Hungarian Law on condominium

Description

The regulation generally lays down the subject, and rules and liabilities of interested private and public actors. The legal regulation defines the condominium, as well as the conditions to its establishment. It defines that a condominium is established if the co-owners put the fact of the establishment in writing in the form of a contract called a deed of foundation, in a public document or a private document endorsed by an attorney. The specifications define the compulsory and non-compulsory content elements of the deed of foundation, as well as the conditions under which it comes into force. The deed of foundation is a contract in which the statement of the intentions of the contracting parties is presented, which establishes the right to have the condominium registered in the real estate registry.

Since 2004, the drawing up of organisational and operational rules (OOR) is compulsory for newly established condominiums. The OOR is a document that is separate in its contents from the deed of foundation, which does not require either the public deed format or the attorney’s endorsement. However, the modification of the deed of foundation does require the public deed format and the attorney’s endorsement. The OOR establishes the bodies of the community, their sphere of authority, their rights and obligations, the rules of undertaking the common cost, as well as other content elements according to the directions of the legal regulations, for instance, the rules of the house.
The legal regulations specify the supreme body of the condominium, the general assembly, which is entitled to make decisions. The other bodies of the condominium are the common representative, perhaps the partial general assembly, as well as the auditing committee, and the co-owner.

The legal regulations give the definition of common cost, the requirements related to its payment, as well as the sanctions to be applied in case the payments are not made, namely the registration of mortgage. Related to this, the legal regulations also define the mortgage right of the condominium.  A further important direction specifies the procedure related to the land registry office registration of the condominium.

Contact info

National Office for Regional Development, Budapest
Hungary
http://www.oth.hu
Mrs Katalin Pikler, tel. + 36 1 441 7147