How to Buy a Home in Romania

Buying a home in a foreign country can be a daunting task, especially if you're unfamiliar with the local real estate market and legal procedures. This guide aims to provide expats with a comprehensive overview of the home buying process in Romania, covering everything from finding properties for sale to understanding the legal requirements and potential pitfalls. Whether you're planning to relocate permanently or invest in a holiday home, this guide will help you navigate the Romanian property market with confidence.

How Do I Find Houses for Sale in Romania?

There are several ways to find properties for sale in Romania. Online property portals are a popular choice, offering a wide range of listings from across the country. Websites like Imobiliare.ro and OLX.ro are particularly popular. Local newspapers and real estate agencies are also good sources of property listings. It's advisable to engage a local real estate agent who understands the market and can guide you through the process.

Are There Restrictions on Foreigners Owning Property in Romania?

Yes, there are some restrictions on foreigners owning property in Romania. Non-EU citizens cannot directly own land, but they can own buildings. However, they can purchase land through a company established in Romania. EU citizens, on the other hand, can own both land and buildings directly. It's important to consult with a local lawyer to understand the legalities and find the best way to purchase property in Romania.

Does Romania Have an MLS Type System?

Romania does not have a Multiple Listing Service (MLS) like in the United States. However, most real estate agencies have their own databases of properties for sale and collaborate with other agencies. This means that a good real estate agent should have access to a wide range of properties.

Do Brokers Have Licenses and How Do I Know if They Are Licensed?

Yes, real estate brokers in Romania must be licensed by the Romanian National Real Estate Authority. You can verify a broker's license by checking the Authority's online registry or asking the broker to show their license. It's crucial to work with a licensed broker to ensure a smooth and legal transaction.

What Documents Are Required When Buying a Home?

Several documents are required when buying a home in Romania. These include a valid ID, the property's land book extract showing its legal status, a fiscal certificate proving there are no outstanding taxes on the property, and a sale-purchase agreement. The agreement must be authenticated by a notary. If you're buying through a company, you'll also need the company's registration documents.

Do I Need a Lawyer When Buying a Home in Romania?

While it's not mandatory, it's highly recommended to hire a lawyer when buying a home in Romania. A lawyer can help you understand the legal procedures, verify the property's legal status, and ensure the sale-purchase agreement protects your interests. Legal fees can vary, but you should budget around 1% of the property's value for this service.

Do People Typically Buy a Property with All Cash or Take Out a Mortgage?

Both options are common in Romania. Some buyers prefer to pay in cash, especially for cheaper properties or if they're investing in real estate. However, mortgages are also widely available, and many banks offer mortgage products specifically designed for expats. It's important to compare different mortgage offers and consider your financial situation before making a decision.

Are There Inspections That Take Place, and If So What Is That Process Like?

Yes, property inspections are common in Romania. They typically involve a thorough examination of the property's condition, including its structure, utilities, and potential issues like dampness or pest infestations. It's advisable to hire a professional inspector to conduct this inspection. The cost can vary depending on the property's size and location.

What Are Some of the Pitfalls to Avoid When Buying Property in Romania?

One common pitfall is not thoroughly checking the property's legal status. Some properties may have legal issues like disputes over ownership or outstanding taxes. It's crucial to verify this information before buying. Other pitfalls include not inspecting the property thoroughly, not understanding the terms of the sale-purchase agreement, and not considering the total costs of buying and owning a property, including taxes, maintenance, and potential renovation costs.

Expats Talk about Real Estate in Romania

"I enjoy the Obor area, because it has all I need, including the biggest grocery market in the city, but has fair prices for the accommodation. I would suggest searching for a place both next to metro stations and parks. Because public transport is doomed to be trappet in rush hour trafic and parks, such as Herastrau, grant an escape from the busy streets, especially for those who come from smaller cities. The far North of the city, above Herastrau park, has the richest area with new apartments. The rest of the city is filled with communistic buildings with simple flats," said one expat living in Bucharest.