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Expected Changes in the Undivided Joint Ownership Rules in Hungary

Expected Changes in the Undivided Joint Ownership Rules in Hungary

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As Mr. István Nagy, Minister of Agriculture explained in September 2018, „the undivided joint ownership paralyses the Hungarian economy, and from a competitiveness point of view it is essential to be deleted”. The Hungarian agricultural land and forestry ownership conditions are not optimal, since the average plots are too small and they have many owners. This situation affects 3.5 million citizens and 1 million hectares.

For this reason, the Hungarian Ministry of Agriculture decided to take a step and plans to cease the joint ownership where possible. The bill for the new regulation is currently under review by other ministries. According to the Minister of Agriculture, the proposed solution for the problem would be that the Hungarian State should act as a buyer, and if the owner of a smaller plot fails to respond or is not available, the State would acquire the property. At a later stage the State would also merge and re-sell the small properties, making the average plot sizes competitive. The new regulation is planned for adoption in fall 2018.

By Gabriella Galik, Partner, KCG Partners Law Firm

KCG Partners at a Glance

KCG Partners is a Hungarian business law firm providing a comprehensive range of legal services to international and local clients seeking local knowledge and global perspective. The firm comprises business-minded lawyers with sector-specific expertise, creating value for clients by applying a problem-solving approach and delivering innovative solutions.

The firm has a wealth of knowledge in corporate law, M&A, projects and construction, energy, real estate, tax, employment, litigation, privacy and forensics, securitization, estate planning and capital markets.

To address clients’ regional and international concerns, the firm maintains active working relationships with other outstanding independent law firms in Central and Eastern Europe, whilst senior counsel Mr. Blaise Pásztory brings over 40 years’ of US capital market and fund management experience.

KCG Partners Law Firm is the result of the teamwork of passionate and talented lawyers guided by the same principles and sharing the same values: 

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