The Legal Basis.
Most Important: The Land Register.
In Hungary the acquisition of land must be in writing and be countersigned by a lawyer or public notary. The transfer of ownership ends with the entry in the land register. 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 60 days and adopt decision about the change of the ownership structure.
The legal purchase transaction, inclusive the note in the real estate register will be done by a lawyer of our confidence.
No Practically Restrictions.
Since May 2014 it possible for EU-citizen and associates to buy farm land (forest, meadow, field, vineyard, orchard) up to 10,000 sqm with title deed. This procedure needs approximately five to six month. Please contact us for details.
For Non-EU-citizens the acquisition of farmland (forest, field, orchard, vineyard, meadow) is forbidden.
Special Permission Needed For Non-EU-Citizens.
Non-EU-nationals are allowed to obtain the ownership of a non-farmland 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. It's usually just a formality.
The period for completion is 30 days.
For Non-EU-citizens the acquisition of farm land (forest, field, orchard, vineyard, meadow) is forbidden.
The Aquisitions Duty.
The acquiring 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 duty's office. The duty is generally 4% (four).
The Earnest Money.
In Hungary the contracting practice is to hand out Earnest Money to the seller (mostly approx. 10% of the purchase price). It's a part of the purchase price and guarantees the buyer that the seller stands to his promises. If not, the seller have to pay backa the double sum of the given Earnest Money. If the buyer is in breach of contract, he shall lose the paid Earnest Money
Costs Overview: The Basis For Your Decision.
If you have decided on a specific property after careful inspection, Casa Mia hands out a written offer, which lists exactly all cost of the purchase. This cost overview at the current exchange rate will show you exactly with what total cost you have to expect. We also discuss the terms of payment and offer you solutions that bring the ideas and interests of both parties under one roof.
Contract With Or Without Authorization.
If you have enough time, you can sign a purchase agreement with a lawyer of our trust during your stay in Hungary. Advise and contract in English.
In many cases, it's not possible to bring buyers and sellers to the same table in a short term. In this mandate is precisely defined, which property is on what terms Casa Mia on behalf of the customer to purchase. In these cases, buyers authorize us with the management of the purchase.
In this mandate, clarifies strictly, which object may be acquired at what price of Casa Mia on behalf of the buyer.
Escrow Account For Mutual Protection.
Sometimes the purchase with foreigners takes longer than between Hungarians. In addition, you invest money in a foreign country whose customs may well differ from those in your home country. Therefore, provide our lawyers their own, permanent attorney escrow account that the buyer pays the purchase price, which will only be paid if the buyer is registered as the new owner in the land registry. So the seller has a guarantee that the buyer has the purchase price and the buyer has the guarantee that his investment will not be misused. The attorney escrow account and its management are regulated by law.
Deposit And Assumption Of Ownership.
The parties are fully free to design the sales contract but nobody likes waiting for money. That's why there are always special regulations around the (partial) payment of the purchase price and the ownership transfer (hand out of the keys). Often when signing a partial payment is agreed, the so-called Earnest Money or even equal to the purchase price paid in half and passed ahead in return the possession (keys). If there are no special agreements, the transfer of ownership takes place after land registration and simultaneously with the transfer of ownership.
Priority Notice In The Land Register.
Immediately after signing the contract, the lawyer requested a Priority Notice in the Land Register. The Land Registry is not allowed to subscribe further contracts to the same object of this date. This prevents rogue machinations.
Pre-emption Rights Are To Be Observed.
If the property is registered as a conservation area, the National Park Authority has a pre-emption right. In this case, our attorneys must also provide for the quitclaim deed of the National Park.
The Judges' Decision Takes Time.
Provided that the payment of the purchase price will be made simultaneously with the signing of the contract, the land registration can take about one month. This period arises from the deadline for the Land Registry (60 days), the mail and the duration of legal processing. Casa Mia has no influence on the duration of the proceedings.