Buying Real Estate in Hungary, Step by Step

Buying real estate is the highest-value legal transaction in most people’s lives, so it is essential that every step of the process is legally sound. The first and most important step is reviewing the title deed: it shows who owns the property and whether it is encumbered by a mortgage, usufruct, enforcement right or any other registration.

In Hungary, real estate sale and purchase agreements require the involvement of an attorney: the contract must be countersigned by an attorney for the land registry to register the transfer of ownership. The contract must precisely set out the payment schedule, the date and conditions of handover, and the parties’ warranties.

The purchase price is typically paid in instalments: a deposit (foglaló), possible interim payments, then the remaining amount, often with bank financing. The legal nature of the deposit is important: if the transaction fails, the party who gave the deposit loses it, while the party who received it must repay double if the failure is attributable to them.

The process concludes with the land registry procedure: ownership passes to the buyer upon registration in the real estate register. If you are planning a property purchase, it is worth seeking legal advice before making an offer, this is how risks that could later lead to significant costs or disputes can be avoided.