How to Acquire A Property Title for Assets? Professional Contract Templates.
Updated: Oct 30
Private property rights grant the holder the ability to possess, use, and dispose of an asset, whether movable or immovable, exclusively, absolutely, and perpetually, within the limits established by law, and are among the most protected rights. From international treaties to the Constitution and Civil Code, multiple laws ensure that individuals benefit from guarantees of property rights and that their assets are not subject to expropriation or unauthorized use.
The sale-purchase contract is the most well-known contract model through which a property title is transferred from the seller to the buyer. However, there are many other legal means by which a property title transfer can operate—leasing contract, donation contract, life annuity contract, or maintenance contract (order any contract template). Besides these, there are also circumstances where a property title can be acquired without the existence of a sale-purchase contract or a transfer contract.
What is a property title? Ask a lawyer.
A property title is the document that certifies the ownership right over an immovable asset (e.g., house or land title) or a movable asset (e.g., vehicle title). In other words, a property title is the "legal act" that proves the ownership of an individual or legal entity (such as an LLC) over certain assets. In Romania, regulations regarding the existence and transfer of a property title are established through the Civil Code and special laws that govern various methods of constitution or transfer.
The property title serves as proof of ownership and is essential for commercial transactions, being a necessary prerequisite for certain transactions to take place. For example, in real estate matters, one must hold a valid property title to enter into a sale-purchase contract.
How is a property title acquired? Ask a laywer.
There are several ways in which owners can acquire private property rights. The most common methods of acquiring property rights involve a transfer of property title (usually following the signing of a contract), but there are also situations where the property title can be acquired in an original manner (i.e., not involving a property title transfer). In most cases, a property title is acquired through one of the following methods:
Acquisition of property title by contract (agreement between parties). Ask a lawyer online.
The most known and used contract models through which property rights are transferred include: land sale-purchase contract model, preliminary contract model (even if it does not instantly transfer the property title, the transaction will be perfected in the future), house sale-purchase contract model, vehicle sale-purchase contract model, share purchase contract template (when shares in an LLC are sold), donation contract, or contracts containing maintenance obligations (such as a life annuity contract or a maintenance contract).
Acquisition of property title by succession. Ask a lawyer online.
Acquiring a property title through succession/legal or testamentary inheritance represents one of the fundamental methods of transferring property rights. In the case of legal inheritance, the succession opens at the death of the person, and their estate is transferred to the legal heirs according to the order of succession established by law. This process involves registering the inheritance certificate issued by a notary, which attests to the heirs' rights over the deceased's assets and operates the transfer of the property title in the relevant registers. Legal succession occurs directly by law, based on the kinship relationship between the parties, and there is no need for legal acts or property title transfer contracts.
Testamentary inheritance allows the deceased to dispose of their assets through a will, granting them to designated beneficiaries. The will must comply with certain formalities to be valid and is also subject to the notarial validation procedure. In both cases of succession, if the property title refers to immovable assets, acquiring the property title by the heirs requires registration in the land registry. Consulting a lawyer specialized in inheritance law can clarify and facilitate the entire process, offering appropriate legal advice and assistance to avoid potential disputes or complications.
Acquisition of property title by accession. Ask a lawyer online.
Accession is an original method of acquiring a property title, whereby the owner of an asset also becomes the owner of assets that unite with or incorporate into their initial asset, either naturally or artificially (through human intervention). Accession can apply to both movable and immovable assets. The owner of the main asset generally becomes the owner of the accessory asset, acquiring an original property title. This principle is based on the idea that the accessory asset is considered a dependency of the main asset. Accession is based on the practical necessity of simplifying situations where the separation of united assets would be difficult or even impossible without damaging or losing their value. Through accession, ownership of united assets is attributed to a single owner. However, to ensure fairness, if accession occurs through human intervention, the owner of the incorporated asset must be compensated for the loss of their right. This legal mechanism is essential to avoid property conflicts and ensure a practical and fair solution in cases of asset unification.
There are several types of accession through which a person can acquire a property title:
Natural immovable accession: includes natural additions or modifications to an immovable asset, such as alluviums (deposits of soil) or the formation of new land along a river.
Artificial immovable accession: includes constructions, plantations, or works carried out on land by the landowner or a third party. According to Articles 577 and following of the Civil Code, if a construction is made on someone else's land, the landowner can acquire ownership of the construction, provided they compensate the bona fide constructor.
