In brief
In a real estate transaction in Romania only the notary is mandatory, but the notary is neutral and does not represent you. A lawyer registered with a bar that is a member of UNBR is the only professional who can give an opinion on Romanian law and check the property on the ground, and an Israeli lawyer familiar with Romania connects the transaction to the Israeli side. For most buyers from Israel, it is the combination of the two that covers the whole transaction.
Key takeaways
- 1Under Article 1244 of the Romanian Civil Code, the transfer of a right in real property must be made by notarial deed, so the notary is mandatory.
- 2The notary is neutral: the notary does not check whether the price is fair, whether the developer is stable or whether the construction matches the plan.
- 3Under Law 51/1995, a lawyer in Romania may practise only if registered with a bar that is a member of UNBR. Check before the first meeting.
- 4A lawyer paid by the developer owes duties to the developer, even if he or she is professional and pleasant.
- 5Ask in writing for: the scope of work, what is not included, a written review report, the language, a conflict of interest declaration and a timetable.
Israeli buyers arrive in Romania with habits from Israel: one lawyer who handles the whole transaction, the Sale of Apartments Law, a bank guarantee. In Romania the division of roles is different. There are several professionals, and each has a different responsibility. Whoever understands the division in advance knows whom to hire, what to ask of them and where gaps remain.
Do you need a lawyer to buy property in Romania?
No. The only mandatory professional is a notary. Under Article 1244 of the Romanian Civil Code, an agreement that transfers a right in real property registered in the land register must be signed as an authentic instrument (act autentic, a deed drawn up before a notary), failing which it is null and void.
But the notary does not work for you. The notary verifies identity, drafts the contract in official form, collects the taxes and submits it for registration. The notary does not check whether the price is fair, whether the developer is financially stable or whether what has been built on the ground matches the permit. An independent lawyer is therefore not mandatory by law, but is highly recommended.
The notary is neutral: the notary does not check whether the price is fair, whether the developer is stable or whether the construction matches the plan.
Who does what in the transaction? Table of roles
| Professional | Role in the transaction | Whom they represent | Mandatory? |
|---|---|---|---|
| Romanian notary | Drafting the contract in official form, verifying identity, collecting taxes and submitting for registration | No party; the notary is neutral | Yes, for the transfer of ownership |
| Romanian lawyer | Due diligence, land register extract, permits, preliminary contract, representation against the developer and in court | You | No, but highly recommended |
| Israeli lawyer | Explanation in Hebrew, coordination, power of attorney and apostille, liaison with the tax adviser in Israel | You | No |
| Tax adviser familiar with both countries | Reporting and taxation in Israel and in Romania | You | No, but worthwhile |
| Authorised translator | Translation at the time of signing before the notary | No party | When you do not understand Romanian |
How do you check that a Romanian lawyer is registered and entitled to practise?
Check it yourself, on the website of the bar association union UNBR (Uniunea Națională a Barourilor din România, the National Union of Romanian Bars). Under Law 51/1995 on the organisation of the legal profession, a lawyer may practise only if registered on the roll of lawyers of a bar that is a member of UNBR.
Anyone who does not appear on a bar's roll is not a lawyer in Romania, even if he or she presents an impressive business card or website. Carry out the check before the first meeting, not after signing an agreement.
What does a Romanian lawyer do that cannot be done from Israel?
Only a lawyer licensed to practise in Romania can sign an opinion on Romanian law and represent you before a Romanian court. The Romanian lawyer is also the one who checks on the ground what cannot be seen from Tel Aviv:
- Pending cases against the developer or the seller.
- Debts and encumbrances, beyond what appears in the land register extract.
- The actual planning and permit status.
- Consistency between the registration in the land register and what exists on the ground.
What does an Israeli lawyer add to a transaction in Romania?
An Israeli lawyer cannot sign an opinion on Romanian law in place of the Romanian lawyer. The Israeli lawyer's role is different, and it completes the picture:
- Language. An explanation in Hebrew of what is written in the contract, and of what is missing from it.
