Under Article 131 of Law 85/2014, the insolvency administrator must perform a promise of sale made before the proceedings, at the buyer's request, if four conditions are met.
The price is paid or payable and you have possession; the price is not below market value; the property is not decisive for a reorganisation plan; the promise is noted in the land register.
The notary requests the note of the preliminary contract in the land register on the day of signing or by the next working day (Law 169/2026, Art. 422(8)).
From the dedicated project account, up to 25% of the price on the structure, then up to 20% on the installations, with the site supervisor's stamp (Art. 422(10)).
Creditors who registered a preference over the property before your promise keep their rights when the sale to you is concluded. Check Part III of the extract.
Developer insolvency in Romania: the short answer
Romania's insolvency law, Law 85/2014, has one article written for buyers: Article 131. If the developer promised to sell you a home before the insolvency proceedings opened, you can ask the insolvency administrator to go ahead with the sale. But only if four conditions are all met. One of them is that your promise is noted in the land register, the Cartea Funciară (CF).
Since the Nordis rules, that note is no longer left to chance. Law 207/2025 (the "Nordis law"), whose rules have, since 25.8.2026, been set out in Article 422(6)–(11) of the Planning and Construction Code (Law 169/2026), requires the preliminary contract to be signed before a notary, and the notary requests its note in the land register on the day of signing or by the next working day at the latest.
As attorney Ilan Leibovitch puts it: "Today the Nordis law gives the buyer priority rights when the contract is registered under the law."
Put simply: whether a contract is noted in the land register decides where you stand. Check it before you pay, not after.
The four conditions of Article 131
Article 131(1) applies to a bilateral promise of sale (in practice, the preliminary contract) with a certain date before the proceedings opened. A notarial contract has a certain date. When the developer is the seller and enters insolvency, the administrator or liquidator must perform the promise at the buyer's request, if all of these are true:
| Condition in Art. 131(1) | What it means | What to check now |
|---|---|---|
| a) The price is paid in full, or can be paid on the date of the request, and the property is in the buyer's possession | Both parts are needed: the money and the possession | When you get possession under your contract |
| b) The price is not below the property's market value | A price far below market can block the route | That your price is a market price, and is written in the contract |
| c) The property is not decisive for the success of a reorganisation plan | A judgement made inside the proceedings | Nothing to check in advance. Your lawyer argues it if it comes to that |
| d) For real estate, the promise is noted in the land register | No note, no Article 131 | A CF extract that shows your preliminary contract |
The four conditions are cumulative. If one is missing, Article 131 does not apply.
The decision tree: where do you stand?
Go through the questions in order. A "no" at any step means Article 131 is not your route.
- Did you sign a preliminary contract (a promise of sale) with a certain date, before the proceedings opened? Under the Nordis rules it must be signed before a notary, which gives it a certain date. If you only paid a reservation fee, you do not yet have a promise.
- Is the promise noted in the land register? Order a CF extract for your unit and look for it. Under Article 422(8), the notary requests the note on the day of signing or by the next working day.
- Is the price paid, or can you pay the balance now, and do you have the property? This is where an off-plan buyer usually stops. See the next section.
- Is the price at least the market value?
- Is the property not decisive for a reorganisation plan? This is decided within the proceedings.
All five "yes": you can ask the administrator or liquidator to perform the promise and conclude the sale with you.
A "no" at any step: Article 131 is closed to you, and your position is decided inside the insolvency proceedings, under rules that depend on the case. Do not wait. Hire an independent lawyer who handles insolvency, and do it the moment you learn proceedings have opened, because the proceedings have deadlines.
The honest part: possession during construction
Condition (a) requires possession. A villa that is still being built has not been handed over to you. So for most of the construction period, Article 131 is a route that fits a buyer close to handover, not one at the start.
That changes where the real protection lies during construction. It is in how much of your money is exposed, and to what. Under Article 422(10), advances paid under the preliminary contract go into a separate bank account of the developer, dedicated to that project. The developer may spend from it only on that project, with the site supervisor's "good to pay" stamp: up to 25% of the price on the structure and, once the structure is complete, up to 20% on the installations. Using the money for anything else is fined at 1% of the developer's previous-year turnover (Art. 422(11)).
Whether a contract is noted in the land register decides where you stand. Check it before you pay, not after.
The law caps the developer's spending. It does not cap how much you pay, or when. Your payment schedule is set by the contract, so tie each payment to a construction stage you can verify. We explain the structures in our guide to developer payment plans, and how the account protects you in our article on what protects your payments in Romania.
