1st GOLDEN RULE – Check the details of the property
Before making any binding statement or even paying 1 HUF, check all details in the property register.
How to do it? You have several options to do so:
- You can request free access to the real estate register at the local Land Office free of charge,
- you can also request the Certificate of Ownership from the local Land Office for a small service fee (find the contact details and opening hours of the Land Offices here >>> www.foldhivatal.hu), or
- request the Certificate of Ownership on your own computer via www.magyarorszag.hu (Customer Portal registration is needed for this), or
- Seek legal assistance to obtain the Certificate of Ownership. For a fee, lawyers have access to any real estate data in the country through the Takarnet registry. As a matter of course, our law firm makes this information available (and comprehensible) to the clients who choose us to handle the legal part of purchasing their new apartment.
Why is it important?
Because only the Certificate of Ownership can ensure you
- whether there is any encumbrance on the property (e.g.: mortgage, prohibition of alienation and encumbrance),
- who the owners of the property are,
- the proper classification of the property (e. g.: flat, apartment, vacated undeveloped area etc.)
- whether there is any pending proceedings related to the property (e.g.: execution lien).
2nd GOLDEN RULE – Request all documents of the property
Additionally to the Certificate of Ownership, make sure to request the following documents from the seller:
- Energy Efficiency Certificate
- Deed of incorporation to a condominium / cooperative (only in case of flats)
- Shared Use Agreement (in case of undivided common property)
- blueprint, construction permit, occupancy permit (for residential buildings)
- map sheets (for residential buildings)
Why is it important?
Because there are very important details in the process of buying an apartment that can only be concluded from these documents.
For example, a residential building’s not having a construction or occupancy permit significantly reduces the value of that property.
Or the property may have so poor energy efficiency data that it deems not worthy buying because you would receive extreme energy consumption bills later.
3rd GOLDEN RULE – Agree on the Terms and Conditions with the seller
Have an agreement with the seller before signing a contract about the following:
- the exact purchase price
- the payment schedule (e.g.: payment in 4 installments)
- the method (transfer/cash) and deadline of payment
- deadline for handover
- which part of the existing furniture is to be left there
Why is it important?
If there is no agreement on all of the above then no further steps should be made. There is no point hiring a lawyer and no point starting to plan the new layout of the apartment either. If there is no agreement with the seller about these crucial points, it is better to look for another property to buy.
4th GOLDEN RULE – Get to know the condition of the property
Be sure to check out every room and ask the seller for blueprints. If you are unsure or have no technical skills at all then hire a technical expert to check the property with you.
Why is it important?
Because expert eyes can shed light on shortcomings that you might never notice by yourself.
5th GOLDEN RULE – Anticipate and calculate costs
Before buying a property, make sure to estimate the additional costs you should expect additionally to the purchase price.
You may encounter the following costs during the purchase of a real estate:
- stamp fee (if you are not entitled to discounts)
- Land Office fee
- fee of Certificate of Ownership
- attorney’s fee
- in case of a bank loan, fees related to the transaction (valuation fee, notary fee, disbursement commission)
Why is it important?
Buyers often consider the purchase price of the property to be the total price they are to pay, while forgetting the additional costs of making the purchase itself. If you do not like surprises during a purchase, mind the costs related to the process as well to find the real total price of the property you are about to buy.
+1 GOLDEN RULE – Choose a reliable lawyer
According to the general practice on the market, the buyer selects the lawyer who drafts the purchase agreement. Make sure to choose a law firm to prepare your contract quickly and professionally and with a guarantee that your ownership will get registered at the Land Office.