Blockchain technology is gradually entering the property markets of Europe, and Romania makes no exception. Although the country does not have a fully digital land registry yet, and there is no legislation regulating blockchain-based conveyancing as such, the technology is already being tested in due diligence, contract management, and transaction monitoring. It is now of increasing relevance for investors, developers, and lawyers to understand how blockchain interacts with Romanian property law. Below, we look in detail at the legal opportunities, limitations, and risks that companies have to consider before relying on DLT in Romanian real estate transactions.
How blockchain is being used in real estate deals in Romania
Even without dedicated legislation, blockchain is already influencing Romanian real estate transactions in several practical ways. Many companies are experimenting with the technology in the early stages of the property lifecycle. One of the most common uses is document timestamping, which allows parties to secure due diligence materials in an immutable registry. This reduces the risk of tampering—particularly useful in projects involving multiple contractors, cross-border investors, or public–private partnerships.
Some developers are also piloting blockchain systems for project management, where construction updates, certifications, and authorisations are logged chronologically. This can facilitate audits and simplify communication between investors, engineers, and regulatory authorities. However, none of these uses replace the official records maintained by the Romanian Land Book, which remains the only legally recognised source for ownership and property rights.
Smart contracts in Romanian real estate transactions
Smart contracts are often presented as one of the most transformative applications of blockchain. In theory, they could automate parts of a sale–purchase agreement, release payments upon the fulfilment of conditions, or streamline rental and property management arrangements.
In Romania, smart contracts can be used contractually as long as they meet the formal requirements imposed by the Civil Code. Still, they cannot replace notarial authentication when the law requires it. For example, transfers of real property must be authenticated by a Romanian notary public to be legally valid, and this requirement cannot be delegated to an algorithm or digital trigger. As a result, smart contracts may support (not substitute) the formal conveyancing process.
In practice, developers and foreign investors are more likely to use smart contracts for ancillary purposes such as reservation agreements, escrow mechanisms, or property management services. These applications can improve transparency and reduce administrative tasks, but their enforceability ultimately depends on traditional written agreements.
Blockchain records and evidentiary value in Romanian courts
Another area of interest is whether blockchain records can serve as evidence in litigation. Romanian procedural law does not explicitly regulate blockchain evidence, but courts may accept such records provided that authenticity and integrity can be demonstrated. Timestamped logs, hashed documents, and blockchain-based audit trails may be admissible in disputes concerning construction defects, project delays, or property management issues.
That said, blockchain evidence must still be supported by conventional documentation. For example, land ownership and encumbrances must be proven through extracts from the Land Book, not through blockchain entries. Blockchain can reinforce an evidentiary file, but it cannot replace official registries.
Regulatory hurdles for blockchain-based real estate transactions in Romania
Although blockchain presents clear benefits, several regulatory gaps limit widespread adoption in Romanian real estate:
The first hurdle is the absence of a legal framework specifically regulating smart contracts in property transfers. Without legislative clarity, parties rely on general civil law principles, which may create uncertainty about enforceability. Another challenge is data protection compliance. Real estate transactions often involve personal data, and blockchain’s immutability may conflict with GDPR rules on data deletion and correction.
A further limitation concerns interoperability with state systems. Romania’s Land Book is gradually digitalising, but it does not yet integrate blockchain technology. Any blockchain-based process must therefore coexist with traditional procedures, which may limit the technology’s efficiency. Notaries, registrars, and public authorities would need updated regulations before blockchain could play a more central role.
Opportunities for future adoption of blockchain in real estate
Despite the regulatory obstacles, the long-term potential of blockchain technology in the Romanian property market remains significant. As digitalisation progresses across public services, industries may benefit from more streamlined verification processes. Blockchain could, for example, support a modernised land registry, facilitate secure property tokenisation, or automate repetitive compliance steps in development projects.
Interest from private developers, lenders, and proptech startups continues to grow. If Romania adopts a regulatory model similar to those being tested in Estonia or parts of the United States, blockchain could eventually reduce transaction times, enhance transparency, and minimise fraud risks.
Blockchain: a promising technology with cautious adoption
Blockchain is reshaping expectations in the real estate sector, but its role in Romania remains supplementary rather than transformative for now. Businesses exploring blockchain-based tools should understand that the technology cannot replace mandatory legal formalities, nor can it substitute state-run registries. Its value lies in improving internal processes, adding transparency, and enhancing evidence management in complex transactions.
With careful integration, compliance checks, and tailored contractual frameworks, blockchain can offer real advantages to developers, investors, and real estate companies. As regulation evolves and public institutions adopt more digital infrastructure, blockchain will likely become a more influential component of Romania’s property market.