The Process of Selling an Apartment: A Detailed Legal and Practical Guide for Sellers

How does selling an apartment work, step by step?

The process of selling an apartment consists of six main stages: from the decision and the strategy, through obtaining the mandatory documents, preparing the property and marketing, all the way to the sale and purchase agreement and the handover of possession. According to data from the Hungarian Central Statistical Office (KSH), 131,000 used and new residential properties changed hands in 2024, and around 136,000 in 2025. Those who prepare for the sale of their property in a structured way can gain a significant head start.

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Step 1: Strategy and setting goals

The sales process begins with the decision and the formulation of goals. The foundation of a successful sale is proper goal-setting, during which the seller sets specific, measurable, achievable, relevant and time-bound goals (for example: “sell the property within 3 months for a purchase price of at least 68 million forints”). The seller must weigh the project triangle: time, costs and the tasks to be completed. A project plan must then be drawn up, setting the milestones, the budget and the resources. The sales strategy is also decided in this phase: the seller can choose to sell the property on their own or to engage a professional real estate agent.

Step 2: Documenting the property

The second stage involves gathering the technical and legal data (year of construction, structure, type of heating, renovations carried out). The property’s lot number (helyrajzi szám, hrsz) can be identified on the OÉNY lot number search interface, in the Földhivatal Online system accessible with DÁP or Ügyfélkapu+ authentication, and on the E-KÖZMŰ map interface. The seller should put together a complete documentation file. In the case of a condominium, this includes the deed of foundation, the organisational and operational rules (SZMSZ), the most recent general meeting resolutions, the house rules and the balance of the renovation fund. These answer many of the questions buyers raise: e.g. whether pets are allowed, whether the apartment can be run as an Airbnb, whether the co-owners have a right of first refusal, and what the rules are for placing the outdoor unit of an air conditioner.

Step 3: Preparing the property (home staging)

The first step of preparation is a complete decluttering, removing unnecessary items, depersonalising the space and a thorough deep clean. Professional property preparation is called home staging, which turns the property into a product by combining interior design, psychological, financial and marketing elements. The cost of the method typically ranges between 1–5% of the property’s value, but it can result in an 8–15% price increase and up to 50% time saved in selling.

Step 4: Property marketing and viewing strategies

Successful marketing requires precisely defining the target group and a well-structured listing text tailored to it. A good listing must include a professional photo series and an informal but scaled floor plan that clearly shows the names and exact dimensions of the rooms, the doors and windows, and the entrance door. Viewings take place after interested parties have been screened by telephone. The viewing strategy can be adapted to the seller’s needs: it can take place with the owner personally present, in the seller’s absence (with the key entrusted to an agent), or be conducted entirely independently.

Step 5: Negotiation, written offer and sale and purchase agreement

When a buyer expresses interest, the seller can gain an advantage by receiving a written purchase offer (letter of intent) from the buyer. While this gives the seller an advantage, signing a letter of intent to purchase can carry significant risk for the buyer.

Once an agreement is reached, the acting attorney drafts the sale and purchase agreement. If the buyer is taking out a bank loan, the agreement must contain the special clauses required by financial institutions. To carry out the payment arrangement securely, the parties can also use a bank payment request, which allows the buyer to pay instantly without additional transfer costs.

Step 6: Handover of possession, transfer of utilities and closing

As a rule, the handover of possession should only take place after the full purchase price has been paid and credited to the seller. When the keys are handed over, the parties draw up a handover protocol recording the exact gas, electricity and water meter readings. In addition to the parties, the protocol must also be signed by two witnesses, as utility providers only transfer utility accounts on the basis of a witnessed private document. As the final step of the sale, the seller must file a notification with the tax authority of the local municipality.

What mandatory documents are needed when selling an apartment?

A successful sale absolutely requires a title deed (tulajdoni lap) – ideally obtained at the time of signing – an energy performance certificate and an electrical safety inspection (VBF) report. In the case of a condominium, the deed of foundation and the SZMSZ are also essential. Having all of these significantly reduces the risk of later warranty disputes.

In the case of undivided joint ownership, it is essential to have a use-allocation agreement signed by the co-owners and countersigned by an attorney, together with a sketch map. Without these, the buyer will, among other things, be unable to obtain a bank loan, which can stall the process.

Document	Mandatory by law	Validity period	Primary purpose
Title deed	Requirements of the Real Estate Register Act (Inytv.).	Not older than 30 days.	Proof of ownership, encumbrances and rights.
Energy Performance Certificate	ÉKM Decree 9/2023 (V. 25.).	5 years.	Proof of energy efficiency.
Electrical Inspection (VBF)	NGM Decree 40/2017 (XII. 4.).	6 years.	Safety of the electrical network, warranty.
Condominium Documents	Act CXXXIII of 2003.	Valid until amended.	Rules on joint ownership, Airbnb, pets.

