Real estate finance law in Romania

A. Real Estate Mortgages

1. Can security be granted to a foreign lender?

Foreign corporate lenders are not restricted from taking mortgages over immovable property located in Romania.

2. Can lenders take a mortgage over land and buildings on the land?

Both land and the buildings on the land can be mortgaged to a lender under Romanian law.

2.1 The distinction between mortgages on land and buildings on the land?

There is no distinction under Romanian law between a mortgage over land and a mortgage over the buildings on the land. In both instances the mortgagee would have the benefit of the same rights and means of redress against the mortgagor.

2.2 Are mortgage certificates for a certain value issued? What is the cost? Are they transferable?

In Romania, mortgage certificates (i.e. preliminary mortgage agreements indicating the mortgagor’s creditworthiness) are not common in practice.

2.3 Can second ranking security be taken? If so, how is it registered? Is a priority deed also registered?

Second ranking security can be taken over any real property (whether land or buildings). A second ranking mortgage is registered in the Land Book following the same procedure as the registration of a first ranking mortgage. It is possible to change the ranking on the Land Book.

2.4 Can the real estate be transferred to a third party (being still subject to the mortgage) without the lender’s consent?

In practice, mortgagees usually include in the mortgage agreement a prohibition on the mortgagors selling or otherwise disposing of the charged property. This prohibition is registered with the Land Book. Consequently, the transfer of real estate subject to mortgage (or any other disposal acts, including the creation of additional mortgages) should not be registered with the Land Book without the prior written consent of the lender. 
However, under the Civil Code of Romania (the “Civil Code”) any transfers (and other acts of disposition as well) of the mortgaged assets to a third party are valid notwithstanding any provisions to the contrary in the mortgage agreement. Such acts are valid even if the transferee was aware of the contractual prohibition on the mortgagor to dispose of the mortgaged assets. 
Moreover, under the Civil Code, any provisions in a mortgage agreement that require the mortgagor to make, on the lender’s demand, the immediate and anticipated payment of the secured amount by reason of that mortgagor having granted another charge on those mortgaged assets (i.e. negative pledges) are deemed void.

2.5 Are there any preferred creditors (other than a prior ranking mortgage holders)?

The Civil Procedure Code provides that claims consisting of judicial, enforcement and legal costs (including costs with the forced sale of the asset and the transfer of ownership and registration of the new owner) and the costs of conservation of the relevant asset(s) are privileged in case of the distribution of proceeds resulted from the enforcement of a debtor’s assets (whether movable or immovable) 
The Civil Code also provides for certain privileged security interests in movable property. These special security interests arise by operation of law for the benefit of certain type of creditors such as:

(a) the seller of a movable asset to secure the buyer’s obligation to make a deferred price payment, unless the asset is acquired for business purposes; or

(b) the creditor exercising a retention right over a movable asset.

The above privileged security interests operate by law and do not need to be registered with any public registry (such as Land Book or Electronic Archive). 
Furthermore, the Civil Code provides that certain types of privileged creditors whose claims with respect to real estate assets are secured by way of legal mortgages (i.e. mortgages created by law). Such privileged creditors include (inter alios):

(a) the seller of a real estate asset, to secured the buyer’s obligation to make a deferred price payment (the same applies to claims consisting of price differences payable by acquirers under an exchange of a real estate asset with another asset plus a price difference);

(b) the potential acquirer of the real estate asset, for the restitution of anticipated price payments made under a pre-sale purchase agreement;

(c) the lender of the purchase price of a real estate asset, for the restitution of the loan;

(d) the architects and contractors involved in the development, rebuilding or repair of a real estate asset, for their claims with respect to the relevant works.

These legal mortgages must be registered in the Land Book and acquire their priority depending on the time they are registered. Generally, the registration of a privileged security interest is either made by their holder within a certain time frame.

2.6 Can “all monies” mortgages be taken?

An “all monies” mortgage (i.e. a mortgage whereby the mortgaged property stands as security for an indebtedness that is not determined at the time the mortgage is created) is not possible under Romanian law. The secured amount must be determined in or (reasonably) determinable from the mortgage agreement.

2.7 Can a landlord’s right to receive rent be charged, assigned or transferred to a lender by way of security? If so, how?

