What consumers need to know about a sale and purchase contract for real estate under construction
Automatically translated summary. The full text is available in Romanian.
Buying property under construction is cheaper than buying a finished one, but carries risks. A note produced by the Independent Think Tank “Expert-Grup” explains how Moldova’s Civil Code regulates sale and purchase contracts for real estate under construction and how the law protects buyers.
Under Articles 1170-1176 of the Civil Code, the seller undertakes to build an apartment or other property and transfer it to the buyer, who pays the agreed price. Before the 2019 modernisation, buyers signed an “investment in construction contract” with no clear regulation and no real right over the property. If the developer went bankrupt, buyers had to claim their money alongside privileged creditors such as banks or the state, and many lost both apartment and money.
The new rules apply to any arrangement promising a property under construction in exchange for payment, whatever its name. Building on one’s own land is a works contract instead. Contracts must state the cadastral number, building permit details, the project, land ownership, the buyer’s share of land and common areas, the completion date, the total price and the payment schedule. The permit and construction plan must be attached. The buyer’s share also determines financial responsibility for upkeep in the future owners’ association.
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