The lack of cadaster, along with the overlaying of land plots and the identification of landowners are the main obstacles to the development of real estate investments. This is why, in July, the Law on Cadaster and Real-Estate Registration no. 7/1996 was amended and supplemented. Thus, Law no. 185/2018 approving Government Emergency Ordinance no. 31/2018 and amending and supplementing the Law on Cadaster and Real-Estate Registration no. 7/1996, published in Official Journal no. 638 as from 23 July 2018, simplifies the systematic registration of property.
Through these successive changes, the legislator tries to provide a solution to the most recent issues raised by developers. However, the success of these steps will largely depend on how the authorities implement the new changes and whether they will do it in a timely manner.
Funding of Cadaster through ANCPI
The managers of assets publicly or privately owned by the State are required to register in the integrated system of cadaster and land register all agricultural lands publicly and/or privately owned by the State and located outside of built-up areas, land and water surfaces, including the lands permanently covered by water and the beaches from the “Danube Delta” Reservation. These actions are deemed to be urgent according to the Law.
The cadaster works will be funded through the National Program for Cadaster and Land Registration, created for the free registration of real-estate property in the integrated system of cadaster and land registration, the elaboration of the cadastral map of real-estate property and the creation of land registers for all administrative and territorial units.
Administrators of the public and/or private domain of the State may request funding within 60 days from the entry into force of the amending law, namely until 24 September 2018.
We remind you that, under the National Program for Cadaster and Land Registration, the National Agency for Cadaster and Real-Estate Registration bears the costs for the issuance by the notaries public of certificates of inheritance, certificates regarding real-estate properties that have underwent systematic registrations.
Registration of Possession
The law allows the registration of possession in the cadastral technical documents if documents proving ownership are missing and the owners cannot be identified, also for the possessors of:
– former areas that were not part of cooperatives
– former areas that were part of cooperatives
– real-estate property located in the built-up areas which were subject to real-estate restitution laws.
In such cases, possession can be registered only until the systematic registration works in the administrative and territorial unit are completed.
In addition, Law no. 185/2018 eliminates the final stage of the systematic registration of cadaster works (namely the issuance by public institutions of the certificate for the registration of possessors as owners in the land register). Once possession is recorded in the land register, ownership right can be subsequently registered, either automatically or upon request of the possessor or his successors, in accordance with the procedure detailed by the law.
Registration of Different Owners of the same Real Estate
The new amendments present the procedure to be followed when the systematic registration reveals several owners of the same real-estate property, who acquired ownership rights based on different legal documents. In such case, the authorities will establish a single land register, where they will mention the existence of this issue. The ownership right will not be recorded and such recording will be made at a later date, pursuant to a final court ruling, with the simultaneous and automatic deletion of the mention.
Registration in the Land Register Based on the Reorganization Certificate
The law regulates the status of ownership rights and other real rights over real-estate property when a company undergoes reorganization. Thus, in such a case, real-estate property will be recorded in the land register on the basis of a certificate acknowledging the transfer through reorganization following merger or acquisition, concluded by a notary public in Romania. This certificate acknowledges the transfer of real-estate property pursuant to a decision of the general meeting of shareholders/decision of the sole shareholder approving the merger/spin-off, the court ruling regarding the lawfulness of the operation and the proof of registration of the merger/spin-off in the Trade Register.
By Cristina Bojică, Partner Gruia Dufau Law Office
An article from „2018/19 Yearbook: Office, Logistic and Industrial Parks in Romania | CEE”
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