly in the activity reports wheth -
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