CEE REPORT FLIPPING PAGES.pdf

To comply with the pre-emption requirements, the vendor must publicise the sale of land, stating all the relevant terms, at the City Hall and on the website of the Ministry of Agriculture and the Department for Agriculture and Rural Development (“DADR”). The sale will remain public allocated to certain stakeholders. The pre-emption rights provide for SULRULW\ RI SXUFKDVH DW DQ HTXDO SULFH and on the same terms as has been RIIHUHG E\ D WKLUG SDUW\ WR &R RZQHUV WHQDQW IDUPHUV QHLJKERUV RI WKH ODQG IRU VDOH DQG 4: the State. $V RI VW -DQXDU\ (8 FLWL]HQV are entitled to purchase agricultural ODQG LQ 5RPDQLD ,Q )HEUXDU\ D QHZ ODZZDV SDVVHG ZKLFK FKLHÁ\ sets out a series of pre-emption rights 6XUSULVLQJO\ WR VRPH WKH /DQG 7LWOH SURFHVV LQ 5RPDQLD LV UHODWLYHO\ developed and as amember of the (8 WKH SURWHFWLRQ RI SULYDWH SURSHUW\ sits front and centre as one of the four rights of membership. It is still the FDVH KRZHYHU WKDW WKH TXDOLW\ RI WKH legal papers relating to land can range IURPQRQ H[LVWHQW WR H[FHOOHQW DQG YHU\ IHZSXUFKDVHV ZLOO EHQHÀW IURP a perfect set of Land Titles. Even if the title documents relating to an area of ODQG DUHPLVVLQJ ZLWK WKH ULJKW OHJDO WHDP WKLV LV D UHODWLYHO\ VWUDLJKW IRUZDUG process that can be enacted to bring WKH SDSHUZRUN LQWR OLQH DOWKRXJK WKLV GRHV WDNH VRPH WLPH DQG H[SHQVH being circa €300-€500 per ha.

Romanian Land Title and Land Ownership

for 30 days, during which time all bene%ciaries of the pre-emption rights are able to match or beat the terms publicised. Although at %rst glance the above formality seemed like a restrictingmeasure on free market activity, it has had the bene%t of publicising some of the land transactions in an area and therefore allows an element of transparency into the marketplace. The majority of sales publicised in the above process will be small scale transactions, as larger deals are usually done in a share transaction, which does not fall within the regulations set out above, and therefore the public %gures are likely to understate the“real”value of land. More so in Romania than in many markets, there is a real premium for scale and areas of 50ha – 100ha or more of consolidated land can attract between 50-100% premiums on land sold in 1-5ha blocks. For many, this forms part of a land acquisition business plan, where a farming company acquires a leasehold business (which by nature will have a large number of landlords all owning 1-5has, but also bene%t fromone of the higher pre-emption rights) and spend time purchasing the freehold from the individual landlords, consolidating the freeholds into areas of 50-100ha or more and adding signi%cant value in doing so.

08 CEE Land Market Brief 2014