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Most important:
The land register.In Hungary a contract in the legally required form in writtten
format countersigned by an attorney or a notary public to obtain the
ownership is needed. The registration of title in the land register is
also prescribed to the transfer of property. The land registration
procedure will be started by the countersigning attorney and he
represents both parties in it. The land registry has to end it in 30
days and adopt decision about the change of the ownership structure.
The legal regulation makes a difference between urbanized areas,
reserve land and agricultural land, so properties in a non-residential
area. It can be seen from the land register how is the land
recorded.
The legal purchase transaction, inclusive the note in the real estate register will be done by a lawyer of our confidence.
Each kind of property excluded agriculture.Foreign nationals are allowed to obtain the ownership of a non-arable land only with the permission of the competent county
government. This letter of consent will be given, if the acquiring is
not conflicting the interests of public interests and those of the
local government.
EU citizens with a special status.
Citizens of the EU have a special status. They can acquire the
real-estate property the same as inland persons can, except for the
secondary domicile. So in the case of main domiciles the EU-citizens do
not need to move for the permission of the county government. To get
the property as main domicile the EU-citizen has to make a statement in
a private document of full probative value (countersigned by an
attorney) or notarial document. In this statement he declares to use
and obtain the real-estate as main domicile. If the EU-citizen already
disposes of a main domicile in Hungary he is not allowed to get one
more real-estate on this legal ground.
To secondary domiciles is till the summer of 2009 (period of
transition) the permission of the county government’s chief needed. If
the citizen of the EU-member state lives at least for 4 years
continously and legally in Hungary, he can also obtain the ownership of
the secondary domicile without permission of the county government.
Generally acquiring title to agricultural land is not permitted.
Generally acquiring title to agricultural land is not permitted for
foreign nationals. There is an execeptional situation if the EU-citizen
wants to settle down in Hungary as a private agricultural entrepreneur
and he lives valid at least for 3 years in Hungary and makes
agricultural activity. The existence of these circumstances will be
investigated and has to be proved by documents also.
Please also read about the usage right/usufruct. |
Who controls the documents?
If the contracts are signed the documents will be checked by the
chief of the county government, the town clerk (only in cases of non EU-citizens) and the land registry .
The aquisitions duty.The acquirer party has to pay property acquisition duty. The duty
base is always the market value of the real-estate, mostly the selling
price of the real estate. The duty will be assigned by the duties
office. The duty on the acquisition of residential property is generally 4%.
Capital gain.
The capital gain is currently 25%.
Contracts free accordable.The sale price depends on the agreement of the parties. The
contracting practice is to make a down payment (give caution money) to
the seller. In case of performance in conformity with the contract the
down payment will be set off into the sale price. The party who is
responsible for the failure of the performance looses the down payment or repays it double.
Precontract with significant elements of the contract.
Sometimes the parties make a precontract for the sale of real
estate. In this contract they undertake the commitment to sign the
contract at a specific time later amending the contents of the
precontract. The precontract has to contain the significant elements of
a sale contract. If one of the parties refuse the conclusion of the
contract, it will be created by judicial decision on the conditions of
the precontract.
Either the full amount of the purchase price can be paid at the
conclusion of contract, or half amount at this time, and the other half
at the registration of the ownership. On this this matter the parties
have wide freedom of contract, this only depends on their contractual
intent. |
