142
[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. In 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. It 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. In 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. 1.5 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. 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 In 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 in case of regular real estates, for agricultural lands there are numerous serious limitations for the purchase of those. Non-EU/EEA citizens and entities are completely excluded from acquiring
ILN Real Estate Group – Buying and Selling Real Estate Series
Made with FlippingBook Online newsletter