Transfer of Property Act at Romania
In Romania, property transfers are governed by the Civil Code (Codul Civil), which regulates property ownership, rights, and transactions, including the transfer of real estate. The Transfer of Property Act, as it exists in India, does not apply in Romania.
Key Legal Framework for Property Transfers in Romania:
Romanian Civil Code:
The Romanian Civil Code governs property law, including the transfer of immovable property.
It sets out general principles for property ownership, rights, and transfer processes.
The code also provides specific rules for contracts related to property, such as sale agreements, leases, and gifts.
Law No. 287/2009 – Civil Code (in force as of 2011):
This law contains provisions on the legal requirements for property transfer, including the need for a valid contract and the form it should take (e.g., a notarial deed).
It emphasizes the requirement of written contracts for real estate transactions and the need for them to be notarized.
Law No. 7/1996 – Law on the Cadastre and Real Estate Publicity:
This law establishes the Cadastre and Real Estate Publicity System in Romania, which governs the registration of property ownership.
The registration of a property transfer in the Land Registry (Cartea Funciară) is essential for the transfer of ownership to be legally effective.
Without proper registration, the transfer may not be recognized in disputes or by third parties.
Key Steps in Property Transfer in Romania:
Sale Agreement:
The buyer and seller enter into a sale agreement (or other property transfer contracts).
The agreement is usually drawn up in writing and must be notarized by a Romanian notary.
Notarization:
The contract must be notarized to ensure its validity, which is a critical requirement in Romanian property law. A notary public will verify the identities of the parties, their understanding of the agreement, and the legality of the transaction.
Registration in the Land Registry:
The notarized contract must be registered with the Land Registry (Cartea Funciară) to update the property records and officially transfer ownership.
The registration process ensures the public recognition of the new ownership and protects the buyer's rights.
Payment of Taxes:
Like many other jurisdictions, the property transfer is subject to various taxes, including a real estate transfer tax and notary fees.
These taxes must be paid before the transaction is completed.
Comparison to India's Transfer of Property Act:
In India, the Transfer of Property Act (1882) deals with detailed rules regarding property transfers (sales, mortgages, leases, etc.) and the conditions for validity, including the rights of parties and the effects of property transfers.
In Romania, the transfer process is governed more by the Civil Code and the Cadastre system, with a strong emphasis on notarization and registration to ensure legal validity.
Summary of Key Differences:
India: The Transfer of Property Act deals with a wide range of transfers (sale, gift, lease, etc.) and specifies legal rules for various types of property transfers.
Romania: The Civil Code and Cadastre Law focus on notarization, registration, and the legal form of the transaction. Notarization by a public notary is mandatory for the transfer of real estate ownership.
RELATED Blog
0 comments