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Law No. 550 Of 14 October 2002

Original Language Title:  LEGE nr. 550 din 14 octombrie 2002

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LEGE no. 550 550 of 14 October 2002 (* updated *) on the sale of privately owned commercial premises of the state and of service providers, under the administration of county councils or local councils, as well as those of the patrimony of autonomous regions of local interest * *) ((updated until 1 January 2007 *)
ISSUER PARLIAMENT




-------------- *) The updated form of this normative act until January 1, 2007 is carried out by the legal department of S.C. "Territorial Center of Electronic Computing" S.A. Piatra-Neamt by including all the changes and additions made by: EMERGENCY ORDINANCE no. 21 21 of 2 April 2003 ; LAW no. 306 306 of 8 July 2003 ; LAW no. 331 331 of 8 July 2004 ; LAW no. 558 558 of 7 December 2004 ; LAW no. 312 312 of 10 November 2005 . The content of this act is not an official document, being intended to inform users ** **) Title the law has been amended by section 1 1 of the single article of LAW no. 558 558 of 7 December 2004 , published in MONITORUL OFFICIAL no. 1.200 1.200 of 15 December 2004. The Romanian Parliament adopts this law + Chapter I General provisions + Article 1 (1) The present law establishes the legal framework for the sale of commercial premises and those of services, private property of the state, under the administration of county councils or local councils, as well as those in the heritage of autonomous regions of local interest, hereinafter referred to as commercial or service spaces. (2) The sale of commercial or service spaces shall be carried out by direct negotiation or, as the case may be, by public auction with outcry, under the conditions of this law. + Article 2 (1) The provisions of this Law are also applicable to commercial or service spaces located in buildings regulated by Law no. 10/2001 on the legal regime of some buildings improperly taken over from March 6, 1945 to December 22, 1989, with subsequent amendments and completions, in the following cases: a) when the former owner received compensation according to international agreements concluded by Romania, under the conditions provided for in art. 5 5 of Law no. 10/2001 ; b) when the entitled person has lost the right to seek legal remedies in kind or by equivalent, under the conditions laid down in art. 21 21 para. ((5) of Law no. 10/2001 ; c) when the entitled person has opted for remedies by equivalent, under the law; d) when the buildings do not return to the entitled persons and remain in the administration of the current holders, according to art. 43 43 para. ((1) of Law no. 10/2001 . (2) The provisions of this Law are also applicable to commercial or service spaces located in the buildings of historical monuments, private property, or in privately owned buildings located in the protection area of a historical monument. The sale of these spaces can only be made with the according to the Ministry of Culture and Religious Affairs. ------------ Alin. ((2) art. 2 2 has been amended by section 2 2 of the single article of LAW no. 558 558 of 7 December 2004 , published in MONITORUL OFFICIAL no. 1.200 1.200 of 15 December 2004. + Article 3 (1) The provisions of this Law are not applicable to commercial premises or service provision regulated by Law no. 85/1992 on the sale of housing and premises with another destination built from state funds and funds of economic or budgetary units of state, republished, as amended. (2) Until the adoption of the special law on the legal regime of buildings belonging to religious cults or communities of national minorities, taken over by the state or other legal persons, it is forbidden to dispose of commercial premises or the provision of services located in the buildings concerned or the change of their destination. + Article 3 ^ 1 ((1) Spaces intended for artistic creation-workshops, galleries, studios, central and local headquarters of the unions of creators, as well as the like-, in the private property of the state and in the administration of county councils, councils local or other public institutions or authorities or in the patrimony of autonomous regions, for which there are rental contracts concluded with the unions of creators and which are used by plastic artists or other categories of artists and people of culture, members of the national unions of legal creators established in Romania and recognized as legal persons of public utility, declare protected cultural spaces and do not fall under the present law. (2) Inventory of the premises provided in par. (1) is approved by Government decision, at the proposal of the Ministry of Culture and Religious Affairs and the Ministry of Public Administration. (3) For the spaces provided in par. (1), the current users conclude with the holders of the administration rights, namely the county councils, local councils, other public institutions or authorities or the autonomous regions in whose patrimony the spaces are located, rental contracts in conditions of facilities for a period of 5 years, with the possibility of extension for another 5 years. -------------- Alin. ((3) art. 3 ^ 1 has been amended by section 4.2 1 1 of the single article of LAW no. 331 331 of 8 July 2004 , published in MONITORUL OFFICIAL no. 659 659 of 22 July 2004. -------------- Alin. ((4) art. 3 ^ 1 was repealed by section 1. 2 2 of the single article of LAW no. 331 331 of 8 July 2004 , published in MONITORUL OFFICIAL no. 659 659 of 22 July 2004. -------------- Alin. ((5) art. 3 ^ 1 was repealed by section 1. 