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Published in Romania’s Official Gazette on 08 December 2025 and entered into force on 11 December 2025, Law No. 207/2025 (widely known as the “Nordis Law” after the developer insolvency case that prompted it) introduces the most significant changes to Romania's residential real estate development framework in recent years. The law amends both Law No. 10/1995 on Quality in Construction and the Land Registry Law, and its effects are already being felt across the market.
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.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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