Romanian real estate frequently ends up in co-ownership after inheritance, divorce or joint investment. When some co-owners live abroad (diaspora, mixed families, foreign investors), simple decisions about use, rent or sale of the property become harder – not because Romanian law lacks tools, but because those tools must be adapted to distance, different jurisdictions and cross-border notification rules.
This article looks at how co-owners can structure their contractual arrangements, how legal and contractual pre-emption rights work, how to validly notify co-owners who live outside Romania, and what litigation options exist when agreements are breached. The focus is practical: what needs to be written in contracts, what must be proven in court, and what can realistically be enforced when not everyone is physically in Romania.
Contractual Arrangements Between Co-Owners (use, sale, buy-outs)
1. Co-ownership in Romanian law – the legal background you are building on
Romanian law distinguishes between ordinary co-ownership (coproprietate pe cote-părți) and joint ownership (proprietate comună în devălmășie, e.g. some matrimonial cases). For most non-marital situations – like siblings inheriting an apartment or several investors buying a building – we are in ordinary co-ownership. The Civil Code (art. 634–645) regulates how the common asset is used, administered and how acts of disposal are decided. Ordinary co-ownership is presumed to be in equal shares unless a different quota is proven, and each co-owner has both a material share (fraction of the value) and a right to use the entire property in proportion to that share, subject to the rights of the other co-owners.
By default, the Civil Code sets out:
- rules on how use of the common asset is agreed or, failing that, determined by the court (art. 639);
- rules on acts of conservation, administration and disposal (art. 640–641);
- the possibility to regulate co-ownership through a co-ownership agreement (contract de administrare / convenție de coproprietate), which can also be noted in the land book when the asset is an immovable.
In practice, if co-owners live in different countries, relying only on default statutory rules is risky. The law gives a basic framework, but does not solve day-to-day questions such as: Who deals with tenants? How quickly must a co-owner abroad respond to an offer? What happens if one co-owner stops paying their share of taxes or repairs? These issues are best handled by a detailed written agreement.
2. Co-ownership agreements on use (partajul folosinței)
The Civil Code expressly allows the co-owners to agree how the common asset is used – so-called “partajul folosinței” – without ending co-ownership. If they do not agree, any co-owner can ask the court to partition use.
For co-owners living abroad, a written use agreement is almost essential. Typical clauses include:
- Exclusive-use zones: for a house or land, the agreement can allocate rooms, floors or plots (e.g., “A uses apartment 1, B uses apartment 2, plus shared access to the yard”). This is still use-sharing, not division of ownership.
- Rotating use: for holiday homes, the agreement can allocate weeks or months per year to each co-owner, with a calendar and rules for swapping slots.
- Rules on guests and subleasing: whether a co-owner may host long-term guests, rent short-term (Airbnb), or lease to third parties, and how consent must be obtained.
- Cost sharing: who pays for utilities, taxes, maintenance and major repairs, and how reimbursement works if one co-owner advances more.
- Local representative: where all or some co-owners live abroad, one person in Romania (often a local co-owner) can be designated to handle utilities, building administration, property manager interactions etc., with powers of attorney aligned to the agreement.
To increase legal security, especially when co-owners are abroad, co-ownership agreements relating to immovable property should be notarised and, where applicable, noted in the land book (notare în cartea funciară). This gives opposability to third parties and makes the agreement easier to invoke in litigation.
3. Administration and disposal – who decides what?
Romanian law distinguishes between:
- acts of conservation (e.g. urgent repairs to prevent damage), which any co-owner may perform alone and then ask the others to contribute; and
- acts of administration and acts of disposal, which require different levels of consent.
Under art. 641 Civil Code, acts of administration – such as concluding or terminating leases, assigning receivables from rents and similar acts – may be performed only with the agreement of co-owners holding the majority of shares. Acts of disposal (vânzarea imobilului, ipotecarea etc.) normally require unanimity, unless otherwise provided by law.
A well-drafted co-ownership agreement can refine these rules in practice, for example:
- defining what is considered “administration” vs. “disposal” for that specific property;
- establishing monetary thresholds (e.g., expenses up to a certain value may be approved by majority, above that require unanimity);
- appointing a “managing co-owner” or an external property manager with clearly defined powers;
- specifying detailed decision-making procedures (notice periods, form of votes, online meetings, silence-as-consent rules).
