Code of Ethics
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Entrance/licensing requirements
According to Act CXXXII of 2005 on the Amendment of Act LXXVIII of 1993 on the Rules Applicable to the Tenement and Alienation of Housing Units and other Premises, the activities in connection with real estate agency may be pursued exclusively by business organizations in the frame of their for-profit activities, which has at least one member or one employee engaged personally in that activity, who has the requisite qualifications prescribed in statutory regulations. In case of individual entrepreneur he/she must have the requisite qualifications prescribed in statutory regulations. Meantime it means that the person is required to to pass written, oral and practical exams.
There is no mandatory continuing education in Hungary.
A practitioner can market properties anywhere in the country and there are no regional or local restrictions.
The industry is regulated by the
According to Act CXXXII of 2005 on the Amendment of Act LXXVIII of 1993 on the Rules Applicable to the Tenement and Alienation of Housing Units and other Premises, the activities in connection with real estate agency may be pursued exclusively by business organizations in the frame of their for-profit activities, which has at least one member or one employee engaged personally in that activity, who has the requisite qualifications prescribed in statutory regulations. In case of individual entrepreneur he/she must have the requisite qualifications prescribed in statutory regulations. Meantime it means that the person is required to to pass written, oral and practical exams.
There is no mandatory continuing education in Hungary.
A practitioner can market properties anywhere in the country and there are no regional or local restrictions.
The industry is regulated by the Ministry of Local Government through decrees.
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Foreign ownership
Foreign nationals can buy real property (residential, industrial or commercial) in Hungary under different conditions. The acquisition of real estate by foreigners is regulated by a 1996 government decree requiring foreign private individuals to obtain a permit in order to buy property in Hungary, unless the acquisition is by inheritance or is subject to certain conditions. Since May 1, 2004, citizens from the European Union (EU), European Economic Area (EEA) and Switzerland who have been continuously living in Hungary for at least four years can purchase residential property in Hungary without a permit. Otherwise, special permission is needed even for EU nationals.
Non-EU citizens and EU citizens living in Hungary for less than 4 years have to obtain a permit to buy a property.
To obtain a permit, an application must be submitted to the relevant metropolitan or county administration office (Közigazgatási Hivatal), which grants or rejects the request based on whether it interferes with any "municipal or public interests." Duty of Ft 50,000 (or Ft 10,000 if the applicant holds a permanent residence permit and has a citizenship petition pending) is payable. The application must include the buyer's certificate of nationality (notarized copy of passport) and two official copies of the purchase contract or certificate proving the sale. During the course of the application, the administrative office requests the opinion of the mayor of the local government competent at the location of the real estate if the purchase does not interfere with municipal interests. The mayor has to reply to the request within 15 days.
Many foreign citizens who want to avoid the lengthy process of obtaining a permit or wish to buy more than one property (foreign ownership of real estate is restricted to one property per non-resident buyer) set up a company locally in Hungary.
As legal entities, businesses in Hungary may buy property without any form of permit. This can be convenient for administrative purposes as well as from a cost standpoint as almost all expenses related to the purchase can be written off on the company accounts.
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Land Registration System
According to the provisions of the Act on Real Estate Registration and the principle of freedom of information, the real estate registers are public record. A real estate registration title deed may be reviewed without restriction by any person, notes may be made and certified or non-certified copies may be requested thereof. The real estate register is computerized and run by According to the provisions of the Act on Real Estate Registration and the principle of freedom of information, the real estate registers are public record. A real estate registration title deed may be reviewed without restriction by any person, notes may be made and certified or non-certified copies may be requested thereof. The real estate register is computerized and run by the state.
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Other industry professionals
Hungarian law requires that real estate purchases shall be concluded through private contract (purchase agreement) countersigned by a lawyer/notary. Lawyers are allowed to act like an agent on the basis of their individual rights.
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Practitioner Services
The objective of a Real Estate Practitioner is primarily to help to sell, buy, rent or exchange real property. Standard practitioner services should include: preparation of an offer, viewing of the property, marketing of an offer, market price evaluation, price negotiations, and facilitating the involvement of all other necessary industry professionals.
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Property Marketing Systems
There are a number of nation in scope real estate portals in Hungary (www.ingatlan.com, www.ingatlan.net, www.origoingatlan.hu, www.ingatlannet.hu, www.ingatlankincstar.hu), the most of them include different types of property to sell and rent both, but there are specialized portals also, for example www.iroda.hu markets offices only. These portals are operated by computer companies. The level of access to the data depends on the status of a user. Some data is available for agents only; others are free to the public.
Besides almost all of real estate companies have their own sites for advertising objects
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Referral System
There is no national referral system in Hungary, but referrals sometimes are used between real estate agents/agencies. There is no law or decree regulating the extent of the fee, but usually it is 50%.
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Relationship of Buyer/Seller to Practitioner
In Hungary the obligations between the practitioner and the party are defined by the Civil Code of Republic of Hungary and by the contract concluded between the practitioner and a second part. The contracts can be concluded with the seller or buyer. Should the clients be informed prior to signing the agreement, it is possible to act as a dual agent for both. Contracts are typically written. A facilitator is not typical.
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Remuneration
Remuneration is paid by the party that hires the services of the agent, being seller or buyer or lessor. It is paid as a commission, most often as a percentage of the selling price/purchase price or rent, after completion of a deal. The payment terms between a real estate agent and a client are described in a written agreement. The rate of commission varies according to the area and the price of the property and the specific terms agreed, but is usually around 3-6% in case of selling a property, 1,5 – 3% in case of buying a property and 10-15% of a yearly rent fee in case of renting a property. Funds in real estate transactions are controlled by the notary or a lawyer who handles the transaction. There are no statutory restrictions on remuneration.
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