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Hungary

Third-party costs in security interests in Hungary

Hungary

1. Is notarisation required and are fees payable? 

Generally, notarisation of security agreements is not required, but is highly advisable to ensure fast-track way of enforcement of secured liabilities.

Notarisation or countersigning of real estate mortgage agreements by a lawyer is required for the purposes of registration in the land registry. Same formality requirements apply in relation to agreements on creation of prohibition of alienation and encumbrance over real properties.

Notary fees range between HUF 1,000 (approx. EUR 3) and HUF 50,000,000 (approx. EUR 150,000), depending on the amount of the secured liabilities, plus additional costs if the agreement is in the English language.

2. Do the following securities / deeds require to be registered in the Local Property Register and what fees are payable? 

2.1 Real estate mortgage 

Registration is required in the local Property Register. Registration fee is HUF 12,600 (approx. EUR 40) per property.

2.2 Option over real estate 

Registration is not required for the validity and enforceability of the option agreement, however is necessary to ensure that the option right is effective vis-à-vis third parties. Registration fee is HUF 6,600 (approx. EUR 20) per property.

2.3 Prohibition of alienation and encumbrance 

Registration is required in the local Property Register. Registration fee is HUF 6,600 (approx. EUR 20) per property.

No other type of security interests need to be registered in the local Property Register.

3. Do the following securities / deeds require to be registered at the local Registrar of Companies and what fees are payable? 

3.1 Pledge over business quotas in limited liability companies (Kft.) 

Registration is required in the local Registrar of Companies. A fixed fee of HUF 18,000 (approx. EUR 60) is payable.

No other type of security interests need to be registered in the local Registrar of Companies.

4. Do the following securities / deeds require to be registered at any other local register and what fees are payable?

4.1 Pledge over bank accounts 

Registration is required in the Security Register. A fixed fee of HUF 7,000 (approx. EUR 20) is payable.

4.2 Pledge over moveable assets 

Registration is required in the Security Register. A fixed fee of HUF 7,000 (approx. EUR 20) is payable.

4.3 Pledge over rights and receivables 

Registration is required in the Security Register. A fixed fee of HUF 7,000 (approx. EUR 20) is payable.

4.4 Pledge over Hungarian IP rights

Registration is required with the Hungarian Intellectual Property Office. A fixed fee of HUF 16,500 (approx. EUR 55) is payable.

Please note that while the information on this page was current and accurate as at 31/8/16, it may no longer be current or accurate and so you must speak to your local CMS Banking contact if you require confirmation of any of the costs or fee levels as at today’s date!