Importance of the Property Record for Homebuyers

Types of Land Registry Extracts

Land registry extracts provided as electronic documents come in two formats:

• Review Copy (SZEMLE): Reflects the property's status at the time of request (same day).
• Full Extract (TELJES): Displays the full legal history of the property.

If you're only interested in the current legal status of a property, I recommend requesting a review copy.

Accessing the Property Records

You can access a land registry extract via the Takarnet system, part of the Land Office Online services, using a government portal account (Ügyfélkapu+/DÁP).

In addition to land registry extracts, the Takarnet system allows users to request map copies and information on condominiums. Requested documents are stored free of charge for four months within the system.

You can obtain two free extracts annually through the Takarnet system. Any additional requests incur fees:

• From July 29, 2024, the cost of a single land registry extract is 4,800 HUF. Payment is made online via SimplePay.
• For a paper-based certified copy issued at the land office, the fee is 10,000 HUF.
• The cost of an e-certified map copy available through Takarnet is 5,000 HUF.

How Long is a Land Registry Extract Valid?

Land registry extracts do not have a specific validity period, meaning they are only valid at the time of request. Typically, applications submitted to the land office in the morning are processed and recorded by 2:00 PM the same day.

Therefore, lawyers are ethically obligated to review the land registry extract immediately before signing the sales contract.

The Structure of a Land Registry Extract

Every land registry extract consists of five main sections:

• Header: Contains the property's location (municipality) and cadastral number, indicating whether it is located in an urban or rural area.
• Marginal Notes (Széljegy): Lists pending applications or unresolved requests related to the property.
• Section I: Includes the property's designation (e.g., residential building, plot) and area.
• Section II: Lists the owners, their personal details, ownership shares, and the basis and date of acquiring ownership.
• Section III: Contains encumbrances, rights, and notes related to the property, such as mortgages, usufructuary rights, preemption rights, litigation, etc.

Pro Tip: Checking ownership details is especially critical for shared properties like duplexes under undivided co-ownership.

What Are Marginal Notes?

Marginal notes (széljegy) are special entries located between the header and Section I. They indicate unresolved requests submitted to the land office, such as:

• Mortgage registrations
• Preemption rights
• Litigation

The order of processing marginal notes is determined by the submission date, except for specific requests like the deletion of mortgages, preemption rights, or enforcement orders.

For sales, ownership registration applies retroactively to the date the application was submitted – this is also the date the marginal note was added.

Why Understanding an Official Land Registry Extract is Crucial

• Verification of Ownership and Encumbrances: The property record contains vital information about the property's ownership and any existing encumbrances, such as mortgages, easements, or liens. This ensures that the buyer is aware of any legal obligations or claims on the property that could affect their ownership.
• Preventing Fraud and Disputes: By thoroughly understanding the property record, buyers can prevent fraud and legal disputes. It helps confirm that the seller has the legal right to sell the property and that there are no hidden legal issues that could arise after the purchase.
• Informed Decision-Making: Knowledge of the property record allows buyers to make informed decisions regarding their investment. For example, understanding the "széljegy" (marginal note) can indicate pending legal actions or claims that could impact the transaction.
• Financial Planning: Understanding the costs associated with obtaining property records, such as the fees for official copies from the Takarnet system, helps buyers budget accurately for their property purchase.
• Compliance with Legal Requirements: In Hungary, lawyers are required to check the property record before finalizing a real estate transaction. Buyers need to understand this process to ensure their lawyer is compliant and that their purchase is legally sound.
• Understanding Property Details: The property record details the physical attributes of the property, including its exact location, size, and type of use (e.g., residential, commercial). This information is critical for ensuring that the property meets the buyer's needs and expectations.
• Awareness of Property Share and Use: For properties with shared ownership, understanding the "tulajdoni hányad" (ownership share) is important for knowing one's rights and responsibilities in the co-owned property.
• Avoiding Future Legal Issues: Knowing the current status and any pending changes in the property record, such as those indicated by "felülvizsgálat alatt" (under review), helps in anticipating and addressing potential future legal issues.

Key Takeaways

As a real estate lawyer, my advice to buyers is to ensure the land registry extract is available before involving a real estate agent. This document enables you to ask the right questions, such as:

• Have you contacted anyone with preemption rights?
• Will the usufructuary waive their rights before the sale?
• Has the mortgage been fully repaid?

If you need legal assistance with interpreting a land registry extract or handling a real estate transaction, feel free to explore our services and contact us via any of the options below.

By comprehensively understanding the property record, homebuyers in Hungary can ensure a smooth, secure, and informed real estate transaction, ultimately protecting their investment and avoiding unforeseen complications.