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[BUYING AND SELLING REAL ESTATE IN HUNGARY]
4.2 Compulsory elements The Hungarian law prescribes several elements that must be included in the property sale and purchase agreement. Some notable elements are: a) detailed definition of the property (including property classification); b) certain scope of data of the contracting parties (among others, birth name, place and date of birth, address, mother's family name, tax identification number, or registered seat, registration number, statistical number, tax identification number in case of legal persons, as well as the name of the entity or authority with which the legal person is registered); c) the exact legal title of the transfer (e.g. sale and purchase); d) unconditional and irrevocable statement of the registered owner on consenting to the transfer of the title (" registration consent ") (which statement may also be made later separately, especially if the payment of the purchase price is made in instalments); e) regulations on the handing over of (i) an energy certificate (a document issued by an authorized expert that includes information about the energy efficiency of the property) and (ii) electrical safety inspection, which are generally handed over by the seller to the buyer at contract signing or at the hand-over of the property at the latest.
4.3 Typical further elements of an agreement Although the inclusion of the below elements is not legally required, according to market practice the parties apply them frequently. a) Payment of the purchase price in more instalments ln case the purchase price is paid in more instalments, there is typically one common scenario regarding the transfer of title following the introduction of the new Land Registry Act. Novum is the registration of a buyer’s right related to retention of title. Under the new Land Registry Act (effective from 15 January 2025), this right replaces the former suspension procedure. When such a right is registered, the buyer lawfully secures a claim to acquire ownership, while the seller retains title until the full purchase price is paid or other conditions are met. This right may be established for an indefinite period or a maximum fixed period of up to 5 years. For the first six months following registration, it offers full protection to the buyer, preventing other registrations (such as enforcement, sale, or encumbrance) from taking priority. After the first 6- month period, the protection becomes partial: the buyer’s right is recorded and basically functions as a prohibition on alienation and encumbrance, meaning that any such act requires the buyer’s prior written consent. The land registry deletes the buyer’s right ex officio when the buyer’s ownership right is registered,
ILN Real Estate Group – Buying and Selling Real Estate Series
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