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Legal developments in Romania

01 October 2013

All the latest legal developments from Romania 

Amendments to the law on notarising pre-contracts

In July 2013, the Romanian Parliament enacted a law (the Law) which repealed a controversial provision of the cadastre and real estate publicity law which had come into force in May 2013, requiring the notarisation of pre-contracts relating to the transfer of ownership rights over immovable assets or other connected in rem rights. The repealed provision meant that failure to notarise such pre-contracts would result in the pre-contracts being nullified. However, the Law will not be applied retroactively, meaning that promissory agreements entered into between May 2013 and July 2013 will be held null and void if they have not been concluded in notarised form.

Pre-insolvency and insolvency legislative proposal

In September 2013, the Romanian Ministry of Justice published a legislative proposal for a Romanian insolvency code (the Proposal). The Proposal is meant to consolidate in a single act the regulations regarding: (i) the general insolvency proceedings applicable to ordinary corporates; (ii) special insolvency proceedings of credit institutions and insurance companies; (iii) insolvency of company groups; and (iv) cross-border insolvency. The Proposal also regulates the instruments for the prevention of insolvency.