Act CXLI of 1997

on Real Estate Registration

PART ONE

INTRODUCTORY PROVISIONS

Electronic Processing of Real Estate Records and Data

Section 1.

(1) This Act defines the provisions on the electronic processing of real estate records and data. Electronic real estate registration shall mean having the contents of the real estate registers introduced by Law-Decree 31 of 1972 converted to electronic form without any changes whatsoever.

(2) Electronically-processed real estate data and records may be read by computer equipment and displayed in printed form in the manner governed by this Act and the decree for the implementation of this Act.

Contents of Real Estate Registers

Section 2.

(1) Settlements shall record the data and information specified by this Act for each and every real property in the country, along with any pertinent rights and facts of significance for legal purposes. Real estate records shall also include the personal identification data and address of each person registered therein, which are prescribed by this Act as necessary for registration purposes.

(2) Additional rights and facts, other than the rights and facts defined in this Act, may be entered in real estate records only if so prescribed by law.

(3) In court, prosecution and regulatory (hereinafter referred to as "regulatory") proceedings related to real property, the data of record registered in the title deed and the boundaries indicated in the realty map shall be construed as authoritative.

Principles of Real Estate Registration

Official Entries and their Scope

Section 3.

(1) For the purposes of real estate registration, rights and entitlements are created upon being recorded in the title deed.

(2) If an entry is recorded on the basis of a deed, it shall signify ownership based on transfer, or asset management right, use of land, usufruct and the right of use, easement and mortgage (independent lien) based on contract.

(3) The registration of rights and entitlements, and facts of legal importance specified in this Act shall restrict or render conditional any future acquisition of rights.

(4) Unless otherwise prescribed in this Act, any non-performance of registration of facts of legal importance defined by this Act, and rights contrived by virtue of an official resolution or by virtue of law shall have no impact on the legal effect of such rights.

Public Access

Section 4.

(1) According to the provisions of this Act, registers of real estate shall be public information.

(2) A real estate registration title deed may be reviewed without restriction by any person, notes may be made and official copies may be requested. The following official copies may be issued of a title deed:

a) a full copy, which contains all entries of the record word by word,

b) a copy extract, which contains only the current entries of the record word by word, and refers to canceled entries,

c) a partial copy, which contains only the entries requested word by word,

d) an abstract, which contains only the most importation sections of the current entries.

(3) Unless otherwise prescribed by law, the following may be reviewed in possession of a permit issued as a private document or a notarized document of full probative force by the right-holder or obligor of record:

a) the contents of private and public documents and official resolutions kept in the filing department which serve as basis for registration by the right-holder or the obligor, unless an entry on the title deed makes reference to the contents of such,

b) the personal identification code of the right-holder,

c) list of owners (index of names).

(4) The documents set forth in Paragraphs a) and c) may be reviewed upon having the relevant legal interest substantiated.

(5) The section(s) of a document based on which rights, facts and changed data are registered pertaining to a portion of real estate which is defined in-kind may be reviewed without restriction even if the entry on the title deed makes no reference that such document contains a definition of the in-kind portion of the real estate.

Authenticity

Section 5.

(1) Unless proven otherwise, a real estate registration title deed shall be construed as authentic proof of registered rights and facts of legal importance as of the definitive date of the resolutions pertaining thereunto.

(2) Unless otherwise prescribed by this Act, on the basis of rights registered and facts recorded in the real estate register by definitive resolution, it is to be presumed that such registered rights and recorded facts pertain to the right-holder thereof. In the event of abrogation of any right or fact, it shall be presumed that such abrogated right or fact does not prevail.

(3) Any data of record entered in the real estate register for the benefit of a party acquiring in good faith shall be construed as true even if it deviates from the actual legal status. For the purposes of real estate registration, a person acquiring a right in a real property by payment of consideration, as trusting in the real estate register, shall be construed as a party acting in good faith.

(4) Lack of knowledge regarding a right registered or a fact recorded or data amended in the real estate register shall not constitute an excuse under any circumstances. A person acquiring some right that is not entered in the real estate register or the holder of a right canceled from the real estate register or of a fact of legal importance may not enforce such right against a party acquiring in good faith which is registered in the real estate register, or could be registered based on priority sequence.

(5) Rights registered and facts of legal importance recorded on the basis of an invalid document in the real estate register on behalf of a bona fide third party acquiring some entitlement by payment of consideration, as trusting in the real estate register, may not be canceled from the real estate register after three years from the date of resolution for registration.

(6) If the size of a real property indicated on the title deed differs from the size to be determined by virtue of a separate legal regulation on the basis of the boundaries marked in the realty map, the latter shall be authoritative. In respect of other data and information, unless proven otherwise, it is to be presumed that the data and information indicated on the title deed are true and correct.

Mandatory Application

Section 6.

(1) Proceedings for the registration of rights and the recording of facts of legal importance concerning a real property shall commence upon the request of the client or upon the order of an authority. Only such rights and facts of legal importance may be registered and recorded in the real estate register which are designated in the application or in the order of the authority.

(2) A registration or entry of record, and the resolution therefor, may be corrected or adjusted according to the application for such registration or entry of record.

Priority Sequencing

Section 7.

(1) Unless otherwise prescribed by this Act, the position of an entry of record in the real estate register, and thus the sequence of such records, shall be determined by the filing date of the applications for such. A ranking may be established solely on the basis of an application for which a document serving as grounds for the registration has been attached.

(2) If so requested by the right-holders of record the advance provision of a ranking, and the fact of maintaining such, may be registered in the title deed of a real property for a period of one year and in the manner prescribed by this Act.

(3) Disposition over the rankings of entries of record may not cause any injury to the rights of a third party which are registered at the time of modification of such ranking.

Documentation

Section 8.

Rights and facts of legal importance may be registered and data may be amended in real estate registers solely on the basis of documents or resolutions of authorities as prescribed by law.

Organizations Keeping Real Estate Registers

Section 9.

(1) The keeping of real estate registers and the administration of real estate registration matters shall fall within the jurisdiction of the regional land title office of the area where the property in question is located and of the Land Title Office of the Districts of Budapest in Budapest (hereinafter jointly referred to as "local land title office").

(2) The relevant county land title office shall function as the supervising organ of the local land title offices of its area as prescribed in Act IV of 1957 on the General Rules of State Administration Procedures (hereinafter referred to as "SAPR"), and the Budapest Land Title Office in the Budapest area (hereinafter jointly referred to as "county land title office").

Section 10.

(1) Separate real estate registers shall be kept for each settlement (village, town, districts of Budapest), and in respect of the following cities with county-level rights: Debrecen, Győr, Miskolc, Pécs and Szeged for each district of such cities.

(2) The Minister of Agriculture may authorize or order real estate registers to be kept separately for districts in other cities as well.

PART TWO

SYSTEM OF REAL ESTATE REGISTRATION

Chapter I

SUBJECT MATTER AND CONTENTS OF REAL ESTATE REGISTERS

Independent Properties

Parcel of Land

Section 11.

(1) For the purposes of real estate registration, land parcel shall mean

a) a naturally contiguous area of land surface that is not interrupted by any administrative boundaries or settlement boundaries and which carries the same ownership or management contingencies throughout,

b) subdivided building lots irrespective of ownership and management conditions,

c) sections of roads, areas, railroad lines and channels that are uninterrupted by junctions or crossing points, or by any administrative boundaries, with the exception of national roads, railroad lines and navigable channels, the owner or manager of which is the same.

(2) Parcels of land shall be further divided as per agricultural sectors and rezoned areas (sub-parcel).

(3) If a parcel of land described in Subsection (1) contains more than twenty sub-parcels, it shall be registered as a separate parcel of land up to no more than twenty sub-parcels.

