The Law ¹ on the regulations regarding the sale-purchase of agricultural land outside buildable areas has been published in The Official Journal of Romania.
The new legal provisions mainly regulate the preliminary procedure for the sale of agricultural land located outside buildable areas and the pre-emption right applicable for such purchases.
The Law regulates a pre-emption right for equal price and conditions, applicable in the case of the sale of agricultural land located outside the buildable area.
The beneficiaries of the pre-emption right for land purchases are, in order of their priority, the following:
In order to sell, the owners of agricultural land located outside buildable areas are obliged to file a request with the city hall for the administrative-territorial area where the land is located, requesting the publishing of the offer to sell the land.
The documents attached to the request will be determined by the law’s implementing regulations.
The city hall then has to display the offer to sell at its premises or on its official website for 30 days and communicate it to the central or regional structures of the Ministry of Agriculture and Rural Development (depending on the land’s surface area) for display on their website for 15 days.
Pre-emptive right holders have 30 days from the date of the offer’s display to express, in writing, their intention to purchase.
If pre-emptive right holders express their intentions to purchase, the sellers sell to whichever has the highest priority.
If there is no interest from pre-emptive right holders, the sale can proceed with another buyer under the conditions provided by the previous sale offer, with the sellers having to notify city hall in this respect.
The sellers have to obtain the Ministry of National Defence’s permit for the transfer of ownership regarding agricultural land outside buildable areas:
The permit of the Ministry of Culture is also required in order to transfer the ownership over agricultural land outside buildable areas:
Violations of the pre-emption right or of the preliminary procedure and requirements entail the absolute nullity of the transfer of ownership deeds for agricultural land outside buildable areas
Failure to observe the new legal procedures may also trigger fines of up to RON 100,000.
The law applies once it and the implementing regulations have been published in The Official Journal of Romania.
The law does not apply to the sale of land located inside buildable areas nor to a transfer of ownership performed between relatives of up to the third degree, inclusively.
Sales made on the basis of pre-agreements or option agreements authenticated prior to the law entering into force are to be finalised in the initially agreed conditions.
We expect for the application of this law to make the acquisition of agricultural land located outside buildable areas a more complex process and it will probably extend transaction schedules.
For a deeper discussion of how this new legislation might affect your business, please contact:
Country Managing Partner, Romania
Tel: +40 21 225 3708