Buying Property in Hungary

Hi
I have a property already in Hungary and wanted to purchase the one next to me. I contacted the original agent who dealt with my purchase the first time and he said as I had found the property he would not charge his usual commission, (he lied, and I quote, “nobody works for nothing”) anyway I said I had to pay a deposit which I did January of this year £1900:00. When the Coronavirus started effecting people here in Hungary and in Britain, I said to him I would like my deposit back as due to unforeseen circumstances I am no longer able to purchase the property. He replied, It’s the Hungarian Law that on purchasing property in Hungary deposits are not paid back. I have 3 questions: firstly who keeps the deposit the owner of the property or the solicitor? Thirdly, is this actually Hungarian Law? Or just some scheme, invented by him to yet again rip me off as a foreigner and charge 200% commission?
Keep Safe
KelvinZalaszengrot

KelvinZalaszengrot :

Hi
I have a property already in Hungary and wanted to purchase the one next to me. I contacted the original agent who dealt with my purchase the first time and he said as I had found the property he would not charge his usual commission, (he lied, and I quote, “nobody works for nothing”) anyway I said I had to pay a deposit which I did January of this year £1900:00. When the Coronavirus started effecting people here in Hungary and in Britain, I said to him I would like my deposit back as due to unforeseen circumstances I am no longer able to purchase the property. He replied, It’s the Hungarian Law that on purchasing property in Hungary deposits are not paid back. I have 3 questions: firstly who keeps the deposit the owner of the property or the solicitor? Thirdly, is this actually Hungarian Law? Or just some scheme, invented by him to yet again rip me off as a foreigner and charge 200% commission?
Keep Safe
KelvinZalaszengrot

Did you sign a contract to buy the place?

As far as I understand it in HU property law if either party pulls out of a signed contract then the deposit is forfeit.  The beneficiary is the  injured party. In your case the seller is the injured party.  There might be a clause for force majeure - unexpected circumstances - that could allow you to get out of it.   

But IANAL (I am not a lawyer) so you really need  to ask one of them.

KelvinZalaszengrot :

I have 3 questions: firstly who keeps the deposit the owner of the property or the solicitor?

Don't confuse solicitor with agent. In Hungary you must involve a registered lawyer in real estate deals, and he's more qualified to answer your question than any of us here. And these lawyers are never the "agents"...

For the "deposit", in hungarian there is "foglalo" and "eloleg", one of them is never returned...

Also, IANAL.

But I have purchased four properties. And each time my attorney said my deposit would be forfeit if I pulled out of my intent to purchase.

However, my deposits were only 10% of purchase price. For many "country property", the amount of the deposit listed seems rather high to me. I guess it would depend on the quality and size of the property you are buying thus its total price.

klsallee :

Also, IANAL.

But I have purchased four properties. And each time my attorney said my deposit would be forfeit if I pulled out of my intent to purchase.

However, my deposits were only 10% of purchase price. For many "country property", the amount of the deposit listed seems rather high to me. I guess it would depend on the quality and size of the property you are buying thus its total price.

I think it was supposed to read GBP 1900 (strangely written with the :00) which is HUF 750K, so if that was 10%, then we know if was a total of HUF 7.5M. 

For some years, I've been checking on land/housing in areas of South Balaton - not quite the same area - mainly to look for an alternate holiday house.  Away from the lake, it sounds relatively ballpark for a typical "country" property with an older house and perhaps 2000-2500m2 maybe.  Bigger than urban land plots anyway (maybe 600-1100 m2).

I also had the same discussion with our lawyer.  Interestingly we didn't pay that deposit.  The owners didn't seem to want that and as it was agreed, it wasn't necessary.   We turned up at our lawyer's place, signed the contracts and paid the entire amount by bank transfer in three equal lots (as they inherited it from their father, so there were three owners).

fluffy2560 :

I think it was supposed to read GBP 1900 (strangely written with the :00) which is HUF 750K, so if that was 10%, then we know if was a total of HUF 7.5M. 

For some years, I've been checking on land/housing in areas of South Balaton - not quite the same area - mainly to look for an alternate holiday house.  Away from the lake, it sounds relatively ballpark for a typical "country" property with an older house and perhaps 2000-2500m2 maybe.  Bigger than urban land plots anyway (maybe 600-1100 m2).

Zalaszentgrót if pretty far from from Lake Balaton. And a terse look online can find properties for much less than even 4M HUF. So, 7.5M HUF is actually quite a lot to pay. Depending on where one is buying. So.... that is not really the point... of course. Because the only point is the cost of land, and the amount of land, where the OP is living, not what you and I think prices should be or what we can find online.

But, still, in General... and I do mean that very broadly, I think 7.5M for a person living off the grid is probably paying too much. Assuming there is a house on the property... but we don't know. We should not assume. Only the OP can give us details. Maybe it is a vacant lot and he wants to farm the land? If no structure, then it is way too much most anywhere in the real countryside, IMHO.

Side note: I have paid much less than 7.5M HUF.... much closer to the Balaton than Zalaszentgrót. And prices are actually going down at the moment (if you "know a guy", not if you look online).

klsallee :

And prices are actually going down at the moment (if you "know a guy", not if you look online).

I know a guy who knows a guy.  :cool:

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