(4) The following shall be registered together with parcels of land:

a) buildings and structures on the parcel,

b) building sections and areas of condominiums under common ownership of co-owners,

c) building sections and areas of cooperative buildings under common ownership of the cooperative or the members,

if the ownership conditions of such are the same as of the land.

(5) A cellar owned by the same person who owns the land parcel, or the entrance of which is located on a land parcel that is owned by the owner of the cellar and it reaches under another property of different ownership by way of easement, shall be registered together with the land parcel on which its entrance is located.

Other Independent Properties

Section 12.

Other than land parcels, the following shall be construed as independent properties:

a) buildings, cellars, underground garages and other structures if not owned, or owned only in part by the owner of the land parcel (hereinafter referred to as "independently-owned building"),

b) condominium units and non-residential areas under private ownership (hereinafter referred to as "condominium unit") together with the condominium owner's share of areas of common ownership,

c) cooperative residential units in cooperative buildings and non-residential areas under private ownership together with the share of ownership of common areas due to the owner of the cooperative residential unit or common area, contingent on the provisions set forth in the statutes of the cooperative,

d) cellars opening from public areas (underground storage areas, garages, etc.) regardless of the purpose of such [the properties described in Paragraphs a)-d) hereinafter jointly referred to as "other independent properties"].

Section 13.

(1) Non-residential buildings which were created according to the provisions on condominium ownership or cooperative building ownership shall also be registered as condominium or cooperative buildings (common garage facilities, common resort facilities, resort and garage cooperative buildings, etc.].

(2) Areas belonging to a residential unit shall be registered as condominium or cooperative residential units even if such areas are not physically attached to each other. Other areas of the owner of a condominium or cooperative residential unit (i. e. a garage) shall be registered as part of such unit or as an independent property depending on the provisions set forth in the statutes of the condominium or cooperative building.

(3) A cellar the entrance of which is located on a public area and which extends under a property that is not owned by the owner of the cellar shall be registered as a cellar opening from a public area.

Real Estate Data and Information

Section 14.

Real estate registers shall contain the following data and information on real estate:

a) name of the settlement, location of the property (central or outlying area), if located in central area, street name (square, ring, etc.) and address number, topographical lot number and the size of property,

b) description of agricultural and non-agricultural sectors,

c) classification and cadastral net profitability,

d) other information deemed necessary for registration purposes.

Information on Right-Holders

Section 15.

(1) For the purpose of proper identification of private individuals, real estate registers shall use the family and surname, including maiden name when applicable, the right-holder's mother's name, year of birth (hereinafter referred to as "natural identification data") and address, furthermore, in respect of the private individuals falling under the scope of the Act on Records of Personal Data and Addresses of Citizens, the personal identification number of the person concerned. For the identification of organizations, the organization's name, registered office, and the statistical number of those falling under the scope of the Act on Statistical Registration Numbers shall be used (data for identification hereinafter jointly referred to as "data of party of record").

(2) Personal identification numbers shall be managed according to the provisions of Act XX of 1996 on the Methods of Identification and on the Use of Identification Codes in Lieu of Personal Identification Numbers, and, unless otherwise prescribed by law, shall not be disclosed on title deeds or on other copies issued on various segments of the real estate register.

(3) The persons and organizations described in Subsection (1) shall be obliged to disclose the data listed therein to the local land title office acting in their respective real estate registration matters.

Rights to be Recorded in the Real Estate Register

Section 16.

The following property-related rights, and the holders of such, may be recorded in real estate registers:

a) ownership rights, and, in respect of state-owned real estate, the organization exercising the state's ownership rights and asset management rights,

b) permanent right of use for members of housing cooperatives,

c) land use on the basis of agreement or court decision,

d) usufruct and the right of use,

e) lease of arable land,

f) easement rights,

g) permanent geodetic markings, land survey pilot areas, right of use for the placement of power supply equipment, furthermore, cable rights, water line and mining easement rights (rights of utilization in the public interest),

h) right of first refusal and right of repurchase and purchase,

i) right of support and life annuity,

j) mortgage right (independent lien),

k) right of execution,

l) fishing rights, and the right to lease such.

Facts to be Recorded in the Real Estate Register

Section 17.

(1) Only the following property-related facts may be recorded in real estate registers:

a) reference to the right-holder of record being under the legal age, or having such person placed in conservatorship,

b) liquidation or voluntary dissolution proceedings instituted against the right-holder of record,

c) ownership restriction(s) by virtue of legal regulation or court decision,

d) ban on lot formation and construction, and other construction-related restrictions,

e) commencement of expropriation and lot formation proceedings,

f) appeal and petition for legal remedy against a land title office resolution,

g) petition for court review of a court decision serving as basis for registration or related to such,

h) the property's legal status,

i) ban on alienation or encumbrance on the basis of contract or testamentary disposition,

j) commencement of lawsuits and criminal proceedings specified in this Act,

k) having an auction scheduled or the failure of such,

l) attachment,

m) sale by retaining ownership,

n) rejection of registration,

o) keeping the ranking of a canceled lien, or waiver of the right of disposition of ranking,

p) advance reservation of ranking for mortgage,

q) change of ranking,

r) other facts in connection with the enforcement, transfer or termination of a lien,

s) fact of construction or demolition of a building,

t) suspension of proceedings,

u) the extent and nature of permanent environmental damage established by a definitive regulatory or court resolution.

(2) Non-performance of registration of the facts described in Paragraphs a)-b) of Subsection (1) shall have no effect on the legal impact of such. In the event of non-performance of registration of the facts described in Paragraphs c)-t) the right-holder of record may not enforce against a third party acting in good faith.

Chapter II

SECTIONS OF REAL ESTATE REGISTERS

Section 18.

(1) Real estate registers shall consist of electronically-processed title deeds, lists of entries canceled from the title which may be read by computer and displayed in a legible manner, realty maps and the document archives. If so prescribed by this Act, computerized base geodetic maps shall be used as realty maps. The general layout of independent properties shall be construed as having the same function as realty maps.

(2) Electronically-processed indexes and statements may be produced on the real estate of settlements and their respective data and information, as well as other lists and documents described in this Act for administration purposes, and such may be displayed in legible form by way and by the means of computer connection and electronic processing.

Title Deed

Section 19.

(1) For the purposes of real estate registration, all data pertaining to a piece of real property and any associated rights and facts of legal importance shall be recorded on the title deed.

(2) Title deeds shall be numbered in sequence, starting with one, in each settlement. Each title deed shall have the name of the settlement indicated next to its serial number. In computerized real estate registration systems the number of the title shall be the same as the topographical lot number.

(3) In view of special registration needs of certain properties, the title of such properties may be instituted in two integral sections, consisting of a primary title page and an auxiliary title page.

Document Archives

Section 20.

(1) Document archives shall keep files of the documents serving as basis for entries of record and the authentic copies of such, applications for registration, inquiries, and other documents created in the course of and in connection with real estate registration matters.

(2) Documents kept on file in the archives shall be administered separately from other documents of the land title office.

(3) Documents kept on file in the archives shall fall under the scope of Act LXVI of 1995 on Public Documents, Public Archives and on the Protection of Private Archive Materials.

Realty Maps

Section 21.

(1) For the purposes of real estate registration the copies of record of the state's base geodetic maps, as defined by a separate legal regulation, shall be used.

(2) The computerized (digital) forms of geodetic basic maps shall be used as realty maps, if such have been completed of the settlement and if previously certified for the proceedings prescribed therefor.

(3) For the functions of real estate registration, realty maps shall contain the following:

a) name of settlement and the number of the map section,

b) boundaries of administrative limits of the settlement, and of the central or outlying area,

c) boundaries and topographical lot number of land parcels,

d) buildings or structures,

e) boundaries, markings and descriptions of the sub-parcel,

f) boundaries of land survey pilot areas and the classification categories established by such land survey,

g) names of unpaved roads, streets and address numbers,

h) entrances to cellars from public areas or other properties.

