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Dwelling sale law
Law no. 85 published on the Official Gazette no. 180 from: 07/29/92

Art. 1. Dwellings built from State funds may be purchased by holders of lease contracts, against the total payment of the price, or in installments, under the Decree-Law no. 61/1990 on the sale of dwellings built from State funds to the population and under this Law. An exception to the provisions of the 1st paragraph are dwellings whose areas exceed the maximum norms stipulated in the normative acts based on which State funded dwellings and luxury dwellings were built based on unique projects. Also, an exception is constituted by protocol dwellings, which serve politicians as service dwellings during their mandate.
Art. 1, 2nd paragraph is correspondingly applicable. Beneficiaries of the provisions of the 1st paragraph are also tenants who are not the employees of the owner units. The assessment and sale of dwellings stipulated in the 1st paragraph, as per the Decree-Law no. 61/1990 and this Law, are made by the owner units or by units specialized in selling dwellings, based on services contract, with 1% commission, calculated from the sale price. By intervention dwellings, we understand dwellings located within State economic or budget units and dwellings connected with the fulfillment of the service tasks of the persons who occupy them.

Art. 2. State funded dwellings, under execution and not allotted by name until this Law takes effect, which cannot be completed and sold under the regulations in force, may be sold by apartments, floors, entrances, building sections or entirely, by public auction. An exception to the provisions of the 1st paragraph is constituted by dwellings under execution, which pass, without protocol or payment, into the patrimony of the Ministry of National Defense, of the Ministry of Internal Affairs and of the Romanian Intelligence Service. Such dwellings are subject to the regime of service dwellings as stipulated in art. 1, 3rd paragraph. Auctions are organized by Local Councils. Dwellings stipulated in the 1st paragraph, either allotted or for which sale-purchase pre-contracts or contracts were concluded until this Law takes effect, may be purchased by the beneficiaries of the allotment document or by the holders of sale-purchase pre-contracts or contracts, without auction, at the value of works executed by the owner unit, under the conditions of art. 1. The starting price of the auction is established by the owner units, considering the physical execution stage, plus the related design expenses. From the price obtained further to the auction, for the coverage of the registration and sale expenses, the units benefit from a commission of up to 1%.

Art. 3. Spaces designated for trade and service activities, small industry and any other similar activities, located within dwellings under execution and owed by autonomous entities, specialized in administering dwellings or by Local Councils, may be sold upon public auction, under the conditions of art. 2. At equal tenders, priority for the adjudication by auction over the spaces stipulated in the 1st paragraph is granted to the natural persons or legal entities which had concluded conventions or other equivalent documents with the owner autonomous entities or with the Local Councils, for the renting of the respective spaces, if, based on a building permit issued under the law, such persons/entities incurred expenses for the execution of construction or installation works with the view of completing such spaces. The starting price of the auction is established based on the conditions stipulated in art. 2, 5th paragraph. The spaces in the 1st paragraph, owned by trade companies, are considered active and may be sold according to the law.

Art. 4. Garages built with State funds or with funds coming from State economic or budget units may be purchased by the holders of lease contracts. The selling price of such spaces is established under the provisions of art. 2, 5th paragraph and are paid integrally upon the conclusion of the sale-purchase contract.

Art. 5. Natural persons or legal entities which acquired the right of ownership over certain constructions under execution must obtain, according to the law, the authorization for the continuation of works and to ensure their execution in the conditions and terms stipulated in such authorization.

Art. 6. Dwellings built with State funds and with funds from State economic or budget units, not constituting the object of any lease contract or for which no allotment order had been issued, as well as those having a legal entity as holder of the lease contract, may be sold by public auction organized by Local Councils or economic agents who own the respective spaces. Upon establishing the starting price of the auction, the provisions of art. 2, 5th paragraph are applicable. An exception from the public auction sale is constituted by dwellings built from State funds and from funds granted by State economic or budget units, which have as holder of the lease contract a legal entity with non-lucrative purpose, which uses the respective space in the purposes it had been rented for.

Art. 7. Dwellings built from funds granted by State economic or budget units, until this Law takes effect, others than intervention dwellings, will be sold to the holders of lease contract, upon their request, against the total payment or against the payment in installments of the price, in the conditions of the Decree-Law no. 61/1990 and of this Law.
Art. 8. Buildings stipulated in art. 7, under execution and not allotted by name until this Law takes effect, may be sold with the approval of the managing bodies of legal entities which own them, as per art. 2.

Art. 9. The amounts collected further to the sale of dwellings, as per art. 6, 7 and 8, will be used with priority for returning possible loans contracted for the execution of such dwellings. The balances left after the refunding of the loans stipulated in the 1st paragraph and the payment of interests will be used as resources to finance investments, to complete the dwellings under construction, which will also remain in the future, the property of State economic or budget units. In case the annual interests applied to the loans for dwellings built with the funds granted by economic units, sold as per art. 7, may not be integrally covered from the amounts obtained based on the provisions of paragraph 1, the balances will be covered from amounts collected by the State budget, as per art. 12, to the extent of the funds approved annually by the State budget law.

