Complete checklist before buying in Hungary: the 25 points to scrutinize

Published on July 6, 2026 and written by Cyril Jarnias

Buying real estate in Hungary can be an excellent deal… provided you know the lay of the land. Between different rules for foreigners, a new municipal preemptive right, reform of the electronic land registry, and stricter short‑term rental rules, a “blind” purchase can quickly turn into a legal or financial nightmare.

Good to know:

This guide is based on Hungarian law in effect in early 2026 and actual market practices. It provides a structured checklist of 25 essential points to systematically verify before signing.

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1. Clarify Your Status As a Future Foreign Buyer

Even before looking at listings, you need to know which legal box you fall into. In Hungary, everything revolves around the distinction between EU/EEA vs. non‑EU/EEA.

The rules can be summarized as follows:

Buyer Category	Acquisition Permit Needed?	Purchase Rights (excluding agricultural land)
Hungarian citizen	No	Full rights
EU/EEA/CH citizen	No	Similar to Hungarians
Non‑EU / non‑EEA	Yes, government permit	Possible but under conditions

An EU or EEA citizen (Norway, Iceland, Liechtenstein) – as well as Swiss citizens – can buy an apartment or house almost like a local resident, as long as the property is not classified as agricultural or forestry land.

Attention:

Buyers from non‑EU/EEA countries must obtain a permit from the competent government office, which adds one to three months to the timeline, or even more depending on the county. Without this clearance, registration with the land registry is blocked and the purchase has no legal effect.

Point of caution: owning property in Hungary does not grant any automatic right of residence or citizenship. Visa or residence permit issues must be handled entirely separately.

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2. Verify That the Property Is “Purchasable” by a Foreigner

In theory, foreigners can buy most housing in Hungary: apartments, houses, villas, townhouses… In practice, it all depends on the land category listed in the land registry.

The key point appears in Part I of the property extract (tulajdoni lap):

Tip:

If the property is in a built‑up interior zone (belterület) and is not classified as agricultural land (szántó, rét, legelő, kert, szőlő, gyümölcsös), the purchase by a foreigner is generally allowed. However, as soon as agricultural or forestry use is recorded, the law almost totally prohibits ownership by foreign individuals and most companies with foreign capital.

It is therefore essential to:

1. Request a teljes tulajdoni lap (complete property sheet).
2. Read the exact land use category.
3. Have your lawyer confirm that there are no special restrictions related to agricultural, forestry or environmental protection use.

Never rely on mere appearance (“it’s a field, but we can build later”): in Hungary, the land registry entry is what counts, not the apparent state of the land.

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3. Obtain an Up‑to‑Date and Certified Property Extract

In Hungary, the legal security of a purchase rests first and foremost on the land registry (Ingatlan-nyilvántartás). The key document is called the tulajdoni lap and comes in three parts:

Part	Main Content
I	Physical data: address, area, use, parcel number
II	Ownership: holders, shares, acquisition title
III	Encumbrances: mortgages, usufructs, easements, preemptive rights, etc.

Before any serious offer, you must:

– Demand a recent complete extract (ideally from the day of signing),

– In certified form (hiteles másolat), not a simple “informational extract,”

– Obtained by a lawyer through the professional TakarNet system or at a Kormányablak office.

Specific points to check:

Example:

For a real estate purchase in Hungary, ensure that: 1) the seller matches exactly the one listed in Part II (company name and registration number for a legal entity); 2) no suspicious margin notes (széljegy) appear in Part III, as they would indicate a pending registration procedure (mortgage or incomplete transfer); 3) all encumbrances are identified: mortgages (jelzálogjog), usufructs (haszonélvezeti jog), easements (szolgalom), options or preemptive rights (vételi/elővásárlási jog), registered leases, etc.

In Hungary, the rule is simple: the only real protection is registration with the land registry. An unregistered preliminary contract, even notarized, offers no security if the title remains in the seller’s name or if a competing mortgage appears in the meantime.