(4) The general layouts of other independent properties shall be in a scale of 1:100, or greater, to exhibit the boundaries of the property, the common building sections of condominiums and the common and cooperative owned building sections of cooperative buildings, and the boundaries of condominium and cooperative residential units. Such general layouts shall contain the name of the settlement, the street, building number, floor and door number of the property, as well as the serial number and floor space of independent real properties.

List of Canceled Entries

Section 22.

All entries and data canceled from title deeds shall be retained in electronic form in the computerized real estate registration system of settlements, as well as the number of the resolution on cancellation based on which the documents serving grounds for such cancellation may be retrieved from the archives. The provisions set forth in Subsection (3) of Section 20 shall apply to lists of canceled entries as well.

Chapter III

METHOD OF REAL ESTATE REGISTRATION

Section 23.

(1) The sizes of real properties shall be recorded in the metric system (hectare, square meters).

(2) Lands used for agricultural and forestry purposes shall be registered as tillage, meadow, pasture, vineyard, garden, orchard, reed bank, forest, woodland or as fish pond as consistent with the method of utilization and natural condition of the land in question. Land sections removed from agricultural and forestry utilization shall be registered as non-agricultural land.

(3) Sections of land of less than 1 hectare located within the administrative limits of settlements shall be registered as non-agricultural land regardless of their principle mode of utilization.

(4) The grade of lands used for agricultural and forestry purposes, which are suitable or rendered suitable for such purpose, shall be established by classification as consistent with the natural conditions of the land. Such classification shall consist of the grade of the land and its cadastral net profitability as appropriate.

(5) In agreement with the Minister of Finance, the Minister of Agriculture shall determine the cadastral net profitability of land units (net profitability rating) and the categorization, and any changes of such, of settlements for land classification purposes.

Section 24.

(1) Each property within a settlement shall have its own title deed in the computerized real estate register.

(2) Areas of common ownership of a condominium building shall be recorded on the primary title page, while the condominium units of private ownership shall be recorded on the auxiliary title page(s) of the condominium building.

(3) Areas of cooperative and common ownership of a cooperative building, as prescribed in the statutes, shall be recorded on the primary title page, while the residential and non-residential units shall be recorded on the auxiliary title page(s) of the cooperative building.

(4) A building of independent ownership, and the parcel of land on which such building stands, shall be registered on separate title deeds. This provision shall also apply to condominiums and cooperative buildings, if the condominium or cooperative building and the parcel of land on which it stands is not owned by the same entity.

PART THREE

REGISTRATION OF CHANGES

Chapter IV

REAL ESTATE REGISTRATION PROCEEDINGS

Definitions

Section 25.

(1) Real estate registration proceedings shall be construed as meaning state administration proceedings for the registration of rights and recording of facts pertaining to a real property, and for the recording of changes in such (hereinafter jointly referred to as "registration of changes").

(2) With respect to real estate registration related issues which are not regulated by this Act, the provisions of SAPR shall be applied.

Commencement of Proceedings

Section 26.

(1) The commencement, modification or termination of a right or fact related to real property shall be registered in the real estate register upon application or request.

(2) Applications shall be submitted to the local land title office within 30 days of the date of the contract (legal statement) serving basis for registration. If third party consent or regulatory approval, not including land title office permits, is required for the aforementioned contract (legal statement) to become operative, such application shall be submitted to the local land title office within 30 days of the effective date of such consent or approval.

(3) Any failure to meet the deadline specified for the submission of application for registration shall result in the imposition of default penalty as described in the Duties Act.

(4) Applications shall be submitted with the documents, and two copies of such including the clause on the document (approval, certificate, etc.), serving basis for registration, as well as other documents necessary for registration and for the assessment of duties.

(5) Unless otherwise stipulated by legal regulation or by the agreement of parties, registration shall be requested by the party who will become the right-holder in consequence. Registration may also be requested by a party whose registered entitlement is affected thereby.

(6) The acting authority (court, notary public, court executor, etc.) shall convey its definitive resolution for the registration of a right or fact awarded. Court decisions on the creation or establishment of property acquisition shall be forwarded to the local land title office in two copies.

(7) Contracting parties shall have until the land title office passes its resolution to withdraw their petition upon mutual consent. If registration involves a third party as a potential right-holder, the consent of such third party shall also be required for the withdrawal of the petition.

Section 27.

(1) The land title office shall register any and all changes in the data of a real property and in the name (corporate name) and address (registered office, premises) of the right-holder of record as reported by the party affected or ex officio (inspection, receipt of data from the personal data and address register, etc.) in the real estate register.

(2) Owners of real property, agencies exercising state ownership rights and asset administrators or users shall report the following changes to the local land title office of competence by the location of the property in question within thirty days following the occurrence or gaining knowledge of such:

a) any change concerning the boundaries and/or size of the property, in the classification of agricultural sector of the land, also if the area is rezoned as non-agricultural,

b) the erection or demolition of a building or structure of record.

(3) Right-holders shall be required to report any and all changes in their name or address (registered office, premises) within the deadline specified in Subsection (2).

(4) If a change described in Subsections (2)-(3) occurs in consequence of an official resolution it shall not be reported, or if such pertains to changes in ownership or property management, provided the party concerned requests the registration of such within thirty days.

(5) Changes in the data of real property which are ordered by official resolution due to the modification of administrative boundaries of the respective settlement shall be reported to the local land title office by the acting authority.

Documents for the Registration of Changes

Section 28.

(1) For the registration of changes in the data of real property the official permit (approval) specified in other legal regulations shall be required. For the registration of changes in the realty map, the diagram drawing set forth in other legal regulations shall be required as well.

(2) The local land title office shall register the changes described in Subsection (2) of Section 27 following inspection of the approved diagram drawing and the site. The land title office may match the data of record against the actual status even if no report is filed.

(3) The local land title office shall register the changes it has gained knowledge of by inspection or ex officio, even if such changes are not reported. Pursuant to the provisions of another legal regulation the costs of proceedings instituted ex officio shall be borne by the party which failed to report the change.

Documents for the Registration of Rights and Facts

Section 29.

Unless otherwise prescribed by law, rights may be registered and facts may be recorded on the basis of public documents, private documents of full probative force, or copies of such witnessed by a notary public (hereinafter referred to as "document"), which substantiate the creation, modification or termination of the right or fact which is the subject matter of registration, with a statement of authorization for registration from the right-holder of record or potential right-holder to be registered in the real estate register as an interim beneficiary. A right-holder may grant authorization for registration by way of a document of the same formal requirements as the document based on which the registration is effected.

Section 30.

(1) Registration may be substantiated by a court verdict or official resolution, if such pertains to a right or fact which may be registered.

(2) For the cancellation of ownership and for the reinstitution of an original real estate registration status a resolution of an authority is required. This provision shall not apply to a contract which is rescinded, dissolved or terminated by the parties, or if the parties declare the contract to be annulled. In the event of such agreement by the parties, the provisions on the registration of changes shall be authoritative.

(3) No document or application is required for cancellation of a right or fact, the termination of which can be established without doubt on the basis of the real estate register.

Section 31.

(1) The land title office may register a lien filed against an heir prior to the registration of his ownership. Such lien however, shall become operative upon the registration of ownership of the heir, or the new owner if the original heir had alienated the property before the inheritance was released. Such pending legal clause shall be indicated in the registration.

(2) Based on the liabilities of the decedent, entries in the real estate register may be filed against an heir until such heir is registered as the owner of the property in question.

Contents of Documents

Section 32.

