4. What to do if there is an encumbrance on the property?

We have explained in our previous blogs, what the title deed – which is essential for the sale and purchase of real estate – is for and what information it contains. It was also mentioned that this document shows all factors that can affect the sale. If there is a ” encumbrance” or “right” on the title deed, it can affect the length of the procedure, the loan and many other details.
All details related to encumbrances are in the third part of the title deed including when that particular encumbrance was placed on the property. The most common encumbrance that we usually encounter is the bank loan, which is listed as a separate mortgage and the bank is the holder of that mortgage. This is also coupled with a restraint on alienation and encumbrance. Therefore, until the property in question is not free of encumbrances, ownership cannot be transferred.
There may also be a foreclosure on the property – this happens if the mortgage has already been cancelled in the event of an existing debt. This makes the procedure a bit more complicated, because if there is also a debt to the executor you will definitely need a lawyer. If the purchase – price can cover the debt, then the situation is easier and you should know this before signing the contract of sale.
In case of multiple owners, we know exactly who the mortgage/foreclosure/other encumbrance belongs to, as there is a reference on the title deed in this regard.

You might be familiar with the beneficiary user right as well. It often occurs when parents transfer the property over to their children, but they wish to dispose of it until the inheritance takes place. No one wants to buy a property with a kind beneficiary, so it is important to make sure that the beneficiary is willing to waive this right at the time of sale. The beneficiary interest cannot be inherited but a simple formula can be used to calculate its value. Its value depends on the age of the beneficiary.
A less “famous” right is the right of way. It is used by utility providers to ensure that they always have access to their unit on the property. Similar to this is the right of mining easement, which can be seen on the title deed if, for example, a cable runs under your house.
The right of way is most often encountered in the case of private properties, when we can approach a property on a road only that belongs to a private person. In such cases, the easement indicates that the neighboring property owners can enter to their property transiting this road (even if it’s a private).

The dower often remains on the title deed even if the widow has already been paid. The cancellation order must be presented at the land registry during the probate process.

In the event that someone inherits a property and then wishes to sell it, it is always necessary to wait until the probate process is completed and the heir is not only listed on the title deed as a legal owner but also as a registered owner. This can take up to even half of a year. There is the possibility of a preliminary contract, where the parties lay down the terms under which they will enter into a final sale and purchase contract at the end of the probate proceedings.
If the owner is a minor, the court of guardians must be involved in the process; this will be the responsibility of the lawyer. In this case, the purchase price can be spent again under the supervision of the guardian. The whole procedure can take few months.

These were the most common topics regarding the title deed of the property. In the next section, we will talk about the importance of the copy of a map.

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3. Title deed – Part II.

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.
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.

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”.

3. Title deed – Part II. Read More »

2. Title deed – Part I.

In the field of real estate, there are so many expressions that people don’t come across with very often in everyday life. One of these is the title deed. This is the Alpha and the Omega of real estate transactions, so we are now sharing with you the most important information about it.

In real estate the title deed is like the identity card for us – or even more so, like the customer portal. It is a public document available to anyone, which every apartment, house, and plot has from the moment it is “created” or built and its use is authorized in the system. Just as people are entered into the civil registry at birth, real estate is also entered into the real estate registry system. The data – certified by the surveyor – is registered by professionals with a degree in law, and from there onwards all changes are officially recorded therefore, it is a constantly updated, living document. Since it is authentically certified, we can rest assure that all downloaded, retrieved data on the sheet is real. It contains all current and deleted information, so we can even learn about the history of the property.
All the important rights are listed on the title deed: such as ownership, usufruct, mortgage or enforcement.

Each title deed has a lot number, next to which the name of the place must appear. From the title deed you can find out the dimensions of the property, the name of the current owner, whether there are loans or other encumbrances on the property and even who the previous owners were.

You can obtain a copy of it in person, in paper version at the land office or online, where you can download an authentic or non-authentic electronic copy of the title deed. (The non-authentic copy cannot be used for official purposes, it is for information purposes only.)

Types of the title deed:
-Full copy: This type of document contains all entries since the building of the property or, in the case of a parcel, since the existence of the registry. It also contains the deleted owners and encumbrances, as well as the current data.
-Abstract copy: Only existing entries are displayed but it also refers to deleted entries.
-Partial copy: This contains only the requested entries.
– Interim copy: This type of title deed only displays existing entries. This is what most people request for before buying a house.
In the next section we will explain you what exactly a title deed is needed for when selling or buying real estate and what we should pay particular attention to in this regard.

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1. What does a real estate agent do?

Few people know exactly how to start when selling or buying real estate. This is a “task” in life that is not taught in school and this knowledge is not passed on to us naturally from our parents either.

Since today we clearly rely on the Internet in all areas, many people start selling their property like this, as the task seems simple: few photos, few lines, sharing on Facebook and the property has already changed owners. However, it is much more complex than that, with a lot of potential pitfalls, therefore we will show you now the advantages of contacting a real estate agent in regards to a selling or purchasing.


To start with, a professional real estate agent has professional qualification, which guarantees that he or she has legal, economic and technical knowledge that the average person does not have. For this reason, the real estate agent knows exactly what kind of documentation is required to complete the business, as well as draws our attention to the due dates.


An average person spends only a short period of time in the magic circle of the real estate marketing, therefore the day to day experience of a professional peron is greatly appreciated. Knowing the market, following it on a daily basis, as well as the many experiences gained in practice make the process easier and faster. 

We can rely on a real estate agent in the following:

• Preparing the contract, obtaining the necessary documents

• Searching for possible financial constructions and solutions

• Providing information on tax and duty payment obligations

• Providing information in regards to the administration process at land office 

• Valuation of the respective assignments

• Preparation of technical and energetic certificates


The biggest headache for the owners is the cost of the house, apartment or plot. On one hand, many real estate agents are also qualified as appraisers and on the other hand – due to constant market monitoring – they can determine exactly what price category the offered property belongs to.


Even if someone has marketing acumen or experience, it is not certain that in the world of real estate, they will know what it takes exactly to bring demand and supply together on the right platform through advertising. Because it really does matter what is seen on the pictures, from what angle or at what time of the day the photo was taken. It does also matter, how the advantages and possible improvements of the house or apartment were formulated. Since the prospective buyer is also interested in the parameters, he / she would also like to see an accurate floor plan. Professional real estate agents use a special computer program for this. It matters when the ad or post appears on social media; a good agent advertises at the right time.


A good agent also has an extensive network of contacts, which is – on one hand – very useful if you need qualified help in certain areas of expertise. Whether it is a lawyer, a technical expert or even an interior designer, the agent will surely have several names up his / her sleeve.

In addition – based on the group of clients -, he / she is aware of who is currently looking for or offers a real estate, including the type of real estates, therefore, he / she functions well as a match-maker of the clients.


One of the biggest advantages of hiring a real estate agent is that he / she completes the uncomfortable work for us. Coordinates, negotiates and conveys inconvenient questions. It is a tense situation, especially when it comes to high-value property and its sale. However, an experienced professional with people skills and with high emotional intelligence can save us from unpleasant situations.


Nowadays, there is hardly a person who does not suffer from lack of time. However, – due to the constant research and contact – selling a property is very time consuming, not to mention the time spent showing the apartment or house. It is especially inconvenient if we do not live in the offered property and it requires an additional trip to visit with the customers. By hiring a real estate agent, this load is also removed from our shoulders.

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