Ilan Leibovitch & Co.Lawyer and real estate developer
RomaniaRisks and pitfalls

A Developer in Romania Is Late with Delivery: Your Rights and How to Act under the Civil Code

Romania has no fixed statutory delay compensation. Under the Civil Code: formal notice, penalty clause, withholding, termination, a 6-month claim.

By Adv. Ilan LeibovitchUpdated: 6 min read
Risks and pitfallsPl. I

In brief

Unlike the Israeli Sale (Apartments) Law, Romanian law does not set fixed compensation for delay in delivering a new apartment. The buyer's rights rest on the preliminary contract and on the Civil Code: a formal notice with a deadline for performance, collection of agreed damages without proving loss, withholding of payment, termination of the contract, or a court judgment that takes the place of the final contract within 6 months. The real protection is therefore determined by how the contract is drafted, before signing.

Key takeaways

  1. 1Law 207/2025 limits reservation fees and the use of advance payments and requires a dedicated account, but it does not set a delivery date or compensation for delay.
  2. 2The first step is a formal written notice under Article 1522, with a deadline for performance and sent in a way that proves delivery.
  3. 3Agreed damages (clauza penală) are collected without proving loss under Article 1538, and the court reduces them only in exceptional cases.
  4. 4A developer who refuses to sign the final contract: a claim under Articles 1279 and 1669, within 6 months of the date on which the contract should have been signed.
  5. 5Force majeure under Article 1351 is an external and unforeseeable event; contractor delays or price increases usually do not meet the definition.

Delays in new projects happen, even with well-organised developers. The difference between a buyer who is protected and a buyer who remains exposed is not determined on the day the key fails to arrive, but on the day the preliminary contract is signed. Those coming from Israel sometimes assume there is a statutory “safety net”, like the one they know from home. In Romania there is none, and this is the starting point for everything that follows.

Is there statutory compensation in Romania for delay in delivering an apartment?

No. In Israel, section 5A of the Sale (Apartments) Law provides compensation for a delay of more than a month, calculated by reference to the rent of a similar apartment and rising gradually up to 1.5 times, without the buyer having to prove loss. Romania has no parallel mechanism: the compensation you will receive for delay is exactly what is written in the contract, and if nothing is written, you will have to prove the loss in court.

The first step is a formal written notice under Article 1522, with a deadline for performance and sent in a way that proves delivery.

Key takeaways

What does the Nordis Law change in a delay situation, and what does it not change?

Law 207/2025 (the “Nordis Law”) entered into force in December 2025, and on 25.8.2026 its rules were moved to Article 422(6) to (11) of the Planning and Construction Code, Law 169/2026. Its main change concerns the money the buyer pays before delivery, and less the delivery date itself:

SubjectWhat the law provides
Reservation feeA ceiling of 5% of the price and a period of no more than 60 days; if the transaction failed through the developer's sole fault, the money is returned in full within 30 days
Use of advance paymentsThe developer draws up to 25% of the price for the structural frame stage, and thereafter up to 20% for the building systems stage, each withdrawal signed off by the site supervisor
AccountA separate bank account for each project; using the funds for an unrelated purpose incurs a fine of 1% of turnover
The preliminary contractBefore a notary only, with registration in the land book

The law does not set a delivery date, does not dictate a pace of construction and does not grant the buyer any amount for delay. Its role is to reduce the financial exposure while the project is delayed, not to compensate for it.

Bucharest

Which tools does the Romanian Civil Code give the buyer?

ToolCivil Code articleWhat you obtainNote
Formal notice (punere în întârziere)1522A written deadline for performanceSent through a bailiff or by any means that proves delivery
Agreed damages (clauza penală)1538, 1541The amount in the contract, without proof of lossReduced only when it is manifestly excessive or when part has been performed
Withholding of payment1556Non-performance to the corresponding extent when the other party has not performedNot for a minor breach
Termination (rezoluțiune)1549, 1550, 1552Return of the money and damagesThe notice of termination is registered in the land book
Judgment in place of contract1279, 1669Transfer of ownership without the developer's cooperationClaim within 6 months
Earnest money (arvună)1544Termination and a claim for double the amountOnly if the payment was expressly defined as arvună

What is the first step once the date has passed?

A letter of formal notice. Article 1522 requires the notice to be in writing and to allow the developer time to perform; where no time is allowed, the developer may complete “within a reasonable time”. The letter marks the point at which the developer is regarded as in breach, and from which damages begin to be counted.

There is also a financial side: a claim filed without prior notice gives the developer a reasonable time to perform, and if the developer performs within it, the costs of the proceedings may be imposed on you. A notice is much cheaper than legal proceedings, and it is a precondition for most of the steps that follow.

How are agreed damages collected, and what happens when there is no such clause?

