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[BUYING AND SELLING REAL ESTATE IN HUNGARY]
the bar association in this capacity will be authorized to act in real estate sale and purchase transactions. To qualify for such registration, an attorney must first successfully pass the required examination and obtain enhanced professional liability insurance before applying for registration to the competent bar association. 3.1 Title deed The title deed of a real estate consists of three parts, with the following main content: (i) Section 1: main data and characteristics of the real estate (ii) This part contains the size and qualification of the property, its topographical lot number and address (if the property has a separate address), and a note if there are any pending procedures in progress relating to the property at the Land Registry. (iii) Section 2: ownership rights (iv) Here one can find the data of the owners, and the date and legal title of their acquisition. (v) Section 3: encumbrances (e.g. pledge, buy option, prohibition of alienation and encumbrance) The third part contains the existing encumbrances and third-party rights related to the property. It is always essential to check the registered encumbrances / third party rights before any transaction. 3.2 Ranking The most important principle of the Land Registry is the principle of ranking, meaning that the Land Registry (with only a very few exceptions) will proceed
with the pending requests according to the order of their submission, and will not deal with any submission until all previous pending requests have been completed. 3.3 Procedural deadline The general procedural deadline for the Land Registry to proceed with any request is 60 days. An urgent procedure may also be requested, subject to the payment of a separate fee, in practice this can shorten the procedure to approximately 12-15 days. Pending requests appear on the title deed as a marginal note (széljegy). 4. The sale and purchase agreement The sale and purchase agreement of a real estate has certain, strict, formal and content requirements that must be met in order to be suitable for registering the transfer of ownership in the Land Registry. 4.1 Formal requirements The most important formal requirements for the transfer documentation of any real estate are the following: a) the agreement must be concluded in writing; b) it must be prepared and countersigned by a Hungarian attorney-at-law or public notary; c) in case of a multiple-page document, all pages must be signed by the contracting parties and the countersigner.
ILN Real Estate Group – Buying and Selling Real Estate Series
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