Romania’s Nordis Law: A new era of buyer protection in residential real estate

Background

The legislation responded to a series of widely publicised irregularities: developer insolvencies, multiple promises to sell the same unit to different buyers, and the diversion of down payments to purposes unrelated to the project in question. The Nordis Group case, in which thousands of buyers were left exposed following the developer's financial collapse, acted as the direct catalyst.

Key changes

The law introduced several interlocking mechanisms. First, all sale and purchase promises must now be executed in notarial form and registered in the Land Register within one business day. This eliminates the previously widespread practice of informal private agreements that offered buyers little protection.

Second, a new mandatory cadastral procedure must be completed before any promises of sale can be concluded. This requires noting the building permit in the Land Register and opening individual unit land books in advance, as well as securing verifications through technical experts, giving buyers a clear legal anchor before committing funds.

Third, advance payments received from buyers must be held in a dedicated bank account for the relevant project. Reservation fees are capped at 5% of the sale price. Further payments may only be made after the structure is completed or installations are finished (25% and 20%). Misuse of collected funds carries fines of up to 1% of the developer's annual turnover and, potentially, criminal charges.

Practical impact

For developers, the new requirements add procedural steps and upfront costs. However, they also create a more disciplined transactional framework that benefits credible market players. For buyers, including foreign investors purchasing Romanian residential property, the reforms substantially reduce exposure.

Romania's approach now draws closer to practices already common in other European markets where advance payment schedules have long been tied to verified construction milestones. 

Conclusion

Law No. 207/2025 marks a structural shift in how residential sales are conducted in Romania. Developers, buyers, and their advisors should therefore review existing and pipeline projects in light of the new requirements.

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Alina Iozsa is Partner and leader of the Real Estate and PPP department with Hategan Attorneys. She has advised and provided innovative solutions on a wide range of complex real estate projects. Alina has also successfully advised projects in the industrial, public procurement, construction, agricultural, residential, and energy sectors, and is a recognised real estate specialist on the real estate market of western Romania.