The lease contract

In order to apply for Permanent / Interim / EU residence card at the National Directorate-General for Aliens Policing one needs to attach a proof of having accomadation in Hungary. If the real property is rented by the applicant it needs to be documented in a lease contract. Registration of accomodation for foreigners can be done either personally in the Regional Offices of the National Directorate-General for Aliens Policing or either online via enterhungary.gov.hu

The lease contract needs to be:

- a written and printed document, signed by the lessee and the lessor. If two witnesses sign it the doucument will be a private document with full probative value. The witnesses shall have their names on it with their addresses and signitures.

- the contract shall contain both the landlord’s and the tenant’s data. In order to avoid any further complications, the lessee is eligible to check the lessor’s indentity by asking for his / her ID card, driver’s licence or passport to make sure that the person who lessee is entering in contract with is the one entitled to dispose of the property.

- the contract may also be prepared and signed by the notary public meaning that it’s status will be automatically recognised as a public deed. In any case of terminating the contract with cause or for convenience and the tenant is not willing to leave the apartment, the landlord may ask for eviction directly does not need to initiate a civil action for evacuating the apartment first.

- before entering into a contract it is advisory to have the real property’s status checked in the Land Registry. Either in person in the Land Register Office or online via the Client Portal. Twice a year it is free of charge to ask for an authentic Abstract of Title. Following that a non-authentic Abstract of Title cost 1000 HUF, an authentic cost 3600 HUF. The real property’s Abstract of Title is divided into three parts. On the top there is the topographical number of the real property with its exact address and with the marginal note if there is any. The marginal note would indicate if there is any document handed in accordance with the real property (eg. sales contract) but has not been judicated yet. The description of the property is also indicated in the first part. Important to note: guarantees protecting the lessee regarding residential lease in the Act on Housing refer only to apartments.

The second part of the Abstract of Title shows the owners and the beneficial users of the property. The third part indicates the encumbrances of the property. (Eg.: benefical interest, claim, lien, foreclosure.) It does not neccessary mean a problem but important to know these facts in case of a long-term contract. 

Elements of the lease contract:

- Data of the Parties

- The exact location of the real property (address, topographical number, floor space, number of rooms)

- if the contract is for a definite or indefinite term

- security deposit

- the amount of the rental fee, due date of payment

- utility meter positions (water, gas, electricity)

- regulations of termination for convenience

- regulations of termination with cause

- agreement on expenses born by the lessee incorporated in the rental fee

- third party in the property

- any other regulation which has importance for the contracting parties