(1) For the purposes real estate registration, a document issued in Hungary shall contain the following:

a) family and surname, including full maiden name when applicable, year of birth, mother's maiden name, address and the personal identification number of the person concerned,

b) the name, registered office, statistical number, and the court or company registration number of organizations,

c) full address and description of the property in question (settlement, topographical lot number),

d) detailed description of the right or fact,

e) the legal grounds of the change,

f) agreement of the parties concerned, a statement of authorization by the registered owner,

g) contracting parties' statement concerning their respective citizenship, if a resident for foreign exchange purposes is construed as a foreigner in accordance with Act LV of 1994 on Arable Land, indication of such fact.

(2) A private document issued in Hungary shall only be accepted for real estate registration purposes if the date and location of issue is clearly indicated, and if

a) it was written and signed by the person named therein, or

b) it was signed by two witnesses, name and address included, to verify that the person named therein signed the document, if not written by him, in front of them, or has pronounced the signature as his own, or

c) the signature and initials of the person named therein is witnessed by a notary public, or

d) countersigned by an attorney, furthermore, if

e) was properly signed under authority on behalf of an artificial person,

f) if the document contains more than one page, each page has the initials of the contracting parties, of the person it was drafted by, the counter-signatory and of the witnesses, and it satisfies the formal requirements specified by law for notarial documents,

g) contains the signatures of authorized persons and the parties to be clearly identified based on the document.

(3) Creation, modification or termination of ownership, purchase right and mortgage (independent lien) may be registered on the basis of public documents, or private documents countersigned by an attorney or witnessed by a notary public to verify the authenticity of the signature of the person named in the statement or the contracting parties. A legal counsel may also act as a counter-signatory if either of the contracting parties is an organization represented by such legal counsel. A document drafted and countersigned by an attorney, or one witnessed and notarized by a notary public who is named as a contracting party may not be accepted for registration purposes.

(4) A countersigned private document may be accepted for registration purposes if it contains the name, signature, registered office of the counter-signatory, the date of execution and the note "countersigned". Countersigning by an attorney shall be valid only if sealed by embossed stamp.

(5) Registration of a mortgage filed or terminated may also be performed on the basis of a private document signed by an authorized signatory of a credit institution on behalf of the credit institution.

(6) In respect of the cancellation of a mortgage, a statement from the owner of the property shall be attached with the document concerning the ranking of the canceled entry.

Section 33.

(1) Private documents shall satisfy the content and formal requirements prescribed by other legal regulations.

(2) The relevant power of attorney shall also be attached for a document signed by an authorized person in place of the person named therein. Such power of attorney shall satisfy the formal requirements prescribed for the document based on which the registration is effected.

(3) A legal statement for real estate registration purposes issued by a person who is unable to read and/or write shall be notarized and filed as a public document, and shall be designated as such.

Section 34.

(1) In respect of the contents of definitive regulatory (court) decisions based on which registration may be effected the provisions pertaining to private documents shall apply, whereby the order of the authority shall function as the agreement of parties. The latter part of this provision shall not apply to legal statements documented by the court.

(2) Extracts from the records of state agencies shall contain only the data and information necessary for registration.

(3) The provisions of Act III of 1952 on the Code of Civil Procedure (hereinafter referred to as "CPC") shall apply in respect of the formal requirements of public documents.

Section 35.

(1) Unless otherwise prescribed by international convention, documents written in a language other than Hungarian shall have an official translation attached.

(2) If a private document was issued in a foreign country, and unless otherwise prescribed by international convention and if any applied reciprocity practice dictates otherwise, the signature of the person named therein shall be certified by the Hungarian foreign representation, or the certificate issued by a foreign agency authorized for the certification of signatures (initials) shall be certified by the Hungarian foreign representation (diplomatic certification or re-certification). Where there is no Hungarian foreign representation, signature (initials) shall be certified by the foreign authority of the state acting on behalf of the State of Hungary. If there is an international convention to the contrary, it shall be specified by the person applying for registration. In respect of the prevalence of reciprocity, the regulations of the Ministry of Justice shall be authoritative.

(3) Where there is no Hungarian foreign representation, and if no foreign authority of another state acts on behalf of Hungary, the signature (initials) of the person named in the statement shall be certified only by the agency authorized by the legal regulation in force where the document was issued.

(4) No diplomatic certification or re-certification is required for a private of document of foreign origin if there is a certification clause (Apostille) attached.

Section 36.

(1) The land title office shall forward private documents of foreign origin without a certificate or certification clause (Apostille) attached to the Minister of Justice, by way of the Minister of Agriculture, for assessment. Such petition shall specify the special and equitable circumstances presented in the application.

(2) Public documents of foreign origin shall be forwarded before the decision is made to the Minister of Justice, by way of the Minister of Agriculture, to determine whether it satisfies the formal requirements for registration.

(3) In the cases defined in Subsections (1)-(2), the decision of the Ministry of Justice shall apply in land title office procedures.

Additional Documents to be Enclosed for Registration

Section 37.

(1) In addition to a document as serving basis for registration, an application for registration and permission for registration, special regulatory permit (approval) or verification is required if so prescribed by law.

(2) A diagram drawing is also required for registration if the change effects the relevant realty map, or if so prescribed by legal regulation.

(3) Legal persons and unincorporated organizations having legal capacity concerning entitlement to be registered in the real estate register shall attach the resolution of registration in proof of their formation with the application, or the original, or a notarized copy thereof, of the document in proof of entitlement for representation serving basis for registration by the competent authority (Court of Registration, county court). If either of the above has already been submitted to the local land title office for a previous matter, it is sufficient to indicate such fact in the new application for registration.

Submission of Applications Concerning Several Local Land Title Offices

Section 38.

(1) If a change pertains to real properties located in the area of competence of more than one local land title office, separate applications (reports, petitions, inquiries) shall be submitted to each local land title office.

(2) In respect of applications for registration the document, and its appendices, shall be submitted to only one local land title office and the local land title office to which the document, and its appendices, are requested to be forwarded shall be indicated. In terms of the other local land title offices only a single copy of the document shall be attached with the application, which is to include the requested regulatory permit (approval). The application shall indicate the local land title office to which the document was submitted.

Interim Measures

Provision of Additional Information

Section 39.

(1) If an application and/or its appendices, or a document instituting registration is found to be deficient, the applicant shall be ordered to provide the missing information, if available, within a specific time frame.

(2) If, based on the finding of the local land title office, a part of an application is to be rejected, the applicant shall be requested to file a statement declaring whether he wishes to sustain his application for the approved part.

(3) A document filed improperly for registration purposes, and the application for registration shall be rejected in the original ranking, if any correction for registration would involve

a) changes in the contents of the submitted document, or in the legal title indicated therein,

b) changes in the contracting party, the right-holder or the obligor, with the exception of legal succession,

c) changes in the name of settlement, the location or topographical lot number of the property, or such should have to be provided subsequently,

d) having to provide the signature of the contracting party, the right-holder or the obligor subsequently,

e) having the document to be countersigned, the signature to be notarized or signed by the witnesses,

f) having to provide the authorization for registration subsequently,

g) having to provide the date or place of the document subsequently,

h) having to provide the diagram drawing approved and sealed by the local land title office subsequently.

(4) An application for registration shall be rejected without further action, if

a) it is unintelligible, contradictory, or

b) if it pertains to a right or fact outside the scope and jurisdiction of real estate registration, or

c) if the property, right or fact applied to be registered is not listed in the real estate register, or

d) if submitted by an unauthorized person.

(5) Information having no effect on the validity of the document instituting registration (i. e. year of birth, mother's maiden name and address of the party concerned on the basis of name and personal identification number already provided) shall be furnished ex officio.

Section 40.

(1) An application shall be rejected if the missing information on account of which the change cannot be registered is not provided within the time frame specified. The applicant shall be advised of such legal consequence in the notice for the provision of missing information.

(2) If the applicant fails to respond to a notice for the provision of missing information, the land title office shall endorse the portion of the application which can be approved, and shall reject the rest. The applicant shall be advised of such in the notice.

