In brief
Most mistakes in real estate abroad start with a question asked too late, after the money has already moved. We have gathered here questions that investors and developers ask again and again, divided into five stages, with an answer in principle to each. The recurring principle: first define the goal, then check for a registered right and a mechanism that protects the money, and only then sign.
Key takeaways
- 1First ask why you are buying, and only then where: current income, value-add and long-term appreciation require different properties.
- 2In every deal check three things: how long it may get stuck, whether there is margin left in it, and whether the data is real.
- 3In an off-plan purchase you need two layers: registration that protects the right in the property, and a mechanism that releases money only according to progress.
- 4An agent does not know what the tenant's rights are; local law provides the answer, and its cost goes into the price of the property.
- 5The holding structure, private or company, is decided before signing, because a later transfer to a company may be a taxable event.
Investors who come to us before buying abroad ask, in different words, almost the same questions. Some sound simple, but behind each one there is a decision that is hard to fix later.
We have gathered the common questions here in the order of the transaction: choosing the property, the checks before signing, the money in an off-plan purchase, life after the purchase, and the holding structure. The answers are general. The law differs between countries, and wherever there is a defined Romanian rule we have noted it.
Choosing the property: what do you ask before choosing a country, a city and an apartment?
"Where is it best to invest?" That is the second question. The first is why. There are three main goals, and each has its own price: rental income, which requires ongoing management; value-add and a quick sale, where the renovation tends to run long and over budget; and long-term appreciation, where the money may sit for years with no cash flow. A fourth route is investing through a fund, with less control and less liquidity. Only after you have chosen a goal do you choose a place and a team.
"Which neighbourhood?" It depends on who will live in the apartment. A long-term tenant looks for a quiet residential area close to transport; a tourist looks for a sought-after centre; someone waiting for appreciation can consider a developing area, if they understand the risk. Anyone who wants holidays, income and value-add all at once needs to decide what is at the top of the list, and who will manage the property.
"New from a developer or second-hand?" There is no single answer. A new property in an area still developing can gain value if the planned infrastructure arrives, but if it is delayed, the money is stuck in a property that earns little. An older property that is already well let is usually sold at a price that already reflects its success. The real questions: how long you are willing to wait, how much you can absorb if the plan does not materialise, and what each of the buyers wants from the property.
"I've heard of people who lost money in Romania. Why would it be different for me?" The difference lies in what you buy and how you check. Agricultural land with no plan and no permit, sold on the basis of promises, is an entirely different risk from a finished property you can see, with a right registered in a computerised land book. The concern is justified when the same mistakes are repeated.
"I've built in Israel. How different can building abroad be?" Very different. Local experience can in fact mislead: the behaviour of contractors, working with the bank, how long each stage really takes, and also the rights of buyers. Before a plot and financing, it is worth asking two honest questions: whether you want to do this as a profession, and how available you will be when something goes wrong.
In every deal check three things: how long it may get stuck, whether there is margin left in it, and whether the data is real.
Before signing: what do you check, and what is not enough?
"How do you know the title is clean?" Check the chain of title, make sure there are no seizures or charges, check the building permit, translate all the documents and make sure the registration is in order. In Romania the starting point is the land book extract, and we set out how to read it in a separate guide.
"What is the first thing you check in a new deal?" Three things, in this order:
- Time: at how many stages the deal may get stuck, and what happens to the money with each delay.
- Margin: whether there really is enough left in the deal. The profit is set on the day of purchase, not on the day of sale.
- Verification: whether the data you hold is real, or only what appeared in the presentation.
A developer has three additional filters before land: economic feasibility, a planning and physical check, and a legal check.
"We checked the registration, the plan and the permit. What else could there be?" Infrastructure. Suppose a developer buys land for a villa project after a full legal and planning check, and only afterwards discovers that the electricity grid in the area cannot supply the project. A solution is possible, but at a cost that was not planned. So before signing for land, ask the utility companies how much electricity, water and sewerage capacity is available at the site.
"The seller says the tenant is leaving at the end of the year. Can I rely on that?" No. The agent can only repeat what the seller said. In some countries local law gives the tenant longer protection than what is written in the lease, and the buyer steps into the seller's shoes. The right question is what the tenant's rights are under local law, and how much it will cost to evict them if they choose to stay. The answer goes into the price.
Most of these questions are asked too late, after the money has already moved. Their value lies in asking them before the first payment.
Buying off-plan: how do you protect the money?
"What happens to our payments if the project gets stuck?" This is perhaps the most important question. You need two layers of protection. The first is registration of the contract, which protects your right in the property. The second is a mechanism that releases money to the developer only when construction reaches an agreed stage, for example an escrow account. Registration alone does not return money that has already passed to the developer. Also beware of a banking product that sounds like a "buyers' guarantee" but is in fact a financing tool for the developer.