The landlord’s right to receive rent may be charged to a lender by way of a movable mortgage. Such security interest will be registered with the Electronic Archive for Secured Transactions (“Electronic Archive”) and with the Land Book and hence will acquire its priority rank. 
In the event of enforcement, the lender may direct that the obligations due to the landlord be paid to the lender directly.

2.8 It is customary/possible for a lender to take a charge/security over bank accounts of the borrower? Is it usual for lenders to contractually restrict rights to withdraw funds in accounts until the scheduled interest and capital repayments are made?

Security may be created over a borrower’s bank accounts by way of movable mortgages. Such movable mortgages will be registered with the Electronic Archive and will therefore be ranked in order of registration.

Lenders customarily request to be granted control over the bank accounts (either by law, if it is the account bank where the mortgaged accounts are open, or by way of a three party agreement or a notice and acknowledgment mechanism concluded with the account bank and the mortgagor). It is also a usual practice that lenders, borrowers and (account) banks enter into accounts agreements setting out the borrower’s obligations to collect its revenues in certain accounts and to make payments to the lenders throughout the term of a facility agreement.

Lenders may contractually restrict the debtor’s rights to withdraw funds, but do not customarily do so. In any case, in the event of enforcement the lender may direct the bank with whom the charged accounts have been opened to block them and allow no future payments to be made from them.

3. What are the mechanisms for registering land and for registering and perfecting security?

3.1 Consequences of failure to register?

A failure to register does not invalidate a real estate mortgage. However that mortgage shall not be binding on third parties and will consequently lose its priority to other mortgages registered later. 
However, it should be noted that currently general cadaster works are carried out for the whole Romanian territory. As soon as such works will be completed, the Civil Code provides that real estate mortgages shall be created by way of registration in the Land Book. As a result, a failure to register will render that mortgage invalid. However, there is no legal timeframe or official estimate as to when such legal provision will take effect.

3.2 Formalities for execution of security and costs?
3.2.1 Formalities for execution

It is a requirement under the Civil Code that real estate mortgage agreements be authenticated by a notary public. Hence the notary will examine the valid existence of the elements of the mortgage agreement (e.g. title in the mortgaged property, parties’ identity and their consent to the agreement) and if such requirements have been met, the notary will proceed with authentication of the agreement.

3.2.2 Costs relating to execution

The costs relating to mortgages include (a) the notary fees, (b) the Land Book stamp duty and (c) the Electronic Archive registration fees:

(a) the notary fee is variable and usually amounts to approximately 0.1% of the principal amount lent to the mortgagor. A 24% VAT rate is also applied to the notary fee;

(b) the Land Book stamp duty amounts to a lump sum of 0.1% of the secured amount plus 100 lei (approx. EUR 25) for each Land Book where the relevant mortgage agreement is registered; and

(c) the cost for the registration in the Electronic Archive is nominal, amounting to approximately EUR 25.

4. Can the lender use a Security Trustee to hold security on trust for creditors?

Equity is not recognised as a source of rights and obligations under Romanian law. As such, Romanian law does not recognise equitable title and the concept of trust.

Equity is not recognised as a source of rights and obligations under Romanian law. As such, Romanian law does not recognise equitable title and the concept of trust. 
Romania is not a party to the Hague Convention on the Law Applicable to Trusts and their Recognition. Therefore, trust settlements governed by foreign laws may not be recognised as such in Romania. 
The Civil Code introduced the concept of “fiducia” which does not give rise to equitable duties and remedies per se, but it closely resembles the concept of trust in terms of its effects. 
Specifically, by means of fiducia one or more settlors transfer rights (i.e. proprietary rights, personal rights or security interests, whether present or contingent, individually or as a pool) to more fiduciaries who administer them for a precise purpose for the benefit of other parties. Importantly, the rights transferred by way of fiducia are not the fiduciary’s property. 
Accordingly, under the Civil Code, it is possible that security rights be vested in a fiduciary that would hold them for the benefit of other lenders. It should be noted, however, that this structure has not been used in practice so far and we are not aware of any case law which would give an indication on how courts interpret such structures.

4.1 What happens if the lenders change later on e.g. on a transfer? Does new security have to be signed?

The effects of a change in the lenders’ structure on the existing security depend mainly on the means employed for such change. 
Hence, if the transfer is made by novation, then normally provision must exist in the original debt instrument that the existing security stays in place and bears the same priority rank. If an assignment (of receivables or of contract) is made, the security would normally be transferred along with the secured claims and would benefit the new lender as it benefited the original lender. 
If a more complex mechanism is employed, the documentation for the transfer normally includes provisions enabling the new lenders to acquire the rights (including security) granted to the former lenders. In such circumstances the mortgage agreements and relevant Land Book/Electronic Archive registrations would be amended to reflect the replacement of the former mortgagee.

