Real estate transactions and property management in dynamic cities like Brașov and Timișoara involve strategic decisions—not just financial, but legal as well. Whether you are an investor with a premium apartment portfolio, an owner wishing to support a family member, or an IT entrepreneur looking for a registered office space, using a commodatum agreement is an optimal legal solution. This agreement provides clarity and protection to both parties without generating the complex tax obligations associated with rental income.
In our agency's portfolio, where we showcase properties with cinematic video and 4K HDR photography, we often meet clients who use this legal tool to efficiently manage their properties. Whether you are selling a property with a 3% listing commission or looking to purchase a new home with zero buyer commission, understanding how this document works is essential for protecting your assets.
What is a property commodatum agreement and how does it work?
In legal terms, a commodatum agreement is a free-of-charge loan for the use of a property. Unlike a classic lease agreement, where the tenant pays a set monthly amount, the defining element of a commodatum is the absence of any obligation to pay rent. If you are currently analyzing living options or managing properties in your personal portfolio, it is helpful to read our guide on what you need to know when moving into a rental to better understand the major contractual differences.
The signing parties to this contract are the lender (the owner providing the home) and the borrower (the individual or legal entity receiving the temporary right of use). The owner retains legal ownership, relinquishing only physical possession of the property, while the beneficiary undertakes to maintain the property in optimal condition, exactly as received. The validity and temporary nature of this legal agreement are established from the very beginning, providing a secure framework for both parties without property risks.
Using a commodatum agreement for a PFA or SRL registered office
The real estate market in Brașov and Timișoara attracts a large number of IT specialists, freelancers, and entrepreneurs working in hybrid or remote setups every year. For these professionals, establishing a registered office in an apartment via a commodatum agreement is the optimal method for launching a business. This document allows setting up the registered office of an SRL or PFA without having to justify monthly rent payments to the owner, simplifying accounting at the start of the journey.
A crucial aspect is the possibility of granting the right of use for only a portion of the property (for example, a single 15-square-meter room set up as an office), keeping the rest of the three- or four-room home for personal residential use. This precise spatial delimitation is important when registering the office with the Trade Register and directly influences local taxes. Regarding the tax implications in Brașov or Timișoara, if the company does not conduct direct commercial activity at that address (serving merely as a registered address on paper, without public access), the building will retain its residential status, avoiding the substantial property tax increases applied to non-residential buildings owned by legal entities.
What documents are required to draft a commodatum agreement?
Formalizing this agreement is a quick process, but it requires careful attention to the gathered documents to ensure full legality and validity before tax authorities or the Trade Register. To draft the document correctly, the following papers are required:
- Identification documents of the owner (lender) and the beneficiary (borrower).
- Company or PFA registration documents, or the name reservation certificate issued by the Trade Register if the beneficiary is a legal entity in the process of incorporation.
- Proof of ownership for the property. This can be a sale-purchase agreement, an inheritance certificate, a donation contract, or a property title deed.
- An updated land registry extract (extras de carte funciară) to prove the absence of any legal encumbrances that could hinder the peaceful use of the space.
Special attention must be paid to situations involving the approval of the homeowners' association and directly affected neighbors. This formality is only required when setting up a company if the space is declared a registered office with active economic operations on-site, in which case client traffic might disrupt the peace of the community. If the office is registered without active operations at the address, this approval is no longer required under current legislation, reducing red tape.
Essential clauses in a home commodatum agreement template
For the agreement to be solid and prevent property disputes, we recommend using a well-defined contract template tailored to the physical and technical reality of your property. Mandatory elements that must not be missing include the exact identification of the parties, a detailed description of the property (full address, cadastral number, number of rooms, and usable square footage), and the precise specification of the space's purpose (personal residence, office, or professional headquarters).
Setting the duration is another essential point: the contract can be concluded for a fixed term (for example, one year or five years) or for an indefinite period. Additionally, the clause regarding running and maintenance expenses must be drafted with precision. This must clearly detail who pays utility bills, building maintenance fees, annual property taxes, and routine apartment repairs. Typically, expenses related to current consumption are the borrower’s responsibility, while building taxes, structural repairs, or major repairs to common utility lines remain the sole responsibility of the owner.
Terminating a commodatum agreement: conditions, notice, and legal steps
Even though this is a free-of-charge agreement, ending the contractual relationship must follow clear rules to protect the real estate investment. Terminating a commodatum agreement before the initially agreed term can occur through the mutual written consent of both parties or unilaterally, subject to a prior notice obligation.
Establishing a reasonable notice period in the agreement (for example, 30 or 60 days' written notice) offers the borrower the necessary time to vacate the space or move their registered office to another location without disrupting current professional activities. The Civil Code provides that the owner may request the early return of the home in the event of an unforeseen and well-justified personal emergency in court, or if the beneficiary uses the property for a purpose other than agreed, or degrades it.
If the contractual term has expired and the borrower refuses to vacate the property, eviction proceedings can be initiated. To simplify this often arduous legal process, it is ideal for the agreement to be executed in authenticated form at a notary public's office or to bear a certified date applied by an attorney, thereby becoming, by operation of law, an enforceable title for the return of the property upon the expiration of the term of use.
Particularities of the premium real estate market in Brașov and Timișoara
In top residential areas in Brașov, such as the Centrul Civic or the villa areas of Șchei, and in new neighborhoods in Timișoara, like Isho, Take Ionescu, or the Medicina area, the quality of interior finishes demands increased attention to legal details. Owners of premium apartments ensure that commodatum agreements include highly strict clauses regarding liability for damages.
When we market a property, we use cinematic footage and 4K HDR photography to highlight the home's pristine condition. These high-resolution visual materials can serve as undeniable proof of the property’s initial state at the time of handover under the commodatum agreement. In a professionally managed real estate portfolio, photo and video documentation becomes a protective tool just as valuable as the letter of the law.
Conclusion
Whether you wish to grant the use of an apartment in Brașov or Timișoara to a close relative, or you want to launch your personal business by setting up your registered office at home, the correct use of a commodatum agreement saves you from unnecessary administrative complications. With careful drafting of the clauses and a clear understanding of rights and obligations, this tool offers maximum flexibility.
If you are looking to grow your real estate portfolio in these cities or capitalize on an existing property through a sale with a 3% listing commission or a purchase with zero buyer commission, our team offers you complete real estate expertise and premium-standard marketing.