Buying Real Estate in Hungary
Hungary has some simple restrictions for foreign property investors that are easy to overcome. Since the collapse of the Soviet Union, this country has become an increasingly popular place for foreigners to buy real estate both in the rural and urban areas.
Attorneys and Real Estate Agents
It is recommended to hire an attorney who is fluent in Hungarian and your native language. This person will be helpful in the process of obtaining permission to purchase property from the Hungarian Land Registry (see below).
A good real estate agent can be helpful in this procedure, but is not necessary.
Rules, Regulations and Restrictions
Foreigners historically could not purchase property in Hungary, but this has changed. Today, foreign nationals are required to obtain permission to purchase from the Hungarian Land Registry. This is a simple process to apply, but it could take up to a month to pass. Part of this procedure is for the foreigner to go to the notary public to prove their identity; there are also fees for this application.
General Process
First, the buyer must get permission from the Land Registry to purchase property in Hungary (see above). The next step is to make an offer to the seller, and have this offer approved.
A preliminary sales agreement must then be drawn up and signed by both parties. Upon these signatures, the buyer should secure the property by putting down a deposit that is 10% of the final purchase price. The buyer then must arrange the financing for the property. Meanwhile, the seller is required to make sure there are no legal strings attached to the property that would go against the buyer. The seller must confirm that there should be no financial or legal circumstances in the way.
Once everything clears, the final sales agreement must then be drawn up and signed by the buyer and seller. After this, the official deed must be drawn up transfer the title of the property from the seller to the buyer. This deed must then be registered with the Land Registry, who will put it into the legal records.