In the complex process of buying or renting a property, the privacy statement is an often forgotten but extremely important document. In this blog, we look at why contact protection is key when buying and renting property and how it can help buyers make informed decisions.

Since August 2021, when selling or renting a property, the law requires an electrical safety review (ESR) to be carried out to check the condition of the electrical network to avoid accidents. This obligation also applies to the seller/landlord if the boiler or other electrical equipment is equipped with a RCD, unless all the consumers in the network are protected by RCDs with appropriate parameters and there is no circuit breaker with a rating greater than 32 A. The professional who has carried out the inspection will prepare a qualification document, which should be attached to the sales contract.

What is a Contact Protection Statement?

The Declaration of Contact confirms that the electrical systems of the property comply with current safety regulations. The issuing of a declaration is linked to a contact protection inspection by a qualified electrician, during which the condition and safety of the electrical network is assessed.

Why is this important on the Real Estate Sales Line?

1. Safety: most importantly, the Declaration of Contact assures the future owner of the electrical safety of the property. Without a properly documented declaration, there is a risk that the new owner may be faced with unknown defects.
2. Legislative Requirements:Many countries, including Hungary, have legal requirements for the safety of electrical systems. Failure to carry out a contact protection review can lead to legal disputes, which can delay or prevent the transfer of the property.
3. Property valuation: buyers feel reassured when they know that the property meets safety standards. This can also have a positive impact on the market value of the property.

How to obtain a Contact Protection Declaration?

• Choosing an expert: It is important that the inspection is carried out by a qualified and experienced electrician or contact protection expert.
• Conducting an inspection The expert will carry out a thorough inspection of the property’s electrical system. It then issues a declaration of conformity.
• Insert documentation: make sure that the declaration is part of the sales contract so that the buyer has all the necessary information.

The trend in recent years has been for property values to skyrocket, while sales (rental) contracts have become increasingly complex. This is because of the bank requirements for loans and we are constantly building experience into the contracts. One of these experiences is the growing controversy over warranty issues. One part of this is contact protection.

A contract can be written to “A” and it can be written to protect you. Choose a lawyer with extensive experience in sales and real estate law.

When buying or renting a property, the transfer of possession is one of the most important steps in the process, as it is when the ownership or right of use is transferred. However, many people do not pay enough attention to the details of this step, which can lead to disputes later on. In this article, we have put together a list of things to pay particular attention to when transferring possession of a property to ensure that the transfer is problem-free and legally sound.

What is surrender of possession?

The transfer of possession is the transfer of ownership or use of the property to the buyer or tenant in a legally orderly manner. This can be done in writing or orally, but in all cases it is recommended that it is formalised in a contract. After the transfer of possession, the property is legally in the possession of the new owner or occupier.

What to look out for before transferring the property?

1. Status transfer:
   • Check the condition of the property.
   • Preferably take photographs or video footage of the property in its current state so that you have evidence at the time of handover.
2. Minor errors and omissions:
   • Make a note of any errors or omissions
3. Equipment and accessories:
   • Check that all agreed equipment and accessories are present (e.g. keys, fixtures).
4. Documents and contracts:
   • Make sure you have all the documents you need to take possession of the property (technical specifications, handover report).

The process and documentation of the transfer itself

• Draw up a handover report:
  Record in writing the condition of the property, any defects found and any agreements reached. This will make it easier to settle any disputes later.
• To take photos and videos:
  Any photos or videos of the state of the property can be attached to the handover document.
• Hand over keys:
  Make sure that all the keys you need have been handed over and that the opening of the property goes smoothly.

What should you look out for after the transfer?

• Signature of the handover protocol
• To avoid future disputes, ask for a copy of the minutes
• Check the condition of the property regularly in the future

Summary

During the handover process, it is essential that you go through all the details and put them in writing. This will protect you from any legal problems and ensure that the property has been transferred legally and without any problems.

You can also find such a handover report on our website here: https://www.drokros.com/letoltheto-anyagok/

A company’s registered office is not just an officially registered address in the company register. The registered office is the “official home” of the company, with a number of legal obligations attached to it. One of the most important of these is that the company must keep and make available certain records and documents at its registered office.

📌 Legal background

The obligation to 2006. Act V of 2007 on company registration, court proceedings and winding-up (Ctv.) is determined by.

• Ctv. 7. § (1) states:
  “The company must provide access to the documents required by law at its registered office.”

This means that the authorities, such as the tax authorities (NAV), are entitled to check whether the documents that must be kept are actually available at the head office.

📂 What documents must be kept at the head office?

1. Articles of association, memorandum and articles of association of a company
   – These documents contain the basic rules for the operation of the company.

