In 2018, the Hungarian Constitutional Court established in its decision that there was an infringement of the Fundamental Law by omission in connection with the entry into force of the amendment of certain acts relating to land-compensation. The issue was that the legislator abolished the rules on the auctions of agricultural land, so that the beneficiaries still had the purchase right serving the assertion of the compensation claim. The Constitutional Court called on the Parliament to fulfil its legislative duties by 31 December 2018.
Now, a deed has been submitted to the Parliament on the settlement of the situation of persons waiting for compensation in the operation area of the former Rozmaring Agricultural Cooperative. According to the reasoning of the deed, in case of Rozmaring Agricultural Cooperative (as only one in the country) the land grounds have not been formed. Under the deed, the Government Office of Pest County is the competent authority for the establishment of the entitlement to compensation. The beneficiary may submit its application for the establishment of its entitlement to compensation and for the determination of the golden crown value corresponding to the compensation amount to the land registry by 31 March 2022. According to the deed, the person entitled to compensation may choose the method of compensation. He/she can choose to receive either monetary compensation or a land grant as compensation by 30 June 2022 at the latest. The amount of the monetary compensation is HUF 50,000 per gold crown entitlement. The decision establishing the entitlement will also establish the value of the compensation entitlement in gold crowns.
An application for compensation in the form of a land grant may be submitted to the body responsible for the management of the National Land Fund by the beneficiary or his/her heir. Compensation in the form of a land grant may be requested by any person who, on the basis of the decision, has received at least 15 golden crowns. In case the value of the compensation entitlement does not achieve 15 golden crowns, only monetary compensation is possible.
By Lidia Suveges, Attorney at law, KCG Partners Law Firm
