Sat, Feb
59 New Articles

Bill on the Termination of the Undivided Joint Ownership in Hungary

Bill on the Termination of the Undivided Joint Ownership in Hungary

  • Smaller Small Medium Big Bigger
  • Default Helvetica Segoe Georgia Times

At the end of April 2020, the Hungarian Government submitted to the Parliament a bill on the termination of the undivided joint ownership on agricultural lands and the clarification of the data of the rightholders of properties deemed agricultural land in the land registry, aiming at the establishment of a clear and transparent land ownership structure.

The bill regulates the following three procedures in order to terminate the undivided joint ownership: (i) dividing the property between the owners, (ii) acquiring the property by one of the owners or (iii) in certain conditions, expropriation by the State. In the first case, any of the owners could initiate the termination of the undivided joint ownership by the notification of the land registry authority, and the initiating owner should also notify in writing all other owners and registered users of the land. The owners should agree on the properties to be created in the course of the division in a contract countersigned by an attorney at law, and an obligatory annex should be a draft map and an area sheet. In case of certain agricultural zones, the bill determines the minimum size for the properties to be created. If the total area of the property does not reach the minimum size determined by the bill, the first procedure mentioned may not be applicable, but the property may be acquired by one of the owners and any owner may initiate the seizure of the ownership ratios of the other owners. The approval of the agricultural administrative body would not be necessary for the acquisition of a land under the bill.

The other aim of the bill is the clarification of the data of the owners, since there are relatively high number of persons registered as owners in the land registry, the data of whom are incorrect. Therefore, the bill establishes the legal ground on the basis of which the land registry authorities may explore the unidentified persons being owners in the land registry for the clarification of the legal status of the affected properties.

By Lidia Suveges, Attorney at law, KCG Partners Law Firm

Hungary Knowledge Partner

Nagy és Trócsányi was founded in 1991, turned into limited professional partnership (in Hungarian: ügyvédi iroda) in 1992, with the aim of offering sophisticated legal services. The firm continues to seek excellence in a comprehensive and modern practice, which spans international commercial and business law. 

The firm’s lawyers provide clients with advice and representation in an active, thoughtful and ethical manner, with a real understanding of clients‘ business needs and the markets in which they operate.

The firm is one of the largest home-grown independent law firms in Hungary. Currently Nagy és Trócsányi has 26 lawyers out of which there are 8 active partners. All partners are equity partners.

Nagy és Trócsányi is a legal entity and registered with the Budapest Bar Association. All lawyers of the Budapest office are either members of, or registered as clerks with, the Budapest Bar Association. Several of the firm’s lawyers are admitted attorneys or registered as legal consultants in New York.

The firm advises a broad range of clients, including numerous multinational corporations. 

Our activity focuses on the following practice areas: M&A, company law, litigation and dispute resolution, real estate law, banking and finance, project financing, insolvency and restructuring, venture capital investment, taxation, competition, utilities, energy, media and telecommunication.

Nagy és Trócsányi is the exclusive member firm in Hungary for Lex Mundi – the world’s leading network of independent law firms with in-depth experience in 100+countries worldwide.

The firm advises a broad range of clients, including numerous multinational corporations. Among our key clients are: OTP Bank, Sberbank, Erste Bank, Scania, KS ORKA, Mannvit, DAF Trucks, Booking.com, Museum of Fine Arts of Budapest, Hungarian Post Pte Ltd, Hiventures, Strabag, CPI Hungary, Givaudan, Marks & Spencer, CBA.

Firm's website.

Our Latest Issue