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Changes of Land Registration Act PDF Print E-mail
Wednesday, 28 February 2007

Changes in rules of law concerning land registration

Recently, two significant changes happened in the rules of law, which are guiding land registration activities. On 1st January 2006, the Act No. CXXII/2005 stepped into force and modified the Act CXLI/1997 on Land Registration. This influenced the Act No. LXXXV/1996 on Fees of Servicing Authorized Copies of Property Sheets and on the change of the Act on Stamp Duties (XCIII/1990) too.
Connected to the fulfilment of the mentioned amendments, Ministry of Agriculture and Rural Development passed the decree No. 117/2005 (XII.19.) FVM modifying the decree No. 109/1999 (XII. 29.) on the enactment of the Act on Land Registration and the decree No. 118/2005 (XII.19.) FVM on the administrative servicing fee of the land registration procedure.

The Act CXXII/2006, stepping into force on 4th February 2007 amended some provisions of the Act on Fees again. These are the major changes that happened on client side relating to
  1. the obligatory legal representation,
  2. the obligatory use of application form, and
  3. the administrative servicing fee. 
  1. According to the new regulation, legal representation is only obligatory in those procedures initiated by application, in which the basis of recording the change is a document prepared by public notary or a private document countersigned by an attorney. Therefore, the obligatory legal representation is limited to the circle of rights recordable into the register, i. e. recording the creation, change or ceasing of ownership right, usufruct, right of use, easement of a plot, acquisition right, mortgage (independent mortgage right), in line with par. 32 (3) of the Act on Land Registration. According to a special rule, in the case of mortgage right, the creation, change and ceasing can also be performed on the basis of a private document duly and unambiguously, identifiably signed by the credit institution, indicating its name. 
  2. There is another new resolution connected to the procedures initiated by application, according to which the creation, change or ceasing of any right or fact connected to land/property can be recorded in the register, when the client submits the application by filling in the form determined by the rule of law. (This form is the enclosure to the enactment of the Act on Land Registration, and can be downloaded in Hungarian from Nyomtatványok.) As the use of this application form is obligatory, it is proposed that the clients – to avoid queuing and to speed up the submission of the documents – would bring along the filled in forms ready to the land office. The application forms – in the case you need more space for certain parts of text – can be re-edited without changing its content and structure.
  3. The selection of data to be filled in the form corresponds to the new rules of law, considering the new regulation that transformed the administrative servicing duty into administrative servicing fee, following 1st January 2006. 

The following table shows the fees payable for the land registration procedure according to the decrees valid from 4th February 2007:

a) first order procedure (except b) and c)
HUF 6 000 /affected property
b) recording or modifying mortgage right
HUF 12 000 /affected property
c) cancellation of valuable right and interest
HUF 2000 /affected property
d) procedure out of turn
HUF 10 000 / affected property
e) appeal against the decision of the district land office     
HUF 10 000
As the table shows, according to the modified Act on Fees, HUF 6 000/affected land or property - as a main rule - is to be paid as administrative servicing fee for a first order land registration procedure.

There are two exceptions: the applications for recording and modifying mortgage right, and the applications for cancellation of right of property value („intangible property”). The fee of the procedure of recording mortgage right or modifying the existing record is HUF 12 000/affected land.

The fee of cancellation of recorded valuable right and interest (intangible property) remained unchanged, i.e. HUF 2000/affected land. The circle of these rights is clearly defined by the Act on Fees amended and passed on 4th February 2007. According to this Act, the following rights are to be considered as rights of intangible property: land use right, usufruct, right to use a property, user’s right of a member of housing co-operative and the trustee’s right.

The fee of a procedure out of turn – approved on the application of the client – is HUF 10 000/affected land.
In the case of founding a condominium or modifying the existing foundation deed, the procedural fee is HUF 6000/affected other real estate. But independently from the number of affected real estates, HUF 100 000 is to be paid as administrative servicing fee as a maximum.

The uniform fee of appeals submitted against the first order land registration decisions is HUF 10 000.
If the applicant requires recording, making side note, modification or cancelling of several rights or facts relating to the same land parcel or other property in one procedure, the basis of the pricing will be that action the fee of which is the highest.
Payment of the fees can only happen in the district land office of having territorial competence – parallel with the submission of the application – in three ways: payment of cash at the cash desk, cash transfer with „yellow cheque” to the corresponding county land office account, or by bank transfer. In the latter two cases – allowing later identification – it is important to indicate also the place name according to the location of the land/property affected by the change, the parcel number(s) and the name of the applicant on the cheque or on the form of bank transfer.

It is important to emphasize the significance of paying the fee: if the applicant misses paying or proving that it happened, the competent land office sends an official notice about incompletion to the applicant within 15 days after the submission of the application. After having received the notice, the applicant – within another 15 days – is obliged to pay the fee or prove that payment had already happened.
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