Sale and Purchase of Real Estate in Hungary
Looking to buy or sell a property?
Are you about to buy a flat, house, plot, or holiday home?
Do you want to have a sales contract reviewed before signing it?
Procedure for buying a real estate property
The procedure for buying a property involves several steps that can be shaped by both the buyer and the seller. The main steps in the typical sale process are:
Offer and Acceptance:
- The written offer made by the buyer for the property is considered by the seller and, if accepted, a contract of sale can be formed.
Legal due diligence:
- The buyer will usually carry out a legal inspection of the property to ascertain ownership, encumbrances, and other legal issues.
Pre-contract:
- A preliminary contract of sale between the parties, which includes the purchase price, the date of takeover, the terms of transfer of ownership, etc. It is advisable to seek the assistance of a real estate lawyer at this stage, as a deposit may be paid.
Preparing and requesting related documents:
- Preparation of important documents for the seller and the buyer, such as a copy of the title deed and a map, the preparation of the energy certificate.
Involvement of a real estate lawyer:
- During the legal process, the lawyer will help clarify legal details and review the documentation.
Bank transactions and payment:
- The purchase price is usually paid by bank transfer. The seller then transfers the property to the buyer.
Handover:
- The physical handover of the property and the preparation of the takeover report. At the handover, the keys, documents, and other relevant information are handed over.
Official registrations and fees:
- The lawyer registers the sale with the competent authorities and the ownership of the property is officially transferred to the buyer.
This process usually takes place through negotiations between the buyer and the seller and the preparation of the legal documentation (contract). Each case can be unique, and the sale process is usually influenced by the agreement of the parties, the legal requirements, and the type of property. It is always worth considering the involvement of a real estate lawyer when selling a property.
Costs of buying a property
The costs associated with buying a property can vary and vary from transaction to transaction. Some typical costs that may be incurred when selling a property:
Purchase price:
- The purchase price of the property must be paid by the buyer to the seller.
Stamp duty fee:
- The buyer usually must pay the tax (stamp duty fee) on the purchase price of the property. The amount of the duty depends on the circumstances of the contract and the purchase price.
Lawyer's fees:
- A lawyer who assists in the sale process charges a fee for legal advice and documentation.
Legal examination costs:
- Costs incurred during the legal examination of the property, such as obtaining an energy certificate and other necessary documents (title deeds, copies of maps).
Legal deposit:
- In some transactions, a deposit managed by a lawyer, or a law firm may be included in the sale process (e.g. in the case of a sale of land).
Taxes:
- Property taxes and other local taxes may be charged, depending on where the property is located.
Loan interest and costs:
- If the buyer takes out a loan to purchase the property, loan interest and loan costs may be included in the costs.
Real estate agent's fee:
- If the real estate agent assists in the purchase process, the agent's fee may also be included. This is usually payable to the seller, but in some cases both the buyer and the seller may pay.
It is important to note that specific costs can vary significantly based on the value of the property and other factors. It is therefore always advisable to consult a lawyer during the sale process to obtain more accurate information about the costs involved in a particular property sale.