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Below are the selling steps as well as the essential documents you will need to sell your property in Romania.
Some foreign owners invested in Romanian Property through local or foreign agencies, eg Property-Secrets and a host of other now-vanished entities, in the period 2003-2008 and may be apprehensive about the process of selling, but it is not so scary.
In fact, the market has matured beyond recognition and many things, including prices, have normalised and become simpler to verify, making things much more transparent. Indeed, bureaucracy can be a little overwhelming but this guide should help you overcome that, and if you are working with a trustworthy agent/ broker of good reputation, the process is remarkably simple. Therefore, always but always find an agent/ broker who has been recommended to you, or has a visibly good series of testimonials online, such as google maps. Here for example you can read comments left by our past clients.
Step 1: Setting the price
You should set the price by market value and there are a number of ways to achieve this.
Option A/ Comparison to similar properties, using sites like OLX, Imobiliare, Wizmo, Storia, Homes, Publi24 and so forth. Take care to consider important factors such as heating type, floor level, bathroom and kitchen age, investments made within, parking, the direction of apartment, proximity to noise sources, ease of access, versatility for alternative uses, security issues and so forth. For example, a sea/ lake facing apartment is much more valuable than one facing a car park, in the same block, same property type.
Option B/ Use an approved Evaluator – these professionals will belong to ANEVAR, and have an ID number, known as a Lucrarea numarul. A list of all approved practitioners can be found here. Just chose the location needed. They use a series of imperial data to give a guide price, but again, those tables might not consider such peculiarities as property direction or view quality, so be prepared to adjust up or down to factor that in. For this reason, one of the best options is…
Option C/ Use an experienced, recommended Real Estate agent or broker to guide you. Make sure they have relevant experience, and that you discuss all important matters in writing or record and share in writing any verbal conversations. For example, misunderstandings that are costly could be, sale currency. When a buyer pays with a mortgage, they usually discuss the selling price in Euro, but their lending bank will pay you in Ron, ‘at the BNR Euro-Ron exchange rate of the day’. But when you try to convert to Euro, surprise! the bank will charge you 2 or so % to do that. Not a small sum. So, if you need euro, make certain that everyone is clear, your offer is to receive XX euro in your account and not just on paper.
If you do get caught in that trap and need to convert, I can strongly recommend using either Transferwise or Revolut accounts to switch it to your preferred currency as the saving is very often in the thousands, yes, thousands of euros. Many people recommend services such as Money Gram, Western Union etc because of ‘commission-free exchange’ which is misselling in my book as their fees are hidden so always do an actual comparison of what money you will finally receive after the transaction.
A good Real Estate agent/ broker can save you money, a lot of money, as well as getting you the right price. Also, think carefully before just ‘giving’ the furniture away in a sale. You can use this as a negation tool, after, not before, the selling price is set, as many buyers put nil value on it and expect it for free.
Whichever method you chose, set your price to sell. If it sits on the market for more than 2 months, it will become exponentially harder to sell, like the last loaf of bread on the shelf. Aim to be within 10% of a fair price, not more.
Step 2: The documentation needed
- Your ID card or passport, (original and copy).
- Your Fiscal ID number.
- If relevant, marriage, divorce or death certificate (original and copy).
- Contract de Vanzare si Cumparare (Buying selling contract), or court order or other approved evidence of ownership
- A cadastral floor plan that matches the reality of your property and reflects any layout changes made, along with a freshly obtained extras carte funciara (land registry Extract) showing your ownership and the unique land registry identity of your property, which has a 1-week validity (supplied by a Notary if you don’t have an outdated copy)
- An ANAF fiscal certificate, obtained from the ANAF Office closest to the location that your Romanian ID was issued, or where your property is located, which has a one-month validity (Issued by ANAF)
- If your property is located in a block of flats, then you will also need a certificate from the building association confirming no debts to exist
- Copies of all utility bills demonstrating all bills are paid up to date.
- An EPC, or Energetic Performance Certificate, an EU law for all sales and Rentals for some years now, which has a 10-year validity. A list of all approved providers is here.
- If you do not plan to be present, a Power of attorney, valid, including the right for the empowered person to establish your Fiscal ID number if you do not already have one.
If you need clarification on any of the above, feel free to drop us a line at firstname.lastname@example.org or talk to your notary
Step 3: Finding a buyer
Once you have the majority of the documents together, your agent/ broker or Notary will tell you if you can proceed to seek out a buyer or if further preparation is required to sell. Assuming you are in good shape to sell, you can choose to sell privately or use a professional real estate agency. Usually, your agent /broker will add significant value to the process and help you avoid unnecessary losses. Make sure they can back up their suggestions valid with data. And make sure you see copies of all adverts, links etc for any marketing to ensure your property is correctly marketed, with the benefits well visible, to attract the right audience for you.
Step 4: Signing the pre-contract
Once you have the majority of the documents together, your broker or Notary will tell you if you can proceed to seek out a buyer or if further preparation is required to sell.
Using your preferred method to find a buyer, and an offer that you find acceptable, you can proceed to the pre-contract stage, always done in the presence of a Notary to be legal, which will record:
- The sale value, terms, condition s, timeframe, penalties, items included,
- The dates, stages of and methods of payment, including the size of an initial downpayment (typically 10%), the currency to be received, any penalties for late payment or a cancelled transaction.
- The date when the official contract will be signed;
You might also be required to pay your real estate agent commission at this point as they will consider that they have delivered the service that you paid them for, ie, to find you a buyer acceptable to your terms.
Step 5: Signing the contract
By this point, all of the hard work has already been done. Documentation will be in good order and partially exchanged. Negotiation and payment terms established, and part payment received.
Now when the final payment is received, you will be required to sign over your property to the new owner, and to pay any taxes or fees announced by the Notary. There are many online calculators and guides to determine your liabilities, and one example is here, but you can search google for Taxe contract vânzare imobil.
This is basically the process. It can vary slightly, but your agent/broker or Notary will guide you if that is the case, Under no circumstances should you attempt to sell or enter a pre-contract without the benefit of a Notary Public.