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[BUYING AND SELLING REAL ESTATE IN HUNGARY]
KEY FACTS OF REAL ESTATE ACQUISITIONS UNDER HUNGARIAN LAW
1. Types of real estate transactions In the Hungarian market, the typical types of real estate transactions can be differentiated as follows. 1.1 Transfer of an undeveloped plot of land Plots of land are often bought for the purposes of construction. ln this regard, primarily the relevant Hungarian zoning and construction regulations should be previously checked, to ensure that the desired facility can indeed be developed on the given land. 1.2 Transfer of a developed plot of land Generally, buildings located on a real estate are considered to be the part of the land and are treated as one and the same property. lt means that generally, by buying the land, the purchaser automatically acquires its buildings as well. 1.3 Transfer of the building and the land separately The ownership of the land and the buildings thereon however may also be separated and registered as independent real estates, and in that case, they may also be sold separately. 1.4 Transfer of a condominium property (typically flats) A condominium property consists of separately owned (typically the flats itself), and jointly owned (e.g. garden, staircase) parts, but the separately owned part automatically includes the connected ownership ratio in the jointly owned parts. ln case of a condominium, the co-owners might have a right of first refusal, and therefore the deed of
foundation of the condominium must always be checked in advance, to see whether such right applies or not. New rules on the exercise of the right of first refusal entered into force on 15 January 2025 under the new Land Registry Act. For condominiums, certain procedural simplifications now apply: if the property is designated as a “garage” on the title deed, the purchase offer does not need to be individually served on each entitled person. Instead, a formal declaration from the condominium’s representative (or equivalent) confirming that the offer was prominently displayed in a common area for the entire binding period will suffice. 1.5 Transfer of an agricultural land In addition, a parking space may be registered as a separate unit for private use. Accordingly, unless otherwise provided in the condominium’s deed of foundation, no right of first refusal applies to the sale and purchase of such a parking space. Transfer of an agricultural land . A real estate is deemed to be an agricultural land if it is recorded in the Land Registry as such. The typical forms are arable land, meadow, lake, or forest. The acquisition and use of agricultural lands are subject to wide and strict limitations as to who can acquire or use them and under what conditions, and a transfer procedure may take up to 6-8 months to complete. Agricultural land transfers require approval by the agricultural authority and a statutory public notice (kifüggesztés) to inform pre-emption
ILN Real Estate Group – Buying and Selling Real Estate Series
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