ROMANIA Law and Practice Contributed by: Monia Dobrescu and Mădălina Trifan, Mușat & Asociații
6.20 Registration Requirements Although Romanian legislation does not impose such an obligation, the lease must be registered in the Land Book in order to be enforceable against subsequent owners. As a general rule, the tenant covers the fee related to this service (RON75). For agreements concluded after 1 January 2023, taxpayers who obtain income from the transfer of the use of their personal property, other than agricultural land rental income and income from the rental of rooms located in personally owned dwellings for tourism purposes, are required to register the agreement concluded between the parties, as well as any subsequent addenda, with the competent tax authority within 30 days of its conclusion/change. Such requirement is mandatory for natural persons, but optional for legal persons. 6.21 Forced Eviction When the tenant fails to perform its obligations arising from this agreement without justification, the landlord has the right to terminate the lease and claim compensation, if applicable. Upon prior written notification, and if the ten - ant refuses to leave the premises voluntarily, an eviction is carried out on the basis of a court decision. In addition, the tenant must pay the rent due until the date of the effective vacation of the premises. 6.22 Termination by a Third Party There are certain circumstances that allow the public authorities to terminate a lease agreement by expropriation – for reasons of over-riding public interest at a local or national level. More specifically, any lease agreement shall terminate ipso jure in the course of expropriation proce - dures, on the final judgment date.
If the leased property is registered in the Land Book, the agreement must also be recorded with the Land Book in order to be enforceable against any subsequent owner; otherwise, the subsequent owner may terminate the lease. For properties that are not registered, the agreement must have a certified date prior to that of the transfer in order for the lease to be enforceable against any subsequent owner. 6.23 Remedies/Damages for Breach As mentioned in 6.16 Forms of Security to Pro- tect Against a Failure of the Tenant to Meet Its Obligations , certain forms of security can be provided to a landlord to protect against a failure by the tenant to meet its obligations. In order to cover the damages, the security deposit will be retained in full or in part, depending on the case. If the damage exceeds the security deposit, the lessor can obtain compensation by a court deci - sion. 7. Construction 7.1 Common Structures Used to Price Construction Projects In principle, the development agreement con - cluded between an investor and a contractor provides for the following three possible options to price a construction project. • The estimated price, in which the costs of the project or the provided services are subject to an estimation, and as a consequence any increase of costs must be justified by the contractor. The beneficiary is not obliged to pay the increased price, unless this increase results from works or services that were not foreseen by the contractor at the conclusion of the contract.
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