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[BUYING AND SELLING REAL ESTATE IN HUNGARY]
right holders. The sale agreement must be executed on a special “security document” (biztonsági okmány) – a green-coloured paper with security features – and prepared and countersigned by an attorney. 1.6 Share deal of a corporation that owns real property During the planning of a property acquisition, if the owner of the real estate is a company, it often is a reasonable solution to acquire the legal entity that owns the respective property. 2. Restrictions for acquiring real estate in Hungary 2.1 General rules ln general, EU/EEA citizens and entities are freely allowed to purchase and sale real estates in Hungary, while non- EU/EEA citizens and entities may only purchase a Hungarian real estate with the permission of the competent Government Office. 2.2 Agricultural real estates Unlike regular real estates, the purchase of agricultural land in Hungary is subject to numerous legal restrictions and limitations. Generally, non-EU/EEA citizens and entities (including Hungarian and non- EU/EEA or EU/EEA companies) are completely excluded from acquiring agricultural lands in Hungary. As per EU/EEA citizens, private individuals must fulfil certain criteria to become entitled to own agricultural lands, while in case of legal entities only very limited types may own agricultural lands (the state, municipalities, churches). Other EU/EEA legal persons, if they fulfil certain
statutory conditions, may only use agricultural lands, but are not entitled to own them. Apart from the above, there are also limitations for the maximum size of agricultural lands that can be owned (or used) by one private individual. In addition, agricultural land in Hungary is subject to an extensive statutory system of pre-emption rights. When agricultural land is sold, the buyer chosen by the seller may be overridden if a pre- emption right holder (such as a local farmer or even the Hungarian State) exercises its statutory right to buy under the same terms. 3. Land registry The Hungarian Land registry is a unified system keeping records of all kinds of real estates, and the records are public and authentic. Publicity means that anyone may obtain the title deed of a respective real estate from the Land Registry. On 15 January 2025, the new Land Registry Act came into force in Hungary, bringing comprehensive reforms to the land registry system. Its most significant feature is the gradual transition from paper-based procedures of the past decades to a fully electronic land registry (E-ING). During a transitional period, electronic and paper- based procedures will operate in parallel to facilitate a smooth changeover for both practitioners and land registry offices. The electronic system is being introduced in phases, and the complete shift to exclusively electronic registration and case management is currently expected to take place in the autumn of 2025, once the system has been widely adopted. As soon as the electronic land registry system becomes operational, only attorneys registered with
ILN Real Estate Group – Buying and Selling Real Estate Series
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