As a property lawyer in Budapest, I advise on and draft sale contracts, property transactions and other property-related agreements. When buying or selling a flat, house, plot or commercial unit, I handle every step from preparing the contract to registering ownership, to protect my clients’ security and interests.
When is a property lawyer required?
To register ownership in the land registry, the contract must be a notarial deed or a private document countersigned by an attorney. In practice, the following transactions require a lawyer or a notary:
- sale of a flat, house or plot
- property exchange
- transfer of a share of ownership
- creating or cancelling a usufruct
- registering or cancelling a mortgage
The property sale, step by step
- First contactThe seller and buyer contact me and we arrange an appointment, ideally before any deposit is paid.
- Data collection and title checkI collect the parties’ details (name, address, place and date of birth, mother’s name, tax ID) and obtain and check the title deed.
- Draft contractI draft the contract with the property details, price, payment schedule, deposit terms and handover date.
- Signing and countersigningThe parties sign in my presence. I identify them in person and countersign the contract.
- Payment, through escrow if neededThe buyer pays the price under the contract: by transfer, from a loan or through attorney escrow.
- Land registry filingI file the application electronically with the land registry. Upon receipt, the buyer’s priority is secured.
- HandoverA handover protocol records the condition of the property, meter readings and the keys handed over.
- Transfer dutyThe land registry forwards the data to the tax authority, which assesses the transfer duty. I inform you about exemptions in advance.
What the lawyer checks on the title deed
The biggest risks of a property purchase show on the title deed. Before signing I check:
- who the owner is and their share of ownership;
- whether there is a mortgage and how much debt is outstanding;
- whether there is a usufruct, a ban on sale and encumbrance, or an enforcement right;
- whether there are pending entries, i.e. applications not yet decided;
- whether the lot number, area and description match reality.
Deposit or advance payment: what is the difference?
A deposit secures performance. If the contract fails through the fault of the buyer who paid it, the buyer loses it. If it fails through the seller’s fault, the seller must return double the amount. If neither party is at fault, it is returned. An advance payment, by contrast, is part of the price and is always refunded if the contract fails. The contract must therefore state precisely which one it is.
Attorney escrow: safe payment of the price
With attorney escrow, the buyer deposits the price or part of it with the lawyer, who releases it to the seller only when the condition set in the contract is met, for example the cancellation of a mortgage, the filing of the registration application or the handover. This way neither party pays without receiving what they are owed. By law, escrow deposits must also be recorded in the bar association’s register.
Attorney countersigning: what does it certify?
By countersigning, the lawyer certifies that the contract reflects the parties’ intentions and complies with the law, and that the parties were identified in person. A countersigned contract has full evidentiary force, so it is strong evidence in any later dispute. Identification and record-keeping are also required of lawyers by the anti-money laundering act.
Property transfer duty
When buying property, the buyer pays transfer duty, generally 4% of the market value. Transfers between direct relatives and spouses are exempt, and reductions may apply when exchanging homes or buying after selling a previous home. Special rules also apply to first-time buyers under 35. Before signing, we check which exemption applies to you.
What to bring to the signing
- valid ID card or passport and address card;
- tax identification number;
- for companies, a company extract and specimen signature;
- for loans, the documents requested by the bank and the loan approval;
- for mortgaged property, the bank's statement of the outstanding debt;
- for condominium flats, a certificate that no service charges are owed.
How much does a property lawyer cost?
The fee depends on the type and complexity of the transaction: the price, whether there is a loan or mortgage, whether escrow is needed and how many owners are involved. I provide a quote in advance based on the property details, which we put in writing before signing.
Frequently asked questions
Who chooses the lawyer, the buyer or the seller?
The parties decide together. Often the buyer chooses, but one lawyer may act for both parties if their interests do not conflict. Who pays the fee is set out in the contract.
Is attorney escrow mandatory?
No, but it is advisable if payment and transfer of ownership happen at different times, for example when a mortgage must be cancelled or the buyer pays from a loan.
How long does registration of ownership take?
It depends on the land registry’s workload. The buyer is protected from the moment the application is received, as it appears as a pending entry on the title deed and secures priority.
Can I sign a contract for a property bought with a loan?
Yes. The contract sets out the schedule for the loan-financed part of the price and the bank’s conditions, and I cooperate with the lending bank.
What happens if the buyer or seller withdraws?
The consequences are set by the contract and the Civil Code. With a deposit, the party at fault loses it or must return double. This is why the contract must regulate these situations precisely.
Have a question? Request a quote with the property details