2. Documents proving registration at the Companies Court
   – The company certificate, registration order and all documents relating to the company register.

3. Licences and operating licences
   – If the business requires a special licence (e.g. catering, construction, pharmaceuticals).

4. Documents related to bookkeeping and accounting
   – According to the Accounting Act (Act C of 2000), this includes general ledgers, accounts, supporting documents.
   – These can be stored electronically, but access must be provided at the head office.

5. Official correspondence, official documents
   – All official documents that concern the company (e.g. NAV notifications, court documents, municipal decisions).

6. Management, decision-making documents
   – Minutes of general meetings, book of decisions, decisions of the executive officer.

⚖️ Why is this important?

• Compliance: during an inspection, if the necessary documents are not available at the head office, the company may be fined.

• Authenticity: documents kept at the head office prove that the company is operating properly.

• In the case of a registered office service: if the company uses a registered office service provider, the service provider must ensure the receipt and safekeeping of the documents – but the responsibility lies with the company management.

📝 Summary

A company’s headquarters must not only have a signboard, but also have access to the most important documents. According to the provisions of § 7 of the Ctv, the authorities can check this, and in case of a deficiency, the company may face a fine or even the risk of being deleted.

👉 Dr. Tamás Ökrös Law Office regularly helps its clients to ensure that their domiciliation, record keeping and legal compliance is as secure as possible.

The importance of change is felt in several ways. For the owners, a big advantage is that they can free themselves from the previous constraints. This makes it easier to sell the land or even to use it as collateral for a loan. It is also important to note that the change could stimulate the market: the value of land in gated communities could increase as their legal status becomes clearer, which will also increase investor confidence.

However, the amendment is not a panacea. It is important to stress that the exclusion from cultivation does not in itself confer the right to build. Just because a plot of land was previously not buildable does not automatically make it uninhabitable just because it is taken out of the agricultural category. Building is still subject to the local building regulations, zoning, plot size, utilities and permission from the municipality. The role of the municipalities is therefore key: they have to decide by decree which areas are allowed to be withdrawn and where the previous rules remain in place.

The change is motivated both by the need to strengthen legal certainty and to stimulate real estate transactions. In many municipalities, the properties in the allotments have long since ceased to be cultivated and have been used as weekend houses, hobby gardens or even permanent residences. The law now creates an opportunity to bring the actual use and the legal status closer together. This is in the interests of both owners and potential buyers, but it could also benefit local authorities, as they can use their regulations to shape the development and attractiveness of the settlement within a regulated framework.

The main drawback is that not all municipalities will immediately take advantage of this opportunity. In many places, they approach the issue with caution, as planning permissions or utility upgrades can entail significant costs, which municipalities also have to consider. In addition, it can be disappointing if owners expect automatic building permission when the amendment only reclassifies the legal classification of the land.

Overall, the amendment of the zoning law is beneficial for owners and the market because it simplifies and clarifies the legal situation. The main beneficiaries will be owners and investors, but if municipalities use the possibility of regulation responsibly, in the longer term municipalities and local communities will also benefit.

Every entrepreneur encounters the term “headquarters service” when setting up or running a business. But what exactly does it mean and what legal pitfalls can it present?

What is a seat service?

The idea of a registered office service is that the company designates the address of a specialised service provider as its official registered office. This address is entered in the company register and is where official documents and official mail are sent.

This can be particularly useful for companies that:

• do not have their own office,
• often change the place of operation,
• or simply do not want their address to be the company’s registered office.

What does the legislation require?

Under the Companies Act, the registered office must be located where:

• the official documents of the company are available for inspection,
• ensure the preservation of documents,
• the authorities can contact the company if necessary.

Seat providers must therefore meet strict standards.

What to look out for?

Seat services are legal and widespread, but only safe if you choose the right provider. It is important to check:

• whether the service provider is actually entitled to provide a domiciliary service,
• ensure the receipt and transmission of documents,
• comply with the requirements of the tax authorities and other authorities.

Otherwise, the company may be exposed to serious risks: the tax authority may even initiate a legality procedure during a tax inspection.

Seat services are a useful option for businesses, but only if you choose a reliable, legally operating partner. A wrong choice can cause serious problems in the long run.

If you are about to set up a company or service a registered office, it is worth taking legal advice to make sure you choose the right solution. Dr. Tamás Ökrös Law Office is available to clients in both company formation and company modification procedures.

In Hungary, inheritance is governed by the Civil Code. Accordingly, there are two basic forms of succession: intestate and testate succession. Of the two, the testamentary succession always takes precedence, i.e. if the deceased has left a valid and legal will, the succession of property is governed by its provisions. Otherwise, the legal succession takes effect, following a strict order of succession depending on who survives the testator.

