Purchase Procedure

Find out what to expect from the house purchase process after making an offer to buy a property in Hungary...

Once the buyer has found a property which suits them the first step is to make an offer through the agent, who mediates between the buyer and seller. Once a price has been agreed on, the next step involves a property lawyer who checks the title deed of the property with the land registry office. The lawyer checks the following:

  • That the seller is the rightful owner and has the right to sell the property
  • If there are any loans secured against the property, for example, a mortgage

Contract

Once the lawyer is satisfied that all is in order with the property's title deed, a contract is drawn up in both Hungarian and English. If the buyer prefers that the second language is a language other than English, this can be arranged by using a local lawyer who speaks the language desired.

Both the buyer and seller review the draft contract and can suggest that changes are made, for example, when the seller should vacate the property, or when all the funds should be transferred to the seller. Once the final contract is agreed on, both parties meet at the lawyer's office to sign the contract.

The lawyer places the buyer's name on the title deed; it is not possible for the seller to sell this property to anybody else, unless the buyer backs out of the sale.

Paying a Deposit

It is normal for the buyer to transfer 10 to 15 percent of the purchase price to the seller's bank account or to the lawyer's bank account within one week of signing the contact. If the deposit is not received within the time period specified by the contract, the contract becomes void.

After receipt of the deposit, the buyer can back out of the sale, but they will lose their deposit. However, if the seller backs out of the sale, the law states that they have to pay back twice the amount deposited.

When the final amount has been transferred, the lawyer removes the seller's name from the title deeds and replaces it with the buyer's name. The buyer is now the new owner and their lawyer can obtain a title deed from the land registry office.

Prepared by Eszter Holmes, Gateway Properties 1065 Budapest, Hajós utca 31. Tel: (1) 374 0782, Website