In the previous blog we have already reviewed the essence and types of the title deed. Now we will dig a little deeper into its content and we will see why it is so important to obtain the factsheet of the selected property before selling or buying.
Facts and rights
This document contains all data and rights related to the past and present of the property. Thus, it contains information related to all loans, mortgages, usufructuar rights, as well as if the eligible person is still a minor or if any liquidation process is underway against him, or if there is a property restriction based on a court judgment, or a construction ban, expropriation, alienation ban, lawsuits and criminal proceedings, auction, foreclosure, suspension of any proceedings, environmental damage – as well as all rights and facts that are required to be registered by law.
It is worth negotiating with all the owners listed on the title deed, because it is not certain that everyone would sell the property on the same terms and of course it is worth clarifying first whether the others have agreed to sell the property or nor and whether there is any signed document or authorization to that effect.
If we are the seller, it is still important to check the title deed because there might be encumbrances or debts on it that prevent the sale. It can even include an old loan that has been settled, but the entry has not been deleted.
You have to pay for both, entries and deletions but still much less than correcting the information on the title deed afterwards.
Size
The most common discrepancy on the title deed is related to the size of the property. The actual square meter might be important if – for example – the terrace was built in later but it was not reflected on the title deed. If the buyer pays in cash, this might be a reason for him to negotiate the price.
In the case of an apartment, the sizes are displayed on the title deed, while in the case of a family house and other types of real estate, only the size of the land is indicated.
We will cover in a separate post, how it can be determined whether everything is in order with the size of the house, when it comes to a single-family house.
What does it cost?
The first part of the title deed (consists of three parts in total) contains the exact address, name of the town, postal code, exact area, parcel and house size, number of rooms and half-rooms, whether the requested property is exterior or interior, as well as the cultivation branch (arable field, garden, forest, meadow, pasture or vineyard, fish pond).
Individuals can request this section free of charge 20 times per month through the customer portal. If you do not have a customer portal, you can request a review or even a copy of the title deed at the land registry office.
The full version of the non-authentic title page costs HUF 1,000, which includes the second and third parts as well. There are two types of non-authentic title deeds: full and interim version; both at the same price. The complete review also includes the history, so we can see exactly who the owners of the property were and what encumbrances were on it. Deleted content is crossed out with a black line. The review, which is really important, only shows fresh and current content.
The authentic paper-based title deed costs HUF 6,250.
Summary
The title deed – although it may seem like a complicated document at first – is an essential part of the sale and purchase of the real estate. As soon as we are in the possession of a property, we are trying to keep the factsheet in accordance with the regulations, since it is much more complicated to organize the information on it afterwards.
Good advice: It is important to take a look at the title deed not only when buying, but also when renting, in order to avoid any “surprises”.