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4. Understand the New Municipal Preemptive Right

Since summer 2025, the law on the protection of local identity gives municipalities powerful tools to control real estate transactions. One of them is a preemptive right (right of first refusal) in certain areas or for certain types of property.

In practice:

Municipal preemptive right

The municipality may, by local decree, establish a priority order for the purchase of a negotiated property, in favor of certain actors.

The municipality

The municipality itself can exercise its priority right to acquire the property at the negotiated terms.

Long‑time neighbors

Neighboring owners of at least five years have priority to buy the property.

Other residents

Other long‑established residents may also benefit from this purchase priority.

– The typical procedure:

– The signed contract is sent to the municipal notary.

– The notary notifies the holders of the preemptive right.

– They have about 30 days to respond.

– If they exercise the right, they simply replace the original buyer.

For a foreigner, the effect is brutal: you may have found the perfect property, negotiated the price, paid a deposit in escrow… and see the municipality or a neighbor step in ahead of you. Hence two essential reflexes:

1

It is essential to have your lawyer check whether the municipality has adopted a “local identity” decree, which areas are covered, and whether a local preemptive right applies to your plot.

– 2. Protective clauses in the contract

– Insert a suspensive condition: the sale is complete only if the municipality explicitly waives its right or lets the deadline expire without action.

– Arrange for escrow with a notary or lawyer: funds are released only after municipal non‑intervention is confirmed.

These contractual mechanisms have become, in 2026, a standard recommended by practitioners to secure the buyer.

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5. Monitor Residence and Local Identity Restrictions

The same law also allows municipalities to restrict the registration of new residents, impose specific taxes, or protect certain neighborhoods. The official goal: preserve “local identity” and control real estate pressure.

Examples of possible measures:

– Conditions for declaring your primary residence in the municipality,

– Priority given to people with an existing link to the locality (origin, family, local employment),

– “Settlement” tax or tax on secondary residences.

Certain categories are exempted:

– People originally from the municipality or who lived there as children,

– Close relatives of residents,

– State or municipal employees,

– Workers moving to the municipality to pursue an activity there,

– Beneficiaries of certain housing aid (e.g., subsidized programs).

Before buying, especially if you are aiming for a primary residence, it is prudent to:

– Officially ask the town hall about:

– the existence of “local identity” decrees,

– the conditions for address registration,

– any possible specific local taxes.

– Check whether you or your family might benefit from an exception (local employment, family ties, housing subsidy use, etc.).

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6. Factor in the Tightening of Short‑Term Rental Rules

For a rental investment aimed at Airbnb, the rules have changed dramatically:

– A two‑year national moratorium bans the registration of new short‑term rental properties until the end of 2026.

– In Budapest, some districts (such as Terézváros / 6th district) have voted a total ban on tourist‑type Airbnb rentals.

– Other neighborhoods have drastically reduced the number of allowed days.

Attention:

A foreign investor should never build a business plan based on an Airbnb assumption without having verified the rules at the district and municipal level.

Specifically:

– Ask the district (in Budapest) or municipal office:

– whether there is a specific regulation on tourist rentals,

– about any quotas or bans,

– and the timeline of planned regulatory reviews.

– Quantify the share of income you expect from short‑term rentals and model a “total ban” scenario to see if the project remains profitable under traditional rental.

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7. Assemble Your “Administrative Kit” as a Foreign Buyer

A successful purchase is prepared with a complete file. In Hungary, several documents are indispensable for a non‑resident:

Document	Main Use
Passport / ID card	Identification, contract, bank, purchase permit
Hungarian tax ID (adóazonosító jel)	Required to buy and for tax purposes
Hungarian bank account	Payments, loan repayments, fees
Proof of income	Financing, purchase permit for non‑EU
Background check (country of origin)	Acquisition permit file for non‑EU
Certified translations	Foreign documents into Hungarian

The tax ID is obtained from the tax authority (NAV), online or at the counter, upon presentation of:

– your passport,

– proof of address,

– proof of income.

