1. Who is the Landlord?

Make sure that the person with whom you’re planning to conclude the lease agreement is entitled to be a conracting party as a Landlord. In order to check whether the future Landlord is either the owner of the property or the beneficiary, you shall request a title deed from the competent Land Registry Office.

Today, you can even remotely access information about properties in Hungary through Ügyfélkapu (note: two property sheet requests per year is free). If you assign a lawyer with preparing the lease agreement, the lawyer will definitely check the title deed related to the property.

Always check a current title deed! A sales contract or land registry decision is not reliable enough, since changes may have already taken place in relation to the property. 

2. Details of the lease agreement

Make sure you visit the potential property in person before signing the lease agreement. The photos always show the properties in the most beautiful light, but the reality is sometimes far from the advertisements.

After that the first and most important thing is for the parties to conclude a written lease agreement, this is a legal reqirement. The rental fee of the  property is only one item, you need to be informed about the other expenses as well.

You should receive information regarding all expenses, including the common cost, utilities etc. You can request to see the utility bills so that it’s easier to calculate your future expenses. It’s important that the method of payment regarding the common cost is included in the Lease Agreement. It’s worth to detail what elements does the common cost consists of.

When paying the deposit – which is usually 1-3 months’ rent -  the Landlord shall declare the receipt in writing. The lease agreement shall dispose about the repayment of the deposit at the end of the rental period.

It’s recommended to make a detailed list of all the furniture and equipment in the property to avoid future disputes.

Make sure you agree on the method and terms of terminating the lease agreement. If a lease agreement is concluded for a definite period, then termination with ordinary notice is legal forbidden by any of the Parties, only termination with extraordinary notice is possible.

If the Tenant leaves the Property before the definite period comes to the end with no specific reason suitable for the extraordinary notice, the Landlord is entitled to keep the deposit and claim rental fee for the remaining period.

It is also important to specify in the lease agreement the condition in which the apartment must be returned at the end of the lease (cleaned or painted). To avoid subsequent disputes, the Parties should also agree on the possibility of renovating, painting the property or drilling shelves on the wall.

3. Who pays and which costs related to the property?

Minor costs associated with maintaining the apartment shall be borne by the Tenant, and other costs and related charges such as building maintenance, the maintenance and repair of central equipment etc. shall be borne by the Landlord.

4. What happens in case of legal succession?

If the Landlord decides to sell the property the new owner acquires the property covered by the lease agreement and will be entitled to terminate the lease only according to the provisions of the original lease agreement.

Since it is not tied to a person on any of the Parties’ side, the tenancy is not terminated by the death of the Landlord or the Tenant. However for the Tenant's heirs, the Civil Code provides a right of termination that can be exercised within 30 days.

Presented by Dr. Judit Szegő attorney-at law in Hungary

For more details you can contact:

Dr. Szegő Judit Law Office
1026 Budapest, Pasaréti út 12. I/2.

Phone: +36-1-7863-156
Mobile: +36-30-9-896-046

Email: jszego@szegolaw.com
Web: www.drszegojudit.hu