A Hungarian mortgage — a real security right registered in the Ingatlan-nyilvántartás that gives a lender priority over the property in case of loan default.
A jelzálog (mortgage) in Hungary is a real security right (dologi jog) that must be created by a private document countersigned by a lawyer (ügyvéd) or a notarial deed, and registered in the Ingatlan-nyilvántartás (property register) to be effective against third parties.
Hungarian law permits ranking of mortgages by registration order. A first-ranking (első ranghelyű) jelzálog gives the lender priority over any subsequent charges. Banks always require first-ranking security for residential loans; second mortgages are unusual outside commercial lending.
The secured sum (biztosított követelés) recorded in the register is the maximum the lender can recover from the property. For residential loans, Hungarian banks typically register the mortgage for 130% of the loan amount to cover interest accruing during enforcement.
Enforcement of a Hungarian mortgage requires a court order (bírósági végrehajtás) unless the mortgage deed was executed before a notary and includes an immediate enforcement clause (azonnali végrehajthatóság). Notarial deeds with this clause allow faster enforcement without separate court proceedings.
After full repayment the lender issues a deletion consent (törlési engedély) and the lawyer submits a deletion application to the Földhivatal. Until deleted, the jelzálog remains in the register and must be disclosed to any buyer. Sellers should delete the mortgage before or simultaneously with the transfer.
EU citizens can generally get Hungarian mortgages from Hungarian banks. Non-EU nationals face more restrictions. Most Hungarian banks offer English-language mortgage services for foreign buyers.
CSOK (Családok Otthonteremtési Kedvezménye) is a Hungarian state housing subsidy for families. Recipients must register a jelzálog in favour of the state securing repayment if conditions are breached. It ranks alongside the bank mortgage.
Enforcement through standard court proceedings can take two to four years. Notarial deeds with immediate enforcement clauses can reduce this significantly as they skip the court judgment phase.
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