(3) If the applicant declares that he wishes to refrain from sustaining his application, including the approved portion, the regulations on the withdrawal of applications shall be applied.

(4) The fact of having an application rejected in part or in full shall be indicated on the title deed, unless rejected for the discrepancies described in Subsection (4) of Section 39.

Hearing

Section 41.

(1) The land title office may order the applicant to appear at a hearing if deemed necessary for the identification of the real property, to establish the identity the person concerned, or for other reasons.

(2) If the applicant fails to appear at the hearing or fails to file a statement, or if the hearing is unsuccessful for any other reason, the application shall be rejected. The applicant shall be advised of such consequence in advance.

Notification of the Public Prosecutor's Office

Section 42.

(1) The local land title office shall notify the public prosecutor's office prior to passing its resolution if it finds that a regulatory resolution instituting registration was passed by an authority without proper jurisdiction, or that the resolution is in violation of law.

(2) The public prosecutor's office shall advise the local land title office regarding its decision within thirty days of receipt of the notice.

(3) If the public prosecutor's office finds that no action is required, the local land title office shall execute the registration based on that decision.

(4) The public prosecutor's office shall notify the local land title office on the definitive conclusion of its proceedings for the land title office to take further action depending on the outcome of such proceedings.

Scope of Interim Measures

Section 43.

Interim measures, such as a notice requesting additional information, a hearing, notice to the public prosecutor's office for legal remedy on behalf of the public, furthermore, legal reparations and pending entries shall not effect the order of ranking.

Administration of Applications

Section 44.

(1) Applications shall be processed in the sequence of filing numbers. The sequence of ranking of applications received on the same day shall be determined by the dates of the documents instituting registration. Documents not accepted for registration purposes shall not be included in the sequence of ranking.

(2) The sequence of registration may be modified upon the consent of all parties concerned. The sequence of ranking may be modified on the basis of public documents, private documents countersigned by an attorney or on the basis of private documents the signature of which is attested by a notary public.

Section 45.

If an application involves more than thirty independent properties or more than thirty parties, a decision on the merits of the application shall be passed within ninety days.

Priority Processing

Section 46.

An application shall be processed in priority if so prescribed by law, or if so permitted by the head of the local land title office, in justified cases, upon the client's request. Such decision may not be appealed. If an application is processed with priority, previous applications pertaining to the same real estate shall be reviewed and if the processing of either of such applications is impeded, priority processing shall not be granted.

Suspension of Proceedings

Section 47.

(1) The land title office shall suspend proceedings for the registration of real property related rights and facts if the authenticity of the private document based on which registration is to be effected is disputed by either signatory, by either witness or by the counter-signatory.

(2) The land title office shall suspend its proceedings also if there is any legal dispute between the parties involved concerning the legitimacy of the document presented to institute registration or concerning the beneficiary of the right or fact requested to be registered.

(3) If the parties involved in the actions described in Subsections (1)-(2) should fail to present evidence on the filing of a lawsuit for having the document submitted for registration purposes declared invalid within the time frame specified in the land title office's notice, the land title office shall conclude the application for registration by resolution.

(4) A resolution for suspension of proceedings for the registration of real property related right and facts may not be appealed.

Indexing

Section 48.

(1) The file number assigned to an application shall be entered on the title deed (index) on the day when submitted, and this fact shall be indicated on the application.

(2) The index entered on the title deed shall evidence the commencement of real estate registration proceedings concerning the property in question.

(3) The index shall be removed upon the conclusion of registration of a change in the title deed, or upon the registration of rejection of the application for registration.

Resolutions

Section 49.

(1) A right or fact may be registered in the real estate register only vis- -vis a person who has already been registered as a right-holder therein, or who is being registered simultaneously as a right-holder.

(2) In respect of the registration of changes in the data of real property, the local land title office shall not be bound to the reporting thereof.

(3) Resolutions passed in conclusion of real estate registration proceedings shall include a notification of the possibility of legal remedy, and an explanation if the application is rejected.

(4) Real estate registration resolutions shall be signed by the director of the local land title office, or by the registrar authorized by the director.

Section 50.

(1) A usufruct, right of use, lease right, right of support and life annuity, right of first refusal or right of repurchase, easement right, mortgage created as security for the unpaid portion of the purchase price, ban on alienation or encumbrance if specifically stipulated in the document for the transfer of ownership shall be registered ex officio even if the person to whom ownership was transferred requests only the registration of ownership. Such registration shall be executed simultaneously upon the registration of ownership. This provision shall not apply if the right-holder has renounced the registration of these rights and/or facts, or such have been terminated, before the application for registration of ownership is submitted.

(2) The following shall be deleted from the real estate register ex officio

a) an entry recorded to indicate the commencement of expropriation or lot formation proceedings, simultaneously upon the registration of change in ownership based on the resolution of such proceedings,

b) right of first refusal or right of repurchase, purchase right and an entry for a sale by retaining ownership, simultaneously upon the registration of acquisition of property on the basis of such rights,

c) advance provision of mortgage ranking, simultaneously upon the registration of any lien right based on such, and

d) the entry on keeping the ranking of mortgage, simultaneously upon the registration of the mortgage or independent lien right based on such.

(3) A ban on alienation and encumbrance contrived from an inheritance contract shall be canceled ex officio simultaneously upon the registration of ownership of the heir named in the contract. If the party contracting with the decedent dies before the decedent, the ban may not canceled for such reason.

(4) If the local land title office determines in the course of processing an application that the termination of some right or fact can be established without doubt from the real estate register, it shall issue a resolution for the cancellation of such. If in the course of official proceedings the local land title office determines that cancellation is necessary, it shall draw up an official report and shall pass a separate resolution for cancellation. Such resolution shall be delivered only to the owner of the real property affected, and to the party whose right has been terminated.

Section 51.

(1) An application for registration shall be rejected if the document attached thereto contains deficiencies in content and form which render it obviously invalid. Invalidity shall be construed obvious if such invalidity can be established in itself from the document.

(2) If an application is rejected in part or whole, all reasons for rejection shall be listed in the explanation of the resolution. The resolution shall also include a clause indicating that rejection has been entered on the title deed. Rejection of registration need not be entered on the title deed if the discrepancies found in the application or the document presented therefor cannot be remedied.

Delivery of Resolutions

Section 52.

(1) A resolution on the registration of data, a right and/or a fact shall be delivered, after having such change registered on the title deed,

a) to the applicant together with the document signed originally, if such document need not be forwarded to the Duties Office,

b) to the right-holder gaining such status by the registration, or for the benefit of whom the right or fact was registered,

c) to the person whose registered right was amended or terminated, or for the benefit of whom the registered right or fact was amended or terminated,

d) to all co-owners if registration involved their ownership ratio,

e) to the owner of the parcel of land if the ownership of another independent real property was transferred,

f) to the owner of real property, or the organization exercising state ownership right, and to all parties whose rights have been affected by the new registration, unless the land title office has registered any of the facts described in Paragraphs a)-g) of Subsection (1) of Section 17 in the real estate register on the basis of an official resolution or court order,

g) to the building authority of the first instance in the case of lot formation,

h) to the county (Budapest) public administration office in the case of property acquisition by a foreign national,

i) concerning the registration of execution rights for the collection of tax or duty debts, to the tax authority requesting registration or to the duties office of the first instance,

j) to the public guardian, if the person concerned is under legal age or under conservatorship,

k) if the right-holder is under liquidation or voluntary dissolution, to the liquidator or person in charge of dissolution.

(2) Resolutions of rejection shall be delivered

a) to the applicant,

b) to the person for the benefit of whom the application was submitted, and

c) to the person requesting the registration of a fact of legal importance in the real estate register.

(3) A resolution passed on the basis of an order of estate transfer shall be delivered to the notary public only if it is for partial or complete rejection.