Good to know:

For a buyer from a non‑EU/EEA country, the file must include an apostilled background check, proof of payment of filing fees, and a draft sales contract.

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8. Choose a Hungarian Lawyer… Because It’s Mandatory

Unlike in some other countries, in Hungary you cannot legally finalize a purchase without going through a Hungarian lawyer or a qualified notary:

Attention:

The sales contract must be countersigned by a lawyer or notarized to be accepted by the land registry. The lawyer checks the title and encumbrances, prepares or reviews contracts, files the application with the land registry, and handles purchase permits for non‑EU buyers.

In practice, it is highly recommended to choose a lawyer who is:

– Specialized in real estate,

– Accustomed to foreign clients (language barrier, translations, etc.),

– Independent from the agent or seller.

It is also the lawyer who must directly obtain, via TakarNet, the property extracts, building permit documents, occupancy permits, and conduct the entire due diligence.

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9. Structure Your Overall Budget (Beyond the Purchase Price)

Many foreign buyers focus on the listed price without factoring in transaction costs and taxes. In Hungary, a standard purchase involves several recurring items:

Item	Order of Magnitude (Standard Residential)
Transfer tax (illeték)	4% up to HUF 1 billion, then 2% above (overall cap HUF 200 million)
Lawyer’s fees	Approx. 0.3% to 1.5% of the price
Land registry registration fee	Approx. HUF 10,600 per property (+ expedited option HUF 16,000)
Purchase permit fee (non‑EU)	Approx. HUF 50,000–65,000
Various administrative fees	≈ €300 (permits, registrations, translations)
Annual home insurance	Apartment: approx. HUF 45,000–115,000/year; house: higher

In total, buyer’s costs often run around 5.5% to 7.5% of the price for a simple transaction. You should also add:

Tip:

Plan a budget that includes agency fees (often on the seller’s side), technical diagnostics and structural inspections, plus a margin for contingencies (hidden work, delays, or tax adjustments).

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10. Anticipate Taxation Upon Exit and in Case of Rental

Hungary offers a relatively clear tax framework, but you need to know the rules from the start:

Upon resale (individual)

– Capital gains are taxed at 15%, on the difference between the sale price and acquisition cost (plus certain documented investments).

– This income is treated separately from overall income.

– The taxable amount decreases over time:

– Year of purchase + 1 year: 100% of gain taxable.

– 2nd year after purchase: 90%.

– 3rd year: 60%.

– 4th year: 30%.

– 5th year: 0% → resale exempt for a personal‑use property.

Good to know:

Non‑residents are taxed at the same 15% rate as residents, with a gradual reduction mechanism spread over fifteen years for certain situations.

In case of rental

– Rental income is subject to a flat tax of 15%.

– Two methods for calculating the base:

– Flat 10% deduction for expenses (tax on 90% of gross, no receipts needed),

– Deduction of documented actual expenses (renovations, management, re‑billed costs, etc.).

– Depending on the situation, you may need to request a specific tax ID and decide whether to opt for VAT on rents (by default, residential rental is VAT‑exempt).

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11. Secure Your Financing and Down Payment

Foreigners can obtain a mortgage in Hungary, but the conditions are stricter than for residents.

Banks generally apply: interest rates on loans and deposits, account management fees, transaction fees, and specific credit conditions.

– A more conservative loan‑to‑value (LTV) ratio:

– Up to 80% theoretical for residents,

– More like 50–70% for non‑residents or foreigners.

– In practice, plan for 30% to 50% down payment to be comfortable.

Criteria systematically examined:

– Stable, documented income (salary, self‑employment, etc.),

– Credit history and existing debt,

– Your residency status in Hungary (address card for residents),

– Market value of the property as appraised by a bank‑approved expert.

The typical process:

1. Get your tax ID and open a local bank account.
2. Apply for pre‑approval before searching for a property.
3. Once the preliminary contract is signed, the bank hires an approved valuer for the appraisal.
4. After validation, they issue a firm credit offer.
5. The loan contract is signed before a notary, with the mortgage registered at the land registry.