In the case of a legal succession, the deceased’s descendants – his or her children – inherit first, in equal shares. If a child is no longer alive, his or her own descendants, i.e. grandchildren, take his or her place, also sharing equally the share that would have been due to their deceased child. This system ensures that the descendants by blood always share in the estate. If the deceased is survived by a spouse, she has a so-called widow’s right alongside her descendants, i.e. the right to use the dwelling in which she and her spouse lived and the usual furnishings for the rest of their lives. If there are no descendants, the surviving spouse shares the estate with the parents and in some cases may inherit the whole estate.

If the testator has no descendants, the parents inherit. If one parent has died, the other inherits the entire estate. If neither parent is still alive, the inheritance may pass to the grandparents and then to more distant relatives such as brothers, sisters or cousins. If there is no legal heir at all, the inheritance passes to the state, which becomes the heir of last resort.

The other main type of inheritance, testate succession, allows the testator to decide the fate of his or her property as he or she sees fit. When making a will, the testator is free to decide who he wishes to inherit and in what proportion. It is also possible to make provision for the entire estate or only for certain assets. However, it is important that the will is only valid if it complies with the legal formalities. It can be written entirely by hand, in which case no witness is required, but if it is done by computer or computerised means, two witnesses must sign it. A will made in front of a notary is automatically considered valid, and is also secure because it is entered in the national register. An oral will can only be made in special cases – for example, in the event of danger to life or war – and its validity is much easier to challenge.

Even if the testator leaves a valid will, there is a legal instrument that protects certain relatives: the compulsory portion. The purpose of a compulsory portion is to ensure that the testator’s next of kin – his or her children, spouse or parents if there are no descendants – are not left without any assets even if they are not named as heirs in the will. They are entitled to receive one third of their legal share in cash or in kind. If the testator deliberately leaves them out, they can claim this amount from the heirs in the probate proceedings.

Inheritance is not an automatic process, but takes place through a formal procedure called probate. The first step is to register the death, then inform the notary and take an inventory of the estate. The latter includes the assets that are part of the estate – such as property, bank accounts, motor vehicles, other valuables – as well as any debts of the deceased. After the inventory, the estate is passed on to a notary who will hold a hearing and issue a probate order, under which the inheritance is formally transferred to the heir(s).

Many people do not know that an heir inherits not only assets but also debts, albeit with limited liability. This means that the heirs are only liable for the debts of the testator up to the amount of the estate – they are not obliged to stand up for them with their own assets. It is important to know, however, that if an heir accepts the inheritance, he or she also assumes the debts – even if they are only discovered later.

The inheritance can, of course, also be rejected. This is a unilateral declaration that must be made during the probate procedure. In this case, the heir who rejects the will is put in the position of never having been an heir – and is replaced by another heir under the legal succession or the will.

An increasingly common question about inheritance is whether it is possible to ensure that assets are settled in our lifetime. The answer is yes: we can make provision for the succession of our assets during our lifetime, either by inheritance or by gift. An inheritance contract can be a particularly useful solution in old age, for example if someone takes on care or nursing care and in return becomes entitled to inherit the property.

In short, inheritance is not only a legal act, but often a very significant event from a family, emotional and financial point of view. Proper information, informed planning – for example, making a will – and timely decisions can help to avoid future disputes, family conflicts or even legal complications. Knowledge of the legal background to succession is therefore essential not only for lawyers but for all responsible people.

What is very important is to be clear on the basics and leave the rest to the lawyers.

First and foremost, the owner and the manager are not necessarily the same person. They can be the same, but they need not be.

For this reason, the approach must be different, but that is another matter.

But then let’s look at the concepts we need to know:

Company law is the set of rules dealing with the formation, registration and dissolution of companies.

Chief Executive Officer
The Chief Executive Officer is the person who manages the day-to-day operations of the company and who formally represents the company in dealings with third parties.

Share capital

The amount that the owners make available to the company at the start-up.

Ltd.

A limited liability company is a company which starts with a share capital consisting of a fixed amount of capital contributions and in which the members’ obligation is essentially limited to the payment of their own contributions.

Zrt.

A private limited company is a form of company that is a public limited company, but the shareholders are closed both during its establishment and operation, and its shares cannot be publicly traded.

Seat:

The registered office of the company is the registered office of the company. The registered office is the company’s correspondence address, the place where the company’s business and official documents are received, received, stored, kept and disposed of, and where the obligations of the registered office, as defined by special legislation, are fulfilled. The registered office of the firm must be indicated by a signboard.

Location:

The establishment of a firm is the place of carrying on business as set out in the firm’s memorandum and articles of association (hereinafter together referred to as the “articles of association”), as a permanent, independent place of business (establishment), which is situated at a place other than the place where the firm has its registered office.