2 2 of the single article of LAW no. 331 331 of 8 July 2004 , published in MONITORUL OFFICIAL no. 659 659 of 22 July 2004. -------------- Art. 3 ^ 1 was introduced by the single article of EMERGENCY ORDINANCE no. 21 21 of 2 April 2003 , published in MONITORUL OFFICIAL no. 249 249 of 10 April 2003. + Article 4 Within the meaning of the present law, the following notions are defined as follows: a) seller-the county council, the local council of the commune, the city, the municipality, the sector of the city of Bucharest or the autonomous direction of local interest that has in administration, respectively in heritage, commercial or service spaces. The seller concludes sales contracts on behalf of the state or in his own name, as the case may be, under the present law; b) buyer-any natural or legal person, Romanian or foreign, who has the status of merchant or service provider, according to the law. The buyer cannot be a Romanian legal person governed by public law or a company in which the Romanian state or an administrative-territorial unit is a majority shareholder; c) commercial space-the space for acts and acts of commerce, as defined in art. 3 of the Commercial Code; d) space for service provision-the space for the provision of services to natural or legal persons. + Chapter II Common rules on the sale of commercial premises or service provision + Article 5 (1) Within 30 days from the date of entry into force of this law county councils and local councils shall approve, by decision of two thirds of the number of councillors, the list of commercial premises or service provision, property private of the state, which is in their administration, as well as those in the patrimony of autonomous regions of local interest under their authority, to be sold according to the provisions of this law. (2) In the case of commercial premises or service supplies located in the patrimony of autonomous regions of local interest, the decision provided in par. ((1) shall be adopted on the basis of the proposal of the Administrative Board of the respective autonomous (3) The prefects will ensure that the decision provided in par. ((1) include all commercial or service spaces that fall under the present law. For this purpose the decisions of the local councils and the county councils will be communicated to the prefects no later than 3 days after adoption and will be displayed at the headquarters of the city hall, respectively of the county council. The Prefect will ask for the completion or modification of the list, if applicable, and if the prefect's request is refused, it will be possible to address the administrative court. The court's ruling is final and irrevocable. (4) In the case of Bucharest, the list of spaces subject to sale is approved by the General Council of Bucharest, by sector. Provisions of para. ((3) shall apply accordingly. + Article 6 (1) Within 15 days from the date of entry into force of this law, in each commune, city, municipality, sector of the city of Bucharest or county, in which there are spaces that fall under the present law, a commission for the sale commercial or service spaces, hereinafter referred to as the Commission. The commission is provided by the mayor, respectively the president of the county council, and will consist of 5 full members and 2-3 alternate members, as follows: a) 3 representatives of the local council or, as the case may be, of the county council in whose administration there is the commercial or service space or under whose authority is the autonomous director of the space; the representatives of the council shall be open by vote of two thirds of the number of councillors; b) a representative of the autonomous direction, respectively of the autonomous direction nominated by the mayor or the president of the county council; the establishment of the representative shall be made by the board of directors of the autonomous direction; c) a representative of the general direction of the county public finances or of the city of Bucharest, designated by the general manager (2) For the guidance and supervision of the commissions organized by the provision of the mayors of sectors, a commission of the city of Bucharest, in the composition provided in par. ((1). (3) If the persons to be part of the commission are not nominated within the time limit fixed by the mayor, he shall establish the composition of the commission. ((. Members of the Commission shall appoint a chairman. The secretariat of the commission is ensured through the care of the secretary of the administrative-territorial unit, namely the Bucharest (5) The members of the commission may not be shareholders, associates, administrators or censors in the legal person, respectively they cannot be spouse, relatives or afini up to the 4th degree including the natural person who requested the purchase of the commercial space or service provision. In the event of incompatibility, within 5 days the commission shall be completed with other members of the alternates. (6) For the activity submitted within the commission its members are entitled to an allowance whose amount and conditions of granting are established by decision of the local or county council, with the opinion of the general directorate of county public finances or the city of Bucharest, and are paid from the funds made from the sale of commercial premises (7) The violation of the legal provisions on the constitution of commissions can be challenged within 5 days from their constitution, by the interested persons, at the administrative section of the tribunal. The court settles the application in the council chamber, within 48 hours of referral. The judgment is final and irrevocable. + Article 7 (. The Commission shall have the following tasks a) keep track of the spaces falling under the present law; b) set the minimum selling price on the basis of an assessment report; c) select the valuer of the