In brief
Most failures of Israelis in real estate abroad did not stem from the choice of country, but from a transaction in which the buyer did not receive a registered and defined right, or transferred money that was not protected. The warning signs recur: a unit that is not registered, an account that is not in the contract, a private agreement instead of a notarial document, an unusual advance, an income guarantee from the seller, a partner who controls everything, the other side's lawyer and time pressure. In Romania most of them can be checked in public registers before the first payment.
Key takeaways
- 1The first question in any transaction: which defined unit will be registered in my name, and where do I see it in the land book extract?
- 2In Romania, under Law 207/2025, reservation fees are limited to 5% of the price and to 60 days, and payments to the developer go into a dedicated account.
- 3A private agreement that is not registered in the land book is invisible to the next buyer, and this is the heart of the Nordis affair.
- 4Independent checks: an extract from ANCPI, the ONRC trade register, the courts portal and the insolvency bulletin.
- 5A lawyer recommended and paid by the seller does not represent you.
When examining transactions that went wrong, in Romania and in other countries, the country itself is almost never the cause. The pattern recurs: the buyer transferred money before it was clear exactly what would be registered in his or her name, where the money was going and who represented him or her. This guide brings together the warning signs, what can be learned from documented cases, and the checks that can be made in Romania without asking the seller.
What is the most important red flag in a real estate transaction abroad?
When, at the end of the road, no specific and identified unit will stand in your name. What is presented as a “share of the project”, a “percentage of the building's holdings” or an “investment unit” is not an apartment. Before transferring money, establish what will be written in the register, in which register, and by what date.
In Romania, under Law 207/2025, reservation fees are limited to 5% of the price and to 60 days, and payments to the developer go into a dedicated account.
What do documented cases teach?
| Case | What was reported | The lesson |
|---|---|---|
| Romania, 2009 | According to the Imobiliare.ro index, asking prices for new apartments in Bucharest fell by about 29% in 2009 | Price is not a promise; high leverage increases the damage |
| Romania, land partnerships | Calcalist described in 2013 Israelis who invested in partnerships in which the registration did not match what they had paid | What is registered is what you have |
| Romania, the Nordis affair | Off-plan apartments were sold to more than one buyer under agreements that were not registered | A private agreement does not protect |
| Germany, 2026 | According to TheMarker, 24 Israeli buyers claim they were registered as owners of about 1% of a hotel building, without a specific apartment; the company denies this | Buy a unit, not a “share” |
The 2008 crisis. Until 2008 prices in Bucharest rose quickly, and many assumed the trend would continue. According to the Imobiliare.ro index, in the six largest cities prices at the end of 2009 were more than 40% below the peak of March 2008. The lesson is not “do not buy”, but that those who bought with high leverage and without the ability to hold for a long time were hit hardest of all.
A partnership that was not registered. A 2013 Calcalist investigation described an investor who paid EUR 102,000 for 5% of a plot of land, while the official documents showed an investment of only EUR 52,000. In other cases a local partner gradually took control of the property or loaded it with debts. The common denominator: the money was transferred, but the right was not registered as the buyer understood it.
Nordis. Buyers signed private agreements for off-plan apartments, the agreements were not registered, and the same apartment was sold to more than one person. In response, Law 207/2025 was enacted, which entered into force in December 2025 and whose rules have appeared since 25.8.2026 in Article 422(6) to (11) of the Planning and Construction Code (Law 169/2026): reservation fees up to 5% and up to 60 days, a dedicated project bank account from which the developer draws up to 25% of the price for the structural frame and, after its completion, up to 20% for the building systems, with the approval of the site supervisor, and a preliminary contract before a notary only after the building permit has been registered in the land book.
Germany. In October 2026 it was reported that Israeli buyers who, according to them, bought holiday apartments in a hotel building in the Black Forest area, claim they discovered that they had been registered as owners of small shares of the building without a specific apartment. The buyers filed a claim, and the company rejects the allegations. There is no judicial ruling here, but the question that arises is relevant to every country: what exactly will be registered in my name?
