Investing in commercial property in Romania offers attractive opportunities for both local and international businesses. Whether you’re acquiring office space, leasing retail premises, or developing industrial facilities, the country’s growing economy and strategic location in the EU make it a compelling destination for real estate investment. However, the success of any real estate transaction depends on one essential step: legal due diligence.
Overlooking key verifications can lead to costly disputes, regulatory delays, or even loss of ownership rights. This article outlines the most critical legal checks in real estate due diligence in Romania, helping investors and business owners identify and mitigate risks before signing any agreement.
Why legal due diligence matters in Romanian real estate
Due diligence is more than a formal step—it is a risk management process that ensures the buyer or tenant fully understands the legal status and liabilities associated with a property. Romanian real estate transactions, particularly in the commercial sector, often involve hidden issues such as unclear ownership history, outdated zoning plans, or undeclared encumbrances.
Without a thorough investigation, buyers and tenants may face legal disputes, operational delays, or unexpected costs after closing the deal. This is especially critical for foreign investors unfamiliar with Romanian property law and administrative procedures.
Key elements of real estate due diligence in Romania
Title verification and ownership history
One of the first steps is to confirm that the seller or lessor has clear, undisputed ownership of the property. This includes:
- Reviewing the land book extract (extras de carte funciară) to confirm legal title
- Checking for past transactions or claims affecting the property
- Ensuring that the person signing the contract has legal authority to do so
If the property is owned by a company, it is also necessary to verify the company’s legal and financial status in the Romanian Trade Registry.
Zoning and urban planning regulations
Before purchasing or leasing commercial property, it is essential to verify the zoning designation of the land (PUZ or PUG), especially if construction, redevelopment, or change of use is planned.
Incompatible zoning can prevent the intended use of the property or lead to legal sanctions. Investors should also request copies of the urbanism certificate (certificat de urbanism) and building permits where applicable.
Construction and environmental permits
When a property has been recently developed, renovated, or structurally modified, legal due diligence must include a full review of its construction and environmental approvals. This process involves verifying that a valid building permit (autorizație de construire) was issued, that the works were formally accepted through a final construction acceptance document (proces verbal de recepție la terminarea lucrărilor), and that any required environmental impact assessments were completed and approved by the relevant authorities.
The absence of these permits can have serious legal consequences. Properties that were built or altered without proper authorisation may be subject to demolition orders or administrative fines. In some cases, the validity of the entire transaction could be challenged, exposing the buyer or tenant to unexpected costs and operational delays. Ensuring that all construction and environmental documentation is in place is therefore essential to securing a legally sound acquisition.
Encumbrances, liens, and litigation
The land book will also indicate whether the property is subject to:
- Mortgages or bank loans
- Seizures or precautionary measures
- Easements or rights of way
- Pending court proceedings
It is vital to identify and assess these encumbrances to avoid assuming liability or purchasing a property with limited usability or marketability.
Leasing due diligence: additional considerations
For companies entering into long-term commercial leases in Romania, legal due diligence involves more than simply reviewing the lease document itself. It is essential to examine any existing lease contracts and understand their terms—particularly in cases involving subletting or assignment. Businesses must also verify that the landlord is the lawful owner of the property and has the legal authority to lease it.
A thorough analysis of the lease should include termination clauses, rent adjustment mechanisms, and responsibilities related to property maintenance and repairs. Moreover, the physical premises must comply with all applicable health and safety regulations, including fire codes and accessibility standards. These legal and regulatory considerations directly affect the usability of the space and the enforceability of the lease.
Importantly, for a commercial lease to be opposable to third parties in Romania, it must be registered with the Land Registry. This formal step ensures legal protection for the tenant, especially in the event of property sale, inheritance, or third-party claims.
The role of legal advisors in real estate transactions
Working with experienced real estate lawyers in Romania can significantly reduce transactional risks. Legal advisors assist with:
- Conducting thorough property investigations
- Reviewing and drafting acquisition or lease agreements
- Liaising with public authorities for permits and clearances
- Resolving title or zoning issues before closing
- Representing the client in negotiations or litigation, if necessary
Whether buying or leasing, legal support ensures that contracts reflect the actual legal and technical status of the property, and that your interests are fully protected.
Secure your investment through due diligence
Commercial real estate transactions in Romania offer great potential. However, every transaction must start with clear legal insight. If you skip or simplify due diligence, you expose yourself—and your tenants—to serious risks. These risks often surface long after the deal closes.
You can safeguard your investment by following a structured approach to real estate due diligence in Romania. Start with title verification. Check zoning and land use restrictions. Review the property’s litigation history. Confirm compliance with all regulations. Each step strengthens your position and gives you greater negotiating power.
Whether you are acquiring property or signing a lease, our real estate team will guide you through every step. We ensure a thorough legal review. We help you gain clarity, protect your investment, and build a foundation for long-term success.