Because Romanian contract law allows parties broad freedom to shape their contractual relations (within mandatory legal limits), such arrangements are valid as long as they do not infringe imperative rules (e.g. you cannot deprive a co-owner of core rights altogether).
4. Buy-out clauses and exit mechanisms
Distance typically amplifies conflict risk: co-owners abroad may want liquidity, while local co-owners want control over the property. To avoid deadlocks, co-ownership agreements should almost always include structured exit mechanisms, for example:
- pre-agreed buy-out formulas: mechanisms allowing one or more co-owners to buy the share of another at a valuation method agreed in advance (e.g. appraiser chosen from a list, average of two independent valuations, or market-based formula);
- put/call options: rights for a co-owner to require others to buy (put) or to sell to them (call) under defined triggers (e.g. non-payment of costs, long-term lack of use, certain age or incapacity events);
- drag-along / tag-along clauses (adapted to property): if a majority co-owner finds a buyer for the entire property, minority co-owners can be obliged (drag-along) or entitled (tag-along) to sell under the same conditions, subject to mandatory legal pre-emption rights;
- mandatory sale and partition: agreement that after a certain period, or if specific thresholds of disagreement are met, the property will be sold and the price shared, instead of forcing co-owners to remain indefinitely.
These mechanisms must be carefully coordinated with legal and contractual pre-emption rights, which may give some co-owners or third parties a priority right to buy in case of sale. As we will see, Romanian law on pre-emption (art. 1730–1740 Civil Code and various special laws) creates a mandatory background that cannot simply be ignored in private agreements.
Legal Pre-Emption Rights under Romanian Law
1. Legal vs. contractual pre-emption
Romanian law recognises both legal and contractual pre-emption rights. According to art. 1730 Civil Code, the holder of a pre-emption right (preemptorul) can purchase a good with priority under conditions set by law or contract. The Code expressly states that its rules on pre-emption apply only insofar as law or contract do not provide otherwise, allowing a degree of contractual flexibility.
In practice:
- Legal pre-emption arises directly from the law (e.g. co-owners and other categories under Legea 17/2014 for extravilan agricultural land; sometimes tenants, the state or local authorities for certain special assets).
- Contractual pre-emption is created by the parties, typically in a co-ownership agreement, preliminary sale-purchase contract, lease or shareholder agreement; it allows one party to buy with priority if the owner decides to sell.
Pre-emption is different from a mere “right of first refusal” clause in informal language: it comes with specific deadlines, formalities and sanctions if violated, especially in case of legal pre-emption.
2. Pre-emption between co-owners under the Civil Code and Legea 17/2014
Under the Civil Code, the seller of a good that is subject to a pre-emption right must first offer it to the preemptor, communicating the sale conditions, and the preemptor has a limited time to accept. For immovable property, the Code mentions a 30-day term for acceptance, unless a different period is set by law or contract.
In addition, for agricultural land located outside built-up areas (terenuri agricole extravilane), Legea nr. 17/2014 – as amended, including by Legea nr. 175/2020 – establishes a special pre-emption regime with an order of preemptors: co-owners, spouses, relatives and in-laws up to the third degree, followed by certain categories of tenants, neighbours and, ultimately, the Romanian state through the State Domains Agency.
Key features of Legea 17/2014 for co-owners:
- Any sale of extravilan agricultural land must respect this pre-emption cascade and be notified according to the law; otherwise, the sale risks being sanctioned (including potential nullity) and registries may refuse or annul registration.
- Co-owners are preemptors of first rank; if a co-owner abroad wants to exercise pre-emption, they must respond within the statutory deadlines and with the procedural formalities required (through the mayor’s office procedure, publication etc.).
- The law is updated and applied with strict administrative practice – in 2020–2024, numerous commentaries and notarial guidance emphasised the need to follow the pre-emption procedure precisely.
For other types of immovables (urban apartments, houses, non-agricultural land), legal pre-emption for co-owners stems primarily from general Civil Code provisions, while specific special laws may apply in niche cases (e.g. historical monuments, certain public-interest assets).
3. Contractual pre-emption inside co-ownership agreements
Given the constraints of legal pre-emption, co-owners frequently add contractual pre-emption clauses to their co-ownership agreements, especially when some owners live abroad. Usually such clauses:
- require any co-owner wishing to sell to first offer their share to the other co-owners at a defined or determinable price (e.g. market value according to an appraiser);
- set clear deadlines for response (sometimes shorter than the Civil Code’s general 30 days, but they must remain reasonable);
- describe how the offer is communicated (e.g. to which elected address, by email with read receipt, by registered letter or via notary);
- regulate what happens if multiple co-owners want to exercise pre-emption (allocation of the share proportionally to existing quotas, or in full to one co-owner with others receiving cash compensation, etc.).
