ILN: BUYING AND SELLING REAL ESTATE - AN INTERNATIONAL GUIDE

[BUYING AND SELLING REAL ESTATE IN HUNGARY]

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fulfil certain criteria to become entitled to own agricultural lands, while in case of entities only certain types may own agricultural lands (the state, municipalities, churches). Other EU/EEA legal persons, if they fulfil certain special 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 and the same person or entity, plus agricultural real estates are also encumbered by law with a complicated system of rights of first refusal of certain persons like local farmers or even the Hungarian State. 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. 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 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. (ii) Section 2: ownership rights

Here one can find the data of the owners, and the date and legal title of their acquisition. (iii) 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 request, subject to the payment of a separate fee, in practice this can shorten the procedure to approximately 12 - 15 days.

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

ILN Real Estate Group – Buying and Selling Real Estate Series

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