We bought our dream house, but later find out that it was built illegally. Is the building not even designated on the Land Register official map? Didn’t we buy the Real Property from the owner? To avoid these and other nightmarish circumstances and disadvantages, we’ll show you what to check as a must t for if you’ve decided to buy a house.
In Part 3 of our series of articles on Hungarian Real Estates, we set out the steps you should take to avoid the pitfalls and damaging situations mentioned above. If the pictures in the advertisement or sent by the seller show that you are attracted by the magnificent house, it is important to be careful and consult a lawyer before making an offer or entering into a contract, especially as legal representation is a legal requirement in a sale and purchase transaction.
But what can we ourselves, as potential buyers, do beforehand to ensure that our dream Real Property does not turn into a nightmare?
1:
– Is it really the owner from whom we want to buy the Real Property?
– Is it the sole owner of the Real Property that we are buying from?
– Is the Real Property owned by one owner or by further ones as well?
– Under what certain legal type is the Real Property registered?
– The legal category/name of the property may be different for detached houses, e.g. ‘detached house yard’ or even ‘detached land’
– What encumbrances are there on the property that may prevent or restrict us from acquiring ownership?
If there is more than one owner of the property, in order to become the sole owner, all owners should be listed as sellers in the contract or, if applicable, only a certain share of ownership/proportion of ownership can be acquired, but then (also) the legal right of pre-emption of the co-owners must be taken into account.
In the case of an legal deemed undivided commonly owned Real Property, there may be several owners of the property, but in reality each owner has a separate right to use the building built on the property. In this case, the ownership could be settled by an agreement determines the Use, the details of which are described in the article below.
It is important to clarify whether the property located in internal territory. Why? Real property located internal territory is not subject to the Land Registration Act, i.e. it is not deemed as an agricultural land from a legal point of view and can be built on, so the transaction can be completed relatively quickly. In the case of land outside the area, the Real property is deemed from a legal point of view as a land, which implies a longer transfer of ownership procedure (subject to the approval of the agricultural administration) and it is not certain that you will end up owning it and, if you do, you will have to comply with other legal requirements (e.g. land use). Also if you’re a non-Hungarian citizen it could be more complicated for you with regards to an agricultural land.
For a more precise understanding of the contents of the title deed, we recommend Part 1 of our series of articles on Hungarian Real Estates, which deals with the different parts of the title deed.
2. Download a copy of the map of the property. Why that could be useful?
The copy of the map will show whether a structure (i.e. not only the plot but also the house as a building) has been recorded for the property registered under the given plot number. If the Real Property seems to be in fact substantially different, it is necessary to ask whether there has been an extension or addition (if so, whether they have a building permit, otherwise it may result in the demolition of the structure and a fine if it is in breach of the relevant local building regulations or, if not, to ensure that a permit for the building’s maintenance is obtained and the building is indicated).
In the case of a possible loan application, the issue of building on/extension is also very important, as it can be a disadvantage in the valuation if it is not shown on the copy of the map.
3. Check local building regulations, heritage register:
In several respects, it is important to be aware of the building regulations adopted by the local municipality. Why? If you intend to build an additional building on the site in the future, it is a good idea to find out in advance about the building regulations (e.g. building permit, building size, etc.). Regulations may vary from one municipality to another. Alternatively, if there was a previous building on the property for which the seller did not have a building permit, it may be important to check whether the building complied with the local building regulations. If the property has been built on but no occupancy or maintenance permit has been issued for the structure, the legal status of this should also be clarified.
If the property you want to buy is listed in the heritage register, it is important to take into account the specific rules that apply to it. By entering the details of the property, you can easily check on this link whether the property is a heritage protected property at all.
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If you are about to buy a property or if you have any problems with the title deeds or copies of maps and other legal requirements, please contact our office and ask us. We will assist you in the complete management of your real estate purchase and sale transaction (from making the purchase offer, preparing and submitting the contract to registering the title with the land registry), whether you are a private individual or a company.
Authors:
dr. Farkas Szabolcs László
dr. Bajcsay Gergely
Please note that the general information provided in this article is for informational purposes only and does not constitute legal advice. We do not assume any liability for any misinterpretation of the above information or for any changes in the law that may have occurred in the meantime. If you have a specific question or legal problem, we are able to provide individual advice after consultation with our office and after a full investigation of the case.