Creditors who registered before you
Article 131(2) adds one more layer. Before the sale to the buyer is concluded, the administrator must respect the rights of creditors with a preference over the property (for example, a bank mortgage) who registered that right before the promise was signed. Depending on the case, they can be paid first from the sale money, or receive another protection measure set by the law.
That is why the CF extract is checked twice: once for your own note, and once for what was registered before you. Part III of the extract lists the charges on the property. We explain how to read it in our guide to the land register extract.
Six checks before you pay an advance
- A CF extract for your unit, not for "the project". It must show that the building permit is noted. Without that, the law does not allow the developer to promise the sale (Art. 422(6)–(7)).
- A notarial preliminary contract. A private "memorandum" is not a promise under the Nordis rules.
- A new extract a few days after signing, showing your contract noted.
- Part III of the extract: which mortgages or charges were registered on the land before you, and in whose favour.
- The insolvency registry. Search the developer's company in the insolvency register via ONRC. Then check the developer yourself: the company's owners, lawsuits, and track record.
- Your own lawyer. The notary is neutral and the developer's lawyer represents the developer. Ask your own lawyer, in writing: "What happens to my contract if the company becomes insolvent?" We explain how to choose a lawyer for a purchase in Romania.
As developers, we work under the same rules. In our project in Balotești, the preliminary contract is notarial and noted in the land register, and payments go to the dedicated project account. Our company lawyer represents the company only. We recommend that every buyer hire an independent lawyer.
From the field: a presale with no permit
Attorney Ilan Leibovitch recalls a couple who came to him with a folder full of documents:
Years earlier, they had bought an apartment in a presale from a developer who was to build abroad. At a sales event in a Tel Aviv restaurant they were told there was no building permit yet, and that handover would come within three years. They paid a significant sum into an account held by the developer's lawyer. They did not have the contract checked by a lawyer of their own.
Five years later there was still no apartment, and construction had not started. The contract said, several times, that there was no permit at signing. It gave the developer a year to get one, extendable to three, and gave the buyers a right to cancel only in specific cases. We found out that the plan had been rejected twice, and that the permit came very late without the buyers being told. Faced with recent photos of the empty site and the risk of a lawsuit, the developer agreed to return the money and compensate them.
This story did not take place in Romania, and it ended without insolvency. But it shows the same thing: the protection is decided at signing. A registered permit, a contract you can read, and a lawyer who works for you.
Frequently asked questions
What happens to my advance if a Romanian developer goes bankrupt?
Under Article 131 of Law 85/2014, you can ask the insolvency administrator to complete the sale promised to you before the proceedings, if four conditions are all met: the price is paid or payable and you have possession, the price is not below market value, the property is not decisive for a reorganisation plan, and the promise is noted in the land register.
Is my preliminary contract noted in the land register automatically?
Under Article 422(8) of Law 169/2026, the notary requests the note on the day of signing or by the next working day at the latest. Order a new CF extract after signing and check that your contract appears on it.
Does Article 131 protect me while the villa is still being built?
Usually not on its own, because condition (a) requires the property to be in your possession. During construction, the protection is how little of your money is exposed: payments into the dedicated project account, spending caps for each stage, and a payment schedule tied to stages you can verify.
What if the land had a bank mortgage before I signed?
Under Article 131(2), creditors who registered a preference over the property before your promise keep their rights when the sale to you is concluded. Check Part III of the CF extract before you sign, and ask your lawyer how a registered charge affects your deal.
Where can I check whether a Romanian developer is insolvent?
In the insolvency register, accessible through ONRC, the Romanian trade register. The basic search is free. Search by the company's exact name and its tax number (CUI).
The bottom line
Article 131 is not a slogan and not a guarantee. It is four conditions, and one of them you can check today: whether your contract is noted in the land register.
Before you pay an advance in Romania, with us or with anyone else, get the extract, read Part III, and have your own lawyer read the contract. If you would like to go through the documents with me, book a 30-minute call.
Moti Azulay, Compass Group Romania
Sources: Law 85/2014 on insolvency prevention procedures and insolvency, consolidated form (legislatie.just.ro), Art. 131 · Planning and Construction Code, Law 169/2026, Art. 422(6)–(11), Monitorul Oficial no. 661, 10 August 2026 · Romanian Civil Code, Art. 902 (notes in the land register) · ONRC: insolvency registers · Law 169/2026: what moved where
This article is for general information only and is not legal, tax or financial advice. The rules are correct as of 17 October 2026. Every insolvency case is decided on its facts and documents; consult an independent lawyer.
Now you know more.
This article is general information, not legal, tax or financial advice. Consult local professionals before any transaction.