Rates observed in early 2026:

Type of Loan	Approximate Annual Rate
“Market” mortgage for foreigners	6% – 9% APR
Subsidized programs (eligible residents)	≈ 3% or less

If you plan to buy under a subsidized program (e.g., Otthon Start for first‑time buyers), you must check your eligibility early: nationality, length of social security contributions in Hungary, price cap on the property, down payment share, etc.

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12. Outline the Chronological Purchase Process

To stay on track, it helps to visualize a typical residential acquisition by a foreigner:

Key Step	Indicative Timeline
Budget, pre‑approval, tax ID	1–3 weeks
Property search, viewings	Variable
Written offer and negotiation	A few days to 2 weeks
Preliminary due diligence	1–3 weeks
Signing of preliminary contract / agreement	1 week
Deposit (often 10%) placed in escrow	Upon signing preliminary contract
Acquisition permit file (non‑EU)	+2 to 6 weeks
Final contract, filing with land registry	1 week
Registration with land registry	1–2 months
Payment of balance and transfer tax	Within 90 days of tax notice

For a buyer from a non‑EU/EEA country, the acquisition permit often becomes the critical element of the timeline: it is wise to align contractual deadlines (balance payment, transfer of possession) with the date this permit is obtained.

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13. Thoroughly Examine Building and Occupancy Permits

A point often overlooked by individuals, but crucial: the urban planning legality of the building.

Your lawyer must obtain from the seller and verify:

Attention:

Make sure to obtain the building permit (építési engedély) to ensure the building was authorized and constructed in compliance. Then obtain a certificate of conformity or occupancy (használatbavételi engedély); without it, the building is considered illegally occupied.

These documents can be checked via the electronic ÉTDR system used by construction authorities. In case of major discrepancies (undeclared extensions, extra floor, etc.), you risk:

– Difficulty obtaining certain services (connections, loans, insurance),

– Penalties, or even an expensive obligation to bring the property into compliance.

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14. Verify Compliance with the Local Building Code (HÉSZ) and Zoning

Beyond the building permit, you need to ensure the property complies with current planning rules:

– HÉSZ (helyi építési szabályzat): local building regulations,

– Zoning plan and municipal map,

– Any protected areas (heritage, landscape, environmental).

Points to confirm:

Essential planning rules

Summary of the main rules to know for a construction project

Permitted use type

Defines whether the land is for residential, commercial, or mixed use.

Maximum building height

Limits building height, often expressed in meters or number of floors.

Floor area ratio (site coverage)

Percentage of the plot that can be occupied by the building footprint.

Required setbacks

Minimum distances to be maintained between the construction and the plot boundaries.

Buildable area and FAR

Maximum allowed surface area, often tied to the floor area ratio (FAR).

These parameters are crucial if you plan to:

– Change the use (housing → office or vice versa),

– Expand the property,

– Carry out a development or dense co‑living project.

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15. Scan Environmental and Material Risks

For a recent apartment in the city center, the risk is limited. For an old house or a project on vacant land (greenfield), you need to dig deeper:

Good to know:

An environmental screening (Phase I) is recommended, especially for former industrial sites, brownfields, or peripheral land. A soil analysis (Phase II) may be necessary. Check whether an environmental impact study was required for the original project. On the energy side, new buildings must meet nearly zero‑energy building standards since 2021. Finally, an energy performance certificate has been mandatory for sales since 2012‑2015.

Also do not neglect:

– The condition of the roof (possible asbestos),

– Heating and electrical installations,

– Risks of contamination from non‑compliant materials (especially in old renovations).

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16. Conduct a Real Technical Inspection, Not Just a Walkthrough

Hungarian law does not require a complete structural diagnostic, so the burden of caution falls largely on the buyer.