Movable accession by union: occurs when two movable assets belonging to different owners unite in such a way that they become inseparable. The owner of the main asset becomes the owner of the entire ensemble, with the obligation to compensate the owner of the accessory asset.
Movable accession by transformation: applies when a movable asset is transformed or processed, resulting in a new asset. The owner of the material becomes the owner of the new asset, provided they compensate the labor of the person who performed the processing, if that person acted in good faith.
Acquisition of property title by good-faith possession. Ask a lawyer online.
Good-faith possession is an original method (i.e., it does not involve a property title transfer) of acquiring property rights by possessing an immovable or movable asset for a certain period of time determined by law. Practically, possession allows a person who has used a movable or immovable asset as an owner, continuously, publicly, and acting as an owner, to become one, even if they did not hold a valid property title at the beginning of the possession.
For movable assets, good faith possession yields immediate results, without the need for a time period to elapse. The Civil Code states that anyone in possession of a movable asset in good faith is presumed to have a property title over that asset.
For immovable assets, possession can result in acquiring a property title if certain conditions are met. For instance, an immovable asset registered in the land book in favor of a person who is not the rightful owner (without a legitimate cause) becomes the property of the possessor if they have held the asset for 5 years following the registration application, provided their possession was unchallenged and they were registered in good faith in the land registry.
Acquisition of property title as a result of good faith possession in the case of “fruits”. Ask a lawyer online.
The “fruits” of an asset refer to the benefits or revenues generated by that asset. The Civil Code distinguishes between two main types of “fruits”: natural “fruits” and civil “fruits”.
Natural “fruits” are the direct products or benefits obtained from exploiting an asset without affecting the substance of the asset. Examples include agricultural crops, animal products (milk, wool, eggs), or other natural products (wood, mineral resources extracted from a mine).
Civil “fruits” are the revenues generated by an asset through a contract or by its use by third parties. Examples include rents and leases (revenues obtained from renting an immovable asset or leasing agricultural land as a way of exploiting a property title), interest (amounts of money obtained as interest from a loan contract), dividends (revenues obtained from holding shares in an LLC – download LLC incorportation template).
As a general rule, the “fruits” of an asset belong to the bona fide possessor of the asset that produced them. A bona fide possessor is someone who possesses the asset believing, reasonably, that they are its legitimate owner. In the case of good faith possession, the possessor has the right to acquire the “fruits” produced by the asset for the entire duration of their possession. This right applies to both natural and civil “fruits”.
A mala fide possessor is someone who possesses the asset knowing they do not hold a legitimate property title over it. In the case of mala fide possession, the possessor is obliged to return to the rightful owner all civil and natural “fruits” obtained during their possession, except for those necessary for the maintenance of the asset or its production.
Acquisition of property title by court judgement. Ask a lawyer online.
A property title can be acquired following a dispute through a court judgement pronounced when it constitutes rights. The most well-known example is the court judgement that stands in place of a sale-purchase contract by supplementing the consent of the party refusing to conclude the contract. The hypothesis is that the parties have concluded a preliminary sale-purchase contract (model), and subsequently, one of them refuses to perfect the main contract (the preliminary sale-purchase contract does not transfer ownership, so it is necessary to later conclude the sale contract for the transfer of the property title to operate).
The party requesting the issuance of the court judgement to obtain a property title must have fulfilled all obligations incumbent upon them according to the preliminary contract (sale-purchase promise). For example, the buyer must have paid the agreed price or be prepared to pay it.
Acquisition of property title as a result of administrative decisions. Ask a lawyer online.
Cases where an administrative decision of a public authority can constitute a property title are established by various special laws. The best known are the property restitution laws, adopted to remedy the abuses committed during the communist regime when numerous properties were confiscated by the state without fair compensation.
These laws, including Law No. 10/2001, Law No. 247/2005, and Law No. 165/2013, establish detailed administrative procedures for the restitution of abusively taken properties or, when restitution in kind is not possible, for granting monetary compensation or equivalent value of the properties. These normative acts have created the necessary legal framework for former owners or their heirs to claim their rights over confiscated assets, either through the effective restitution of the properties or through equitable compensation based on administrative decisions constituting property or compensation titles.
Frequently asked questions about property titles. Consult a lawyer.
Why is a property title important?
