On April 9, 2025, the Constitutional Court of Romania (CCR) published a press release with significant implications for urban planning practice and real estate development in Romania.
According to this official communication, the CCR upheld the exception of unconstitutionality raised in a case concerning the provisions of Article 23 of Law no. 554/2004 on Administrative Litigation, as interpreted in accordance with Decision no. 10/2015 of the High Court of Cassation and Justice – The Panel for Preliminary Ruling on Questions of Law.
Through this ruling, the CCR held that the previous interpretation, according to which the annulment of a normative administrative act – such as a Zonal Urban Plan (PUZ) – automatically affects the individual administrative acts issued on its basis, is unconstitutional. More precisely, the CCR found that such a practice undermines the legal certainty of the beneficiaries of building permits lawfully issued based on urban planning regulations that were valid at the time of issuance.
Legal Grounds
The central argument retained by the CCR is that “to grant automatic effect to a court ruling annulling a normative administrative act with respect to individual administrative acts [...] affects legal certainty.” It is thus established that legal relationships formed under a normative framework valid at the time cannot be overturned automatically or indirectly in the absence of an individualized analysis and an adversarial process.
This approach aligns with the principle prohibiting the retroactive application of judicial decisions. Moreover, the CCR reaffirms the legal autonomy of the individual administrative act and safeguards it against disproportionate and arbitrary external effects.
A Long-Awaited but Delayed Decision
This clarification comes after a prolonged period of legal instability and uncertainty generated by an administrative and judicial practice that encouraged the mass annulment of PUZs and, implicitly, the invalidation of building permits issued based on them.
In recent years, Romania’s capital city has been the stage for intense disputes triggered by the annulment of PUZs and the building permits issued pursuant to them. PUZs adopted by decisions of the sector local councils were challenged in court and subsequently annulled, which led to a widespread suspension of building permit issuance and a veritable blockage in real estate investment. Thousands of beneficiaries (individuals and developers) found themselves facing the uncertainty of building permits issued in compliance with the legal framework in force at the time of their issuance.
Although driven by a desire to correct past excesses, the initiatives of local authorities produced severe and irreversible collateral effects, seriously undermining trust in the legality and stability of administrative acts. In the absence of prompt intervention from the CCR or the legislature, a legal protection vacuum emerged, fueling hundreds of administrative litigation cases and jeopardizing the coherent functioning of the real estate market.
Consequences and Future Directions
The CCR’s decision is final and binding, with erga omnes applicability. From the perspective of administrative practice, it must be promptly assimilated by local public authorities and the courts of law. More precisely, building permits lawfully issued based on PUZs valid at the time of issuance can no longer be invalidated solely due to the subsequent annulment of the respective PUZs.
This solution not only restores coherence to the urban planning system but also corrects a clear imbalance between public and private interests. The decision encourages long-term investment and provides a predictable framework for urban development.
Nevertheless, it is regrettable that this clarification arrived only in 2025 after thousands of permits were contested, numerous projects blocked, and public trust in administrative authority deeply shaken.
By Oana Albota, Partner, and Miruna Pioara, Associate, Albota Law Firm
This article was originally published in Issue 12.3 of the CEE Legal Matters Magazine. If you would like to receive a hard copy of the magazine, you can subscribe here.