People who, for five years, have kept using a home built by the National Housing Agency, through a rental contract, can become owners of the home involved. Apartments bought by tenants, however, cannot be sold over a period of five years, so that real estate speculations can be avoided.
This interdiction prevents tenants from using the home to take out a bank loan in order to buy the apartment. Authorities want to amend this legal provision.
"Financial-banking institutions (…) have noted the suspension of the right to sell the home over a period of five years leads to the impossibility of guaranteeing loans with mortgage for the youth," said the explanatory note of the government emergency ordinance developed by the Ministry of Development, Public Works and Housing, which intends to amend Law no.152/1998 on the creation of the National Housing Agency.
Thus the initiators of the project wish to amend an article that mentions the period in which the homes cannot be estranged and to add an exception according to which the homes can constitute real estate guarantees in favor pf the lenders.
"Lenders will be able to use the homes even prior to the expiration of the five year deadline, by way of foreclosure, within the boundaries of the law, if contract obligations are not observed by the tenants," according to a revised form of the article in question.