Question 1

What is this article about?

Accepted Answer

A property gift agreement must be made in writing; for registration it must be countersigned by an attorney (or executed as a notarial deed), and ownership passes only upon registration by the land registry office. • The land registry office registers the donee’s ownership for an administrative fee of HUF 10,600, within a 60-day time limit. • As a general rule, no energy performance certificate is required for a gift, as it is mandatory only for transfers for consideration; an electrical safety inspection, however, is mandatory for gifts as well, because of the change of ownership. • Gifts between lineal relatives, spouses, registered partners and siblings are exempt from duty; otherwise the duty is 9% for residential property and 18% for other real estate. • When a property received as a gift is sold, 15% personal income tax is payable, falling to zero from the 5th year after acquisition; for a duty-exempt gift, 75% of the sale price counts as costs.

Question 2

Is a property gift valid if we agree only orally or by email?

Accepted Answer

No, the parties are required to make their contractual declarations in writing; failing this, the agreement is invalid. Terms set out in an email qualify as a written declaration only if certain special conditions are met.

Question 3

Does the family relationship have to be proven to the NAV or the land registry office for the duty exemption?

Accepted Answer

It does not have to be proven. The documents that must be attached under the Act on the Real Estate Register (Act C of 2021) do not include proof of family relationships, so the land registry office may not demand it; the NAV may, if necessary, request data or proof in the duty procedure.

Question 4

Who determines the market value of the gifted property?

Accepted Answer

As a general rule, the NAV assesses the duty on the market value stated in the gift agreement and on the B400 form. If this differs significantly from the NAV’s data, it generally determines a corrected value following an on-site inspection.

Question 5

Can the donor reclaim the gifted property?

Accepted Answer

The Civil Code allows this in strictly defined cases: if the donor’s subsistence is endangered, if the donee commits serious wrongdoing against the donor, or if an essential assumption known to both parties permanently fails. Forgiving the wrongdoing counts as a waiver.

Question 6

Is guardianship authority approval required if a minor receives the property?

Accepted Answer

No, if the donor reserves a usufruct for himself or herself. However, the parents may represent the child only jointly, and if the donor is one of the parents, the appointment of an ad hoc guardian in his or her place must be requested from the guardianship authority.

Question 7

What does it mean if the donor reserves the usufruct?

Accepted Answer

The donor retains the rights of possession, use and exploitation; the owner may exercise these only to the extent that the usufructuary does not exercise them. The owner may at most enter the property or hand over possession of it with the usufructuary’s permission.

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Legal help for real estate contracts in Hungary.