What new rules apply to the energy performance certificate and the electrical safety inspection?

Under ÉKM Decree 9/2023, an energy performance certificate issued after 1 November 2023 is valid for 5 years only. Old-type energy performance certificates cannot be used from 1 January 2024. Although the HET (certified energy performance certificate) identification number no longer has to appear in the sale and purchase agreement itself, the certificate must be handed over to the buyer no later than at the handover of possession.

In the process of selling an apartment, the electrical safety inspection (VBF) serves to protect the seller against warranty claims. Under Act V of 2013 on the Civil Code (the Civil Code), the seller is liable under the implied warranty for defects (kellékszavatosság) for hidden defects for 5 years.

When selling the property, the seller must hand over to the buyer a report on the property’s electrical installations not older than 6 years. In Hungary, the base fee for an electrical safety inspection (VBF) covering up to 50 measurement points typically ranges between HUF 45,000 and HUF 70,000, which is sufficient for a full inspection of an average-sized 50–60 square metre apartment. (Light fixture outlets, permanently connected appliances such as air conditioners or hobs, and socket groups count as inspection points.)

If the rating is “Failed”, the property can still be sold, but by handing over the document the seller proves that they informed the buyer of the condition of the electrical network. At the same time, the seller is released from liability under the implied warranty for defects in this respect, since the buyer purchases the property with knowledge of this information.

How should the purchase price of an apartment be set and the property prepared?

To set a realistic purchase price, the actual sales data of properties with a similar location and features should be analysed, avoiding pegging the price to the neighbours’ prices or to personal financial needs. According to KSH data, the average price per square metre in Budapest in 2025 was HUF 1.2 million/m².

Accurate pricing is one of the most critical stages in the process of selling an apartment. Reports by the Hungarian National Bank (MNB) highlight that the selling time of overpriced properties can double, while serious buyers avoid the listing. According to KSH statistics, the rate of price increases varied in 2025: the annual price rise was 21% in Budapest, 24% in county seats, 23% in smaller towns and 37% in villages, while prefabricated panel apartments also rose in price by 37% nationwide.

Property type / Area	KSH average price per m² (Q4 2025)	Annual price increase
Used apartment in Budapest (aggregate)	HUF 1,200,000/m²	21%
Panel apartment in Budapest	HUF 1,200,000/m²	29%
Brick condominium apartment in Budapest	HUF 1,300,000/m²	22%
Detached house in Budapest	HUF 1,000,000/m²	1.7%
Residential properties in county seats	Varies by region	24%
Residential properties in villages	Varies by region	37%

When pricing, sellers should avoid the 5 most common mistakes:

1. Starting from the neighbour’s asking price.
2. Pricing according to one’s own financial/purchasing needs.
3. Rigidly following average prices while ignoring the property’s individual features.
4. Overvaluation resulting from the endowment effect.
5. Mechanically building renovation costs spent on personal taste into the purchase price.

The purchase price can be professionally determined using the following methods:

• Online valuation calculators: Database-driven tools – such as the ingatlan.com price estimator, which analyses asking prices, the DH Saccoló, which examines completed transactions, or the OTP Ingatlanpont valuation tool – give a good starting guide price, but they cannot see specific defects.
• Actual sales data: Analysis of the prices per square metre of recently completed sales in the area.
• Individual physical and legal characteristics: In addition to the property’s condition, floor level and orientation, its legal status – such as an existing mortgage, usufruct or a discrepancy from the cadastral map copy – has a decisive effect on the purchase price and on eligibility for bank financing.

If the market data are contradictory, the official purchase price can be supported by an expert opinion based on an on-site inspection by an independent valuer, a bank valuation or, in disputed legal situations, a forensic expert’s opinion.

What role do home staging and professional property marketing play?

Home staging is the professional preparation of a property for sale, getting the most out of the property by applying interior design, psychological, financial and marketing elements. The cost of the method averages between 1–5% of the property’s value, but its return is outstanding.

The most important steps of preparation and marketing:

• Decluttering and depersonalising: Removing unnecessary furniture and personal items to increase the sense of space.
• Low-cost cosmetic repairs: A fresh coat of paint, updated lighting, replacing dripping taps.
• Informal scaled floor plan: Not a technical drawing, but a diagram that is clear to laypeople, clearly marking the names and exact dimensions of the rooms, the doors, windows and the main entrance.

A well-prepared listing filters interested parties, so that in the process of selling an apartment only buyers with a serious intention to purchase sign up for viewings. Properly executed home staging can increase the property’s value by up to three times the amount spent.

