In Decision no. 623/2016 the Romanian Constitutional Court held that the court must check, case by case, that the conditions of hardship (impreviziune) are met. We assess whether giving in payment is available for your loan.
The Law on giving in payment (Law no. 77/2016, darea în plată) was published in the Official Gazette on 28 April 2016. It concerns giving real estate in payment to discharge obligations under loans.
Under that law, individuals, or groups of individuals organised in associations, who buy, acquire, use or consume products or services outside their professional activity have the right to discharge mortgage loans by giving the mortgaged property in payment to the lender.
In other words, if you have a home loan and can no longer afford it, or no longer want to continue the contract for other reasons, you may be able to discharge all debts under the loan agreement by transferring ownership of the home to the bank.
The procedure starts with a notice to the bank, sent through a lawyer (or a bailiff or notary).
Legal services
- advice on the giving-in-payment procedure;
- drafting and sending the notice to the bank or other creditor;
- negotiating favourable terms;
- bringing and pursuing the action for a declaration that the loan obligations are discharged and ownership transferred;
- assistance and representation before courts, notaries, banks or creditors at every stage of the procedure.
Before you decide
- Giving in payment ends the loan but also the home. Ownership passes to the bank, so it should be weighed against alternatives such as restructuring or refinancing the loan with the bank.
- Check eligibility first: the conditions of Law no. 77/2016 (consumer, mortgage loan for a home, loan amount limit, no convictions linked to the loan) are on the page on the conditions for giving in payment, and the steps are on the page on the procedure.
- Courts check hardship case by case, in line with Constitutional Court Decision no. 623/2016, so the facts and the loan documents matter.
- If enforcement has begun, other remedies may exist as well, such as challenging the enforcement.
Documents to gather
- the loan agreement and its amendments, and the mortgage deed;
- a recent statement of the outstanding balance and the payment history;
- the property’s title and land book extract;
- any correspondence with the bank, and any enforcement documents.
For other disputes with banks and financial institutions, see banking and finance law. Fees are agreed before work starts (see Fees); book a consultation.
Page updated . The information on this website is general and is not legal advice on any specific matter.