Hungary2invest / Buying property /

Procedure to purchase property in Hungary

Step 1 - Reservation

We endeavours to ensure that you are always in possession of a fully updated list of apartment prices and availability. We advise that clients provide their 1st, 2nd and 3rd choice properties, just in case availability has changed.

Once you have a potential reservation, please request a reservation agreement, with all relevant details of the chosen apartment, from the respective sales person. Confirm this reservation with your signature via fax or email.

For future purchases, please request a reservation agreement form from us by sending e-mail to zhanetta@hungary2invest!

Upon receiving the reservation agreement, we immediately contact the developer and update that apartment as reserved in our system. Simultaneously, we inform all of our foreign partners and sub agents about the reserved unit, thus taking your prospective property off the market.

A reservation is complete and binding once the reservation fee payment as been made (either via bank transfer to our account or in cash if the client or her/his trustee is in Hungary) and the reservation form has been signed by both the agent and purchaser. A 24-hour process.

Step 2 - Choose whether you will be in Hungary to complete the purchase or not.

A client may choose to personally attend the signing of the preliminary contract, technical description and apartment layout with the developer. If this is not possible a local legal representative would need to be appointed to finalize the legal process with a notarized power of attorney. We are happy to recommend a panel of independent lawyers for you to choose from. The lawyer fees are 1% of the total purchase price.

The power of attorney will enable your lawyer to do the following on your behalf:

  • Sign the Preliminary Agreement.
  • Sign the Final Sale and Purchase contract
  • Arrange mortgages and financing
  • Open bank accounts
  • Represent you at the handover of your property

Step 3 - Deposit payment – Secure Escrow Account

The payment of the deposit is required simultaneously with signing the preliminary contract with the developer. All deposit payments are wired to a secure escrow account and held until handover, when the developer has delivered a satisfactory product.

Step 4 – Financing your property

We recommend that clients start the mortgage process including providing all documents needed by the financing bank, 6 months prior to the official handover date, to give time to resolve any unforeseen issues that may arise. We understand each client has different financing requirements and therefore we have partnered with 29 financing institutions, including BG Mortgage and Leasing, Raiffeisen Bank and ERSTE Bank Company. We are proud to say that over 90% of our clients have chosen to finance their investment through us. We believe this is because they know us to be service-oriented and that we have the resources to ensure that all of our clients' needs can be met.

Step 5 - Technical handover of your property and signing the final sales and purchase agreement

You or your legal representative will be required to inspect the completed apartment to confirm satisfaction with the quality and finishing, according to the pre-agreed and signed technical specification documents. The final sales and purchase contract will be signed and submitted to the land registry in order to prepare the title deeds.

Step 6 – Home management and rental service

We understand that it doesn’t end at handover; property management is of the utmost importance. A leaky sink, a flooded toilet, it happens! Our clients are based worldwide and it is therefore not feasible for them to personally take on the responsibilities of property management. This service is available via Otthon Centrum’s respected and experienced Home Management Partners and at a rate distinguishingly below the industry average. We recommend that we start arranging the letting of the property prior to the handover of the apartment in order to secure tenants as soon as the apartment is complete and handed over.

Step 7 - Final handover of property

Upon receiving the occupancy permit, clients will be notified by the developer of the deadline for making the final payment.

If the property is being financed at this stage, then the financial entity will make the payment to the developer. Once this payment is made then the developer will hand over the keys to the new owners.

After sales – hand-in-hand every step of the way

The key to a good investment is sound advice. That is why Hungary2invest together with Otthon Centrum provides the highest level of customer service with our educated, professional staff. We have an in-house market-research team, our clients receive a weekly newsletter assessing the market's ebb and flow and also a semi-annual trend forecast reports. We speak English, German, Russian, French, Spanish, Arabic, and Hungarian.

Our clients benefit from our quality service, rapid communication, and relevant up-to-date information and research.

Your Resale Partner

We not only serve our clients through the buying process, we also play an integral part in helping our clients rent out their apartments and will also assist with an the exit strategy if so required.