The eight warning signs, and how to check each one
- The unit is not identified in the register. Make sure that a land book entry has been opened for the property, or at least that the unit has been provisionally registered.
- An account not mentioned in the contract. When buying from a developer in Romania, the only destination for the money is the project's dedicated account. An email notice of a “change in account details” requires you to stop and verify by telephone.
- A private document instead of a notarial deed. A proposal to sign a “memorandum of understanding” right now and postpone the notary to a later stage does not match the situation after Law 207/2025.
- An overly expensive reservation. In Romania, a payment exceeding 5% of the price at the reservation stage exceeds the statutory ceiling, even if it is presented as a discount or a benefit.
- The seller also guarantees a return. In such a situation your income depends on the seller's soundness, not on demand for the property.
- Control lies with the local partner. He is the sole director, he holds the signing rights at the bank, and your participation exists mainly on paper.
- A lawyer on the seller's behalf. Someone the seller referred to you and whose fee the seller pays is bound to the seller.
- Artificial urgency. “Only two units left, answer by tomorrow”. A sound transaction will also withstand a week of legal review.
How do you check a developer and a property in Romania without relying on the seller?
Romania has official, public registers that allow an independent check, free of charge or at low cost:
| What is checked | Where | What you find out |
|---|---|---|
| The property | The land book, an extract from ANCPI | Owners, encumbrances, notations and registered promises of sale |
| The company | The ONRC trade register | Directors, shareholders and the company's status |
| Legal proceedings | The courts portal (portal.just.ro) | Cases in which the company or its owners are a party |
| Insolvency | Buletinul Procedurilor de Insolvență (the insolvency proceedings bulletin), administered by ONRC | Insolvency proceedings that have been opened |
After the Nordis affair, the main loopholes in the legislation were closed: a preliminary deed before a notary, registration at unit level, a limit on the amount of the reservation fee and a separate account for the project. This protection is effective only if you actually verify that the developer acts in accordance with it and see the documents with your own eyes.
What should you ask to see before the first payment?
- The draft notarial preliminary contract and the description of the unit in it.
- The details of the project's dedicated account, as they appear in the contract.
- A current extract showing the building permit and the unit's land book entry.
- After signing: a new extract in which the registration of the preliminary contract appears.
Exactly the same requests are worth putting to every developer, in every project.
What to do before signing and how we assist
The questions are the same in every country: what will be registered in my name, where the money goes, who represents me and what happens if something goes wrong. We go through the eight signs with the buyer against the specific transaction, carry out the checks in the Romanian registers and flag what is missing before any money is transferred. The notarial contracts and registration are carried out by a notary and by lawyers licensed in Romania.
What is stated here is general information correct as of October 2026 and does not constitute legal advice for a specific case. The description of the cases is based on media reports; the German case concerns allegations by buyers that the company denies, and no judicial finding has been made in it.
Frequently asked questions
Does Law 207/2025 protect against an affair like Nordis?
The law closes the main loopholes: a preliminary contract before a notary, registration at unit level, a ceiling on the reservation fee and a dedicated account. It works only when you check that the developer actually complies with it and ask to see the documents.
Is it permitted to buy a property in Romania through a partnership with a local?
It is permitted, but it is a structure that requires a double check: who the director is, who signs on the bank account and what is registered in the companies register. The cases described in Calcalist in 2013 stemmed from a gap between what the investors understood and what was registered.
How do you check a developer in Romania independently?
Obtain an extract from ANCPI, check the company in the ONRC trade register, search for cases on the courts portal and check the insolvency bulletin. All are official, public sources.
Is a rental guarantee from the seller always a red flag?
Not always, but it shifts the risk from the property to the seller's ability to honour the guarantee. If the seller stops paying, you are left with a contract against the seller. Check what happens to the property in such a scenario.
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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.