5. Does the landlord/borrower have control over changes in tenants if the tenant wants to transfer the lease to a new tenant and is the original tenant still bound by the lease?

Such a control mechanism or restriction is not available by law, but it can be set out by contract in the lease. 
Once the original tenant assigns the lease agreement to a new tenant, the landlord will have no claim against that original tenant, unless it declares that it does not agree to release the assignor from liability. In such case, the assignor tenant remains liable towards the landlord for performance of the assignee tenant’s obligations under the lease agreement.

6. How can the lender enforce its security?

6.1 Can a foreign jurisdiction (either a court or arbitral tribunal) be chosen to settle disputes and under what circumstances may such a choice not be recognised?

Romanian law generally allows that a foreign court or arbitration tribunal be chosen to settle disputes involving Romanian parties, with the exception of disputes where Romanian courts have exclusive (mandatory) jurisdiction. 
Romanian courts have exclusive jurisdiction on matters concerning inter alia:

(a) immovable property located in Romania;

(b) insolvency of Romanian companies;

(c) enforcement of a writ of execution on the territory of Romania (such as real estate mortgages).

6.2 Does the local law allow for the enforcement of arbitral awards or foreign judgements without review?

Romanian law allows for the enforcement in Romania of arbitral awards or foreign judgements regarding the debt instrument without a re-examination by a Romanian court of their merits. The Romanian courts will only consider whether that foreign arbitral award or judgement may be enforced in Romania or not. 
Hence a Romanian court will allow enforcement on condition that:

(a) that the foreign judgement is final, according to the law of the state where it was rendered;

(b) that the court that rendered the foreign judgement had jurisdiction to do so;

(c) that enforcement reciprocity exists between Romania and the state of the court which rendered the decision;

(d) that there is evidence that the legal proceedings have been properly served in accordance with the law of the state where the decision was rendered and that the parties were given the possibility to defend themselves and to exercise their right to appeal the foreign judgement;

(e) that the foreign judgement can be enforced as a matter of law in the state of the court that has rendered the foreign judgement; and

(f) that the right to seek enforcement of the foreign judgement has not expired under the applicable statute of limitation under Romanian law (currently a period of three years from the date on which the foreign judgement becomes a “writ of execution” (an enforceable foreign judgement) in the jurisdiction in which it was obtained);

To the extent applicable, a Romanian court may dismiss a petition for the enforcement of a foreign judgment in the following circumstances:

(a) the judgement breaches the public order provisions of Romanian private international law;

(b) the judgement rendered in a subject matter where persons cannot freely dispose of their rights was obtained with the exclusive purpose to avoid the law that would be applicable in accordance with the Romanian private international law;

(c) the foreign judgement is incompatible with another judgement previously rendered abroad and susceptible of being recognized in Romania;

(d) Romanian courts were exclusively competent to settle the case;

(e) the right to a defence was violated;

(f) the judgement can be challenged in the jurisdiction where it was rendered;

(g) the same issue between the same parties has been resolved or is in the course of being resolved by or through the Romanian courts.

As regards the recognition and enforcement in the Romanian courts of judgments obtained in the courts of European Union member states, it is a condition pursuant to the Brussels I Regulation that the judgment is capable of being enforced under the law of the state of that court. 
Such judgment may not be recognised and enforced if:

a) recognition is manifestly contrary to public policy in Romania;

(b) where it was given in default of appearance, the defendant was not served with the document which instituted the proceedings or with an equivalent document in sufficient time and in such a way as to enable him to arrange for his defence, unless the defendant failed to commence proceedings to challenge the judgment when it was possible for him to do so;

(c) it is irreconcilable with a judgment given in a dispute between the same parties in Romania;

(d) if it is irreconcilable with an earlier judgment given in another member state or in a third state involving the same cause of action and between the same parties, provided that the earlier judgment fulfils the conditions necessary for its recognition in the member state addressed.

6.3 How can that security be enforced? Can it be sold to a third party? Is it possible for a secured party to appoint receivers/liquidators and if so how and what are their powers? Can security be enforced directly without recourse to the courts and are private sales of security possible? Does it have to be sold by auction?

