Compass on the Lake
Balotești, Ilfov
29 villas in Balotești, north of Bucharest. A project in which Ilan Leibovitch is a developer and partner.
- villas in the project
- 29
- Ilfov County, north of Bucharest
- Balotești
- Ilan Leibovitch’s role
- Developer & partner
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 office does not represent buyers or investors in transactions with Compass Group or its projects, and refers them to independent counsel.
A case study: a development project in Romania.
This is a legal case study showing how a development project in Romania is structured: an Israeli development project carried out through a Romanian company, with a sales mechanism built under Romanian law.
What the case illustrates
- 1
Building permit before the preliminary contract
In this structure, a preliminary contract is signed only after the building permit has been recorded in the land register (Cartea Funciară) and a register extract exists for the unit.
- 2
Reservation agreement and preliminary contract
A reservation agreement limited in time and amount under the “Nordis Law”, followed by a preliminary contract signed before a Romanian notary.
- 3
Deposits in a dedicated account
This is how a mechanism works in which deposits are paid into a dedicated project bank account and their use is limited according to construction stages.
- 4
Final contract and registration
The transaction is completed with a final contract before a notary and registration of ownership in the land register in the buyer’s name.
- 5
Separation of roles
Where the lawyer is also the developer, the firm does not represent buyers in the project and refers them to independent counsel.
- 6
Development through a Romanian company
A project developed through a Romanian company operates under Romanian law.
What a developer can learn from this
- 1
Check zoning and permits before acquiring the land - not after.
- 2
Build the sales mechanism around local law, not around habits from Israel.
- 3
Give the buyer layers of protection that do not depend on the developer: a notary, the register and a dedicated account.
- 4
Plan in advance for what happens after handover.
The information on this page is based on material published by Compass Group Romania and may be updated.
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- Office
- 7 Hanafat HaDegel St., Ness Ziona, Israel
- Bucharest
- Bucharest, Romania