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Planning System

The context for urban development planning in Romania refers to the national, regional and local policies and also to the social-economic situation of urban areas within the national and international perspective.

General legal framework regarding planning

Law No. 350/2001 regarding regional and urban planning establishes the framework for planning matters relevant to real property development. Similar to other countries, Romania manages its land planning through several levels of zoning. More specifically, there are three such levels:

    (i) General Urbanism Plans and accompanying local regulation (“PUG”),
    (ii) Zonal Urbanism Plans and accompanying local regulations (“PUZ”), and
    (iii) Detailed Urbanism Plans (“PUD”).

The “PUG”

A PUG is the most general of the three plans and covers an entire region. It must be updated every 5-10 years, as it contains the policy objectives and legal authority for the achievement of specific development programs. A PUG governs:

    (a) settlement and delimitation of land inside city limits;
    (b) how this land is used;
    (c) correlation of functional zoning with traffic planning;
    (d) public easements;
    (e) development and modernization of technical and residential infrastructure;
    (f) protected zones and protection of historical monuments;
    (g) forms of ownership and transfer of land;
    (h) limits on maximum built area, lay-out and green space;
    (i) future local development;
    (j) future regional development; and
    (k) traffic corridors and equipment provided for in the national, zonal and county plans.

A PUG is approved by municipal councils, after obtaining the mandatory permits (Rom: avize) required from the Ministry of Public Works, Transport and Housing (only for the central area of the municipality), County/Municipal Council and other applicable central and regional authorities. The plans are publicized within 5 business days of notifying them to the relevant Prefect.

Amendments to finalized plans are subject to the same procedure as described in the preceding paragraph.

The “PUZ”

A PUZ is more detailed than a PUG and applies to neighborhoods or larger plots of land in which a real estate project is located. A PUZ regulates: (a) organization of roads; (b) architectural character; (c) land use; (d) utilities and infrastructure development; (e) forms of ownership and transfer of land; (f) protection of historical monuments and easements in protected zones. A PUZ is prepared by the municipality.

A PUZ is approved by municipal councils, after obtaining the mandatory permits required from the Ministry of Public Works, Transport and Housing (only for the central area of the municipality), County/Municipal Council and other applicable central and regional authorities. The plans are publicized within 5 business days of notifying them to the relevant Prefect.

Amendments to finalized plans are subject to the same procedure as described in the preceding paragraph.

The “PUD”

A PUD is a special regulation with respect to specific parcels of land (as opposed to the wider neighborhood). It covers, within the context of its neighbors:
   (a) accessibility and connection to infrastructure;
   (b) limits on maximum built area and layout, as well as derogations there from;
   (c) functional and aesthetic compatibility within areas;
   (d) functional compatibility and conformity of layout and green spaces;
   (e) permitted forms of ownership and transfer of land. A PUD is prepared only for detailed implementation of a PUG and a PUZ or,
   at the request of a landowner, for establishing conditions for new constructions.

A PUD is approved by municipal councils, after obtaining the mandatory permits required from the Ministry of Public Works, Transport and Housing (only for the central area of the municipality), County/Municipal Council and other applicable central and regional authorities. The plans are publicized within 5 business days of notifying them to the relevant Prefect.

Revocation / appeals

As a general principle of Romanian administrative law, an administrative act may be revoked by the same body that made the initial decision. A legal action challenging an administrative act must generally be initiated within a 30-day period. After passage of such period of time, the administrative act may no longer be challenged by this procedure. However, in case of fraud or an administrative error, an administrative decision may be rescinded regardless of the time period.

Other definitions

POT (Percent Occupare Terrain) – the maximum allowed percentage of occupancy of future construction permitted on the parcel.

CUT (Coefficient Utilization Terrain) – Land usage coefficient % (land coverage which dictates in turn the size of the building).

Rural and Urban property

In Romania, legal distinctions between the character of properties create differing situations affecting land. Depending on their location, the land may be classified as urban property (in Romanian “intravilan”) and rural property (in Romanian “extravilan”). Urban property represents land situated in the territorial-administrative area of an urban community, while rural property refers to land located outside of an urban community, not intended for commercial purposes, and principally designated for agricultural use. No building may be erected on an agricultural land area and, consequently, anyone who intends to construct on this type of land must seek to re-zone the parcel so as to change its legal status to render it suitable for construction.

The approval for changing the designation of the land is granted by the Ministry of Agriculture, Forests and Rural Development based upon the approval rendered by the county office of the National Agency of Cadastre, which is the central authority keeping the evidence of registrations in the Land Book at the country level. Briefly, the following documents will have to be submitted to the National Agency of Cadastre: the ownership title over the land, an excerpt of the Land Book, the relevant cadastral documents, a certificate of urbanism, applicable urbanism and territory plans issued by the local city hall, and an approval from the National Administration of Land Improvements for the zoning change. This procedure, from filing the application with the county office of the National Agency of Cadastre up to the issuance of the requested decision, may take 30 days or longer.

Certificate of Urbanism

The Certificate of Urbanism is an official informative document by which the competent authorities inform the applicant of details concerning the legal, economical and technical status of a specific construction and/or building-site available at the moment of construction. It sets forth urban requirements in accordance with the site's specificity and itemizes the relevant notifications, authorizations and other legal permits required to be obtained for the issuance of the relevant building permit. It also establishes the maximum allowed percentage of occupancy of future construction permitted on the parcel (in Romanian, POT), the height restrictions on any construction, the type of materials that must be used, other special technical conditions for construction, as well as the permits and acknowledgements needed. Since Romania is prone to earthquakes, the authorities have implemented stringent requirements for new construction so as to avoid disaster.

The importance of obtaining the Certificate of Urbanism cannot be understated; buying land without knowing that zoning limitations can prevent the construction of your project, and leave the purchaser as the fee simple owner of a potentially useless piece of property. Other issues should also not be overlooked such as the property’s proximity to an airport that might prevent construction of a radio tower, the use of tower cranes or the crossing on the property of gas or water pressurized line. The Certificate of Urbanism must mention the purpose for its issuance but it does not confer the right to commence construction, any arrangements or landscaping of any kind – only a Building Permit allows for the start of construction. Indeed, the issuance of the Certificate of Urbanism may also require the assent of different authorities as a prerequisite to obtaining a Building Permit, such as the Ministry of Agriculture, the Ministry of Defense or other applicable authorities.

Permits and Acknowledgements

Permits and acknowledgements are issued by utility companies (water, gas, sewage and electricity) and by relevant authorities for environmental, public health, fire, historic preservation and protected areas, to name a few. Some Local Councils have developed the “Sole-Central Permit” meaning that the investor has the possibility to easily and quickly obtain all of the requisite permits and acknowledgements from one location.

The Building Permit

The Certificate of Urbanism does not, under any circumstances, grant the holder the right to begin construction. Such right may only be granted by way of a building permit that is issued subsequently and on the basis of a valid Certificate of Urbanism. The Building Permit represents a document issued by the local public administration which guarantees compliance with the technical and legal regime regarding the location, design, execution and function of a structure. Such a permit is mandatory. Building without one can result in penalties or the actual demolition of the building.

The Building Permit is issued for a specific period on a case by case basis depending on the project. In case the construction is not finalized in time, the Building Permit can be extended for a one time period of 12 months.

The Building Permit is issued in a maximum of 30 days from the submission of the applicable documents, as follows: the Certificate of Urbanism; the deed title; the plan for the authorization of the construction; and any other permits and acknowledgements provided in the Certificate of Urbanism. However, the 30 day term may be extended by additional periods in case of incomplete documentation and, in practice, it is rather common that the authorities request additional documentation.