(4) Registration of the submission of an appeal or petition for court action shall be verified by a resolution (clause) entered on the application. The appellant or the petitioner need not be notified of such fact.

Section 53.

(1) Resolutions on the registration of ownership and other rights of pecuniary value which are subject to duty liability, or on the rejection of registration shall be forwarded to the competent duties office for dutiable purposes. All other documents which are necessary for the assessment of duty and which are in possession of the local land title office shall be attached with the resolution of registration.

(2) A resolution of registration executed on the basis of an order of estate transfer, for a mortgage created as collateral or on the registration of other right or fact not related to the acquisition of property need not be forwarded to the duties office.

Correction, Supplementation and Revision of Resolutions and Registered Data or Information

Section 54.

(1) The land title office shall make corrections within its own sphere of competence concerning any errors in names, numbers of calculations, any other typing errors and erroneous descriptions in resolutions and registered data and information. The land title office shall supplement its resolution if it failed to provide for any part of the application for registration or of the document substantiating such, and also if the registered entry is missing any information furnished in the document or in the application.

(2) If there is information in the real estate register to conclude that a bona fide third party has obtained some right in the proceedings concerning the property, and that a correction or revision would injure the right of such third party, a correction or revision concerning a right or fact may only be executed upon the consent of the third party concerned.

(3) The land title office may not abrogate its resolution on the registration of rights and facts. The land title office may revise, within its own sphere of competence, its resolution of rejection consistent with the application for registration and with the document substantiating such up to the date when an appeal is submitted against it or within 30 days of the date of the resolution.

(4) A separate resolution shall be issued on the correction, supplementation or revision of a registration or resolution, and the erroneous entry shall be corrected or the missing entry shall be supplemented simultaneously. Such new resolution shall be delivered to the applicant and to all parties receiving a copy of the original resolution.

Chapter V

LEGAL REMEDY

Appeal

Section 55.

(1) An appeal against a local land title office resolution shall be filed within thirty days to the county land title office. The appeal shall be submitted to the local land title office.

(2) If a resolution of the local land title office was not delivered for any reason to a concerned party, such party may request delivery of such resolution within one year of registration and may file an appeal within fifteen days of said delivery.

(3) An appeal may be withdrawn before the county land title office passes its resolution.

Section 56.

(1) Within the framework set forth in Section 54, the local land title office shall have eight days to implement corrections or revisions in a resolution which has been contested, or may amend its resolution of rejection within its own sphere of competence, however the resolution of the first instance may not be withdrawn. If a contested resolution has already been forwarded to the duties office, the new resolution shall also be sent to the duties office.

(2) An appeal shall be construed as a petition for a new proceeding, if the applicant provides the missing information or corrects the deficiencies described in the resolution.

(3) If an appeal concerns the boundaries or area of a real property, it shall be sent to the owners of the properties affected simultaneously upon having the appeal recorded on the title deeds affected.

(4) If a resolution against which an appeal was filed cannot be corrected or revised within competence or amended as described in Subsection (1), and if the appeal cannot be construed as a petition for new proceeding, the fact of having an appeal filed shall be recorded on the title deed within eight days of receipt and shall be forwarded to the county land title office together with all documents of the case.

Section 57.

(1) The county land title office shall either sustain, revise or annul an appealed resolution and shall order the local land title office to conduct new proceedings.

(2) If the county land title office rejects an appeal, the local land title office shall cancel the entry on the appeal, record it on the resolution of the second instance, and shall notify all parties concerned by delivering the resolution of the second instance.

(3) If the county land title office rules in favor of the appeal and revises part of or the whole resolution, the local land title office shall pass a new resolution on the registration facilitated by the proceedings of the second instance. The local land title office shall deliver such new resolution together with the decision of the county land title office. The new resolution of the local land title office may not be appealed.

(4) If the county land title office has ordered new proceedings, the local land title office shall cancel the registration contested and the entry on the appeal upon registering the conclusion of the new proceedings. The resolution therefor shall be delivered together with the decision of the county land title office.

(5) If the resolution against which the appeal was filed has already been delivered to the duties office, the ruling of the county land title office on the appeal shall be forwarded to the duties office together with the resolution on registration or cancellation.

Filing for Court Action

Section 58.

(1) A county land title office resolution for the registration of rights and facts or for the recording of data and information may be contested by filing for court action by the person whose right was injured by the resolution, furthermore, the public prosecutor's office may initiate legal remedy on behalf of the public against a resolution on the registration of right and facts. No resolution of the county land title office on registration may be revised or annulled by its superior organ.

(2) A petition for court action shall be submitted to the local land title office within thirty days of receipt of the resolution.

(3) If a resolution of the county land title office was not delivered for any reason to a concerned party, such party may request delivery of such resolution within one year of registration and may file for court action within fifteen days of such delivery.

(4) A petition for justification for having missed the deadline described in Subsection (2) may be lodged according to the rules set forth in CPC. No justification may be accepted later than one year from the date of registration. The court shall have powers to rule on such petition for justification.

Section 59.

(1) If the authority involved cannot proceed within its own sphere of competence, the fact of having filed a petition for court action shall be recorded on the title deed and the petition shall be forwarded, by way of the county land title office, to the court of competence within fifteen days together with all documents of the case and a copy of the title deed.

(2) If a petition for court action concerns the boundaries or area of a real property, it shall be sent to the owners of the properties affected simultaneously upon having the fact of filing recorded on the title deeds affected.

(3) If a petition for court action was submitted directly to the court, the court shall forward it to the county land title office for fulfillment of the provisions set forth in Subsections (1)-(2).

Section 60.

(1) The local branch of the county court shall have jurisdiction to pass judgment on a petition filed against a county land title office resolution. The provisions of Chapter XX of CPC shall apply on such court proceedings, with the exceptions set forth in this Act.

(2) The court may either revise a part of or the whole resolution or may annul the resolution and order the county land title office to conduct new proceedings, or may reject the petition. The court's decision shall apply to other records which are based on the registration contested.

(3) Deficiencies in documents substantiating registration may not be corrected in court proceedings.

(4) The court of the first instance shall forward its definitive decision to the local land title office, together with the documents of the land title office proceedings, by way of the county land title office.

Section 61.

In addition to the parties to the case, the ruling of the superior court passed on a petition for review shall also apply to the persons acquiring some right following the registration of submission of the petition for review.

Lawsuits for Cancellation and Adjustment

Section 62.

(1) A lawsuit may be filed

a) for having a registration canceled and the original status reinstated on the grounds of invalidity by the person whose right of record has been injured by the registration, furthermore, by the public prosecutor's office,

b) for having a registration canceled by the concerned party if it is able to prove that the right of record has been forfeited or terminated, or the registered fact has changed,

c) for having a registration adjusted by the person aggrieved due to erroneous entry.

(2) A lawsuit may be filed on the basis of Paragraphs b) and c) of Subsection (1) if an entry cannot be canceled by a land title office proceeding or if the injury cannot be remedied, or if such were unsuccessfully attempted.

Section 63.

(1) A lawsuit for the cancellation of an invalid entry may be filed against a person who has gained some right or was released from some liability in direct consequence of such entry within the period during which the invalidity of the legal statement substantiating said entry may be established.

(2) A lawsuit for cancellation may be filed against a bona fide person acquiring some right by further registration, as confiding in the validity of the previous one, within sixty days of delivery, if the original resolution on the invalid registration was delivered to the aggrieved party. A lawsuit for cancellation may be filed within three years from the date of registration if no delivery has taken place.

Registration of Filing for Legal Action

Section 64.

(1) Upon the plaintiff's request, the court shall issue a preliminary writ of execution to the local land title office for registration of the fact of filing for legal action

a) for cancellation or adjustment,

b) concerning the ownership of a real property,

c) for the termination of common ownership pertaining to a real property,

d) concerning property rights due to marriage, and

e) for the enforcement of mortgage claims and claims secured by independent lien.

