Romanian Parliament approves law to protect customers of real estate developers

The real estate developers can charge no more than 5% of the value of a contract as payment in advance, based on a preliminary note, and will have to return the money to the customer unless it signs the contract or promissory note within 60 days due to the sole default of the developer, according to a law approved by the Romanian Parliament and quoted by Profit.ro.

The real estate developer will charge up to 25% of the price after completion of the resistance structure and another 20% of the price after completion of installation work.

The developers will be entitled to charge higher payments in case they sign insurance contracts for the completion of the projects promised to the customers.

The bill was drafted a year ago after the scandal prompted by the insolvency of real estate developer Nordis, which was accused of fraud.

The real estate developers consulted by Digi24 claimed a lack of clarity regarding several provisions and the supplementary cost involved in purchasing insurance for the completion of the project.

(Photo source: Yury Sevryuk/Dreamstime.com)