In residential property purchases, the sales agreement is prepared by the buyer’s lawyer, who countersigns the agreement and handles the legal side of the transaction. A notary may also become involved later, most commonly during the mortgage process or when additional notarised declarations are required.
What The Lawyer Does
As a first step, a good lawyer will always check the title deed, which shows:
- who owns the property
- whether there is a mortgage
- usufruct rights
- enforcement proceedings
- or other legal restrictions connected to the apartment
This is often where hidden complications first appear, particularly with inherited properties, multiple owners or existing loans connected to the property.
If all is in order with the title deed, and the buyer/their client is happy to proceed, the lawyer will then commence to:
- prepare the sales agreement, which amongst other things, sets out the payment schedule and terms and conditions of the purchase
- countersign the contract infront of both the buyer and the vendor
- submit documents to the Land Registry
- assist the buyer communicate with the bank if mortgage financing is involved
What The Notary Does
A notary does not represent the buyer or seller in the same way a lawyer does.
In property purchases, notaries are most commonly involved when mortgage financing is used. Banks often require certain loan documents and declarations to be signed before a notary before financing is released.
Notaries may also prepare:
- debt acknowledgement documents confirming repayment obligations connected to the mortgage
- move-out declarations confirming when the apartment must be handed over after the sale
- payment declarations connected to agreed financial obligations
- and other notarised documents required by the bank or connected to the transaction
One of the main advantages of notarised documents is that they can sometimes make enforcement significantly faster if payment or move-out obligations are not respected later. In certain situations, enforcement may begin without first starting a separate lawsuit to prove the obligation itself.
When Both Are Used In The Same Purchase
Many financed apartment purchases involve both a lawyer and a notary. The lawyer prepares the sales agreement and manages the property transfer itself. The notary prepares specific mortgage or declaration documents required by the bank or agreed by the parties.
The two roles are connected, but serving different functions.
A Simple Example
A buyer agrees to purchase an apartment using mortgage financing.
The lawyer checks the title sheet, prepares the sales agreement, confirms the payment schedule and submits the documents needed for Land Registry registration.
The bank then requires certain loan documents to be signed before a notary. The seller may also ask for a notarised move-out declaration confirming when the apartment will be handed over after payment is completed.
If the agreed handover date later passes and the seller refuses to leave the property, the notarised declaration may allow enforcement to begin faster than a normal lawsuit.
In this example, the lawyer handles the property purchase itself, while the notary prepares specific official documents connected to the mortgage and handover arrangements.
Why The Contract Matters
A property agreement in Hungary usually covers more than the purchase price.
It usually also includes:
- payment deadlines
- mortgage financing steps
- deposit terms
- move-out timing
- handover conditions
- existing loans
- and ownership restrictions connected to the property
The agreement defines how the purchase itself will be completed.
The Deposit Should Be Clearly Defined
Buyers and sellers should clearly understand whether money paid at the beginning is an advance payment or a deposit.
An advance payment is generally returned if the transaction does not proceed.
A deposit works differently. If the buyer causes the transaction to fail, they may forfeit the deposit. If the seller withdraws improperly, they may need to repay double the amount of the deposit.
Both advance payment and deposit document agreements should clearly state:
- what payment was made
- under what conditions
- and what happens if the sale does not proceed
The Simple Version
A cash purchase involving a vacant apartment with clear ownership is usually simpler than a purchase involving:
- mortgage financing,
- inherited ownership,
- usufruct rights,
- multiple owners,
- or existing debt connected to the property.
As the ownership structure or financing becomes more complicated, proper legal preparation becomes far more important.