Real property sale and purchase in Hungary in 2026

If you are planning to buy or sell an apartment or a house, it is important to understand the property purchase process in Hungary. Below we collect and outline, point by point, the most important milestones in completing a sale and purchase agreement. The topics covered under each subheading are also discussed in detail in our other articles.

Attorney fee calculator

Set the purchase price of the property

Purchase price

Attorney fee:

The fee covers full legal representation

Kapcsolat

What steps does the property purchase process involve when buying an apartment or a house?

First, let us summarise the property purchase process in 12 points:

1. Choosing a real estate attorney
2. Finding the property
3. Obtaining and checking the title deed (property sheet, tulajdoni lap)
4. Negotiating the purchase price with the seller
5. Agreeing on the terms of the sale and purchase agreement (adásvételi szerződés)
6. Energy performance certificate and electrical safety inspection
7. Bank loan
8. Signing the sale and purchase agreement
9. Registration of ownership at the land registry office (földhivatal)
10. Transfer of possession of the property
11. Paying the property transfer duty
12. Paying personal income tax

About to buy a house? What are the minimum requirements of a property sale and purchase agreement?

Before going through the steps, it is worth clarifying the most fundamental cornerstones of a property sale and purchase agreement:

What are the obligations of the contracting parties?

• The seller is obliged to transfer ownership and possession of the property to the buyer.
• The buyer is obliged to pay the purchase price of the property to the seller.
• The parties must make their contractual declarations in writing. Otherwise, the contract is invalid.

Some typical examples of when no property sale and purchase agreement comes into existence:

• If the parties discuss the minimum requirements listed above but do not put their declarations in writing.
• If the parties write the above to each other by email, this qualifies as a written declaration only if certain special conditions are met.
• If the parties agree on the sale of the property, but the agreement does not clearly state the purchase price or the property cannot be identified, the contract likewise does not come into existence.

What documents are needed for a property sale and purchase agreement?

Let us also look at which documents are necessary and useful when selling or buying a property:

• identity documents (identity card, passport, driving licence)
• address card.
• title deed
• copy of the land registry map for a family house or plot purchase
• condominium deed of foundation
• energy performance certificate
• electrical safety inspection
• copy of the property’s insurance policy (not mandatory, but extremely useful information for the buyer as to whether there is insurance on the property for which they may already have paid an advance on the purchase price)
• if a bank loan is used, the bank’s information sheet on its requirements for the sale and purchase agreement
• if the property is encumbered, the authorisation to delete the encumbrance
• if the property is encumbered by a usufruct (haszonélvezeti jog) and the usufructuary has died, the usufructuary’s death certificate

Why is it worth choosing a real estate attorney right at the start?

Since putting together a property sale and purchase agreement is more complicated than it first appears, step one: engage a real estate attorney! Unfortunately, it is common practice in Hungary for the buyer to turn to an attorney for the first time only after finding the property, reaching an agreement with the seller and paying the earnest money (foglaló). This also means that the buyer has already committed themselves on the most important issues without any insight into their legal implications. No decision should be made without consulting an attorney on, for example:

• the payment schedule of the purchase price
• the procedure for the discharge of encumbrances on the property
• the sanctions for breach of contract.

But the list could go on forever. In view of the above concerns, the very first stray thought about buying a property should lead you straight to a real estate attorney. Based on general market practice, the consultation will be free of charge, so go ahead and find an attorney. It is important that the buyer hires an independent attorney. In other words, the attorney should not be a pal of the estate agent or the seller.

How much are the attorney’s fees for buying a house or an apartment?

Attorney’s fees for property sale and purchase agreements typically range between 0.3 and 0.7 percent of the purchase price. In addition to the purchase price, the amount of the attorney’s fee generally also depends on how complex the contract is. For a bilingual sale and purchase agreement the attorney’s fee is higher, generally between 0.5% and 1% of the property’s value. Attorney’s fees are usually borne by the buyer.

Our firm’s attorney’s fee for a property of average value is around 0.3% of the purchase price. For example, for a purchase price of HUF 70 million, the attorney’s fee charged by our firm can be expected to be around HUF 210,000.