Doctrine and practice recognise that contractual pre-emption may be structured with substantial flexibility, as long as it respects mandatory legal norms on nullity, good faith and consumer protection where applicable. In case of breach, most authors and courts accept that the injured preemptor can either seek relative nullity of the sale or damages, depending on circumstances and statutory provisions (for instance, where the Civil Code or a special law prescribes nullity expressly).
4. Priority between multiple preemptors and other rights
Situations involving several potential preemptors are common when immovable property is co-owned and also subject to special legislation (e.g. agricultural land with neighbours and state pre-emption). Legea 17/2014, for example, expressly ranks co-owners, certain relatives, tenants, neighbours and the state, in that order, giving higher priority to people with existing connections to the land.
At the same time, general Civil Code rules state that pre-emption is indivisible and normally cannot be assigned, and that it must be exercised under the same price and conditions that the seller would offer to a third party. Competing preemptors of the same rank must either agree on allocation or the law will provide a default solution.
For co-owners abroad, this means that timing and proof of the pre-emption notice are crucial: if notification is defective or late, they may lose their priority, and a sale to third parties may become difficult to challenge later.
Notification Procedures for Co-Owners Abroad
In practice, the most sensitive point when enforcing pre-emption or buy-out clauses with co-owners living abroad is proving that they were properly notified. Courts look at both contractual notification clauses and mandatory procedural rules (for judicial acts and certain legal pre-emption procedures).
1. Contractual notices (non-judicial) to co-owners abroad
Pre-emptive offers, buy-out notices, proposals to sell the whole property or to carry out major repairs are typically contractual notifications, not judicial acts. As such, they are governed by the parties’ agreement and by general Civil Code rules on obligations and domicile.
Best practice in co-ownership agreements with owners abroad is to include, at minimum:
- Election of a correspondence address (domiciliu ales / sediu ales) for each co-owner, which can be an address in Romania (e.g. of a local representative or a lawyer) even if they live abroad, plus an email address used for communications.
- Permitted channels: registered mail with acknowledgment, courier, email with read receipt, secure online platforms, or communication through a nominated notary or lawyer.
- Deemed-receipt rules: clauses stating that a notification sent to the elected address is deemed received after a certain number of days, even if the recipient does not actively acknowledge it, provided good-faith attempts can be proven (e.g. returned mail, repeated email attempts).
- Language and translation rules: particularly if some co-owners are not Romanian speakers; to avoid disputes, parties can require Romanian plus a language commonly understood by everyone (e.g. English).
For contractual notices, the strict EU or Hague service regimes are not always mandatory, but copying some of their safeguards (written form, clear information, proof of delivery) greatly helps if a dispute arises later. Law no. 189/2003 on international judicial assistance in civil matters, although focused on judicial and extrajudicial acts, illustrates accepted methods of communication abroad (post, central authorities, diplomatic channels) and how proof of communication is made, and these standards inspire courts when assessing whether a private notification was serious and traceable.
2. Judicial notifications to persons abroad – EU Regulation 2020/1784
When disputes escalate, notices must be made as part of a court case (citations, service of claim, communication of judgments). Here, Romanian procedural law interacts with EU legislation and international conventions.
For service of judicial and extrajudicial documents between EU Member States, Regulation (EU) 2020/1784 governs notification or service of documents in civil and commercial matters. It has applied since 1 July 2022 and is directly binding in Romania and other Member States, including Denmark, which applies it via a parallel agreement.
Under this Regulation:
- documents are generally transmitted between designated transmitting agencies (e.g. Romanian courts) and receiving agencies in the other Member State;
- service can also be made via consular or diplomatic channels, postal services, or – in certain conditions – electronic means, if the receiving Member State accepts them;
- standardised EU forms are used to request and certify service, available through the European e-Justice Portal;
- proof of service is provided through specific forms or certificates, which are crucial in later contestations of procedural regularity.
For co-owners abroad in another EU country, court-related notifications (e.g. a lawsuit to annul a sale that violated pre-emption) will follow this European framework, in addition to Romanian Civil Procedure Code provisions on the place and form of service (arts. 154–163 CPC).
