Real Estate Due Diligence in Hungary
Real Estate Due Diligence in HungaryUpdated on Wednesday 24th June 2015
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The Hungarian real-estate market offers many options, from newly constructed office buildings and flats to family homes. The average prices in Budapest and other Hungarian cities are relatively lower than in other west European countries and the overall moderate buying costs attract real-estate investors in Hungary. The variety of buildings, out of which some are relatively old constructions, makes it necessary to perform a real-estate due diligence procedure before singing any sale agreement for a property in Hungary.
Our Hungarian lawyers can offer you complete due diligence services so you can be certain that your new home or office space in Hungary meets your standards and was purchased according to law. A good investigation can protect the buyer from a risky investment.
The property purchase process in Hungary
In Hungary, all real-estate purchases must be concluded through a purchase agreement, signed in front of a notary and in certain cases countersigned by a Hungarian lawyer. Foreign individuals who want to buy property in Hungary need to obtain a special permit from the relevant authorities. However, certain benefits apply to business owners in Hungary who want to purchase properties through a Hungarian legal entity.
After finding the right property, the purchase process can begin. This is the recommended time to perform a real-estate due diligence in Hungary. Structural and architectural evaluations of the building can also be performed, to ensure that the building is safe.
Our lawyers in Hungary can help you obtain the necessary approvals for purchasing real-estate in Hungary if you are making the purchase as an individual and not as a company.
The real-estate due diligence process in Hungary
A due diligence process for Hungarian properties includes the verification of certain legal aspects regarding the property that will be bought. The following issues are checked when performing a real-estate due diligence: the legal title of the property, any existing debts, the approval of both spouses (if the property belongs to a married couple in Hungary), any existing encumbrances (lease contracts or mortgages) and the rights of any third parties, if applicable.
Information about properties in Hungary can be accesses via the Hungarian land registry.
We strongly recommend performing a real-estate due diligence if you want to purchase a property in Hungary for personal use or as headquarter for your new business in Hungary. Our Hungarian law firm provides various legal services, suited for any type of business in Hungary.