About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

5 Romanian Constr. L. Rev. [1] (2020)

handle is hein.journals/rncnlwre5 and id is 1 raw text is: ROMANIAN CONSTRUCTION LAW REVIEW - No 5 - 2020 Overview of some general risks regarding the off-plan acquisitions of buildings Lawyer, Lecturer Phd. Simona Gutiu Abstract This article aims to analyse some of the risks associated with real estate purchase agreements concluded between the real estate developer and (prospective) purchasers in case the development of the project is suspended or the project fails to be completed, either due to the developer's fault or for reasons beyond the developer's control. Keywords: preliminary agreement, developer, off-plan acquisition, legal risk, default 1. Background In recent years, during the constant growing real estate market in Romania, the practice of purchasing housing at the project stage or off-plan, as this type of real estate purchase is called by real estate specialists, has become increasingly common. Even if this type of purchase offers a number of advantages for the purchaser - from the advantageous price (which increases proportionally to the degree of completion of the project) to the possibility of customising the living space in terms of partitioning, choice of finishes, etc. - purchasers should also bear in mind the risks that may arise, from a legal point of view, when they intend to purchase a dwelling at the project stage. Thus, from the purchaser's perspective, the risks that may arise in case of an off-plan property purchase consist mainly in the late execution of the project, the non-compliant execution of the project, respectively the suspension of the execution of the project, followed in certain cases by the non-completion of the project or, in more extreme situations, even the insolvency of the real estate developers. These risks are all the more dangerous if a potential suspension of the project and/or its non-completion occur after the purchaser has paid the developer a considerable advance payment or even the full price of the property, without the contract stipulating the rights and obligations of the parties in such a situation, respectively how can the purchaser recover the amounts paid to the developer in the absence of guarantees established in favour thereof (e.g., mortgage, etc.). As regards the deadline for completion of the project, it is well-known that in practice, in most cases, the developer fails to meet the deadline specified in the contract, for various reasons, attributable or not to the developer. From a legal point of view, the commercial relationship described above takes the form of either a sale agreement subject to the suspensive condition of completion of the 'Lecturer, Law Faculty, ASE (Bucharest), partner at Schoenherr si Asociatii SCA, simona.chirica(ddrept.ase.ro

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Short-term subscription options include 24 hours, 48 hours, or 1 week to HeinOnline.

Purchase Access

Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most