3. Hague Service Convention and non-EU countries
For co-owners living outside the EU, Romania relies on a combination of bilateral treaties (where they exist) and the 1965 Hague Convention on the Service Abroad of Judicial and Extrajudicial Documents in Civil or Commercial Matters, to which Romania acceded by Law no. 124/2003. The Hague Convention sets a central authority mechanism and also allows postal and consular channels, provided the destination state does not object to these methods.
In concrete terms, if a Romanian court action against a co-owner in the United States or the United Kingdom requires service of documents, the court (or the Ministry of Justice, acting as transmittal authority) will follow the Hague Convention or applicable bilateral rules. Good legal practice is to anticipate these timelines in litigation strategy, as cross-border service can add months to proceedings.
4. Proof of notification and risk allocation in co-ownership agreements
Because improper service can lead to nullity of procedural acts, Romanian courts are strict about compliance with the service rules in the Civil Procedure Code and applicable international instruments. Jurisprudence shows that acts communicated to an old address or without respecting formalities may be annulled, forcing the process to restart.
For non-judicial notifications (offers for pre-emption, contractual notices), the threshold is more flexible, but in practice judges still look for objective, verifiable proof of communication: delivery receipts, copies of letters, emails with server logs or read receipts, affidavits from couriers, notarial protocols, etc. Law no. 189/2003 explicitly lists how proof of communication abroad is made for judicial/extrajudicial acts (postal receipts, forms from central authorities or diplomatic missions), and these evidentiary standards often inspire courts assessing the validity of private notices.
Co-ownership agreements with owners abroad should therefore:
- define who bears the risk of outdated contact data (e.g. a co-owner must notify any change of address within X days, otherwise notices sent to the last known address remain valid);
- require each co-owner to designate a process agent or elected domicile in Romania for judicial and non-judicial acts;
- align contractual notice mechanisms with the expected methods under EU/Hague regimes, so that later court proceedings do not contradict earlier contractual practice.
Litigation Options When Agreements Are Breached
Even with good drafting, disputes still arise. When a co-owner sells to a third party without respecting pre-emption, refuses to sign a sale of the whole property, or systematically blocks necessary repairs, the other co-owners need to know what procedural options they have and what can realistically be achieved.
1. Enforcing pre-emption rights after an illegal sale
If a co-owner sells their share or the entire property to a third party in violation of pre-emption, the injured preemptor can usually choose between:
- relative nullity of the sale (or another form of rescission), seeking to obtain the property in their favour; and/or
- damages (if the property cannot be recovered or nullity is not granted).
Under the Civil Code, where a contractual or legal pre-emption right is violated, courts may declare the sale relatively null and substitute the preemptor in place of the third-party buyer if the legal conditions are met (including timely action and proof that the preemptor was willing and able to buy on the offered terms). In the specific case of extravilan agricultural land under Legea 17/2014, respecting pre-emption is an essential condition of validity. Courts and notaries treat violations of the statutory pre-emption procedure extremely seriously; sales that bypass co-owners or other preemptors may be refused registration or later annulled, with the land effectively reverting to the preemptor who proves their right and compliance with the law.
For co-owners abroad, the key practical issues in such litigation are:
- proving that they were not properly notified of the offer, contrary to the law or the co-ownership agreement;
- showing that, had they been notified, they would have exercised pre-emption (e.g. proof of financial capacity, previous attempts to negotiate a buy-out, bankers’ confirmations etc.);
- fitting within limitation periods and procedural deadlines, which are strict, especially in pre-emption litigation.
2. Specific performance of contractual obligations (including buy-outs)
Where the co-ownership agreement contains clear clauses – for example, a put/call option, a buy-out formula triggered by non-payment of costs, or an obligation to accept a sale of the entire property under certain conditions – the injured party may seek specific performance of those obligations in court.
Romanian contract law favours performance in nature where possible: courts can order a party to sign a contract or perform a specific act, and if the party refuses, the judgment can substitute their consent, allowing registration in the land book. This principle applies to preliminary sale-purchase agreements and options, and by analogy to buy-out clauses and pre-emption that are sufficiently precise (price or determinable price, clear conditions, identification of the property).
For co-owners abroad, practical challenges include:
- ensuring that the agreement is not void for lack of determinable price or for ambiguity – courts are reluctant to “rewrite” parties’ contracts;
- ensuring that all required signatures (including those of spouses, in community property regimes) were obtained;
- dealing with service of litigation documents abroad, which can delay proceedings but is essential for the judgment’s validity.
