Buying a real estate property in Hungary. Special conditions for foreigners – Part 2.
Are you thinking about to move to Hungary, or have you heard the countries increasing investment opportunities, so you’ve decided to put your money in a charming flat or apartment in the heart of Budapest to feel the vibes and spirit of the Hungarian capital city or wanting to discover the natural beauty of the Hungarian countryside? Are you clueless, because you have no idea how to begin with the paperwork and all of the administration? Our law office is ready to help you along the procedure!
Our previous article about the two types of land property in Hungary such as the importance of the citizenship of the buyer has already informed you about the most important steps before the acquisition, this article becomes you aware about the common steps of an acquisition-procedure.
- Choosing an appropriate real-estate house / apartment
Choosing the appropriate property is the most important step. In Hungary is common thing to negotiate about the price so don’t hesitate to try to achieve the best price. A structural and/or architectural survey of the apartment and building are also highly recommended.
- An assigned lawyer or solicitor is advisable
It is necessary to hire a lawyer by the acquisition, because the contract has to be countersignature by a lawyer, or instead of a notarial deed is required. Formal criteria must be complied with, otherwise registration in the Land Registry will be refused by the Registry of Deeds. The registration has an essential meaning, because ownership can only be transferred with this registration.
- Written form
If there’s an agreement between the buyer and the seller, a written contract has to be made in sense of subsection 2, section 6:215. of Act V of 2013 – on the Civil Code: if the object of the sales contract is a real estate property, in addition to transferring ownership the seller shall also transfer possession of the thing. If the object of the sales contract is a real estate property, it shall be executed in writing.
According to the Hungarian Civil Code bears the seller the costs related to the transfer of possession and the expenses related to the correction of the status recorded in the land-register and the buyer shall pay the cost of the takeover of the real estate and the registration of the change in ownership.
It is common a personal meeting between the seller, buyer, and lawyer to arrange to sign the contract. 10% of the agreed price is as advance payment / deposit to be settled. Within 30 days after signing the contract, the sales contract has to be submitted to the competent land registry office.
Do you have some more questions regarding to the process flow of buying a property in Hungary? Do not hesitate to contact us!
Dobos István attorney at law (ügyvéd; Budapest)/ Kőhidi Ákos attorney at law (ügyvéd; Győr) / Szandra Reim