Basic checks to plan:

Example:

The inspection should verify several essential elements: roof, facade, joints and signs of infiltration; windows, doors, thermal bridges and mold; plumbing (pressure, leaks, corroded pipes); electricity (panel, grounding, cable condition); heating system, especially underfloor heating that may be partially clogged; garages, basements and outdoor spaces (waterproofing, drainage); as well as property boundaries and fences compared to the cadastral plan.

For an older building in Budapest or a house, it is strongly recommended to hire an independent technical expert for a written report. This cost is marginal compared to the structural problems it could help avoid.

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17. Examine Leases and Occupant Status

If the property is sold occupied or as part of an existing rental investment, your verification must cover:

Attention:

Lease contracts must be examined for remaining term, termination clauses, indexation, currency of rents (HUF, sometimes €), and compliance with local rules (allowed grounds for termination, notice periods). Also check for ongoing disputes: eviction procedures, unpaid rent claims, or municipal interventions for unsanitary conditions or safety issues.

In particular, older contracts may contain: obsolete clauses.

– Rent review mechanisms not in line with new rules,

– Termination clauses that are now difficult to enforce without cause.

A legal audit of these leases by your lawyer allows you to measure the true quality of the rental income before buying.

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18. Navigate the Rules for New Developments and Off‑Plan Sales

For off‑plan purchases (new apartments under construction), the Hungarian framework has evolved significantly:

– It is now possible to register a mortgage from the earliest construction phases, which reassures banks but complicates the hierarchy of security interests.

– New mechanisms, such as the condominium building right (condominium building right), are gradually strengthening the position of off‑plan buyers:

– they allow registering a specific right related to the future unit in the land registry,

– this right acts as a contractual prohibition on alienating or encumbering the property, providing strong protection.

Tip:

For the buyer, the key points to check with your lawyer are essential to secure the transaction and avoid legal pitfalls.

– Existence of an escrow account with a Hungarian bank,

– Conditions for releasing funds (construction milestones, validation by an independent engineer),

– Registration of the right related to the future apartment in the land registry, as soon as the law allows,

– Financial strength of the developer (balance sheets, guarantees, track record of completed projects).

An off‑plan purchase contract must detail precisely:

– Payment milestones,

– Delivery deadlines,

– Penalties for delay,

– Completion guarantees (insurance, bond, bank guarantee).

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19. Decide Between Asset Deal and Share Deal

For larger investments (entire building, commercial project), the question of legal structure arises:

– Asset deal: you buy the property directly.

– Advantage: simple structure, you control the asset.

– Disadvantage: you pay the 4% transfer tax on the value (up to HUF 1 billion).

Good to know:

By buying the shares of the company that owns the property, you generally avoid the transfer tax. However, you assume the entire liability and hidden risks (tax, litigation, obligations) of that company.

For a large asset, the potential savings in a share deal are enormous: on a €50 million building, the 4% illeték amounts to €2 million. But such a structure requires a full corporate due diligence:

– Tax review by NAV over several years,

– Audit of financial statements, employment contracts, regulatory licenses,

– Analysis of VAT correction risks (ÁFA korrekció).

For an individual or small investor, the asset deal is often the most straightforward path.

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20. Check the Ownership History and Any Litigation

Even though the land registry is the main tool, an experienced lawyer will supplement this with:

Good to know:

A search of ownership history over 15 to 30 years, examination of all margin notes (*széljegy*) and canceled entries, a search at the companies register for corporate sellers (solvency, insolvency proceedings, pledges), and confirmation of the absence of heavy civil proceedings (expropriation, major neighbor disputes, inheritance conflicts) are necessary.

In Hungary, a complex litigation that goes undetected can legally immobilize a property for years, even if you are already registered as the owner.

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21. Secure Payments Through a Safe Escrow Arrangement

Hungarian practice clearly distinguishes:

– The down payment / advance (előleg), which is in principle refundable if the sale falls through,

– The deposit / earnest money (foglaló), which may be lost by the buyer if they back out, or must be doubled by the seller if they are at fault.

