Nordis Law: New Rules for Developers and Homebuyers in Romania

Nordis Law: How Romania’s real estate market is changing

Background and legislative context

Romania’s property market has experienced a wave of early-stage sales, often before building permits were issued or without clear cadastral records. Buyers frequently paid large advances without legal protection. Project delays, insolvencies and misleading promotional claims increased risk significantly. These systemic issues created the need for a modern, protective legal framework.

Why the new legislation became necessary

High-profile cases of stalled projects and misleading investment schemes triggered public and political pressure. The Nordis Law was developed to rebalance the market, introduce strict rules for advance payments, ensure cadastral transparency, and protect buyers from financial loss. Its enactment in December 2025 marks a structural shift in the residential sector.

What the Nordis Law introduces – the new mandatory rules

Capped advance payments and protection of buyer funds

The law sets strict limits for advance payments:

• 5% maximum deposit at reservation
• 25% after structural completion
• 20% after completion of installation systems

All buyer funds must be kept in a dedicated project bank account, prohibited from being used for other projects or unrelated expenses. This greatly reduces the financial exposure of buyers.

Pre-apartmenting and land-registry registration of the building permit

Before signing any preliminary sale agreement, the developer must:

• register the building permit in the Land Registry;
• complete pre-apartmenting, assigning cadastral numbers to each future unit.

This ensures legal existence, eliminates the risk of double sales, and increases transparency for buyers and financial institutions.

Transparency and restrictions on speculative promises

Developers must provide verified, realistic information regarding:

• construction progress;
• delivery timelines;
• risks and contingencies;
• cost structure;
• technical standards.

Misleading advertising — especially promises of guaranteed returns — is prohibited, particularly in mixed-use or hotel-style projects.

Impact on developers

A new financial and operational model

Developers can no longer rely on large early advances. They must adopt more sustainable financing:

• equity capital;
• bank loans;
• investment partnerships.

This improves financial discipline and reduces the likelihood of abandoned projects.

Increased compliance and accountability

Developers must adhere to:

• full cadastral transparency;
• protected buyer funds;
• accurate and honest contracts;
• legal prerequisites before marketing and selling units.

Reliable developers will benefit from increased market trust; speculative operators will be filtered out.

Impact on buyers

A safer and more predictable buying process

Buyers now benefit from:

• small, staged payments;
• segregated and secured funds;
• legal certainty of the unit’s existence;
• greater transparency in documentation and progress.

The risk of losing money due to stalled projects is significantly reduced.

Improved clarity for financing and verification

With the building permit registered and pre-apartmenting completed, buyers and banks can verify:

• the exact unit;
• its legal and cadastral status;
• construction progress;
• eligibility for mortgage financing.

Impact on the real estate market

Higher trust and market stability

Compliant projects become more attractive for buyers, investors and lenders. The overall market gains stability and credibility.

Elimination of unsustainable or high-risk projects

Developments without strong financial foundations will be forced to adapt or exit the market. The industry shifts toward higher quality and professionalism.

Conclusion

The Nordis Law establishes a new standard in Romanian real estate. By capping advances, securing buyer funds, enforcing cadastral transparency and requiring pre-apartmenting, it creates a safer environment for buyers and a more disciplined, credible market for developers.

Responsible developers gain competitive advantage, and buyers gain the protection and clarity they have long needed.