premises subject to sale d) in the case of sale by direct negotiation, negotiate the sale price with the applicant; e) organize the public auction with outcry, if any; f) approves the sale of commercial premises or payment services in installments. (2) The decisions of the Commission shall be taken by a majority of the votes + Article 8 (1) In order to sell the commercial or service space, the commission shall set a minimum selling price, on the basis of an evaluation report drawn up by authorized natural or legal persons, according to the law. The assessor shall be selected by the commission by public tender within 10 days of the establishment of the commission. (2) The minimum selling price, established according to par. (1), will be considered as a basis of negotiation, in the case of sale by direct negotiation, respectively it will be included in the offer for sale by public auction with outcry. (3) The evaluation report and the establishment of the sales price may be challenged by the interested persons, within 5 days from the submission of the report, to the administrative section of the tribunal. The judgment is made urgently, with the summoning of the objector, the commission and the assessor. The Commission is represented by its chairman. The prosecutor's participation is mandatory The judgment is final and irrevocable. + Article 9 ((1) Upon completion of the procedure for the sale of each commercial or service space, according to this law, the commission shall conclude a report containing the data on the conduct of the sales procedure and the price obtained for the space sold. (2) The minutes shall be submitted to the seller's premises, through the care of the secretary of the administrative-territorial (3) The refusal to conclude the minutes or the unlawful and non-judicial conclusion of it may be challenged at the administrative section of the tribunal, by the interested party, under the conditions of art. 8 8 para. ((3), which shall apply accordingly. + Article 10 (1) The contract for sale-purchase of the commercial or service space shall be concluded within 15 days from the date of completion of the sales procedure, according to this law, and shall be signed, on behalf of the seller, by the President the county council or the vice-president designated for this purpose, as the mayor or, as the case may be, by the chairman of the board of directors (2) The seller's refusal to conclude the contract of sale-purchase can be appealed in court under the conditions of art. 8 8 para. ((3). + Article 11 (1) The sale price of commercial premises or service provision may be paid in installments by merchant buyers or by service providers, authorized on the basis of Law no. 507/2002 * *) on the organization and conduct of economic activities by individuals-individuals and family associations-, by the companies established under Law no. 31/1990 on companies, republished, with subsequent amendments and completions, falling within the category of small and medium-sized enterprises, under the law, as well as by cooperative organizations constituted under Decree-Law no. 66/1990 on the organisation and functioning of the craft cooperation, as amended, and Law no. 109/1996 on the organisation and functioning of the consumer cooperation, as amended. ------------- Alin. ((1) art. 11 11 has been amended by section 1 1 of the single article of LAW no. 306 306 of 8 July 2003 published in MONITORUL OFFICIAL no. 510 510 of 15 July 2003. ------------- * *) Law no. 507/2002 was repealed on 27 September 2004 by LAW no. 300 300 of 28 June 2004 , published in MONITORUL OFFICIAL no. 576 576 of 29 June 2004. (2) In the other cases the conclusion of the sales contract and the full payment of the price will be made no later than 30 days after the conclusion of the negotiations and the agreement of the price. (3) If a buyer, natural or legal person, is in a position to buy, under the terms of this law, two or more commercial or service spaces located in the same commune, city or municipality or in units The Commission may approve the sale in instalments only for one of the premises, at the choice of the buyer. (4) For this purpose the buyer will sign a declaration on his own responsibility, showing that he has not benefited from the payment in installments for the purchase of another commercial space or service provision. (5) Provisions of para. (3) and (4) shall also apply accordingly in the city of Bucharest. (6) Provisions of para. ((3), (4) and (5) shall not apply to production and service spaces. + Article 12 (1) The sale of commercial premises or of services with payment in installments shall be made to the buyers referred to in art. 11 11 para. (1) under the following conditions: a) advance of 25% of the sale price; b) monthly instalments staggered for a term of up to 3 years, without the granting of terms of grace; c) levying an annual interest rate of 10%. (2) The Commission will require the purchaser to set up guarantees to ensure payment of instalments, such as: a) letter of guarantee issued by a Romanian commercial bank or by a foreign commercial bank with which a Romanian bank has correspondent relations; b) the establishment of a mortgage on the space covered by the sale; c) personal guarantee of a fidejusor, natural or legal person of citizenship, respectively of Romanian nationality, under the terms of the Commercial Code, consisting of a unilateral and unconditional obligation to pay the rate, if it was not paid at term, in part or in full, by the debtor. (3) The seller will communicate to the buyer, 15 days before the maturity of each installment, the amount of the amount due by way of interest. (4) If the buyer does not pay at maturity two successive rates, respectively in case of non-compliance with the provisions of