Debrecen
Antall József str. 36., gf. 1.
+36 20 445 8480
On weekdays 8 AM to 5 PM
Open: 8 AM to 5 PM
On weekends we are closed
Antall József str. 36., gf. 1.
On weekdays 8 AM to 5 PM
On weekends we are closed
In Hungary, ownership of property can only be registered in the land registry if the sale contract has been drafted and countersigned by a lawyer (or recorded in a notarial deed). Dr. Andirkó Law Firm is led by dr. Andirkó Balázs István LL.M., real estate law specialist. We handle property sale contracts end to end, with in-person client meetings in Debrecen and Hajdúböszörmény and online, by video call, throughout the country.
Yes – legal representation is mandatory (in Hungarian). Transferring ownership of property requires a written contract, and the land registry only registers the buyer’s ownership if the document was countersigned by a lawyer or drawn up by a notary. Ownership is acquired by registration in the land registry, so with a contract concluded without a lawyer the buyer does not become the owner – even if the full purchase price has been paid.
The lawyer’s role, however, is far more than a signature. The countersigning lawyer:
It is important to know that the countersigning lawyer must have regard to the interests of both parties, so the contract cannot be one-sided in favour of either seller or buyer. There is nothing, however, to prevent us reviewing a contract under a separate engagement – not as the drafting lawyer – representing the seller’s or the buyer’s interests.
The total cost of a purchase is not a single item: alongside the attorney’s fee you have to allow for official charges and the transfer duty (illeték). With a bank loan there is the registration of the mortgage (HUF 20,000), and with payment in instalments the registration of the buyer’s right and of ownership (HUF 10,600 per entry) – while the duty can in many cases be reduced or avoided entirely.
| Purchase price | Attorney’s fee |
|---|---|
| HUF 0 – 100 million | 0.5% of the purchase price + VAT (min. HUF 150,000 + VAT) |
| HUF 100 – 200 million | 0.4% of the purchase price + VAT |
| HUF 200 – 300 million | 0.3% of the purchase price + VAT |
| Above HUF 300 million | a fixed HUF 1,000,000 + VAT |
The fee covers advice, checking the title deed, drafting and countersigning the contract, the land registry filings and the tax authority form, and representation in the land registry and duty assessment procedures – but not the official charges or the transfer duty. We can only give a precise quote knowing all the details of the matter, but we have built a calculator that works out the expected fee and total costs of a purchase in a minute.
| Item | Charge |
|---|---|
| Certified electronic title deed | HUF 4,800 each |
| Registration of the buyer’s right and of ownership | HUF 10,600 per entry, per property |
Registration of a mortgage | HUF 20,000 per property |
As a general rule the duty on transfers for consideration is 4% of the market value up to HUF 1 billion, and on the part above that 2%, capped at HUF 200 million per property. The duty is levied by the Hungarian tax authority, usually on the purchase price stated in the contract. It is worth stressing that form B400e is a declaration: after an on-site inspection the authority may establish a different market value from the one stated. Our duty calculator, built around the most commonly used reliefs and exemptions, makes it easy to work out the expected amount.
The duty is the largest single cost of a purchase, so it is worth examining the ways of reducing it before the contract is signed. The most common reliefs and exemptions:
Where property passes to a new owner by gift rather than purchase, different duty rules apply – we cover these in detail on our property gift contract page.
We optimise the duty at every contract signing at no additional charge. At our firm this is not a separate service but a natural part of preparing the contract.
Before any money changes hands, the certified electronic title deed must be obtained, and for a condominium flat it is worth reviewing the deed of foundation too. This reveals whether the property is encumbered by a mortgage, an enforcement right, a prohibition on alienation and encumbrance, a usufruct or easement, or whether a third party has a right of pre-emption. In parallel it is worth having the technical condition of the property inspected by a specialist.
Encumbrances on the title deed do not prevent a contract, but the appropriate process for clearing them must be built into it: where the property carries a mortgage, either the seller pays off the bank from the instalment received, or part of the purchase price is paid directly to the lending bank, which then issues the release, so that ownership can be acquired free of encumbrances.
The parties must at least agree on the following:
It is worth involving a lawyer at this stage already. The purchase offer or letter of intent used by estate agents is not a sale contract – yet we see time and again in practice that such documents can qualify as preliminary contracts on the basis of their content, which places serious obligations on both seller and buyer. The Hungarian Housing Act and the Act on Credit Institutions do not entitle an estate agent to draft documents, to take money from the buyer or to hold funds in escrow. An estate agent is only entitled to receive their commission from their principal, and the Hungarian Civil Code does not recognise the concept of a “bid security”. Earnest money is an accessory obligation securing the contract, which means it can only be handed over on the basis of a valid preliminary or final sale contract. Before signing any document or making the first payment it is essential to seek a lawyer’s help.
