According to specialized studies, Bucharest is the European capital with the highest seismic risk. Over 350 buildings are classified in seismic risk class 1. In reality, however, the list of vulnerable buildings is much longer.

On the website of the Capital City Hall you can find the List of technically expertized properties, and if you have decided to purchase an apartment in an old building, built before 1990, our advice is to check if that property is on the list to avoid some unpleasant situations that may arise in the process of granting the loan.

With over 17 years of experience in the field of valuations, FairValue has a successful collaboration with all banking institutions and we can confirm that, when we talk about bank guarantees, the rules for accepting a property as collateral are quite strict when it comes to seismic risk.

If the property you want to purchase through credit is in one of the seismic risk classes mentioned below, you must take into account several aspects:
– properties classified in risk classes Rs I and II or in emergency categories U1 and U2 are not accepted as collateral by most banks. Some banking institutions accept these properties as collateral, provided that the property is insured by one of the insurance companies approved by the respective bank;
– properties included on the List of buildings not classified in emergency categories or in appropriate risk classes – with regard to these properties, banking institutions are “lenient”, these buildings being accepted as collateral, but on condition that the building is insured by one of the insurance companies approved by the respective bank. Some banking institutions additionally request an MLPAT Technical Expertise to classify the building in one of the seismic risk classes.

There are situations in which clients, out of a desire to purchase the apartment in a very short time, perhaps pressured by external factors (seller, need for housing, etc.), skip searching for the property on the List of technically expertized properties.

When the request reaches the evaluation stage and the evaluator finds that the property is listed in one of the categories and classes of the List, two situations arise:

a) the valuation request is canceled by the financier if the property cannot be taken as collateral;

b) the client changes his mind about purchasing the property.

Each banking institution has its own internal procedure, and the rules for accepting collateral are different. Our advice is that when you identify the desired property on the List, discuss this aspect with the loan officer or call one of our specialists to guide you in resolving this situation.

For you, omitting this aspect may mean wasted time and money.

Buy responsibly!