- Management and coordination. Working with the Romanian lawyer, the notary and the timetable.
- The Israeli side. A power of attorney before a notary in Israel, apostille, translation and liaison with the tax adviser.
- Professional accountability in Israel. The Israeli lawyer is subject to the Israel Bar Association and can be approached and sued here.
The main value lies in the gap between the two systems. Israeli buyers tend to assume that Romania has an equivalent of the Sale Law, that there is a bank guarantee or that it is easy to cancel a transaction. Someone who knows both legal systems identifies these assumptions early.
What should you ask for in writing before starting to work with a lawyer?
A detailed engagement agreement prevents misunderstandings. Make sure it includes:
- Scope of work: land register extract, review of the developer, permits, preliminary contract, final contract and registration.
- What is not included: for example a mortgage, litigation and tax advice.
- A written deliverable: a written review report, and not just “everything is fine” in a phone call.
- Language of the report: English, Hebrew or Romanian.
- A conflict of interest declaration: that the lawyer does not represent the developer and receives no commission from it.
- An agreed timetable for each stage.
Why is the developer's lawyer not your lawyer?
Many developers offer “a lawyer who accompanies the project”. This is convenient, and sometimes also professional, but the lawyer's duty is to whoever hired him or her. Ask every lawyer offered to you one question: who pays you? If the answer is the developer, that lawyer does not represent you.
In this context, and in the name of the same transparency we ask of others, a disclosure regarding the firm:
Disclosure: Adv. Ilan Leibovitch is also a real estate developer and a partner in Compass Group, the developer of Compass on the Lake in Romania. The firm does not represent buyers or investors in transactions with Compass Group or in its projects, and refers them to an independent lawyer.
Which combination suits you?
- You speak Romanian and know the system: an independent Romanian lawyer may be sufficient, alongside a tax adviser for the Israeli side.
- You are in Israel, do not speak Romanian, and this is your first transaction: the combination of an Israeli lawyer who accompanies you and a Romanian lawyer who checks and signs.
- You are buying an apartment under construction from a developer: the same combination, with emphasis on reviewing the developer and on the dedicated account required under the Nordis Law.
And one more simple test: an Israeli lawyer who has no Romanian lawyer alongside, or who cannot tell you who that lawyer is, does not cover everything the transaction requires.
What should be done before signing?
Before signing anything, assemble a team: a notary, an independent Romanian lawyer whom you have checked with UNBR, and someone who connects the transaction to Israel. When we accompany a buyer, we work alongside a licensed Romanian lawyer and a local notary, who perform the acts governed by Romanian law, and we make sure that each professional receives a clear task in writing.
The content of this article is general information only and does not constitute legal advice. Laws and procedures in Romania may change. Before any decision or legal step, it is recommended to obtain individual advice tailored to your circumstances.
Frequently asked questions
Do you need a lawyer to buy an apartment in Romania?
No. Only a notary is mandatory, because an agreement to transfer a right in real property must be signed by notarial deed under Article 1244 of the Civil Code. The notary is neutral and does not check the developer, the price or the planning, so an independent lawyer is recommended.
Can an Israeli lawyer represent me in Romania?
An Israeli lawyer can accompany, explain and coordinate. An opinion on Romanian law and representation before a Romanian court are the role of a lawyer registered with a Romanian bar that is a member of UNBR.
How do you check that a Romanian lawyer is registered?
Under Law 51/1995, a lawyer may practise only if registered on the roll of a bar that is a member of UNBR. Search for the lawyer's name on the bars' rolls through the UNBR website before you sign an engagement agreement.
Can the notary also act as my lawyer?
No. The notary is a neutral officer who ensures that the transaction is lawful and is registered. The notary represents neither the buyer nor the seller.
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The information in this guide is general in nature and does not constitute legal or tax advice on any specific transaction. Every transaction is assessed on its own facts.