Where the preliminary contract includes a clause providing compensation for delay, there is no need to show that you have suffered loss: Article 1538 allows the amount agreed to be collected as it stands. This is the most effective tool available to you, but it exists only if it was drafted in advance.

The court's intervention in the amount is limited. Article 1541 permits a reduction only if part of the obligation has already been performed in your favour, or if the amount departs to an extreme degree from the loss that could have been foreseen. And even when it is reduced, the remaining amount must exceed the principal obligation.

Without a compensation clause, the right to damages exists, but you must prove the loss: rent you paid in the meantime, interest differences and additional expenses. This is a longer and more expensive process.

When do you terminate the contract, and when do you seek a judgment in its place?

Termination. The Civil Code (Articles 1550 and 1552) permits termination of the contract by written notice where the contract itself allows it, or where the deadline set in the formal notice has passed without performance; alternatively, you may apply to the court for termination. For the termination to be effective also against third parties, the notice is registered in the land book. In practice, money is returned only by a developer that has something to return it from, which is why the dedicated account required by Law 207/2025 carries considerable weight here.

Enforcement. Where construction has been completed but the developer evades the final contract, you may ask the court, under Articles 1279 and 1669, for a judgment that replaces the signature, provided that you yourselves have performed your part. The window for such a claim is 6 months from the date on which the contract should have been signed, and whoever waits beyond that loses the option.

Withholding payment: with caution

Under Article 1556, where the other party does not perform, you are permitted to suspend your own performance proportionately. In an off-plan purchase this is relevant mainly to a payment conditional on a construction stage that has not yet been completed. Without a prior legal review, you may find yourselves on the side in breach.

What can a developer claim as “force majeure”?

Article 1351 defines force majeure as an external, unforeseeable event that cannot in any way be overcome or prevented. A subcontractor's delay, a shortage of workers or an increase in material prices usually do not meet the definition. The danger lies in the contract itself: a clause that defines “delay in permits” or “weather conditions” as force majeure extends the developer's protection beyond the law. Such a clause should at least have a time limit.

Which clauses should you demand in the preliminary contract in advance?

  1. A delivery day fixed in the calendar, not a “quarter” or a “season”, and a grace period of defined length.
  2. An amount of compensation for each day or month of delay, starting from the end of the grace period.
  3. An option to exit the transaction after a delay of a pre-agreed extent, with the money refunded in full by a known date.
  4. A closed list of force majeure events, with a time cap.
  5. Symmetry: the same late-payment interest that applies to you for late payment applies to the developer for late delivery.

When is it better not to rush to court?

A two-month delay in a project that is progressing on site is very different from a site that stands empty. Before sending a notice, check whether there is activity on site, whether withdrawals from the dedicated account continue according to stages, and whether the developer communicates with you in writing. Legal proceedings in Romania take time and cost money, and sometimes a written settlement with agreed compensation is worth more than a judgment in two years. The decision should be made with a Romanian lawyer, not out of anger.

What to do before signing and how we assist

The time to deal with a delay is before it happens. We review with the buyer the delivery, compensation, termination and force majeure clauses in the draft preliminary contract, explain the gap compared with what the buyer knows from Israel, and assist with the steps if a delay has already occurred. Notices, claims and the registration of notices in the land book are carried out by lawyers and notaries licensed in Romania.

General information only

What is stated here is a general summary of the Romanian Civil Code and of Law 207/2025, correct as of October 2026, and does not constitute legal advice for a specific case. The binding text is the one published in the Monitorul Oficial. In the event of a delay, consult an independent Romanian lawyer before any step.

Frequently asked questions

Is there fixed statutory compensation in Romania for delay in delivering an apartment?

No. Unlike the Sale (Apartments) Law in Israel, Romanian law does not set fixed compensation. Compensation is determined in the contract, and without such a clause the loss must be proved in court.

Does the Nordis Law protect against delays?

Only indirectly. The law limits reservation fees and the use of advance payments, and requires a dedicated account and a preliminary contract before a notary, so less money is at risk. It does not set a delivery date and does not grant compensation for delay.

What do you do when the developer is late?

Send a formal written notice under Article 1522 of the Civil Code, in a way that proves delivery, with a deadline for performance. The notice fixes the moment of breach and opens the way to compensation and termination.

The building is finished but the developer will not sign the final contract. What are the options?

You can ask the court for a judgment that takes the place of the contract, under Articles 1279 and 1669, provided you have met your own obligations. The claim is filed within 6 months of the date on which the contract should have been signed.

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Sources

  1. Romanian legislation portal - Law 207/2025
  2. Romanian legislation portal - Civil Code (Law 287/2009)
  3. National Union of Notaries Public of Romania (UNNPR)

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.

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