Real Estate Newsletter No. 2/2010
Laws and Regulations – Construction and building permitting related enactments
Government Emergency Ordinance no. 30 (“GEO 30”) amending and supplementing Government Emergency Ordinance no. 60/2009 regarding measurements for the implementation of the “First House” project (“GEO 60”) – published in the Official Gazette no. 243/2010)
GEO 30 amends GEO 60 by providing, amongst others, that the “First House” project aims at creating an easy access to natural persons for the acquisition of, or building by these latter, of dwellings by means of contracting a credit line guaranteed by the state. The dwellings can be built by the beneficiaries who hold ownership of the land for construction or by associations without legal personality, made up of at least 7 members, out of which at least one is the owner of the land upon which the construction shall be erected.The credit facility agreement shall be secured by encumbrances over the land for construction through “First House” program, either by individuals, or by associations without legal personality, namely (i) a first rank mortgage in favor of the Romanian State, through the Ministry of Public Finances, for the entire tenure of the credit facility agreement and (ii) a second rank mortgage in favor of the financing bank, for the same duration.The above enactment also provides that the Ministry of Public Finances can approve a natural person to take over the guaranteed financing, if such person fulfills the “First House” program eligibility criteria set forth under the legal enactments referred to herein above.
Decision no. 324 amending and supplementing Government Decision no. 717/2009 approving the implementation norms of the “First House” program – published in the Official Gazette no. 251/2010
Amongst other provisions on implementation of “First House” program, this enactment sets forth under Annex no.2 of this enactment, the eligibility criteria applicable to financing entities granting credits guaranteed within the program.
Decision no. 379 amending annex 1 attached to the Government Decision no.1705/2006 approving the centralized inventory of the assets within the public ownership of the State (published in the Official Gazette no. 299/2010)
The values of some real estate assets in the public ownership of the State have been amended and thus reflected under the annex attached to the aforementioned legal enactment.
Forestry and agriculture related enactments
Order no. 460 approving the Methodology for attesting the specialized units for elaboration of forestry management deeds (in Romanian “amenajamente silvice”) – published in the Official Gazette no. 258/2010
Upon the entry into force of this enactment, Order no. 639/2005 of the minister of agriculture, forestry and rural development approving the Methodology on specialized units for the elaboration of forestry management deeds shall be repealed. The authorizations issued based on Order no. 639/2005 will remain into force the entire period for which they were issued.
Law no. 67 amending point 3 of article 18 of Land Law no. 18/1991 – published in the Official Gazette no. 215/2010.
This enactment stipulates that the lands which have not been restituted to the entitled persons and thus remained at the disposal of the commission (i.e., the local/county commission for the establishment of ownership right over lands), or within the private ownership of the State, could be subject to restitution, upon request, to the former owners or their inheritors that had been registered on the list regarding restitution in money equivalent appended to the regulations for the implementation of the Land Law
Cadastre and real estate publicity related enactments
Order no. 108 approving the Regulation of endorsing, verifying and receipting of specialized works within cadastre related domains (published in the Official Gazette no. 223/2010)
This enactment sets forth the general framework of the attributions of the National Agency for Cadastre and Real Estate Publicity (referred to as “National Agency”) in endorsing, verifying and receipting specialized works within cadastre related domains. Amongst other provisions therein, it is stipulated that the technical specifications comprised within the documentations for awarding agreements on special works are approved for conformity by the National Agency, before the launch of public acquisition procedures, irrespective of the financing sources. In this respect, this enactment provides that the contracting authority shall perform the reception of special works only after their prior approval for conformity by the National Agency.