ROMANIA Law and Practice Contributed by: Monia Dobrescu and Mădălina Trifan, Mușat & Asociații
• 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. 6.4 Typical Terms of a Lease Length of Lease Term Romanian legislation provides for the 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 • a lease of a dwelling; and • a lease of agricultural land. 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 Unless the parties agree otherwise, the rent remains the same for the entire duration of the lease. In Romania, indexation of the rent is not man - datory, remaining at the choice of the parties. However, such clauses are common in long-term lease agreements. payment schedule. 6.5 Rent Variation It is important to mention that the courts may modify the parties’ rights and obligations in light of exceptional and unforeseen events. 6.6 Determination of New Rent The parties may agree for a rent change to be carried out under certain conditions and on the basis of specific calculation methods. It is important to note that many leases provide for an annual indexation of the rent, whereby the amount is changed according to certain eco - nomic indicators. 6.7 Payment of VAT The rental of real estate property located in Romania is generally VAT exempt without deduction rights. However, the right to opt for VAT (19% standard rate) may be exercised under certain conditions.
852 CHAMBERS.COM
Powered by FlippingBook