In Romania some of these layers are fixed by law: a down payment in an off-plan purchase goes into a dedicated project account, and a notarial preliminary contract is noted in the land book. Ask to see both.
"If a note is registered on every apartment, are the buyers protected?" Not always. A note is registered on a property as it is described in the land book. If the property changes substantially, for example through demolition and rebuilding, it may no longer match the registered description, and the protection weakens. So here too you need a mechanism that holds the money, and it is only as good as its terms: what the milestones are, who confirms they have been completed, and what happens in a delay.
"The developer is small. What if they don't have the money to finish?" Size is not decisive. Check how many years the developer has been operating, how many projects they have delivered and whether on time, and whether down payments go into a separate account as Romanian law requires. When buying remotely, the developer's availability and the ability to contact them directly are also a consideration.
"If there is an escrow agent, is our money safe?" An escrow agent who releases money according to milestones does not monitor the developer's financial position. Suppose the money was released properly under the agreement, and the contractor stopped working because they were not paid: the escrow agent acted as required, and yet the project stands still. Find out in advance what the escrow agent does, and what they do not do.
After the purchase: what do you ask about management and letting?
"How do you choose a management company?" First define what it is supposed to do beyond finding a tenant and collecting rent. Then check four things: years in the market, references and reviews, a licence that meets local requirements, and a contract read carefully, including what is included and what is paid for separately. Low management fees can turn out to be expensive in repairs.
"The rent comes in every month. Why is less left at the end of the year than expected?" Usually because of ancillary fees in the management contract: for repairs, for finding a tenant and for renewing a lease, and repairs ordered without a quote. This can happen without anyone doing anything wrong. It is worth setting a cap on fees, a requirement for a second quote above a certain amount and a proper quarterly report.
"Can I write into a long-term lease that I use the apartment a few times a year?" A long-term tenant has a right to quiet and exclusive use, and the landlord does not enter without consent. A stable tenant will not sign such a clause. The options are short-term letting, with the local licensing rules and weeks you keep for yourself, or long-term letting and staying elsewhere when you visit.
Structure, partnerships and financing: what do you decide before committing?
"Maybe just set up a company from the start, to be on the safe side?" Not necessarily. A company "to be on the safe side" is often a mistake in the opposite direction. The first question is what you will do with the property over the next ten years. A single long-term property usually suits a private purchase, which is simpler and cheaper to hold. Several properties, or a partner coming in, may justify a company. Timing is decisive, because transferring a property from an individual to a company is a taxable event in many countries. A detailed comparison for Romania appears in a separate guide.
"In the partnership agreement, shall we set jurisdiction in Israel?" When the property is in Romania, an Israeli judgment is hard to enforce there. An Israeli court cannot give a direct order to the Romanian authorities, Romanian law must be proved to it through a legal opinion, and then a further procedure is needed in Romania to recognise the judgment. Choosing the forum is a business decision, not a technical clause.
"How much margin should be left in the budget?" Enough to absorb a delay, an unplanned cost or a tenant who leaves. If a six-month delay or an unexpected infrastructure expense puts the deal at risk, the margin is too small.
What to do before signing?
Before committing, write down the goal of the investment in one line, decide who will manage the property, obtain an up-to-date land book extract, and make sure exactly how the money is protected at each stage. We accompany Israeli investors and developers with these questions before signing, and actions under local law, such as notarial signing, registration in the land book and proceedings before authorities or courts, are carried out by lawyers and notaries licensed in that country.
This guide is general information, current as of October 2026, and is not legal, tax or financial advice for a specific case. The examples in it are hypothetical, and the law varies between countries and between transactions.
Frequently asked questions
What is the first question to ask before investing in real estate abroad?
Why you are buying: current income, value-add and sale, or long-term appreciation. Each goal requires a different property, location and team, and only after it do you choose a country and a neighbourhood.
Is registering a note on the contract enough to protect a down payment?
Not on its own. A note protects your right in the property, but does not return money that has already passed to the developer. So it is combined with a mechanism that releases money only according to construction stages, and in Romania with the dedicated project account that the law requires.
Is it worth setting up a company to buy one apartment abroad?
Usually not. For a single long-term property, a private purchase is simpler and cheaper. A company is better suited to a portfolio of properties or a partnership, and the decision is made before signing, because a later transfer to a company may be a taxable event.
Can a contract on a property in Romania set jurisdiction in Israel?
You can try, but an Israeli judgment does not apply directly in Romania. Romanian law has to be proved in Israel, and then a procedure has to be conducted in Romania to recognise the judgment. It is worth weighing this clause on its merits before signing.
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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.