Above a purchase price of HUF 90 million, the fee does not increase linearly with the purchase price of the property. In this range we determine the attorney’s fee primarily in light of the complexity of the transaction, with the purchase price carrying less weight. For example, the attorney’s fee for a sale and purchase agreement for a property priced at HUF 100 million may be as little as HUF 270,000 if the transaction is otherwise simple.

More information about our firm’s fees can be found here.

What should you look out for when searching for a property and signing a statement of intent to purchase?

Once you have an attorney, the search for the property can begin. An estate agency can be a useful help, but always ask your attorney’s advice, because alongside the undeniable advantages, involving an estate agent can also carry risks. The estate agent’s commission is paid by the seller, so the buyer usually has nothing to do with it, but it is worth asking about this too.

When should you sign a statement of intent to purchase?

When can a statement of intent to purchase be withdrawn? The short answer would be: never, because a statement of intent to purchase is defined as follows: Anyone who makes an offer to conclude a contract by means of a statement of intent to purchase becomes bound by that offer. Upon acceptance of the statement of intent to purchase, the sale and purchase agreement is concluded between the seller and the buyer. Therefore, the contents of a statement of intent to purchase – unless being bound by the offer has been excluded – cannot be unilaterally withdrawn or amended.

Unfortunately, if an estate agent is involved, after choosing the property the buyer will only be able to proceed by signing the statement of intent to purchase at the agency and paying an offer security set as a certain percentage of the purchase price. The estate agent will make passing the buyer’s offer on to the seller conditional on this. Handing over money before signing the sale and purchase agreement should be avoided wherever possible. If this is not possible, the amount handed over should be kept as small as possible. The proper property purchase process is one in which an attorney supervises the entire procedure from start to finish. The money handed over can easily be lost if a buyer unfamiliar with local conditions is careless.

What is the difference between a purchase offer and a statement of intent to purchase?

What is the difference between a purchase offer and a statement of intent to purchase? The answer here is short too: nothing. We often come across the claim, even on professional websites, that while a purchase offer is binding on the offeror, a statement of intent to purchase is merely an innocent signal to the seller that the buyer is interested in the property.

This statement is completely wrong. The definition of a purchase offer helps clarify the situation: A purchase offer is the buyer’s unilateral written declaration in which, by specifying at least the purchase price and the property, they express to the seller their intention to buy the property. So regardless of what a document is called – whether its title is “statement of intent to purchase” or “little dwarf” – if it contains the above, a purchase offer has been made and it binds the buyer.

If you are about to buy a house, do not sign any document until you have consulted an attorney. Anyone who carelessly signs such documents can easily come off badly.

Why and how should the title deed be checked?

The data of properties in Hungary are kept by the land registry office in the real estate register (ingatlan-nyilvántartás) with public authenticity. Anyone can obtain an extract of this publicly accessible data by requesting a copy of the title deed. Democratic access to the data is ensured by the fact that a title deed can even be requested electronically via the Client Gateway (Ügyfélkapu). What is more, private individuals can currently request two title deeds per year free of charge. Since the non-certified title deed was abolished as of 1 January, only certified title deeds can now be requested, at HUF 4,800 per request once the free requests have been used up.

The title deed consists of three parts, marked with the Roman numerals I to III. Part I contains the details of the property, Part II the ownership details (the owners and their shares), while Part III is the so-called encumbrance sheet, which, somewhat simplified, records the encumbrances registered on the property. In the property purchase process, obtaining the title deed is the very first, essential step in assessing the property. Without this step, it is premature to make any commitment regarding a property sale and purchase agreement.

What should you do if there is an encumbrance on the title deed?

If the property is encumbered, this circumstance must be dealt with in the sale and purchase agreement. The most important guiding principle is that no situation may arise in which the buyer loses their money if the seller fails to cooperate.

The most common encumbrances are a bank mortgage and an enforcement right. These can be handled safely if the buyer pays the amount needed for the discharge of encumbrances directly to the holder of the encumbrance – the bank or the bailiff – out of the purchase price. In this way the principle mentioned in the previous paragraph is met, the seller’s failure to cooperate does not cause the contract to fail, and the buyer’s financial risk is reduced to a minimum.