(2) The court shall notify the local land title office for registration purposes regarding criminal indictments filed in connection with a criminal offense involving registration or the documents substantiating such.

(3) The court shall forward its definitive decision on overturning a judgment substantiating the registration of a lawsuit to the local land title office for having such registration canceled.

(4) A resolution of the local land title office passed in connection with registration of lawsuits on the basis of Subsections (1)-(3) may not be appealed.

Section 65.

(1) Simultaneously upon the registration of changes based on a judgment passed in a lawsuit which has been registered, the registration of such lawsuit and all pending registrations shall be canceled.

(2) The registration of a lawsuit shall be canceled also if the party affected is able to prove that the court has dismissed or rejected the case or passed a judgment for acquittal by definitive decision. The entry on the cancellation of registration of a lawsuit shall indicate the termination of suspension of interim entries.

Chapter VI

USE OF DATA FROM REAL ESTATE REGISTERS, DISCLOSURE OF DATA

Mandatory Application of Data of Record

Section 66.

(1) The data of record of real estate registers shall be used in petitions and reports submitted to a land title office, in registration, planning, statistical, land area survey and data disclosure procedures related to real estate, and in regulatory resolutions.

(2) Under the conditions prescribed in other legal regulations, land title offices shall provide access to real estate register data of record by the courts, public prosecutor's office offices, local governments and other public administration authorities as necessary to fulfill their respective official duties in connection with real properties.

Access to Real Estate Register

Section 67.

(1) For the purpose of review, title deeds shall be displayed by electronic means in legible form. The inquiring parties, depending on their technical means available, may electronically retrieve a title deed by direct connection, however, such parties may not implement any changes in the data of record contained in the real estate register.

(2) Instead of having a title deed retrieved in a readable form, access to the real estate register may also be provided by furnishing a non-official printed copy of such in the land title office.

(3) Access may be permitted, and provided, by a local land title office other than the one in which the requested title deed is kept.

(4) Access shall also be construed as having been permitted to make notes.

Issue of Copies

Section 68.

(1) Upon request or official inquiry, any local land title office may provide official copies of title deeds as described in Subsection (2) of Section 4.

(2) A notary public, acting in accordance with the powers granted in Paragraph i) of Section 136 of Act XLI of 1991 on Notaries Public, may issue notarized copies, and the clerk of the local government may issue duplicates of title deeds.

(3) An official copy of a void title deed may be issued to the authorities and to others by permit of the director of the local land title office. If, in the course of fulfillment of its obligation of data disclosure, a local land title office produces by any method a copy of a title deed that was created prior to 1 January 1992 and which contains a personal identification number, the copy produced in such manner may contain the aforementioned personal identification code.

(4) For the official copies of title deeds issued pursuant to Subsections (1)-(2) an administration service fee shall be paid, as set forth in another legal regulation, to the land title office.

(5) Copies of realty maps may be made, and provided, in accordance with the provisions of another legal regulation.

Section 69.

The certification clause shall indicate that the copy is guaranteed to be the same as the original up to the day preceding the date of issue. If there is an index attached to the title deed for a pending petition, the certification clause shall include a brief description of such indexed petition.

Restricted Use of Personal Identification Data

Section 70.

(1) Natural identification data and personal identification codes retrieved from the electronic database of real estate registers may not be used so as to allow the inquirer to learn about the owner's other real properties on the basis of the real estate register, or to disclose data thereupon.

(2) The provision set forth in Subsection (1) shall not apply if the disclosure of data or the inquiry concerning all other properties of the owner in question is requested

a) by the court, the national security service or law enforcement agencies for the purpose of fulfillment of their duties defined by law,

b) by the public prosecutor's office for judicial purposes in relation to private law and public administration law,

c) by a notary public for the administration of probate proceedings, or

d) if otherwise prescribed by law.

(3) The entitlement described in Subsection (2) shall include the right to retrieve data from the list of owners (index of names) as well.

Section 71.

The local land title office maintaining the real estate register may request data from agencies keeping records on the personal data and addresses on the basis of personal identification codes and natural identification data.

Connection to Electronic Real Estate Registration Database

Section 72.

(1) Local land title offices shall provide free-of-charge access for the courts to connect to the computerized real estate registration network for downloading data and information as necessary for pending legal cases.

(2) The Central Statistical Office may establish connection with the computerized real estate registration network to retrieve data free of charge for statistical purposes in a manner which precludes identification of persons.

Section 73.

(1) The notary public is obliged to establish computer connection from his office with the electronic real estate register of the local land title office for the purpose of issue of notarized documents and certificates and for the administration of probate and other non-contentious proceedings. If several notaries public operate from the same office, the computer of the office shall be sufficient. The Minister of Agriculture shall provide access for notaries public to electronic real estate registers, as of the date of availability, for payment of a one-time service charge.

(2) The directors of the chamber of notaries public shall immediately notify the Minister of Agriculture on any suspension or termination of member notaries public, or their membership, based on which the Minister shall grant, suspend or revoke permits for computer connection.

Section 74.

Local land title offices shall provide free-of-charge access for local governments and other public administration agencies to connect to the computerized real estate registration network to exercise their right granted by law for downloading data and information as required for the administration of regulatory matters, for payment of a one-time service charge.

Section 75.

(1) Pending availability of technical resources, the Minister of Agriculture shall permit lawyers to establish computer connection with the electronic real estate register of the local land title office for the purpose of providing legal advice and information to their clients and for the preparation of petitions, contracts and other legal documents, for payment of a one-time service charge.

(2) A lawyer may disclose information to his client concerning a title deed obtained by way of computer.

(3) The directors of the chamber of lawyers shall immediately notify the Minister of Agriculture on any suspension or termination of member lawyers, or their membership, based on which the Minister shall suspend or revoke permits for computer connection.

Section 76.

(1) Pending availability of technical resources, the Minister of Agriculture may permit other persons and organizations to establish computer connection with the electronic database of the local land title office for the purpose of reviewing title deeds, provided the frequency of having to review title deeds substantiates such request, and cannot be otherwise satisfied under the circumstances. Right-holders shall pay a one-time service charge for connecting to the database of the local land title office.

(2) The Minister of Agriculture shall revoke the permit for connection if the need substantiating connection no longer exists.

Downloading Data from Electronic Real Estate Registers

Section 77.

(1) The possibility of downloading personal identification codes and state secrets shall be precluded, with the exceptions set forth in Paragraphs a), b) and d) of Subsection (2) of Section 70.

(2) The administration service fee payable for downloaded information is prescribed in another legal regulation.

Section 78.

Personal data from real estate registers by means of data transmission or computer discs may only be provided to the parties authorized by law for the administration of such.

Section 79.

Data downloaded from the database may only be provided (conveyed) to third parties on the basis of authorization granted by law.

Section 80.

For security purposes, the Minister of Agriculture may establish a computerized central archive, for which data may be provided in the manner described in Sections 68-70.

Section 81.

Any and all transactions performed in the database, the dates and legal grounds of inquiries, the names of parties requesting data and the authorization codes of the persons executing such transactions, which may not be the same as the tax identification or social security number or the personal identification code, shall be recorded in a log, and such log shall be retained for five years. Data from the log may only be disclosed to the party concerned or to the organizations described in Paragraphs a)-b) of Subsection (2) of Section 70.

Provision of Data Ex Officio

Book of Records

Section 82.

Settlements shall maintain books of records on the land area of the settlement based on the data and information obtained from the computerized real estate register. Books of records shall be broken down by location within the settlement, which are to include the gross area per agricultural categories, and classification by the grade of land and cadastral net profitability.

Consolidated Statements

Section 83.

