Dwellings Bought In “First Home” May Be Sold In First 5 Yrs – Romanian Senate

According to its initiator, this amendment spares the Government of supplementary work in case of being forced to foreclose the contracts signed in the "First Home" program due to inadequate development.

The amendment allows the dwelling’s owner to sell the property in the first five years after purchase, while the Government is able to immediately recover its guarantee. However, in order to sell the dwelling, the owner needs the prior approval of the Finance Ministry.

"Thus, the owner finds a client, then he automatically sells (the dwelling- e.n.) and the money goes to the state, which recovers its guarantee," said Tuesday social democrat senator Sorin Bota, who initiated the amendment.

On the other hand, Finance Ministry secretary of state Cosmin Coman said Bota’s amendment might lead to speculations on the real estate market.

The Romanian Government announced two weeks ago a program to guarantee the loans contracted for the purchase of the first home, within the maximum limit of EUR60,000, with the entire financing granted to this program reaching EUR1 billion.

The guarantee will be granted to the people buying their first home and who did not previously benefit from a mortgage loan.