3. Partition (partaj) and judicial sale
When co-ownership becomes untenable – one co-owner refuses all reasonable proposals to rent, sell or repair, or persistent conflict makes cooperation impossible – any co-owner may request partition (partaj), either in kind (if physically possible) or by sale and division of the price. The law does not force anyone to remain indefinitely in co-ownership, save for very limited exceptions.
Partition of use (partajul folosinței) can be requested without ending co-ownership, but full partition leads to the termination of co-ownership, typically via sale if the property cannot be divided in kind.
Partition actions involving co-owners abroad raise specific issues:
- service abroad must follow EU Regulation 2020/1784 or Hague rules, depending on the country;
- co-owners abroad may participate through local counsel and powers of attorney, but courts may still require personal presence for certain procedural acts (e.g. testimony);
- if the court orders sale via public auction, foreign co-owners must decide whether to bid, to let the property go, or to focus on maximising their share of the price.
Partition actions often intersect with pre-emption: for instance, a co-owner might try to use partition as leverage to force a sale, while another invokes pre-emption clauses to buy out the first. The court will examine both statutory pre-emption and contractual agreements, weighing them against the principle that no one can be forced to remain in co-ownership indefinitely.
4. Damages and cost recovery
Even where nullity or specific performance are not feasible, injured co-owners (including those abroad) can claim damages for breach of co-ownership agreements or violation of pre-emption rights. Under general Civil Code rules, the injured party must prove:
- a breach of contractual or legal obligations (e.g. ignoring a contractual pre-emption clause or refusing to contribute to major repairs);
- a patrimonial damage (loss of profit, depreciation of property, additional expenses, tax penalties);
- a causal link between breach and damage, and (in principle) fault.
Damages may be combined with other remedies: for example, a preemptor may obtain judicial substitution as buyer (thus acquiring the property) and still claim damages for the delay or costs caused by the illicit sale. Co-ownership agreements can strengthen these claims by:
- pre-defining certain breaches as serious (material) and triggering specific penalties;
- including liquidated damages or penalty clauses (clauze penale) for failure to respect pre-emption, buy-out or cost-sharing obligations;
- allocating jurisdiction (choice of court) for disputes, while respecting mandatory rules on immovable property; and
- requiring mediation or negotiation stages before litigation, which may be particularly useful where parties live in different countries and a negotiated solution is still possible.
5. Strategic considerations for co-owners abroad
From a strategic standpoint, co-owners who live outside Romania should consider:
- Regularly updating contact details and elected domicile; otherwise, they risk missing critical notices and seeing their pre-emption or other rights time-barred.
- Granting clear powers of attorney to trusted representatives in Romania (lawyers, notaries, relatives) to act quickly when offers or litigation documents arrive.
- Documenting their interest in the property (emails showing willingness to buy, prepared financing, appraisals), to be able to demonstrate in court that they would have exercised pre-emption if properly notified.
- Using local legal advice early when special regimes apply (e.g. Legea 17/2014 for agricultural land), because procedural errors can irreversibly jeopardise their position.
On the other side, co-owners in Romania who want to sell or restructure co-ownership should invest in robust notification – even beyond strict legal requirements – to reduce the risk of later challenges by absentee co-owners.
Sources
- Codul civil, art. 1730–1740 – dreptul de preempțiune (codulcivil.ro)
- Codul civil, art. 639–645 – coproprietatea obișnuită, actele de administrare și dispoziție (codulcivil.ro, EuroAvocatura)
- Codul civil, art. 86–97 – domiciliu și reședință (codulcivil.ro, EuroAvocatura)
- Regulamentul (UE) 2020/1784 privind notificarea/comunicarea actelor în materie civilă și comercială (EUR-Lex, e-Justice)
- Ministerul Justiției – cooperare judiciară civilă, Regulamentul 2020/1784 și Convenția de la Haga 1965
- Legea nr. 17/2014 (versiuni consolidate și comentarii doctrinare)
- Analiză notarială – modificările aduse Legii 17/2014 și dreptul de preempțiune
- Comentariu doctrinar – dreptul de preempțiune (Petrea & Asociații)
- Blaj Law – dreptul de preempțiune: definiție, natură și exercitare
- Legea 189/2003 – art. 8 privind dovada comunicării actelor în străinătate