What is the difference between earnest money and an advance payment in the sale and purchase agreement?

While earnest money can be a trap for the buyer, it can become the seller’s strongest trump card if it is properly regulated in the sale and purchase agreement. In essence, earnest money is a sanction-backed security for concluding the contract: if the buyer withdraws, they forfeit it; if the deal falls through due to the seller’s fault, it must be repaid twofold. An advance payment, by contrast, is always refunded to the buyer in full if the contract falls through.

Aspect	Earnest money	Advance payment
Legal nature	Ancillary obligation securing the contract (sanction-type).	Payment of part of the purchase price in advance.
Contract falls through due to the buyer’s fault	The buyer forfeits the earnest money paid in its entirety.	The full amount of the advance payment is refunded to the buyer.
Contract falls through due to the seller’s fault	The seller must repay twice the earnest money received.	The seller repays only the amount of the advance payment received.
Falls through without fault of either party	The earnest money received is refunded to the buyer in the same amount.	The advance payment is refunded to the buyer in full.
Usual amount	Typically 10% of the purchase price.	Amount as agreed by the parties.

Why is the involvement of an attorney essential when concluding the sale and purchase agreement?

For a property sale to be valid, a written contract is required, along with countersignature by an attorney for registration with the land registry office. Legal representation is also mandatory in proceedings before the land registry office. Among other things, the acting attorney verifies the identity of the parties and the title deed, prepares the sale and purchase agreement, represents the parties before the land registry office, and ensures the proper settlement of loans and encumbrances.

Before instructing an attorney to handle your matter, find out about current attorney fees.

What tax obligations does the seller have after selling an apartment?

15% personal income tax is payable on income from the sale of a property sold within 5 years. The tax base can be reduced by acquisition, value-enhancing and selling costs supported by invoices, and it decreases in bands with the length of ownership, while from the 5th year the sale is fully tax-exempt.

Under Act CXVII of 1995 on Personal Income Tax (Szja tv.), Section 62, the tax base is not the full sale price (revenue), but the income reduced by deductible costs. If the difference between revenue and costs is zero or negative, no taxable income arises.

How is the tax base calculated and how does the 5-year ownership rule work?

To determine the tax base, the costs recognised by law must be deducted from the revenue:

• Amount spent on acquisition: The earlier purchase price; for a gift, the market value stated in the deed of gift; for an inheritance, the value established in the tax and valuation certificate as at the date of the testator’s death. Important: in the case of a duty-free gift, special rules apply when determining personal income tax.
• Acquisition and transfer costs: The documented costs of the duty paid earlier, attorney fees, real estate agent commission, advertisements, home staging, the energy performance certificate and the VBF.
• Value-enhancing investments: Expenditure incurred before the sale and supported by invoices can be deducted as costs.

Income = Revenue – Costs

Time elapsed between acquisition and sale	Taxable portion of income	Actual personal income tax payable (as % of the gain)
Year of acquisition (year 0) and year 1	100%	15.0%
2nd year after acquisition	90%	13.5%
3rd year after acquisition	60%	9.0%
4th year after acquisition	30%	4.5%
From the 5th year after acquisition	0% (Tax-exempt)	0.0%

Personal income tax must be declared in the tax return and paid by 20 May of the year following the sale. The Hungarian tax authority (NAV) may audit the invoices for 6 years.

Under the Act on Duties (Act XCIII of 1990), the 4% property transfer duty (2% on the portion above HUF 1 billion, up to a maximum of HUF 200 million) is borne by the buyer.

How do the handover of possession and the transfer of utilities work?

As a rule, the handover of possession takes place after the full purchase price has been settled: the parties hand over the keys and, in the presence of two witnesses, record the gas, electricity and water meter readings in the handover protocol. This document of full probative value forms the basis for transferring the utilities and for the local tax notification.

The handover of possession is the final stage in the process of selling an apartment. As a general rule, the seller may refuse to hand over possession until the full purchase price has been credited to their bank account.

What are the mandatory elements of the handover protocol and the rules for notifying the municipality?

The handover protocol is a private document of full probative value that is essential for transferring accounts with the utility providers. The document must contain:

1. The parties’ identification details, the address and lot number of the property.
2. The exact date and time of the handover of possession.
3. The serial numbers and readings of the gas, electricity, cold water and hot water meters.
4. The exact number of keys handed over.
5. The legible names, addresses and signatures of two witnesses.

Obligation to notify the municipality: If the property is subject to building tax or land tax, the sale must be reported to the tax authority of the local municipality by 15 January of the year following the year of sale. Since local tax is payable by whoever was the owner on 1 January, it is in the seller’s own interest to notify the tax department of the change of ownership in writing immediately after the handover of possession, to prevent an erroneous tax assessment.