A property title is important because:
it certifies the legal right of the owner over the asset. based on the property title, the owner can perform operations on the asset, such as entering into a lease contract (model), a loan contract (model), or a preliminary sale contract (model).
it is necessary for land and buildings for registration and publicizing real estate in the land registry. the transfer of property title over land is currently only possible through the land registry, which keeps the record of private property.
it protects the owner's rights in legal disputes. in the case of a dispute regarding property rights, the property title is essential in building the procedural position of the parties. the classic example is the action for recovery, in which the winning party will be the one who proves a property title over the asset.
it is essential for real estate transactions, such as sale, mortgage, or donation of the asset. Such transactions, especially when the authentic form issued by a notary public is required, cannot be performed in the absence of a property title.
What information does a property title contain? Contracts lawyer.
The answer depends on the type of property title in question, but typically it contains:
the name(s) of the owner(s).
a detailed description of the immovable asset (land, building, etc.) or movable asset to which it refers. for example, the clauses of a vehicle sale-purchase contract will identify the vehicle to which it refers.
information about the conditions under which the property title is transferred, such as the price agreed upon by the parties and the moment of transfer.
any encumbrances or servitudes that burden the property.
What is the land registry?
The land registry is a public register in which all immovable assets and real rights over them are recorded. Registration in the land registry ensures real estate publicity and protects the rights of owners.
How is a property title registered in the land registry? Contracts lawyer.
To register a property title in the land registry:
the owner submits the property documents to the cadastral and real estate publicity office.
the office verifies the authenticity and legality of the documents.
the property right is registered in the land registry, and the owner receives an extract from the land registry.
What rights and obligations does an owner have according to a property title?
The owner's rights include:
the right to manage and use the asset: using the immovable or movable asset according to its purpose.
the right of disposal: the right to enter into sale contracts, donation contracts, long-term lease contracts, or mortgage contracts over the asset.
The owner's obligations include:
payment of taxes and fees: paying the taxes and fees related to the property.
maintenance of the asset: keeping the asset in good condition and making necessary repairs to prevent damage to third parties or to comply with various administrative regulations.
compliance with legal norms: adhering to applicable legal and urban planning regulations.
What happens if there are disputes related to the property title?
If there are disputes related to the property title, they can be resolved amicably or through the courts. Persons who believe they have a better-founded right over the immovable or movable asset can contest the property title in court. The most common litigation regarding property titles is the action for recovery.
Can there be defects of form or substance in the property title? Contracts lawyer.
Yes, there can be defects of form (errors in drafting the documents) or defects of substance (issues related to the validity of a property title). These can be contested in court by the interested party and can affect the validity of the property title, including consequences such as the loss of the right.
How can owners protect their property title? Contracts lawyer.
Owners can protect their property title by:
correct and timely registration of the documents in the land registry, in the case of movable assets.
consulting a notary public for the authentication of documents or registering them in various registers that grant a certain date for enforceability against third parties.
periodically verifying the entries in the land registry to detect any errors regarding the entries affecting their property title.
What documents are necessary to obtain a property title in the case of inheritance? Contracts lawyer.
To obtain a property title in the case of inheritance, the following documents are necessary:
the death certificate of the deceased.
the inheritance certificate issued by a notary public.
the property documents of the deceased over the inherited assets (sale-purchase contracts, property titles, etc.).
identification documents of the heirs (id card, passport).
other relevant documents, such as the will (if it exists).
What does obtaining a property title through a judicial decision that stands in place of a sale-purchase contract entail?
Obtaining a property title through a judicial decision that stands in place of a sale-purchase contract involves the following steps:
existence of a validly concluded preliminary sale-purchase contract (model preliminary contract) between the parties.
proving that one of the parties unjustifiably refuses to finalize the transaction by signing the sale-purchase contract.
initiating a legal action by the interested party (usually the buyer) requesting the issuance of a judicial decision that stands in place of a sale-purchase contract.
the court will analyze the preliminary contract and the presented evidence, and if the refusal of the defendant is considered unjustified, will issue a judicial decision that replaces the sale-purchase contract and grants the property right.
How is the property title acquired for an immovable asset purchased at a public auction?
Acquiring the property title for an immovable asset purchased at a public auction involves the following steps:
participating in the public auction organized by the competent authority (e.g., anaf, judicial executor, etc.).
winning the auction by offering the highest adjudication price.
signing the adjudication report, which constitutes the property title through which the auction winner acquires the property right over the immovable asset.
paying the full adjudication price.
registering the property right in the land registry based on the adjudication report and proof of full payment.
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