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Buying a Property in Hungary

I would like to share with you some brief tips and advice in case you plan to buy a property in Hungary.

There are some legal and non-legal risks as well, which can of course be mitigated by an expert on the spot – assuming you don’t want to leave such an important investment to luck.

Your chosen property might be a house or an apartment; it’s location might be in a small town, or in the capital. In any case,  before making a commitment, a preliminary legal SWOT analysis is highly recommended. This is a technique which I often use – not only for property conveyances.

SWOT Analysis

SWOT is a strategic planning technique and stands for Strengths, Weaknesses, Opportunities, and Threats.

Strengths and weaknesses are relatively easy to speak about and assess, as they are existing facts, like location, the state and technical condition of the property etc. Strengths and weaknesses affect the opportunities, which you consider when you set up your goals. However, it can be dangerous if you don’t know all the important legal circumstances.

The actual state and local legal environment such as restrictions on usage of the property are also an existing fact, for example:

  • Is it permitted to rent your store in the city center to a bakery, or your apartment to a dentist as a surgery, or to tourists for short term lets,
  • Is it allowed to modernise your house, or is it under national- or local monument protection,
  • Does the property comply with the existing construction standards and regulations – or not – as is quite often the case.

Overestimating or underestimating of any circumstance may lead to wrong decisions, therefore you may miss out on an opportunity or lose the time and money invested, so we’ve arrived at the threats.

Potential Problems buying a Property in Hungary

Did you know, that a property in Hungary, subject to urban planning restrictions, won’t be demolished in all cases? It may be sold, everything looks fine, but it can be never reconstructed legally? Did you know, that if such property is damaged or perishes no matter for what reason, it can’t be rebuilt again?

After exploring all the legal threats, we have to explore the technical threats. The lack of technical knowledge can cause issues on a wide range from small warranty disputes to huge refurbishing costs, or even worse, to an unusable property.

Buying a Property in Hungary can be absolutely tricky: Did you know that in the big cities of Hungary some properties are more than 100 years old, and some of them suffered bombings during the world war? Some of them still have their 100 years old articles of associations containing pre-emption rights or other codes of conduct! Were you aware that some concrete blocks of flats are constructed by the so called IMS technology, which has to be hardened after 30-40 years, and if not,  won’t be fit for habitation?

If you are aware of all the legal an technical circumstances, you can make an appropriate decision, mitigate the technical and legal threats, and your property will be a useful and profitable investment, or your tranquil and peaceful home!

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Client testimonials

"Further to the passing of my daughter, I contacted Peter to assist me with the closing of her bank account in Budapest. Peter was extremely helpful in dealing with the bank. Not an easy situation as receiving the proper information from them was quite challenging, but he definitely stayed on top of the case and did his utmost for ensure that the necessary was done.

He always kept me duly informed of the progress and provided assistance as well with the local steps I had to undertake here in Luxembourg wit the Hungarian Consulate. Peter also helped me with other Hungarian administrative documents which I had received for my daughter to ensure that nothing was left pending. He took the time to contact the required offices to advise them of the passing of may daughter and that whatever needed to be done with them was done. I would have not been able to solve this without his assistance.

Peter was always very professional and I felt really got himself involved in the matter. I truly appreciated his assistance and it would be a pleasure to have the opportunity to meet him and thank him in person. I could have not asked for a better person and better support."

Murielle Gaudio (Jun 02, 2021)

Property Purchase

Available in the following locations: Budapest.

* If your local town is not listed, a lawyer from our nearest office will be happy to assist you.

Location

1Who is this Service for?

Buying property abroad is a very popular activity but can be fraught with dangers.

Given that the purchase of a property is one of the most important investments that most people will make in their lifetime, it is crucial to be advised by an independent expert.

2What does this service consist of?

  • Review of the purchase contract.
  • Management of negotiations and counter-offers.
  • Verification that the seller is able to pass good title.
  • Registry search to ensure property free of any charges or other mortgages.
  • Ensure outstanding taxes on the property are up-to-date before transfer.
  • Make sure that all items included in the sale (fixtures and fittings etc.).
  • Attendance and assistance when signing the deeds of the property.
  • Management of negotiations and counter-offers
  • In depth information about schools, sports clubs, shops, cultural organisations, etc.
  • Payment of stamp duty.
Support services

3Free Support Services Included

When combined with the free and innovative Advocate Abroad support services you can be sure that you are obtaining completely transparent legal services from registered and regulated English-speaking lawyers abroad.These support services include:

  • Verification of the regulatory status of your professional.
  • Fees as recommended by the Local Professional Body
  • Fees specified in advance and legally guaranteed.
  • Service levels agreed in advance and guaranteed.
  • All professionals must hold professional indemnity insurance.
  • Professionals' proficiency in English monitored.
  • Continuous quality controls and reviews.

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