A mortgage agreement is as a matter of Romanian law a writ of execution. Thus the mortgagee should be able to apply to court directly for its enforcement without any examination of the merits of the underlying claim. 
However, some courts in Bucharest have rejected enforcement proceedings on the grounds that a security document qualifies as an executory title only if the credit instrument it secures also qualifies as such. If it is governed by a foreign law, the credit instrument may not qualify as an executory title. In such a case, further action (e.g. registering in the Romanian courts a foreign court judgment on the credit instrument) may be required to continue the enforcement process. 
The enforcement of a mortgage is coordinated by an enforcement officer appointed by the mortgagee under the supervision of an enforcement court. No appropriation is possible, however private sale is permitted if the debtor and creditor agree on such enforcement method. 
The outcome of the enforcement procedure is that the mortgagor loses title to the mortgaged property. The title to this property is transferred directly from the mortgagor to a purchaser further to the mortgaged property being sold by public auction. 
Romanian law does not allow title to immovable property located in Romania to be held by foreign entities which are not incorporated in EEA. As such, for the time being, the only practical option a non-EEA foreign lender may have is to proceed with the sale by public auction. 
EEA entities are allowed, in principle, to acquire title to immovable properties in Romania (though certain restrictions may apply).

6.4 Is the lender responsible for maintenance and insurance of the real estate after default until sale?

If the lender takes title in the mortgaged property, it will be bound to meet all obligations attaching to that property. 
The position is not clear however where the lender takes possession of the mortgaged property with a view to selling it by public auction. Normally, in such circumstance, the mortgagor would be in charge of those obligations until the title in such property is transferred. 
In any case, the costs of maintenance of the mortgaged asset up to adjudication are borne by the debtor and their repayment is secured by way of a general legal privilege.

7. Is there anything else that you would specifically point out to a foreign lender as being unusual or particularly difficult?

There are certain concerns of general interest regarding enforcement of security (whether real or personal). Specifically: 
(a) Enforcement of a real estate mortgage in Romania is subject to approval by courts and governed by rather intricate legislation. As such, there is a risk of a slow down or even a stay in the enforcement process, before a secured lender is able to realize its claim. 
(b) The Civil Code and the Civil Procedure Code have only been in force for few years. For these reasons, there is little judicial practice on security taking and enforcement and it is not uniform. 
(c) There are certain spoiling tactics the borrower can use such as opposition to enforcement, filing for opening of insolvency proceedings (knowing that this will stay the enforcement), or causing the start of fiscal enforcement proceedings. 
(d) The legal framework for enforcement has recently been changed and there are grey areas of law and differences in interpretation within the judiciary, making predictions of the outcome of enforcement more difficult. 
(e) Under Romanian law loan agreements documenting loans granted by Romanian banks are deemed writs of execution. As such, a Romanian bank can apply directly to enforce the claim documented in the writ of execution without any examinations by that court of the merits of the claim. 
It is not clear however whether a loan agreement governed by a foreign law and documenting a loan granted by a foreign bank to a Romanian borrower would be recognised as a writ of execution in Romania. Therefore there is the risk that a determination on the merits of such claim be required before its enforcement in Romania.

B. Movable Mortgage Over Shares

In Romania, real estate is held regularly by single purpose vehicles incorporated as limited liability companies. We therefore highlight the specific issues that arise in the context of enforcing a security interest taken over the shares of a Romanian limited liability company.

Assuming real estate is held in a locally incorporated single purpose vehicle to provide an alternative to enforcement of the mortgage over real estate:

1. Can security be granted to a foreign lender?

Security over shares in a Romanian company can be granted to foreign lenders.

2. Can second ranking security be taken? If so, how is it registered?

Second ranking security over shares in a Romanian company can be taken. A second ranking security over shares is registered in the Electronic Archive and the shareholders’ register, similarly to the registration of a first ranking security over shares.

3. What are the mechanisms for registering and perfecting security?

3.1 Consequences of failure to register?

Shares (like any other personal property) may be charged by movable mortgage, according to the Civil Code. 
A movable mortgage over shares issued by a Romanian limited liability company is registered with the Electronic Archive and with the shareholders’ register of that company. 
The registration with Electronic Archive gives the movable mortgage its priority rank. Priority ranks may be swapped between secured creditors. A failure to register such movable mortgage with the Electronic Archive renders it non-binding on third parties.