art. 11 11 para. (2), as the case may be, the purchase contract shall be deemed to be resolved by law, without the need for delay and without further formality. ------------- Alin. ((4) art. 12 12 has been amended by section 2 2 of the single article of LAW no. 306 306 of 8 July 2003 published in MONITORUL OFFICIAL no. 510 510 of 15 July 2003. + Article 13 ((1) The land related to the commercial or service space shall be sold once with it, if the legal situation is clarified and the legal conditions are met. The sales price of the related land is determined from the land traffic value, determined on the basis of the following criteria: a) location of land in the locality; b) category of locality and area within the locality, established according to the Law no. 69/1993 * *) on the establishment of the tax for the use of state property land for purposes other than for agriculture or forestry, as amended. (2) The land whose legal situation is clarified after the date of sale of the commercial or service space, except those that are public property of the state or administrative-territorial unit, will be sold to the buyer the space, at its request, through direct negotiation, taking into account the traffic value of the land, established according to par. ((1). (3) The land of public property, related to the selling space, shall be awarded directly to the purchaser by a concession contract. By way of derogation from provisions Law no. 219/1998 regarding the concession regime, the concession is made by direct negotiation between the concedent and the concessionaire, without the preparation of an opportunity study or specification and without any form of advertising. ------------- Alin. ((4) of art. 13 13 was repealed by letter a) art. 8 the Head. IV of LAW no. 312 312 of 10 November 2005 , published in MONITORUL OFFICIAL no. 1.008 1.008 of 14 November 2005. ------------- * *) Law no. 69/1993 has been repealed by ORDINANCE no. 36 36 of 30 January 2002 , published in MONITORUL OFFICIAL no. 92 92 of 2 February 2002. + Article 14 The expenses incurred by the organization and conduct of the procedures for the sale of the commercial or service space, including the advertising and the preparation of the evaluation report, shall be borne by the seller from his own budget and, in the case the conclusion of the sales contract, the expenses are deducted from the proceeds obtained. + Article 15 The amounts obtained from the sale of commercial or service spaces under the present law are made to the state budget at the rate of 15%, the difference being transferred to the respective local budgets, in a special account, and will be used for the realization of projects of public interest, approved by county councils or local sales councils. + Chapter III Sale of commercial premises or services through direct negotiation + Article 16 Sale of commercial premises, service and production services to traders, respectively service providers natural or legal persons, who use them on the basis of a lease, concession, management location, association in participation or leasing, concluded under the law and valid on the date of entry into force of this law, shall be made at their request, by means of direct negotiation. Do not benefit from these provisions natural or legal persons who have registered arrears of rent at least 6 consecutive months from the moment of conclusion of the contract with the seller, persons who did not comply with the provisions of the seller (subleases not allowed, division for the purpose of unpermitted associations), as well as natural or legal persons who have unpaid obligations to the state on the date of sale of the space. + Article 17 (1) Within 30 days from the date of entry into force of this law the persons referred to in art. 16 will submit a written request for purchase at the seller's premises. (2) After the expiry of the term provided in par (1) the commercial premises for which the purchase request has not been submitted will be sold by public auction with outcry, under the conditions of this law. + Article 18 ((. The Commission shall notify the applicant of its decision to admit or reject the application within 30 days of the date of receipt of the application. (2) If the applicant falls under the conditions laid down in art. 4 lit. b) and art. 16, proceed to the direct negotiation of the sale of space. + Article 19 (1) The sale price of the commercial or service space shall be established by direct negotiation between the buyer and the commission, starting from the minimum selling price of the space, determined according to art. 8. (2) In order to determine the minimum selling price of the premises the evaluation report will highlight the amount of investments made by the applicant. ((3) The deduction of the value of the investments made, regardless of their nature, shall be made only if they cumulatively meet the following conditions: a) were made with the consent of the owner or holder of the right of administration of the space; b) were executed on the basis of a building permit, under the law. (4) The amount of investments deducted under par. ((3) may not exceed half of the value established by the assessment report. (5) Provisions art. 8 8, 9 and 10 on the legal challenge shall apply accordingly. + Chapter IV Sale of commercial premises or service provision by public auction + Article 20 The sale of commercial or service spaces, except those that are sold through direct negotiation under the conditions of this law, is carried out by public auction with an outcry, with adjudication at the highest price obtained. + Article 21 (1) The Commission will make public the notice of sale of the premises provided for in the list approved according to 5, within 15 days of approval of the list. (2) The sales