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News rules of registration of real estate rights

July 20, 2019

After the major reform of the Moldovan Civil Code that became effective as of 01 March 2019, the new rules for registration of real estate rights were published to reflect the legislative changes.

The amendments into the rules were developed by the Land Relations and Cadastre Agency and approved in February 2019, and were only endorsed by the Ministry of Justice at the beginning of July (they will become effective on 12 August 2019).

Given that the new Civil Code brought about a substantial reform in the way real estate rights are regulated, the new registration rules had to reflect this reform. Some of them are specified below:

The amended rules now provide that not only the buildings and structures that are strongly linked with the land can be registered in the real estate register, but all buildings and capital structures regardless of whether they are an independent real estate object or a part of the land plot.

Under the newly amended rules minors now have the right to register directly their rights without the approval of or intervention by their legal representatives/tutors.

The new amendments also reflect major changes introduced into the Civil Code with respect to the custody over people and their legal capacity with respect to the real estate rights.

Multiple provisions are set forth with regard to provisional registration. The new Civil Code substantially extended the scope of provision registration. An example of such registration provided by the new Code can be a purchase agreement which sets the condition of ownership passing to the buyer only after the full purchase price is paid off. The new rules also set forth detailed regulations as to how provisional registration is transformed into permanent.

The rules also extend the list of cases in which a notice can be registered with regard to real estate objects. According to art. 435 of the amended Civil Code certain facts, circumstances, and rights can be opposed to third parties, only if there is a notice about them in the register. The new rules now provide for a long list of cases (with references to relevant provisions of the Civil Code and other laws) when a notice can be registered in the real estate register and detailed rules of introducing respective notices in each specific case.

Following the new provisions of the Civil Code the new rules bring more clarity into registering the rights over buildings and rights over the land on which they were built. Now they require that the rights to land have to be registered before registering the rights over the building.

Particular rules were introduced in the way how joint property of spouses is registered. As a general rule, all property obtained during the time of marriage is considered joint property of both of them. However, in order for it to be registered in the register in the name of the both, the title deed (eg. contract) has to include both spouses. If only one of them is included in the deed, for the property to be registered as joint, the person specified in the deed will have to submit a written application in that regard. The other spouse (not mentioned in the deed) may later request the registration of joint property only upon approval of the spouse who has been earlier registered as the owner.

Please contact us, if you want to learn more about the new rules of registration of real estate rights or about legal regulation of such rights in Moldova.