3.2 Formalities for execution of security and costs?

The agreement creating a security interest is usually made under hand and its execution involves no formalities or costs.

The cost for the registration of the security interest in the Electronic Archive is nominal, amounting to approximately EUR 25.

4. Do the shares need to be transferred into the name of the lender or its nominee?

The security interest is a charge allowing appropriation by the lender in the event of the borrower’s default. Therefore, the creation of such security interest requires no transfer of title to the lender or its nominee.

5. How can the lender enforce its security?

5.1 Can it be sold to a third party? Is it possible for a secured party to appoint receivers/liquidators and if so how and what are their powers? Can security be enforced directly without recourse to the courts and are private sales of security possible? Does it have to be sold by auction?

A security interest agreement is a writ of execution. The secured lender can apply to court for its enforcement without examination of the merits of the underlying claim. 
A lender should be able to opt to enforce a security interest either under:

(i) the Civil Code, which allows the lender to enforce its security privately without any supervision by court in the event of the borrower’s default; or

(ii) the Civil Procedure Code, which provides for a formal procedure carried out by or under the supervision of an enforcement officer.

A Civil Code enforcement results either in the sale of the shares or appropriation by the secured lender of the charged shares followed, in both cases, by the registration with the Trade Registry of the change in shareholding. 
The Civil Code does not regulate in sufficient detail the means to document the sale/appropriation of shares and the evidence that should be filed with the Trade Registry to this effect. The Law 31/1990 (“Company Law”) is also silent as to the means to document passing title to shares following enforcement under the Civil Code. 
In this context note should be taken that changes to shareholdings in limited liability companies must be agreed upon by the rest of the shareholders. Hence a transfer of shares in such company is usually approved by a shareholders’ resolution. 
Shareholders may however attempt to resist the enforcement and refuse to approve the transfer. In the absence of such approval, there is the risk that the Trade Registry will not recognise the validity of the shares’ transfer to the secured lender (or third party acquirer) and decline its registration as a shareholder. 
Moreover, even if shareholders approve the transfer, the Company Law requires that their resolution be filed with the Trade Registry in order for third parties to be able to state their opposition to the transfer. If no opposition is filed, the transfer of shares takes effect upon the lapse of a 30-day term calculated from the date when that shareholders’ resolution was published in the Official Gazette. If an opposition has been filed, the transfer takes effect only from the date the judgment dismissing the opposition was communicated to the parties in these proceedings. 
As a result, it is doubtful how a Civil Code enforcement of a movable mortgage over shares would be carried out in practice and, consequently, enforcement under the rules of the Civil Procedure Code is preferred. This procedure is organised under the supervision of an enforcement officer and does not require any actions by the shareholders holding the charged shares. 
Under the Civil Procedure Code, the enforcement of a movable mortgage is coordinated by an enforcement officer appointed by the mortgagee and requires the prior approval of an enforcement court. No appropriation is possible, however private sale is permitted if the debtor and creditor agree on such enforcement method. 
Accordingly, although this procedure is more formalistic and longer than that set out under the Civil Code, it may afford the secured lender the certainty that transfer of the charged shares cannot be resisted by the shareholders holding the charged shares.

5.2 Are loans from shareholders subordinated? If so, how is this done? Is it customary for such loans to be waived or written off contractually as part of an enforcement of a share pledge should a default occur?

It is common practice that deeds of subordination be entered into between the borrower, its shareholders and the lenders of a facility granted to that borrower. These deeds of subordination will provide for the subordination of the shareholders’ loans to other loans granted to that borrower.

C. Leases

Legal issues that would be likely to impact upon the valuation and the security of income from an investment perspective.

1. Lease Structure

1.1 Typical lease length?

Commercial leases are usually made for a term of 3 – 5 years.

1.2 Maximum/minimum lease length if any?

Under the Civil Code there are no legal limitations regarding the minimum term of a lease, however the maximum term is set to 49 years. 
Leases must be registered in the relevant Land Book, irrespective of their term.

