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

Handover Date and Compensation for Delay in Romania: What the Law Does Not Give and What Must Be Written in the Preliminary Contract

Romania has no fixed statutory compensation for late handover. Which clauses to demand, what the Civil Code says, how to act if the developer is late.

By Adv. Ilan LeibovitchUpdated: 5 min read
Risks and pitfallsPl. I

In brief

Unlike the Israeli Sale (Apartments) Law, Romanian law does not provide statutory compensation for delay in handing over a new apartment, and Law 207/2025 does not set a handover date or compensation either. The buyer's protection against delay lies in the preliminary contract: a date for the specific unit, a grace period, agreed compensation (clauza penală), a limited definition of force majeure and a right of termination. You need to see all of these in writing before the first payment.

Key takeaways

  1. 1Romania has no mechanism like section 5A of the Israeli Sale (Apartments) Law. Compensation for delay is set by the contract alone.
  2. 2Law 207/2025 protects the money during construction, not the timetable.
  3. 3Agreed compensation under Article 1538 of the Civil Code allows you to claim the amount in the contract without proving damage.
  4. 4The definition of force majeure in Article 1351 is narrow, but the parties may extend it in the contract, so an extending clause needs a time limit.
  5. 5If the home is ready and the developer refuses to sign, you have 6 months to ask the court for a judgment that takes the place of the contract (Article 1669).

An Israeli buyer who buys a new apartment from a contractor in Israel is used to the law standing on their side if handover is delayed. Someone who moves on to buying off-plan in Romania discovers a different picture: the law there protects the funds well during construction, but leaves the timetable to the contract.

This means that the question "when will I get the key, and what will happen if I do not" is answered in only one document: the preliminary contract. This guide explains what Romanian law gives, what it does not give, and how to build a contract that protects you.

Is there statutory compensation in Romania for delay in handing over an apartment?

No. In Israel, section 5A of the Sale (Apartments) Law provides compensation for delay in handover without the need to prove damage. Romania has no such mechanism. Law 207/2025, the "Nordis law", does not set a handover date or compensation for delay either. It deals with where your money is held and the pace at which the developer may use it.

IsraelRomania
Source of compensation for delaySection 5A of the Sale (Apartments) LawThe contract alone
Need to prove damageNoNo, if agreed compensation was set. Otherwise yes
What protects the timetableThe lawThe preliminary contract
The practical rule

A handover date without an agreed compensation clause is a declaration of intent. A date with agreed compensation, a defined grace period and a right of termination is an undertaking.

Law 207/2025 protects the money during construction, not the timetable.

Key takeaways

What does Law 207/2025 give the buyer during construction?

The law protects the money. Under Law 207/2025, whose rules are now found in Article 422 of the Planning and Construction Code, advance payments go into a separate bank account dedicated to the project, and every drawdown from it requires the approval of the site supervisor.

  • Caps by stage: the developer may spend up to 25% of the price on the structural frame, and only after the frame is completed a further up to 20% on the building systems.
  • A fine for other use: a developer who uses the advance payments for another purpose faces a fine of 1% of turnover.
  • Registration: a notary may draw up a preliminary contract for a future home only after the building permit has been registered in the land book and there is an extract for the future unit, and must apply to register the contract on the day of signing or at the latest on the next business day.

What this means: the money moves when the construction moves. But if construction stops or is delayed, the law does not set a date for you and does not set compensation.

Bucharest

Which articles of the Romanian Civil Code are relevant to delay?

The Civil Code provides the tools, and the contract determines how much they are actually worth:

The toolCivil Code articleWhat it allows
Formal notice1522Sets a final deadline in writing, from which the breach is counted
Agreed compensation (clauza penală)1538, 1541Claiming the amount in the contract without proving damage
Termination of the contract1550, 1552Return of the money where the breach justifies it
Judgment in place of a contract1669Transfer of ownership by a claim filed within 6 months
Force majeure1351Exemption from liability for an external, unforeseeable and insurmountable event

Without an agreed compensation clause, you will have to prove before a Romanian court the damage the delay caused you, for example rent you paid or income you lost. This is a long and costly procedure. Agreed compensation saves that stage.

What must be written in the preliminary contract for it to protect against delay?

The preliminary contract is signed before a notary, and the binding specification is the one attached to it. When you receive a draft, look for the following five elements in it:

  1. A handover date for your unit. A defined date and not "a quarter" or "approximately", and a grace period defined in days.
  2. Agreed compensation. A clauza penală in an amount per day or per month, counted from the day after the grace period.
  3. Defined force majeure. Article 1351 defines force majeure as an external, unforeseeable event that cannot be overcome or prevented. The law allows the parties to agree otherwise, so a clause that extends the definition needs a closed list and a time limit.
  4. A right of termination. After a delay of a defined period, with return of all the money by a fixed date.
  5. A payment schedule by stages. Each payment is tied to a construction stage that can be seen on site, and is transferred to the project's dedicated account.

If one of the elements is missing, ask the developer in writing why. A written answer with figures is also a good indication of an intention to meet the date.

How do you check this in practice before signing?

  • Ask for the unit number and its construction stage, and require that its date be written in the contract.
  • Ask for the draft preliminary contract early, and have a Romanian lawyer acting for you read it. The developer's lawyer represents the developer only.
  • Make sure the compensation is worded as agreed compensation with a defined amount per day or per month.
  • Read the force majeure clause and make sure it is not an open list.
  • Compare the account number in the contract with the project's dedicated account.
  • Obtain an extract from the land registry authority (ANCPI) and make sure the permit is registered, and after signing that the preliminary contract has been registered.
  • Visit the site or ask for dated photographs, and compare the state of construction with the payment you are being asked for.

The developer is late. What do you do?

The first step is a written notice under Article 1522, with a deadline for performance. The breach is counted from it, and from there the way opens to the agreed compensation, termination or a claim. If the home is ready and the developer refuses to sign the final contract, you may ask the court for a judgment that takes the place of the contract, but this must be done within 6 months of the date on which the contract should have been signed (Article 1669). These steps are taken by a lawyer licensed in Romania.

What to do before signing, and how we accompany the contract

Ask every seller exactly the same questions: what is the date for this unit, and what does the contract say if it passes. We help Israeli buyers read the draft preliminary contract against this list, understand the gaps compared with what they know from Israel, and formulate the requests for amendment. The signing and registration take place before a notary in Romania, and local representation is provided by a lawyer licensed in Romania.

General information only

The above is general information and is not legal advice. The handover and compensation terms are set in your contract, so they must be checked with an independent Romanian lawyer before any payment.

Frequently asked questions

Is there statutory compensation in Romania for delay in handing over an apartment?

No. Unlike the Israeli Sale (Apartments) Law, in Romania compensation is set by the contract alone. Without an agreed compensation clause, the damage must be proved in court.

What is a clauza penală?

Agreed compensation set in advance in the contract. Under Article 1538 of the Romanian Civil Code, the amount set can be claimed without proving the actual damage.

I bought an off-plan apartment in Romania and the developer is late. What is the first step?

A written notice under Article 1522, with a deadline for performance. From there the way opens to the agreed compensation, termination or a claim, with the assistance of a Romanian lawyer.

What happens if the home is ready and the developer does not sign the final contract?

You may ask the court for a judgment that takes the place of the contract, provided the claim is filed within 6 months of the date on which the contract should have been signed (Article 1669).

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Sources

  1. Portal legislativ - Codul civil și Legea 207/2025
  2. Portal legislativ - Ministerul Justiției
  3. ANCPI - Agenția Națională de Cadastru și Publicitate Imobiliară

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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