We send the draft contract to every party for review, and to the bank’s loan officer where a bank loan is involved. Our aim is for the parties to sign a contract everyone has already read, understood and accepted, so that as few changes as possible are needed on the day and signing is quick and smooth. In the engagement contract we inform all parties about the duty and the tax position.
Signing usually takes place at the law office, but another location can be chosen by agreement. A property sale contract can also be concluded online, by video call (in Hungarian), if the parties cannot attend in person – the lawyer’s countersignature is still mandatory, and the contract must be posted between all signatories and finally to our office.
The lawyer files the contract with the land registry and handles form B400e to the tax authority for the duty assessment. At handover the parties record the meter readings and the condition of the property in a written protocol.
An important practical point in 2026: since the move to the electronic land registry, processing times vary widely across the country – often a few weeks outside the capital, but months in Budapest and Pest County. We file with the land registry electronically, which helps shorten the turnaround for our clients. With a bank loan we send the electronic confirmation files to the client or the loan officer – every bank accepts this, and it replaces the old paper copy stamped on receipt. A few weeks after ownership is registered, the tax authority sends the buyer the duty payment notice.
This is the most common question before signing – and there is a serious legal difference between the two.
| Earnest money (foglaló) | Advance | |
|---|---|---|
| What is it? | An accessory obligation securing the contract | Simply part of the purchase price |
| If the deal falls through through the buyer’s fault | the buyer forfeits it | it is returned |
| If the deal falls through through the seller’s fault | the seller repays double | it is returned |
| If neither party is responsible | it is returned | it is returned |
| On completion | it counts towards the purchase price | it counts towards the purchase price |
Earnest money is a defined part of the purchase price, not necessarily equal to an instalment. Its amount is a matter for the parties; in market practice it is typically 5–10% of the purchase price. On request the court can reduce excessive earnest money – case law generally does not regard anything below 10% as excessive. Under the Hungarian Civil Code earnest money is, as a rule, a sum of money.
Two points are worth highlighting:
In detail: Earnest money or an advance? What is the difference? (in Hungarian)
If the buyer is purchasing with a bank loan, the contract must also meet the bank’s requirements. Under the Otthon Start Programme (in Hungarian) (an interest-subsidised loan at a fixed 3%, up to HUF 50 million, with a term of up to 25 years) several special rules apply to the sale contract:
Otthon Start does not in itself bring exemption from duty, but combined with CSOK or CSOK Plusz (in Hungarian) the purchase is exempt.
The conditions of Otthon Start, the grounds for exclusion and the cases in which the support must be repaid are covered in detail in our continuously updated post, Otthon Start Programme: everything you need to know about the 3% subsidised home loan (in Hungarian).
Where the buyer does not pay the full purchase price on signing (paying in several instalments from their own funds, or using a bank loan, an Otthon Start loan, CSOK or CSOK Plusz), the parties need security. The new land registry act, in force since 15 January 2025, abolished the earlier solutions (the suspended procedure held on the margin note and the recording of retention of title) and replaced them with the buyer’s right attached to retention of title.
How does this work in practice?
This arrangement protects both sides: the seller retains ownership until payment in full, and the buyer can be sure the property will not be sold or encumbered in the meantime.
As a rule, inherited property can only be sold once the probate proceedings have concluded with final effect and ownership has been registered on the basis of the order transferring the estate, since the heirs must appear on the title deed for the final contract. If the parties want security in the meantime, the fastest route is a preliminary contract, or the heirs as prospective owners can ask the notary for a partial transfer of the estate covering the property, so that their ownership can be registered before probate concludes.
From a tax perspective the key figure is the value in the tax and value certificate issued by the local notary: if the property is sold within 5 years for more than that value, 15% personal income tax is payable on the difference, with the tax base reducing on a sliding scale. It is therefore worth ensuring during probate that the value is close to the market value. We wrote about this in more detail in our article on tax on the sale of inherited property (in Hungarian).
When selling a fractional share, the seller must communicate the purchase offer to the co-owners. Where there are many co-owners, a decision of the Hungarian Curia provides guidance on proper communication (in Hungarian). With undivided co-ownership a use-division agreement (in Hungarian) is often needed – and it is mandatory for a bank loan and for an Otthon Start loan.
A usufruct does not lapse when ownership changes. If the buyer wants the property free of encumbrances, the usufructuary must waive the right or its value must be bought out. The value of the usufruct (in Hungarian) is determined using the calculation method in the Hungarian duties act.
The preliminary contract (in Hungarian) is useful where the parties have agreed but something still stands in the way of the final contract (probate, clearing encumbrances, loan approval, plot division). Earnest money can be paid on a preliminary contract, and if a party unlawfully refuses to proceed, the court can create the contract itself.
A time- and cost-efficient process: As experienced property lawyers we work thoroughly while making sure our clients are not burdened with extra expense. We of course devote as much time to the transaction as it needs, while aiming to complete the procedure as quickly as possible.
Security: We have acted in several hundred property matters, so we know from experience the problems that most often arise on signing. We work to ensure that every part of the contract reflects the parties’ interests and includes the right safeguards.
