Amendments to Law 297/2018 on Land Book Registration System
On September 11, 2020, Law 196/2020 entered into force. It is the Law for amendment and supplementation of Law 297/2018 on Land Book Registration System and for abrogation of the Government Ordinance no. 89/2000 on certain measures for authorization of operators and registration with the Electronic Archive for Security Interests in Movable Property.
Law 196/2020 amends substantially Law 297/2018 on Land Book Registration System (“Law 297/2018” and/or the “Law”). The main amendments are the organization and the powers and duties of the Supervising Authority of the National Land Book Registration System, the powers and duties and the conflict of interests amongst the certified operators, updating of the taxes and duties collected by the state from land book registration.
A new condition is also inserted by Law 196/2020 in art. 4, paragraph (3) of Law 297/2018 for the enforcement of the written records under private signature that are validly concluded and have the character of a writ of execution, under the law. This amendment has particularly drawn our attention and we shall analyze herein further.
Legislative evolution of art. 4, para. (3) of Law 297/2018
- Initial form: “Writs of execution that are ascertained by written records under private signature, for which the law requests the land book registration formalities, meet this condition by registration with the Register” (version from December 07, 2018 until September 10, 2018)
- The form adopted by Law 196/2020: ”Written records under private signature that are validly concluded and have the character of writs of execution, under the law, may be enforced only provided that they are registered with the Register.”
What types of written records under private signature does Law 297/2018 apply for?
We provide herein below examples of the main written records (“Written Records”) under private signature subject to registration with the National Land Book Registration System (“NLBRS” and/or the “Register”) in order for these to be enforced:
- Lease, storage and agricultural lease agreements;
- Credit and personal guarantee agreements;
- Debt securities (i.e. bills of exchange, promissory notes, cheques);
- Legal assistance agreements etc.
Additional conditions for enforcement of written records under private signature that are writs of executions under the law
- Our legislation previously provided that private signature written records have the character of writs of execution only exceptionally: when registered with a public register and the law provides expressly such an effect for the written record (art. 641 of the Civil Procedure Code).
- The new form of Law 297/2018 indicates that any private signature written record that is a writ of execution must be registered with the NLBRS in order to be enforced.
- Consequently, the amendment discussed above does not affect the character of writ of execution of a written record. It only affects the possibility for this to be enforced. In this hypothesis, an additional condition is instituted, i.e. for the writ to be registered with the NLBRS.
Application in due time of Law 297/2018. Is the registration also necessary for the private signature written records concluded prior to the moment when the Law became effective?
- Law 297/2018 does not contain transitional provisions to show what legal acts are subject to the obligation to be filed with the Register;
- In the absence of an express provision, we consider that the obligation to register applies to any writs of execution under private signature – irrespective of the date of their conclusion – as long as the intent is to be enforced after the amendment to art. 4, paragraph (3) of Law 297/2018 (September 11, 2020) becomes effective.
- The change should not affect the enforcement proceedings based on private signature writs of execution, which are ongoing at the effective date of the new form of article 4, paragraph (3) of Law 297/2018 (September 11, 2020).