How to sell an apartment in Romania as EU-citizen?

DralleD wrote:

Hi!

Does it work the same way in Romania?
Should Notaries be involved?
Does the broker do all the work or do you need to find buyers yourself?
Does the broker value your apartment?
Can you give the notary/broker a power of attorney to sell the apartment?
Which pages are common to use when selling your apartment?

I would be very grateful if anyone could explain "the normal process".

For your information, I have a CIF number but I do not have and romanian passport.

The process is different in Romania.

1.  Yes, notaries are always involved in the legal transfer of property.
2.  Brokers, in my experience, look to do as little work as possible while charging as much as possible.   I've always had much better success without brokers.  I've even had a agent ask for an upfront fee just to show the property.  In my view, they aren't trustworty.
3.  Brokers (can) value a property, but it's just an opinion equal to anybody else's.  Personally, I think it's just as easy to search comparable properties and come up with your own number and negotiate from that and what a buyer is willing to offer.
4.  You cannot give a POA to a notary (conflict of interest) and while you can give a broker one, I would not recommend it.  If your relatives are trustworthy and capable, consider them as your agent.  Keep in mind your POA must be issued by a Romanian notary, you cannot use one from your home country.  You'll be hard-pressed to find a broker that will do all the legwork with selling a property.  If you did, I'm sure they would charge an extravagant premium to do so.
5.  I've had success advertising on OLX.ro for by owner sales.

Romaniac

Thank you for the reply Romaniac!

Interesting. This is quite a different process from what I'm used to and to my ears this sounds like a process that can be a legal drama if you do not know the language or the legal system (like me). Fortunately, I can trust my relatives.

Let's say I post an ad on a home sales page. I find a potential buyer. We agree on a price. From here on we go (with our papers) to the notary office. The notary drafts the contract (?) and closes the deal? The buyer pays the hole agreed sum on the same day?

Is there any site that is good in terms of statistics on what an apartment costs in a particular area or is it, for example, by comparison on OXL.ro this estimate can be made?

Thank you once more!

Once you and a buyer agree on a price, it's usual to go to a notary.  It's important to note: use a notary agreeable to both parties, don't be strong-armed into using a buyer's notary unless there's good reason.  Property flippers or shady people can have "arrangements" with notaries and they may not be impartial or by the book as they are obligated to be. 

In cases like real-estate, you usually do a "pre-contract" at the notary to accept a deposit from the buyer and set a final closing date and terms of the deal.  This is to allow you time to gather all the needed papers regarding taxes, utilities, administrative building fees, etc which all must be paid up in full prior to sale.  It also gives guarantee to the buyer that you won't sell to someone else and run with their deposit.  It also legally sets the conditions on which the deal may be canceled and whether or not the deposit is forfeited or returned.  Also, the notary needs time to verify the property is free of liens or any other claims that would preclude a sale.

On the day of the sale, the notary will again verify everything is in order, the contract is signed and the buyer initiates the funds transfer and provides proof from the bank to you and the notary.

To get an idea on comparable property prices, you can use OLX, or look at listings on real-estate brokers sites in the city where the apartment is.

I'm not aware of sites that summarize or analyze apartment prices.

Hi,

I own a real estate agency since 2006 in Bucharest Romania. The process of selling an apartment is not so complicated and I advise to use the services of a real estate broker as you are not in Romania.

The process is pretty much the same as how you mentioned it. The broker will collect, check and prepare the documents and will prepare the property for listing Based on a market comparison a listing price will be agreed on between you and the broker.

The broker will handle the viewings and will keep you informed on the process.

When a buyer has been found and the price is agreed the notary needs to get involved. The buyer will pay the fees of the notary and the seller needs to pay a sales tax to the state. This tax is based on the final sales price.

The sale can be done in two ways:
First a pre sale where the buyer will pay a % (normally 10%) of the agreed price to the seller. Then after an agreed term (4-6 weeks) the final sale purchase will take place. The money will be transferred to a assigned bank account which can either be in RON or EURO. (Even sometimes USD is used

In case the buyer doesnt buy anymore you keep the advance. In case you dont sell anymore you will need to pay the advance twice back. (This is the standard, not the rule)

or

A direct sales purchase where you go directly to the notary.

The selling will be done in Romania and either you will come to Romania and sign the sales purchase or you give a power of attorney for somebody, or the broker, to represent you.

The fees involved are 2% as commission for the agent, it is advisable to also offer 1% for collaborating brokers when they come with a buyer, only to be paid at selling and the tax (impozit) to the state.

Selling a property is pretty straight forward. Getting the documents in order and the marketing process are the most complicated. Further it is important to be patient as this process can take up to several months unless you decide to list at below market prices.

Hope this info has been useful. If you need any more info do not hesitate to ask!

Cheers,

Isfahan