1.3 Statutory controls and obligations re renewal/termination of leases (does tenant have automatic right to renewal or can they apply to the courts for a new lease); also does some form of notice have to be served to terminate a lease to avoid renewal?

lease are not subject to statutory control. Generally these matters are dealt with in detail under the relevant lease agreement. 
In the case of a fixed-term lease, none of the parties needs to serve a notice to avoid renewal or to terminate the agreement. The law does not provide for an automatic right of renewal, however, if the tenant continues to occupy the leased premises and the landlord does not oppose this, a new lease agreement is concluded by operation of the law, under the same terms and conditions as the expired lease agreement, but with no expiry date.

1.4 Any overriding statutes concerning the ability of the tenant to break a fixed term lease (whether or not included as a term of the lease)?

There are no overriding provisions under the Romanian legislation granting a tenant the ability to break a fixed term lease.

1.5 Any other security of tenure provisions available to a tenant that would frustrate possession or prevent receipt of market rents?

There are no provisions under the Romanian legislation granting a tenant a legal (i.e. statutory) right to occupy the leased premises following expiry of the lease. If the tenant stays in occupation of the premises following expiry the lease will continue as a tenancy at will. In such circumstances either the landlord or the tenant may terminate the lease without notice.

2. Rent/Rent Reviews

2.1 Rental income receivable quarterly/monthly in-advance/in-arrear?

Rent is usually paid in advance; both monthly and quarterly payments are common.

2.2 Periodicity of reviews?

Rent is generally reviewed annually.

2.3 Basis of review (upwards-only or variable, indexation or market rent)?

Generally, the rent is indexed with the Harmonised Index of Consumer Prices (as published by Eurostat).

2.4 Are rents/reviews subject to statutory control in regard to quantum or increase (i.e. rent control)?

There is no statutory control mechanism applicable to rent reviews.

3. Lease Obligations: Who has responsibility for:

3.1 Internal maintenance, decoration and repair?

In practice, the landlord is responsible for the maintenance, decoration and repair of the common areas of the leased premises while the tenant is liable for the interior of the leased premises.

3.2 External maintenance, decoration and repair?

The landlord is responsible for the external maintenance, decoration and repair.

3.3 Structural repairs?

The landlord is bound by law to ensure the use by the tenant of the leased premises. As such, the landlord is responsible for the structural repair of the leased premises.

3.4 Insurance?

Please see our answers to questions 3.7 and 3.8 below.

3.5 VAT?

The applicable VAT rate is 24%.

3.6 Rates?

Rates are subject to agreement and vary depending on the type and location of each leased property. 
Generally, lease agreements provide for two types of rents:

(i) fixed; and

(ii) turnover rent.

3.7 Other typical outgoings?

Generally, lease agreements provide two types of expenses to be made by the landlord:

  • Fixed (real estate taxes, insurance, security, management fee, elevator services, sweeping services, building repair etc.)
  • Variable or operational (building water, trash removal, HVAC service, pest control, janitorial service, supplies, electricity etc.)
3.8 The ability to recoup any landlord outgoings (including management costs) by way of service charges?

As commercial leases in Romania are usually triple-net leases, all the expenses listed at 3.7 are recoupable by the landlord.

4. Enforceability

4.1 Are terms of leases/contracts recognised and supported by case law in the jurisdiction?

The Romanian case law on leases is not as developed as it is in other jurisdictions. Thus, courts generally will look at the terms of a lease by reference to the provisions of the Civil Code when making an interpretation of the terms of a lease.

5. Valuation and Environmental

5.1 To be recognised in the courts, does an appraisal have to be prepared by some domestically regulated/qualified party or is an RICS (Royal Institution of Chartered Surveyors)-qualified appraisal report accepted and recognised in each jurisdiction?

In order to be recognised in the courts, appraisal reports have to be prepared by experts registered on the National Register of Experts.

5.2 Is it possible/customary to obtain environmental reports from a local government agency or a qualified, insured environmental professional?

Generally environmental information is public under Romanian law. Various public reports are made by the Ministry of Environment and the subordinated environmental regulators.

In addition, there are various professional services providers specialising in environmental compliance that can provide reports on specific matters or geographical areas upon request.

5.3 Is it possible for liability in respect of past or present breaches of environmental laws to attach to a lender by it holding or enforcing a mortgage over real estate?

Liability for breaches of environmental laws rests on the entity which committed the breach.

Hence, a lender holding or enforcing a mortgage cannot be practically held liable for past or present breaches of environmental laws relating to the mortgaged property.

Portrait ofAna Radnev
Ana Radnev
Partner
Bucharest