The Purchase Contract
The intention of purchasing a real estate in Hungary shall be included in a private
written contract countersigned by a lawyer – we will refer to it as the Purchase Contract
(Adásvételi Szerződés).
For the preparation and the effectiveness of the Purchase Contract (or Purchase
Agreement), the participation of a lawyer is required, whose official seal must appear
on the pages of all original copies of the contract. The lawyer is entitled to a fee for the
participation.
The lawyer will check the legal data of the property on a fresh copy of the title deed
acquired from the official Land Registry. The Title deed will contain the names of the
registered owners, and it also shows the records of any mortgage or claim registered
on the property. If there is none, the deal may proceed.
It is usual to pay 10 % of the purchase price at the time of signing the Purchase
Contract. This earnest money, as a general rule and unless parties otherwise agree, is
providing security for both parties. In case the agreement fails as a result of the buyer’s
action, he loses the 10 % he paid. If the purchase falls through because of the seller,
he will have to pay back double, that is 20 %, to the buyer.
If the foreign buyer must wait for the approval of his purchase, the Purchase Contract
will say that the seller sold the property with maintained ownership.
The Purchase Contract must be submitted to the relevant Land Registry Office (Területi
Földhivatal) as a registration authority, within 30 days from the date of its signing. The
registration of the transfer of ownership can be expected within 2 - 6 months following
the submission of the Purchase Agreement to the Land Registry Office.
The contract shall be filed to the land registry, where it is marked. This means that any
further sale or burden (mortgage etc.) shall, as a general rule, be blocked.
The intention of purchasing a real estate in Hungary shall be included in a private
written contract countersigned by a lawyer – we will refer to it as the Purchase Contract
(Adásvételi Szerződés).
For the preparation and the effectiveness of the Purchase Contract (or Purchase
Agreement), the participation of a lawyer is required, whose official seal must appear
on the pages of all original copies of the contract. The lawyer is entitled to a fee for the
participation.
The lawyer will check the legal data of the property on a fresh copy of the title deed
acquired from the official Land Registry. The Title deed will contain the names of the
registered owners, and it also shows the records of any mortgage or claim registered
on the property. If there is none, the deal may proceed.
It is usual to pay 10 % of the purchase price at the time of signing the Purchase
Contract. This earnest money, as a general rule and unless parties otherwise agree, is
providing security for both parties. In case the agreement fails as a result of the buyer’s
action, he loses the 10 % he paid. If the purchase falls through because of the seller,
he will have to pay back double, that is 20 %, to the buyer.
If the foreign buyer must wait for the approval of his purchase, the Purchase Contract
will say that the seller sold the property with maintained ownership.
The Purchase Contract must be submitted to the relevant Land Registry Office (Területi
Földhivatal) as a registration authority, within 30 days from the date of its signing. The
registration of the transfer of ownership can be expected within 2 - 6 months following
the submission of the Purchase Agreement to the Land Registry Office.
The contract shall be filed to the land registry, where it is marked. This means that any
further sale or burden (mortgage etc.) shall, as a general rule, be blocked.
| The Purchase Contract |
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| - - - - - - - - - - - - - - - - - - - - - - - - - - Buying or Renting a Home in Hungary - - - - - - - - - - - - - - - - - - - - - - - - - - |
| Real estate contract, Purchase Contract, Purchase Agreement, Legal representation, real estate law, real estate solicitor, approval of purchase, lawyer, solicitor, counter-signature |
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| Disclaimer: the article serves merely information purposes. Due to its extent, it is neither an all round information nor shall it be qualified as legal advice. |