The new Act C of 2021 on the Land Registry will enter into force on October 1, 2024, and this will bring about a fundamental change in the procedures related to real estate transactions. The new legislation will allow for faster and more convenient administration, but it will also require legal entities and natural persons to use electronic signatures or Identification Based Document Authentication.

The new Act on the Land Registry is expected to enter into force on October 1, 2024, and it will make the partially electronic land registry procedures compulsory.

One of the main innovations of the act is the introduction of the E-Land Registry (hereinafter ‘E-Land Registry’). Generally, applications to the Land Registry will be submitted via electronic filing and not in hard copies. The legal representation will be mandatory in all land registry procedures. In land registry procedures legal representation may be provided by an attorney-at-law, a registered in-house legal counsel, or a public notary.

The method of authorising a legal representative to act in a land registry procedure will also change in future, all persons concerned – and not only the buyer of the real estate – will have to unanimously authorise the attorney-at-law to represent them in the procedure in order to register rights or facts in the E-Land Registry.

The Implementing Regulation of the new Act on the Land Registry requires that the authorisation of registration granted by the owner of the real estate is created on an electronic form provided for this purpose. This must be signed by the owner with a qualified electronic signature or authenticated by the Identification Based Document Authentication service (hereinafter ‘AVDH’) in the personal presence of the attorney-at-law acting on behalf of her/his client in the procedure. The AVDH is a free service provided by the Hungarian State, available to all individuals with a Client Gate, which provides qualified electronic signatures (Client Gate access can be provided by any Government Office or by online registration with video identification, for further information, see the following webpage: https://magyarorszag.hu/szuf_avdh_hasznalati_utmutato)

While at present land registry procedures are largely paper based, the new regulation, which will come into force from October 2024, will also allow to carry out the whole transaction electronically. Legal documents required for real estate transactions, such as sales and purchase agreements, can be electronically undersigned by qualified electronic signature or authenticated with AVDH.

A major advantage of the new regulation is that the contracting parties will be able to sign the necessary documents for land registry procedures remotely, so that in the future the conclusion of contracts and signing the related documents for real estate transactions will not necessarily require personal presence.

The rules on the jurisdiction of Land Offices will also change, as instead of the previous system of Land Offices based on territorial jurisdiction according to the location of the real estate, Land Offices will have national jurisdiction, that means that any Land Office will be entitled to decide on every application for land registration submitted via electronic filing.

The new regulation also shortens the duration of the land registry procedure in many cases, allowing for the possibility of a summary procedure or automatic decision making, which can be completed in a much shorter time than before. The E-Land Registry will also be linked to other publicly certified registers, so that in many cases the necessary data can be obtained automatically, reducing the administrative burden on individuals.

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This summary is intended to raise awareness and does not constitute legal advice.

If you have any questions or need further information in connection with obtaining the electronic signature or any other issue, please do not hesitate to contact us.

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