Hungary: Civil Law – Ownership Registration With “Zero Certificate” In Hungary

In 2016 the president of the Hungarian Curia established a new jurisprudence evaluating working group for the function of the evaluation of the lower courts’ practice in condo associated cases. The analysis included cases in between the duration of 1 January 2014 and 31 December 2015 and covered 25 different concerns.

The working group was not able to reach a typical understanding about the question whether the condo will declare the typical charges defaults from the seller, the purchaser or from both in case of the sale of a system in the condo. To resolve this issue and to reinforce the legal certainty in this area, the members of the working group have entitled the leader of the group to take the essential procedures at the Hungarian Ministry of Agriculture.

According to the suggestion, a so-called ‘absolutely no certificate’ must be needed from the typical agent of the condo and submitted with the land computer system registry for the registration of the ownership of the purchaser, and such certificate will be noted as a condition in the Hungarian Land Registry Act to show that the seller has no typical expense defaults at the time of the sale. This certificate would work as a security for both parties.

In case the effort of the Curia for the new legislation does not prosper at the Hungarian Ministry of Agriculture, a harmony choice need to be rendered to solve which perspective will be used by all Hungarian courts.