Tuca Zbarcea & Asociatii : Legal Bulletin-Real Estate

Change of conditions for selling extra-muros agricultural lands

In the Official Journal of Romania, Part I, No. 741 of 14 August 2020 was published Law No. 175/2020 amending and supplementing Law No. 17/2014 on regulatory measures concerning the sale and purchase of extra-muros agricultural lands and amending Law No. 268/2001 on the privatization of companies that hold for management purposes lands that are the public and private property of the State and have agricultural use and the establishment of the State Property Agency (Agenția Domeniilor Statului) (“Law No. 175/2020”). The new piece of legislation will come into force within 60 days after its publication in the Official Journal – i.e. on 12 October 2020.

This recent regulation provides for new limitations and conditions for the sale of extra-muros agricultural land and considerable widens the circle of holders of pre-emptive rights. Moreover, Law No. 175/2020 roughens the sanctions applicable to the sale of the extra-muros agricultural land without the observance of the pre-emptive procedure and without obtaining the mandatory endorsements: the absolute nullity of the sale agreements concluded by failure to observe the law, respectively the fine of which increased amount can vary between RON 100,000 and RON 200,000.

Relevant highlights:

  • New elements regarding the pe-emptive right;
  • Fiscal conditions as regards the sale of extra-muros agricultural land;
  • Restriction to change the use category for extra-muros agricultural lands;
  • Procedural aspects;
  • Sanctions.

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