The Romanian Parliament has adopted the so-called "Nordis Law," a long-debated bill designed to protect buyers of homes under development by strictly capping the amounts developers can collect before delivery.

Under the new legislation, buyers may pay no more than 5% of the property price when signing a reservation agreement, which cannot exceed 60 days. After the structural works are completed, developers may request up to 25% of the total price, followed by a further 20% once installation works are finalised. The remaining amount will be due upon delivery and transfer of ownership.

Developers are now required to deposit all advance payments into dedicated bank accounts opened for each individual project, with funds to be used solely for that specific development. In addition, preliminary sale agreements may be signed only after the building permit has been registered in the land registry and the individual future property has its own cadastral documentation.

The law is seen as a response to cases in which home-buyers were asked to make substantial payments before construction progress or legal guarantees were secured -- most notably the Nordis developments, which prompted widespread complaints and a public debate over buyer protection.

Following its approval in Parliament, the bill now awaits promulgation by the president and publication in the Official Gazette before entering into force.

Industry observers expect the new rules to strengthen consumer protection and improve transparency, while also imposing tighter liquidity and compliance constraints on residential developers.