BUYING YOUR

HUNGARIAN PROPERTY 

There are several steps to follow when buying a property in Hungary. When you have found your property, all kind of things have to be arranged by the estate agent and a solicitor.

The preliminary deed will be made, which is binding for both vendor and buyer. This means that the vendor knows that the buyer will be obliged to buy. You will have to pay about 20% deposit. this represents a binding contract and if you change your mind on the purchase you will lose your deposit. The solicitor and the estate agent will do the survey (land registry /register of real estate, to check to see if the house is mortgaged etc.) If all is ok, you can start the process. After this process there will be an exchange of contracts and the property is yours. You are now the owner of a Hungarian house. Congratulations.

Buying Procedure Step by Step: 

Once you have happily decided to buy a suitable property through us, a straightforward series of events will take place in order to make you the legal owner: 

  • We will agree on a mode of payment - bank transfer, cash, etc., and also decide who gets paid and when.
  • A date is set for the vendor to vacate the property.
  •  The vendor signs a pre-contract - a prior to purchase agreement, meaning we reserve the property for you.
  • A minimum of 25% deposit of the property's 'all-in' price must be paid to our bank account. The lawyer / solicitor then confirms that the property is reserved just for you.

You have 30 days in which to pay the remainder of the 'all-in' price. Failure to pay within 30 days means that you forfeit your deposit and any right to the property.

All conditions of the deposit will be explained to both the buyer and the vendor. The vendor risks having to pay back double the deposit if the property is sold to a third party. Likewise, you have your obligation to pay within time.

If you are buying a tanya (former farm in the outlands), you can buy up to 10.000 m2, but you need a permission of the authorities of the village. They have a rule that if a Hungarian wants to buy, he has the first buying rights. This will (almost) never happen, but good to know. The procedure can take up to 60 days, but after that there is another 60 days in which a government committee (usually land registry) will look at whether all procedures are okay and a foreigner can buy, so 60 days + 60 days + a few days for posting etc. will turn out to be about 4, maybe 5 month before you know whether you can buy the property. You are not allowed to purchase over 10.000 m2 of land out of the villages. That is not possible for foreigners at all.

Finalizing the procedure.

The final payment is then completed, if not already done by bank transfer to us .

The final contract with your signature and final payment, unless it was already paid, can be done in Hungary in the lawyer's presence. Nothing gets signed without prior payment.
The only documents you only need to have with you are your passports.

All outstanding payments must have been received by this day.

If it is impossible for you to be present you must properly authorize us to sign on your behalf once final payment has been received into our bank account.

You will then become owner of the property and all keys will be passed to you. 

After signing the contract we can help you put utilities (water and electricity) in your name, open a bank-account, and, if necessary, arrange your insurance with an insurance broker.

Please note that if the vendor has not satisfactorily vacated the house and removed his possessions as agreed, up to 500 Euro can be withheld until the vendor complies. 

Be patient. Although the property is 100% yours,the Land Registery Office can be slow in registering new owners (several months or more depending on the region). When it is ready, your registered ownership will come to us and be in our safe-keeping until you decide to pick it up.

All property sales attract taxation, which is based on the value of the property. This is specifically not included in our prices since you will pay it sometime after finalisation of the contract, directly to the Hungarian tax office.

You can work out below what your stamp duty/property tax is going to be:

 4% for a house value.

4% for an empty building ground/plot.

 4% for a barn, secondary/side building, commercial property.

The bill for your property tax can take up to 12 months to arrive after you have signed the purchase contract