For a foreigner, it is better to:

Attention:

Clarify in black and white the legal classification of the sum paid and use an escrow account managed by a lawyer or notary: funds will only be released after all conditions are met (purchase permit, waiver of municipal preemption, no unexpected encumbrances).

This approach protects against two frequent risks:

– Verbal commitments that do not match the contract actually filed with the registry,

– Last‑minute changes imposed by the seller or agent.

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22. Use the Electronic Land Registry Tools Correctly

Hungary has a highly advanced digital land registry:

– TAKARNET: access reserved for professionals (lawyers, notaries, banks), paid,

– Földhivatal Online / E‑ING: portal accessible to citizens with a government ID (Ügyfélkapu).

For a resident with an Ügyfélkapu account, it is possible to:

– View for free, a limited number of times per year, Part I (descriptive data),

– Purchase complete extracts in PDF, sometimes electronically certified.

Attention:

For a non‑resident without access to Ügyfélkapu, using a local lawyer is essential. Attempting online procedures without language mastery or system knowledge is not recommended, because only an official request produces a document that is valid against third parties.

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23. Do Not Underestimate the Role of Municipalities in the Overall Setup

Since the 2025 reform:

– Municipalities can:

– exercise or not their preemptive right,

– restrict the registration of new residents,

– impose specific local taxes,

– classify certain areas as “protected” under local identity.

This means that, beyond national law, your project is largely conditioned by municipal policy:

Good to know:

Some localities are actively seeking to attract new residents or real estate projects, while others protect their market, limit secondary homes, or discourage intensive rental investment.

Incorporating this factor involves:

– A systematic screening of local decrees before any signing,

– Early contact with the town hall for ambitious projects (subdivision, development, change of use),

– Taking into account the local political risk over your 5‑ to 10‑year holding horizon.

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24. Build an Exit Strategy from the Start

In 2026, the Hungarian market is rather favorable to sellers, especially in Budapest, with limited supply and prices supported by housing aid policies. But a smart purchase is thought from the beginning as a long‑term operation:

Good to know:

The holding period is ideally 5 to 10 years to smooth out cycle risks. Exit scenarios include resale after a minimum of 5 years (for the exemption on personal residences), conversion to long‑term rental if short‑term rental becomes stricter, or sale of shares if held through a company.

You need to factor in:

– Interest rate increase risks,

– Currency fluctuations if your income is in euros and your loan in forints,

– Possible future changes in the regulatory framework for foreigners.

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25. Summarize the Essential Checklist Before Signing

To conclude, here is a summary of the 25 major points that should be on your personal checklist before any purchase in Hungary:

Tip:

To succeed in your real estate acquisition in Hungary, follow these 25 key steps: identify your buyer status (EU/EEA or non‑EU/EEA), check the land category on the tulajdoni lap (avoid agricultural or forestry land), obtain a recent certified property extract, and check all real rights and encumbrances (mortgages, usufructs, easements, preemptive rights, leases). Confirm the exact identity of the seller and their legal capacity, determine whether an acquisition permit is needed (for non‑EU), and check municipal decrees on local identity and preemptive rights. Insert suspensive conditions for municipal non‑intervention, ensure no residency restrictions conflict with your project, and clarify local rules on short‑term rentals. Obtain a Hungarian tax ID, open a local bank account, and choose an experienced Hungarian lawyer. Model transaction costs, anticipate taxation on resale and rental income, and verify your financing capacity. Follow the standard purchase timeline, check building and occupancy permits, and confirm alignment with HÉSZ and zoning. Conduct a technical inspection with an independent expert, audit existing leases, and for off‑plan, secure escrow mechanisms and rights on the future unit. Choose between asset deal and share deal, explore electronic land registry tools, assess local political and regulatory risk, and put in place secured escrow payments.

By methodically checking these 25 points, you turn a potentially risky purchase into a controlled operation, backed by solid rights once registration with the land registry is obtained. In Hungary more than elsewhere, the motto to keep in mind is simple: no registry, no rights – and no money without a lawyer.

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