What is Jelzálog?

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.

Key Facts — Jelzálog

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.

Common Mistake: Buying without checking whether the seller's jelzálog has been deleted from the register. Even if the seller's loan is repaid, the mortgage remains in the register until the deletion paperwork is processed — which can take several weeks.
Expert Tip: Make deletion of the seller's jelzálog a condition precedent in the adásvételi szerződés. Your lawyer should draft the contract so that a portion of the purchase price is held in escrow until the Földhivatal confirms deletion.

Frequently Asked Questions

Can foreigners get a Hungarian mortgage?

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.

What is CSOK and how does it interact with a jelzálog?

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.

How long does Hungarian mortgage enforcement take?

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.

→ Read our full guide: Guide To Lawyers In Hungary

AK
AvökatFinder Editorial Team Legal glossary editors — expat legal terms across 41 European countries

This glossary entry is produced by the AvökatFinder editorial team and reviewed for accuracy. It is for informational purposes only and does not constitute legal advice. Always consult a qualified lawyer in Hungary for advice specific to your situation.

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