A usufruct is a typical encumbrance on the title deed. From the buyer’s practical point of view, the usufructuary is like an additional seller. The usufructuary must also be present when the contract is concluded. In the sale and purchase agreement the usufructuary waives their usufruct and consents to the land registry office deleting it from the property’s title deed.

How is the purchase price of the property set, and what is the difference between earnest money and an advance payment?

Do not forget that in Hungary it is customary to haggle over the purchase price of a property. Since every seller knows this, the price stated in the advertisement is usually somewhat higher than what the seller would like to get for it. Do not be shy – negotiate boldly. As regards the purchase price in the sale and purchase agreement, the interests of the seller and the buyer pull in opposite directions. The linked articles can serve as good guidance in this respect. As a rule of thumb, the optimal payment schedule for the buyer is to pay 10% earnest money and then pay the remainder of the purchase price to the seller only at the same time as the keys are handed over.

What exactly is earnest money?

Earnest money serves to reinforce the commitment to perform the sale and purchase agreement; its essential function is to sanction the contract falling through for reasons attributable to a party, not to serve as the price of arbitrarily breaking the contract.

The party responsible for the contract falling through loses the earnest money given (the buyer), or must pay back double the earnest money received (the seller).

When should earnest money be paid?

The buyer can safely hand over earnest money to the seller only after the sale and purchase agreement has been signed. The property sale and purchase agreement can be submitted to the land registry office, and once the submission is recorded as a pending entry (marginal note, széljegy) (and, if necessary, by registering a buyer’s right), the buyer’s priority ranking is secured, which significantly protects their acquisition of ownership.

Handing over earnest money on the basis of a statement of intent to purchase, a purchase offer, an earnest money slip and other legal monstrosities is at the buyer’s risk. On the one hand, these documents do not appear on the property’s title deed; on the other hand, unlike the sale and purchase agreement, they contain the terms of the parties’ agreement only in fragments.

How much earnest money is it worth paying?

The amount of earnest money is usually equal to 10% of the purchase price, but this amount can be increased or decreased depending on the agreement of the contracting parties. If the earnest money is excessive, either contracting party may apply to the court and request that the excessive amount be reduced. In theory earnest money protects both parties, but in practice it rather protects the party who received it. At most, the buyer can claim double the earnest money, but whether they actually receive it is another matter. In view of this, it is generally in the buyer’s interest for the earnest money to be as low as possible.

Earnest money or advance payment?

The question that arises most often in connection with earnest money is: earnest money or advance payment? Earnest money is settled according to which party is responsible for the contract falling through. An advance payment (előleg), by contrast, is returned to the buyer unconditionally if the contract falls through.

An advance payment is every instalment of the purchase price paid in the course of performing the property sale and purchase agreement. Amounts referred to as advance payments in the sale and purchase agreement are returned to the buyer in any event if the contract is terminated. The obligation to repay the advance payment is entirely independent of the reason why the sale and purchase agreement was terminated.

As already described, unlike an advance payment, a buyer responsible for the contract falling through loses the earnest money handed over, while a seller who received the earnest money must pay back double.

Who prepares the sale and purchase agreement when buying a house, and how?

Once the offer has been accepted, the details can be recorded and the contract prepared. The documentation is prepared by an attorney.

Where foreign parties are involved, although the service may be cheaper if the contract is drawn up only in Hungarian, this is an unacceptable solution from the point of view of a foreign buyer who does not speak Hungarian. It is worth requesting a fee quote for bilingual handling – this is not the place to economise. It is not enough for an interpreter or a relative to translate and explain the text of the contract. This is a complex legal document in which every comma matters.

Who provides the energy performance certificate, and what does the buyer learn from it?

Under the relevant government decree, the energy performance certificate (energetikai tanúsítvány) must be provided by the seller: it must be shown to the buyer by the day the contract is signed and handed over no later than the day of handover of possession.

The energy performance certificate shows the property’s energy rating (e.g. from AA++ to JJ), giving the buyer information about the building’s energy consumption, heating and cooling costs and environmental impact. The energy performance certificate also contains guidance on the energy efficiency upgrading of the property.