A consolidated statement may be completed using data and information from the various real estate registers, to accommodate specific purposes, per settlements and counties, for Budapest or for the entire country to include all real property located therein.

Chapter VII

SPECIAL PROCEDURES

Restructuring Real Estate Registers

Section 84.

(1) In the event of procedures which effect the entirety of a settlement, or the central or outlying areas of such, and thereby generate changes in the data of real properties, the real estate register affected shall be restructured.

(2) For having a real estate register restructured the prior consent of the Minister of Agriculture is required.

Procedures Involving Real Properties of Disputed Ownership Status

Section 85.

In respect of the real properties in connection with which a resolution cannot be enacted as governed in this Act in terms of the registration of pending changes (properties of disputed ownership status), the provisions of Chapter IV shall be applied with the deviations set forth in Sections 86-88.

Section 86.

Registration of changes concerning properties of disputed ownership status shall be ordered by the county land title office by resolution upon the recommendation of the local land title office. Such resolution may not be appealed.

Section 87.

(1) In the course of such procedure the registration shall be implemented subsequently, if

a) change in ownership is substantiated by a document suitable for registration,

b) the creation, modification or termination of other rights or facts is substantiated by a document suitable for registration, or by a statement of acknowledgment filed during the procedure.

(2) If a regulatory action (adoption of a resolution) is apparently lacking, the land title office shall pass a resolution within its sphere of competence subsequently. If adoption of such resolution is outside the sphere of competence of the land title office, proceedings shall be initiated by the competent authority.

Section 88.

(1) Ownership of the person in physical possession shall be recorded in the real estate register, if

a) such person presents a document which is not acceptable for registration purposes, however, it contains the agreement of parties for transfer of ownership, the purchase price, or a clause on the gratuitous nature of acquisition when applicable, or

b) the owner of record in the real estate register or his heir named in the order of estate transfer (court ruling) or his legal successor verified by regulatory resolution acknowledges that the person in physical possession has previously reached an agreement with the owner concerning the transfer of ownership of the property.

(2) If a property was sold more than once, the person in physical possession may also verify the interim sales in the manner described in Subsection (1) and in Section 87.

(3) If an interim seller has acquired ownership by virtue of a regulatory resolution (court decision, order of estate transfer), further acquisition of rights shall be verified as of such acquisition.

(4) The proceeding shall be concluded by resolution, against which the parties concerned may file an appeal as described in Chapter V.

Replacement of Electronically-Processed Title Deeds

Section 89.

(1) If an electronically-processed title deed cannot be displayed in legible form by computer, or it is no longer usable for any reason, the contents of such title deed shall be recovered. The recovery procedure shall be ordered by the director of the relevant local land title office.

(2) In the course of such recovery procedure the local land title office shall prepare a draft of the title deed. Such draft shall be prepared by using the data obtained for the data back-up archives, from the files on record and from the party concerned, or by on-site inspection if necessary.

(3) Having the draft of title deed completed shall be announced publicly and it shall be posted in the local land title office. The parties affected may file any comments concerning the draft within 60 days of posting. Following the sixty-day period the local land title office shall pass a resolution in which it orders that the draft be administered in the computerized real estate register as a replacement title deed. This resolution shall be delivered to the right-holders as established in the draft.

Chapter VIII

CLOSING PROVISIONS

Authorizations

Section 90.

(1) The Minister of Agriculture shall provide for the implementation of this Act in agreement with the Minister of Justice, the Minister of Environmental Protection and Regional Development, the Minister of Finance and the Minister of the Interior.

(2) The Minister of Environmental Protection and Regional Development is hereby authorized to establish the detailed regulations on the occurrence, extent and nature of long-term environmental damage.

Entry into Force

Section 91.

(1) This Act shall enter into force on 1 January 1999.

(2) Simultaneously upon this Act entering into force

a) the following Subsection (5) shall be added to Section 260 of Act IV of 1959 on the Civil Code of the Republic of Hungary:

"(5) The owner of real property, if wishing to file a mortgage on such property in an amount not to exceed the amount thereby stipulated, may have such entered in the real estate register. If having the mortgage registered is requested prior to the deadline specified in the registration, the registered mortgage shall be ranked in accordance with the ranking of the registration."

b) the text "real estate registration and" shall be added to Subsection (6) of Section 3 of SAPR after the text "customs administration";

c) the following title and Sections 56/A-56/D. shall be added to Act LV of 1994 on Arable Land after Section 56:

"Land Classification

Section 56/A. Land classification is the procedure for determining the quality rating and the cadastral net profitability (gold crown value) of arable lands.

Section 56/B. (1) The quality rating of arable lands shall be determined by categorizing the land from Class One through Eight.

(2) Categorization shall be accomplished on the basis of a model area network constituted per categorization regions (appraisal zones) and settlements.

Section 56/C. The cadastral net profitability of arable lands shall be determined by the quality category, the cadastral net profit rating and the size of land.

Section 56/D. (1) The execution of tasks in connection with land classification (designation of model areas, access and categorization works) shall be tolerated by the owner of the land affected. The owner of the land affected shall be notified in advance on the execution of categorization works. The regional land registration bureau may, if necessary, order such obligation of tolerance in a decree.

(2) Person involved in land categorization shall present proof of his entitlement thereunto.

(3) Land categorization works may only interfere with the proper use of the property to the extent which is necessary.

(4) Any damage caused to the property during land categorization works shall be compensated by the organization performing the land categorization work."

d) The following Subsection (3) shall be added to Section 90 of Act LV of 1994 on Arable Land:

"(3) The Minister of Agriculture is hereby authorized to establish the detailed regulations on land categorization in a Decree."

(3) Upon this Act entering into force the following shall be repealed:

a) Law-Decree 31 of 1972 on Real Estate Registration, and Act V of 1994 and Law-Decree 35 of 1976 on the amendment of such,

b) Section 5 of Act XXVI of 1996 on the Amendment of Some Provisions of the Civil Code of the Republic of Hungary,

c) Subsections (1)-(3) of Section 10 of Law-Decree 16 of 1980 on the Sale of Land,

d) Section 9 of Law-Decree 25 of 1981 on the Enactment of Act 1 of 1981 on the General Rules of State Administration Procedures and on the Amendment of Some Legal Provisions, and the provision of Section 24 pertaining to Law-Decree 31 of 1972 on Real Estate Registration,

e) the provision of Subsection (4) of Section 15 of Act XXVI of 1991 on the Extension of Court Review of Public Administration Resolutions, pertaining to Law-Decree 31 of 1972 on Real Estate Registration,

f) Section 58 of Act XXXIII of 1991 on the Transfer of Some State-Owned Assets Into the Ownership of Local Governments,

g) Subsections (1)-(2) of Section 22 of LXVIII of 1992 on the Introduction of Review Proceedings in Act III of 1952 on the Code of Civil Procedure and in the Associated Legal Regulations, and

h) Sections 14-20 of Act LXVI of 1996 on the Amendment of the Acts in Connection with the Use of Tax Identification Numbers, Social Security Numbers and Personal Identification Codes.

(4) This Act shall not apply to land use rights of agricultural cooperatives, long-term land use rights and to real property rights of foreign nationals registered in the real estate register prior to the entry into force of this Act, furthermore, in terms of management rights, the provision of a separate Act which stipulates that management rights registered in the real estate register are to be hereinafter understood as asset management rights.

(5) This Act shall not apply to the registration of common courtyards and house sections in the real estate register. Common courtyards and house sections, however, may not be hereinafter registered as such.

(6) The provision set forth in Subsection (2) of Section 2 shall not apply to the registration of rights and facts, which were allowed by a subordinate legal regulation prior to this Act entering into force.

(7) Where other legal regulations use the term "grassland agricultural sector" it shall be used as "meadow, pasture agricultural sector" following this Ac entering into force.