The official property purchase agreement in Hungary that must be countersigned by a registered Hungarian attorney (ügyvéd) to be valid for land registry registration.
The adásvételi szerződés (purchase agreement or contract of sale) is the legally binding document that transfers ownership of real estate in Hungary from seller to buyer. Unlike some countries where verbal agreements or simple private contracts can initiate a property transfer, Hungarian law requires that real estate purchase agreements be prepared and countersigned by a registered Hungarian ügyvéd (attorney). Without this countersignature, the contract cannot be submitted to the Földhivatal for registration, and the ownership transfer has no legal effect.
A properly drafted adásvételi szerződés must include the full identification of both buyer and seller (including national ID numbers or passport details), a precise legal description of the property using its topographical lot number (helyrajzi szám) and land registry details, the agreed purchase price, payment schedule and conditions, the handover date, representations and warranties from the seller, and the countersignature and stamp of the attending ügyvéd. The contract should also address any furniture or fixtures included in the sale, conditions precedent such as obtaining mortgage finance, and consequences of default by either party.
Hungarian property purchase agreements typically involve a two-stage process. First, a preliminary agreement (előszerződés or foglaló szerződés) is often signed to secure the property, accompanied by a deposit (foglaló) of 10% of the purchase price. Under Hungarian law, if the buyer withdraws after paying the foglaló, they forfeit it. If the seller withdraws, they must return double the deposit to the buyer. This makes the foglaló a meaningful financial commitment for both parties, not merely a gesture of intent.
The final purchase agreement (végleges adásvételi szerződés) is signed when all conditions are met, typically when the buyer has secured financing and the seller has cleared any existing mortgage. Payment of the remaining purchase price is usually completed simultaneously with or shortly after signing the final contract. Your ügyvéd will then submit the registration application to the Földhivatal. The buyer assumes risk for the property from the date of formal handover (átadás), which is usually documented in a separate handover protocol (átadás-átvételi jegyzőkönyv) listing the property's condition and any included items.
Foreign buyers must be aware of specific restrictions that may apply to property acquisition in Hungary. Agricultural land in Hungary is generally restricted from purchase by non-Hungarian nationals and non-EU citizens. For residential and commercial property, foreign buyers from EU member states enjoy the same rights as Hungarian citizens. Non-EU nationals may need to obtain a permit from the competent county government (kormányhivatal) before purchasing real estate, though this requirement has been relaxed in practice for many transaction types. Always confirm the current requirements with your ügyvéd before signing any agreement.
Many buyers sign a preliminary contract (előszerződés) without legal advice, not realising that the foglaló deposit they pay is at risk. If the preliminary contract is not properly drafted, a seller can sometimes find grounds to refuse the final sale while keeping the deposit. Additionally, some buyers believe the ownership transfers on the date of the final contract signature rather than on the date of Földhivatal registration—legally, the transfer is only complete upon registration.
Insist that your ügyvéd includes a clause in the preliminary contract requiring the seller to deliver the property free of any mortgages, annotations, and pre-emption rights by the date of the final signing. Also include specific penalties for delayed handover. For new-build properties, ensure the contract specifies completion dates and quality standards, as Hungarian consumer protection law provides remedies for defects but these must be clearly documented.
Foglaló is a forfeit deposit under Hungarian Civil Code—if the buyer withdraws, they lose it; if the seller withdraws, they pay double back to the buyer. Előleg (advance payment) does not have these penalties and is simply returned if the deal falls through. The terminology matters greatly in Hungarian law, so confirm with your ügyvéd which type of deposit applies to your preliminary agreement.
From signing the preliminary agreement to completing registration typically takes 2 to 4 months, depending on mortgage approval timelines, Földhivatal workload, and whether any pre-emption rights require formal waiver. Cash purchases without complications can complete in 4 to 6 weeks.
The main tax is illeték (stamp duty), generally 4% of the purchase price for residential property. First-time buyers under 35 purchasing new-build homes may qualify for exemptions. VAT may apply to new-build purchases. There is no notarial fee in Hungary (unlike many EU countries) since ügyvédek rather than notaries handle conveyancing.
Related reading: Hungarian Property Purchase Process: Step by Step