Branch office:

A branch of a company is a place of business in a different municipality – or in the case of a branch of a Hungarian company abroad, in a different country – from the company’s head office.

Anyone who runs a company or whose main job is to produce. Legal issues should be discussed with a company lawyer. If you have any questions, Dr. Tamás Ökrös Law Office is at your disposal.

It is governed by the Civil Code (Act V of 2013), the main points of which are summarised below.

When is spousal maintenance payable?

The former spouse is entitled to spousal maintenance if the following conditions are met:

1. In a vulnerable situation
   – Unable to support themselves (e.g. due to illness, old age, incapacity for work, raising a young child).
2. The need is not due to any fault on your part
   – The ex-spouse did not put you in this situation intentionally or negligently.
3. The other former spouse’s ability to support the person in need
   – The other party is in a financial position to support the person in need without making him or her or his or her new family unable to do so.
4. Conduct during the marriage is not a ground for disqualification
   – The former spouse did not abuse his/her rights or engage in unworthy or seriously reprehensible conduct during the marriage.

How long does it last?

• By agreement: the parties may agree on the amount and duration of the maintenance.
• By court decision: if there is no agreement, the court decides.
• Duration: can be either fixed or indefinite, both until the need arises.

Special case: former spouse with a child

If the ex-spouse is raising a child and is unable to work because of this, this in itself can establish a dependency claim.

Spousal maintenance in practice

To better understand spousal maintenance, we would like to give two examples. In one case the court granted it, in the other it rejected it.

1. Example – Awarded spousal maintenance

Ildiko and Peter divorce after 15 years of marriage. Ildikó is 52 years old, and during the marriage she raised their three children full-time and did not work regularly. At the time of the divorce, only the youngest child, aged 10, lives with her. Ildikó is unable to work full-time due to health problems, only part-time for a few hours a week. Her income is low and she can barely cover her basic expenses.

Decision:
The court finds that:

• Ildikó can establish your means
• The situation is beyond your control .
• Peter is financially stable and has a good-earning job.

The court will award Ildiko spousal maintenance, a fixed monthly amount for as long as she is in need, with the exception of when she is unable to work or when she is raising the child alone.

2. Example – Refused spousal maintenance

Location:
Gábor and Nóra were married for 8 years. Nóra applied for spousal maintenance, claiming that she was going through a “difficult time” after the divorce and wanted to maintain her lifestyle. However, Nóra is healthy, has a university degree and is able to work. She worked during the marriage and still has a job, but at a lower salary than Gábor.

Decision:
The court considers that:

• Nora is not destitute, as she can support herself.
• His income may be lower, but that is no reason to keep him.
• There are no factors that justify an award of spousal maintenance.

The court rejects the request for maintenance.

Many people don’t realise that the “ugliest” thing that can happen than a divorce (or a marriage breakdown) is probate. Why? Because even if someone does not have assets and the heirs do not have a good relationship, it is easy to start pointing fingers about who, when and what they received before. Or that is when previous gifts come to light…and the testator can no longer be asked.

Inheritance law in Hungary is constantly evolving, and in 2023 there will be significant changes to the rules on spousal inheritance. These new provisions may affect all couples, so it is important to be aware of the changes and their practical consequences.

There are two options:

1. the legal succession or
2. the disposition.

The will takes precedence over the rules of intestate succession. This means that it is primarily the testator’s testamentary disposition that determines who inherits his estate and in what order. If he does not do so, then intestate succession follows.

What has changed in succession law?

One of the biggest changes is that the legislation in force from 2023 gives an important role to the testator’s wishes in succession between spouses.

Previously, the rule was that when inheritance took place between spouses, the law provided that inheritance was to be made according to the order of succession, with one spouse sharing with close relatives, such as children. However, under the new rule, unarranged joint property is automatically accumulated between spouses and this property is further regulated at the time of inheritance.

The Civil Code says:

Ҥ 7:58 of the Civil Code [Succession of a spouse in addition to a descendant]

(1) The spouse of the testator shall be entitled, in addition to the descendant heir.

1. (a) the right of usufruct until death of the dwelling and its fixtures and fittings jointly occupied with the deceased; and
2. b) a child’s share of the rest of the estate.

(2) The beneficial interest may not be limited and no redemption may be claimed against the spouse.

(3) In a division agreement, the spouse may be granted a right of usufruct extending to the entire estate until death instead of the children’s share.”

Probate is one of the most complex procedures in our experience.

It is very important to think ahead. Prevention is best, but if a death has already occurred, it is advisable to consult a lawyer with experience in probate.

If you need legal advice on inheritance or spousal contract, please contact Dr. Tamás Ökrös Law Office with confidence!