Art. 10. In case there are several dwellings and spaces with a different designation within a building, together with the right of ownership over such, the right of ownership by shares over constructions and installations will be established, and over equipping which, by its nature, may not be used unless jointly. The right of ownership stipulated in the 1st paragraph is acquired irrespective of the section, entrance or floor the dwelling or space with another designation is located. The right of ownership stipulated in the 1st paragraph is also acquired over the land related to the building, as determined in the building permit. The value of such quota is included in the price. For the persons who acquire dwellings within blocks of flats, as per art. 1, art. 2nd paragraph and art. 7 herein, the assignment of the land will be made under art. 35, 2nd paragraph, from Law no. 18/1991. Persons who cannot acquire the right of ownership over lands in Romania will receive, as concession, the related land shares during the entire existence of the building. The right of ownership stipulated in the 1st, 3rd and 4th paragraphs will be determined function of shares, pro-rata with the built area of dwellings and spaces with different designation.

Art. 11. In the case of selling the dwellings stipulated in art. 1, art. 2, 4th paragraph and art. 7, with the price paid in installments, upon the conclusion of the contract, a minimum down payment of 10% from the dwelling price will be paid. The monthly installments for the settlement of the dwelling’s price will be lagged over a maximum period of 25 years, with an annual interest of 4%. Dwellings purchased in installments cannot be bought by the persons who have another personal dwelling, in their family. Families, who hold several dwellings which they rent, may purchase, under this Law and under the Decree-Law no. 61/1990, upon their choice, only one of them.

Art. 12. The down payment will be collected by the selling units, once with the conclusion of the contract, and the monthly installments, including the related interests, will be paid as follows: a) by the employees, by payroll withholding from the second salary; b) by pensioners, by pension withholding; c) by other categories of buyers, by payment to the C.E.C. counters, into the account stipulated in the contract. The amounts collected from the down payment and from the monthly installments from the price of dwellings built with State funds will be allotted as follows: 50% to the State budget and 50% to the local budget. The amounts obtained from the interest, in the case of dwellings built with State funds, will be deposited to the State budget, after the withholding, by owner or seller units, of the expenses for the supervision and record of installments, which will be framed within a quota of one forth from the interest stipulated in art. 11, 2nd paragraph.

Art. 13. For young people, up to 30 years old, holders of lease or allotment contract, concluded, or, if applicable, issued until this Law takes effect, the interest will be of 2%.

Art. 14. The provisions of art. 13 include the persons stipulated in art. 10 of the Decree-Law no. 61/1990, and the persons stipulated in art. 6, 7 and 8 of Law no. 42/1990 for the memory of martyrs and for the granting of rights to their successors, as well as for those injured during the Revolution in December l989.

Art. 15. The provisions of art. 11 are applicable for contracts stipulating the payment of the price in installments, which are to be concluded starting since the date this Law takes effect. In the case of default in paying the installments upon the established terms, the buyer will pay an interest of 8% per year from the value of such installments. In case 6 payable installments are not paid by the dwelling’s buyer, the selling unit will receive forced execution over the dwelling and the tenant’s eviction, in the legal conditions. Until the total payment of the price, the dwelling acquired according to this Law may not be alienated or restructured without the prior authorization of the selling unit. The selling unit guarantees its payment by registering the mortgage over the dwelling, according to the law.

Art. 16. Appendix no. 1 to the Decree-Law no. 61/1990 is supplemented by the selling prices of dwelling with small comfort, stipulated in the appendix which constitutes an integral part hereof.

Art. 17. Dwellings and buildings stipulated herein may be purchased only by Romanian natural persons or by legal entities with their registered office in Romania.

Art. 18. Within 30 days since this Law takes effect, the Government will approve the technical assessment norms, and the conditions for the organization of auctions stipulated in art. 2, 3 and 6.

Art. 19. The sale-purchase contracts for dwellings not built from State funds, but which had been passed into the State’s ownership, the sale-purchase contracts for service dwellings belonging to trade companies and autonomous entities, which violate the provisions hereof, as well as any contract concluded in violation of the provisions of the Decree-Law no. 61/1990 are totally null and void. Nullity can be invoked by any person and by any means. Prefects may organize the finding of such cases and the notification of courts of law for ascertaining nullity and for re-establishing the anterior situation. From the amounts returned to buyers, the rent for the period between contracting and until return will be withheld. The returned amounts do not carry interest and are not subject to updating.

Art. 20. Upon the date this Law takes effect, art. 4 of the Decree-Law no. 61/1990 will be abrogated, as well as any contrary provisions. The level of interests to loans contracted based on the Decree-Law no. 61/1990 remains the one stipulated in the respective normative act.