Part II

Until 1999, it was not possible in Romania to take out mortgages on buildings that were yet to be constructed, and financing real estate investments was hampered by the requirement for another asset that could be used as collateral or by the high risk associated with financing schemes based on the borrower’s promise to mortgage the future building, which would be enforced only after the building’s completion. Law No. 190/1999 permitted the creation of mortgages on future buildings to secure mortgage loans offered under the law, for the purpose of financing investment in such a building. Although the text of the law was initially rigid and difficult to apply in practice, today—following significant amendments made particularly in 2006—mortgage loans have come to play an increasingly important role for both lenders and borrowers interested in purchasing or constructing a residential or commercial building. The main advantage of this type of loan is that the future property—the subject of the investment—is mortgaged to secure the loan, generally eliminating the need for additional collateral.

Keywords: land registry, building, mortgage loan, real estate, registration, mortgage, superficies