On 15 January 2025, the new electronic land register was launched in Hungary, although the transitional rules currently still allow for the use of the previous paper-based procedure. At the end of February 2025, the Hungarian Government proposed amendments to the recently implemented electronic land registry system (E-ING) to enhance legal uniformity and bolster the security of real estate transactions.
Under the current draft, one of the changes is that the registration of certain rights does not require the consent of all concerned. This mainly concerns rights of asset management and rights of purchasers to the maintenance of ownership and future construction. Another amendment removes the suspension procedure for certain property rights registrations. For example, if an application is made for the cancellation of a mortgage, a separate lien or a related right of alienation and encumbrance, the land registry will consider these regardless of their ranking, instead of suspending the procedure.
Finally, as the entry into force of Act C of 2021 on the Real Estate Registry and the implementing Government Decree 179/2023 have an impact on the procedures and effects on the Court of Registration, the new rules would also include a transitional provision for the submission of court and company court decisions. Decisions taken before 15 January 2025 could still be the basis for registration even if they are not submitted using the prescribed electronic form. However, this would require the person concerned to apply to the real estate authority and, in the case of decisions of the commercial court, to attach other necessary documents.
The Government is currently seeking public feedback on these proposals, demonstrating a collaborative approach to enhancing the efficiency and reliability of Hungary's electronic land registry system.
By Denes Glavatity, Attorney-at-Law, KCG Partners Law Firm