notice will include: a) the name and premises of the seller, as well as the individualization of the space b) the place, date and time of the auction; c) the name, surname and telephone number of the person designated to give additional relations; d) the documents required for participation in the tender e) the guarantee of participation in the auction, constituted according to the law; the guarantee of participation in the auction may not be less than the amount of the expenses occasioned by the organization and conduct of the procedures for the sale of the commercial or of services, including advertising and the preparation of the evaluation report; f) the tendering fee. (. The documents required for participation in the auction shall be considered: a) for commercial companies and cooperative organizations: ------------- The introductory part of the letter a) of par. ((3) art. 21 21 has been amended by section 4.2 3 3 of the single article of LAW no. 306 306 of 8 July 2003 published in MONITORUL OFFICIAL no. 510 510 of 15 July 2003. 1. copy of the registration certificate issued by the trade register office, from the articles of association, including from all relevant additional documents and from the tax registration certificate; 2. letter of financial creditworthiness issued by a Romanian commercial bank; 3. proof of payment of tax obligations, by submitting a certificate of tax attestation, issued by the competent fiscal body; 4. affidavit of the legal representative of the commercial company or of the cooperative organization, showing that it is not in judicial reorganization or bankruptcy; ------------ Point 4 of the letter a) of par. ((3) art. 21 21 has been amended by section 4 4 of the single article of LAW no. 306 306 of 8 July 2003 published in MONITORUL OFFICIAL no. 510 510 of 15 July 2003. b) for traders or service providers, natural persons or family associations: copy of the identity document and of the operating authorization issued by the competent authority or of the legal act of constitution, as the case may be, and of on the tax certificate issued by the competent fiscal body. (4) The sales notice shall be published in one or more local and national daily newspapers and shall be displayed at the premises of the seller, no less than 30 days, but not less than 15 days, before the date of the tender. + Article 22 ((1) The auction takes place on the date set in the sales notice and is valid if at least 3 bidders have been presented. ((2) The auction is carried out according to the competitive or Dutch auction, respectively at a price up or down, depending on the ratio between supply and demand, with the bidding step established value, of 5% of the starting price. (3) If the minimum selling price is not offered, the auction will be resumed after the publication of a new sales notice, within 5 days from the conduct of the first auction, but no less than 7 days before the date of the young second auctions. (. The second auction shall be valid if at least 2 tenderers have been presented. ((. If a bid of at least 50% of the minimum selling price is not recorded at the second auction, the auction committee may require the participants to make purchase offers with payment of the installment price. + Chapter V Transitional and final provisions + Article 23 The procedures for the sale of commercial premises or service provision, pending on the date of entry into force of this law, will continue, with the recognition of the validity of the acts and stages consumed until this date, according to previous legal provisions. + Article 24 (1) In the case of commercial premises or service provision passed into state property under the conditions art. 2 2 para. ((1) of Law no. 10/2001 , the sales procedures are suspended by law until the date of conclusion of the refund procedures, provided by Law no. 10/2001 , with subsequent amendments and completions, except for the right to submit a request under the conditions provided in art. 17 17 para. ((1). (2) The sale-purchase contracts concluded in violation of the provisions of par. ((1) are void. + Article 25 The presidents of the county councils and mayors will communicate monthly to the Ministry of Public Administration, through the prefect, the stage of the sale of commercial or service spaces, private property of the state, located in their administration, as well as those in the heritage of autonomous regions of local interest. + Article 26 The violation of the provisions of this law shall entail, where appropriate, disciplinary, administrative, civil or criminal + Article 27 Other disputes than those provided for in art. 8, 9 and 10, on the conduct of the procedures for the sale of commercial premises or service provision, private property of the state, under the administration of county councils, local councils or autonomous regions under their authority, are the competence of the administrative courts, and the prior procedure is not mandatory. + Article 28 Commercial or service spaces purchased under the terms of this law may not be disposed of by acts between vineyards and can only be used for production, trade and service activities, for 3 years from the date of Acquiring. + Article 29 On the date of entry into force of this Law any contrary provisions shall be repealed. This law was adopted by the Senate at the meeting of September 5, 2002, in compliance with the provisions of art 145 and 74 para. (1) of the Romanian Constitution. p. SENATE PRESIDENT, DORU IOAN TARACILA This law was adopted by the Chamber of Deputies at the meeting of September 23, 2002, in compliance with the provisions of 145 and 74 para. (1) of the Romanian Constitution. p. CHAMBER OF DEPUTIES PRESIDENT, OVIDIU CAMELIU PETRESCU Bucharest, October 14, 2002. No. 550. --------------