End-to-end handling: We try to take every burden off our clients’ shoulders, so you can rely on us in the official and banking procedures too. We file with the land registry electronically, which helps shorten the turnaround. With a bank loan we send the electronic confirmation files to the client or the loan officer – every bank accepts this, and it replaces the old paper copy stamped on receipt.
Information: we keep you fully and continuously informed so that you always know how your matter is progressing.
A bespoke contract: Every case is different, which calls for a bespoke contract. We do not work with templates containing only the statutory minimum; we prepare a document tailored to each client’s matter.
Up to a purchase price of HUF 100 million our fee is 0.5% of the price + VAT, but at least HUF 150,000 + VAT. Between HUF 100 and 200 million it is 0.4% + VAT, between HUF 200 and 300 million 0.3% + VAT, and above HUF 300 million a fixed HUF 1,000,000 + VAT. For a HUF 40 million flat that means a fee of HUF 200,000 + VAT; for a HUF 60 million one, HUF 300,000 + VAT. The fee covers advice, checking the title deed, drafting and countersigning the contract, the land registry and tax authority filings and representation in those procedures – but not the cost of the title deed (HUF 4,800 each), the official charges (HUF 10,600 per registered right per property) or the transfer duty.
Yes. The land registry only registers the buyer’s ownership on the basis of a private document countersigned by a lawyer or a notarial deed. Ownership is acquired by registration, so with a contract concluded without a lawyer the buyer does not become the owner – even having paid the full price.
As a general rule the duty on transfers for consideration is 4% of the market value up to HUF 1 billion and 2% on the part above that, capped at HUF 200 million per property. Numerous reliefs and exemptions exist: replacement purchase (from 1 January 2026 a sale within 5 years before the purchase also counts), transfers between direct-line relatives, use of CSOK or CSOK Plusz, a 50% reduction for first-time buyers under 35 up to HUF 15 million, and undertaking to build on a plot within 4 years.
The draft is usually ready within 2–3 working days, and signing can follow immediately after the parties have agreed. With a bank loan, encumbrances to clear or undivided co-ownership the process takes longer, since the bank’s or other rights holders’ responses have to be awaited.
As a general rule, no. The bank counts as the buyer’s agent, so a refusal is treated as a failure on the buyer’s side and the buyer forfeits the earnest money. We therefore recommend a pre-approval and valuation to every client buying with a loan. With the seller’s cooperation, a clause can be included providing that a refusal by the bank is not the buyer’s fault.
The parties are free to agree the amount; in market practice it is typically 5–10% of the purchase price. On request the court can reduce excessive earnest money, and case law generally does not regard anything below 10% as excessive. As a rule it is a sum of money and may only be paid alongside a valid preliminary or final sale contract.
Yes. The parties can conclude a sale contract by video call; the lawyer’s countersignature is still mandatory, and the documents must be posted between all signatories and finally to the law office. We accept instructions online from anywhere in the country.
An encumbrance does not prevent a sale, but the property must be cleared. The contract sets out how: part of the purchase price can be paid directly to the lending bank or the enforcement officer, who then issues the release. The buyer’s money is not put at risk and ownership is acquired free of encumbrances.
The buyer’s right was introduced for payment in instalments by the land registry act in force since 15 January 2025. It can be maintained for up to 5 years and costs HUF 10,600 to register. For the first 6 months it gives the buyer full protection, after which it converts into a prohibition on alienation and encumbrance. Once the full price is paid, the seller issues the registration consent, the buyer’s ownership is registered and the buyer’s right lapses.
The parties’ identity cards, address cards and tax identification numbers, the property’s land registry number, the seller’s bank account number, and where a loan is involved the chosen bank (ideally with the loan officer’s contact details and the latest bank information sheet). For a condominium flat, the deed of foundation and a certificate that there are no arrears of common charges.
In practice usually the buyer, but the parties are free to agree otherwise. The duty is always paid by the buyer. The method of payment is set out in the engagement contract.
There is no objection in principle, but for cash payments above HUF 4.5 million the anti-money-laundering rules require enhanced due diligence and credible evidence of the source of funds, so we advise everyone to make bank transfer the primary method of payment. If either party insists on a large cash payment and the buyer cannot properly evidence its source, we will not prepare the document.
Dr. Andirkó Law Firm’s registered office is at 4025 Debrecen, Antall József utca 36., ground floor 1. (corner of Antall József and Barna streets), and clients are also received in person in Hajdúböszörmény. From elsewhere in the country we accept instructions online, by video call.
When you contact us we examine the legal status of the property and explain how the contract will be concluded, the attorney's fee and the expected costs. If you go on to instruct us, the fee for the first consultation is credited against later fees.
We draft the appropriate type of contract and provide the lawyer's countersignature.
We provide representation before the land registry authority, the tax authority and – depending on the type of case – any other authority or body.
Last updated: August 2026