The implications of the new law (2014) governing transactions in agricultural land in unincorporated areas are still a subject of controversy. Discussions on the fact that Law no.
17/2014, regarding some measures to regulate the sale and purchase of agricultural land located in the unincorporated area, which came into force on 11 April 2014, added only difficult and costly bureaucracy for owners who want to sell their land and public authorities. Even if the act was recently amended by Law no. 68/2014, published on 13 May 2014,the new form does not simplify the procedure.
The procedure is expensive, troublesome and difficult to accomplish in a reasonable time, threatening to create a blockage in the agricultural land market transactions.
What does the new regulation say?
In essence, according to the draft methodology rules proposed, prior to selling unincorporated land areas, the owner must register at the town hall, across the territorial administrative unit where the land is situated, an application requiring to display the tender, along with a number of documentary evidence of its ownership.
The aim is to inform preempts, people who have priority in the acquisition of such land, as co-owners, tenants, neighbors and the Romanian state through the State Agency of its intention of the land owner to dispose of the and tender. Finally, preempts are able to buy land, having priority, at the price proposed by the tender.
If, the transaction would be carried out not taking into account this procedure, preempts may request its cancellation. If, none of the persons who have priority is not interested in buying the land the city hall will issue a certificate, stating that the proceedings were carried out and that the land is free to sell at the price requested by the seller in the tender.
But if one preempt is interested in buying, his priority quality will be subject to a thorough analysis by the County Departments for Agriculture and Rural development or The Specialized Technical Ministry Direction, as appropriate. Following this analysis, either a final pass of the contract of sale or a negative opinion will be issued, if that person does not have the quality of a prospective buyer according the law.
New responsibilities for public authorities
Thus, the implementation of this procedure includes a number of new tasks for municipalities, the County Department of Agriculture and Rural Development or The Specialized Technical Ministry Direction. For example, municipalities will take the request from the seller with the offer and proof of ownership will show the offer for sale at the town hall and on its website, will draw up the preempt list, will manage a local evidence registry and communicate files for analysis to other structures in the Ministry.
Implications for landowners
In addition to the extra costs involved in these procedures for all parties involved in a transaction, the sale of agricultural unincorporated land becomes more difficult for the owner. Before submitting the offer at the town hall, it will probably have a potential buyer with who will negotiate a price as on the market.
In the absence of such agreement, to the extent that the price of the offer is determined unilaterally by the seller, there is a risk that the price offered does not meet the realities of the market and even preempts will not exercise their right to accept the offer. In this situation, if the seller will lower the price, the procedure will be resumed.
Therefore, in most cases, such a procedure will be initiated by the seller after the completion of a preliminary contract, regarding the land in question with a potential buyer, the risk being that the sale is not completed, if one of its preemptive will exercise the right to purchase the land.
Finally, it is unlikely that this procedure will be completed in a reasonable time. It is true that the deadlines for completion of the various stages proposed are short, but lacking appropriate personnel, we doubt that these deadlines will be carried out.
Given the importance that land transactions have in agricultural development, it is crucial that methodological rules for implementing the law will not lead to an agricultural land market blockage. Nonetheless, to increase your selling chances your offer must be seen by as many buyers as possible, so you should list it on specialized websites: http://businesses-properties.com/buying-land/ .