It helps the buyer assess the property’s running costs and any need for upgrades (e.g. insulation, replacing the heating system), which may influence the purchase decision or form the basis of negotiation. A better energy rating (e.g. AA) can increase the property’s market value, while a worse rating (e.g. JJ) can reduce it, so the certificate is also relevant for price negotiations.

Is an electrical safety inspection mandatory when selling or buying a property?

The technical condition of the electrical installations of the apartment must be checked upon letting and upon a change of ownership, and the result must be recorded in a report. The property’s electrical network and electrical installations must be assessed in terms of protection against electric shock and fire protection. A report of an earlier inspection is acceptable if it is not older than 6 years.

We are often asked the following:

• Is it mandatory to carry out an electrical safety inspection? – Yes, it is mandatory.
• Can a sale and purchase agreement be concluded without an electrical safety inspection? – Yes, a contract can be concluded; the legislator merely requires the attorney to inform the parties of the obligation relating to the electrical safety inspection. The real question is whether it is worth taking the risk of getting an electric shock after moving in.
• Who must have the electrical safety inspection carried out? – Having the inspection carried out is the seller’s obligation.
• Who bears the cost of the inspection? – This is a matter for the parties to freely agree on.
• Must the report be ready by the time the contract is signed, or is it enough if the seller hands it over after signing? – It is not mandatory to carry out the electrical safety inspection before the contract is signed, but if the buyer receives a report with unfavourable findings only after signing the contract and paying the earnest money, they will have relatively few options left for dealing with the situation.

What should you watch out for when using a bank loan to buy a house?

All commercial banks require bank-specific provisions to be included in the property sale and purchase agreement. The latest bank information sheets are, incidentally, publicly available with a quick Google search. Under the current legal restrictions, the amount of a forint-based residential mortgage loan may, as a general rule, not exceed 80 percent of the market value of the collateral property (in certain cases, e.g. for first-time home buyers, 90 percent). It is also possible to take out a loan at a higher ratio under certain special circumstances or by providing additional collateral. In the latter case, the bank’s mortgage is also registered on the additional collateral property.

Those raising or planning to have children can also use state subsidies to buy a home:

• Interest-subsidised home loan (CSOK Plusz)
• Baby expecting loan (Babaváró hitel; counted as own funds when applying for a bank home loan)

What happens if the buyer does not get a loan to buy the apartment?

The buyer can always be expected to assess their ability to perform at the moment the contract is concluded. The buyer must also consider how they will pay if they do not get a loan. In general, therefore, it does not release the buyer from liability if they do not receive the loan they applied for. This also means that if the contract falls through for this reason, the buyer loses the earnest money and it is not returned to them. Since the parties may, as a general rule, deviate from the statutory provisions, there is nothing to prevent them from agreeing in the contract that the earnest money will be returned if the buyer does not get a loan. An intermediate solution may be for the parties to agree that in such a case the seller is obliged to repay only part of the earnest money and may keep the remainder.

How do a preliminary valuation and a preliminary credit assessment reduce the risk?

The risks listed can be significantly reduced if the buyer requests a preliminary valuation of the property from the bank. This means that the bank carries out the valuation before the sale and purchase agreement is concluded and determines the collateral value of the property. This collateral value will be authoritative in the credit assessment carried out after the sale and purchase agreement is concluded, so the risk arising from the valuation of the property can be ruled out.

Even greater security is provided if the buyer also requests a preliminary credit assessment from the bank, which is valid for a period depending on the bank’s practice. However, while a preliminary valuation is completed within 1–2 weeks, the credit assessment can take up to 1 month. This solution is therefore less of an option once the specific property has been found and the seller is impatiently waiting for the signing.

Where and when is the sale and purchase agreement signed?

Once the parties have accepted the text of the draft, the next step in the property purchase process is signing the contract. This usually takes place at the office of the buyer’s attorney. Avoid signing the contract at an outside location, such as the estate agent’s office or the property being purchased, since professional conditions can primarily be guaranteed by the buyer’s attorney.