Protection of Local Identity – What Obligations Can the Municipality Impose Upon Settlement?

Protection of Local Identity – What Obligations Can the Municipality Impose Upon Settlement?

 

 

Who is considered a settler?

A natural person who does not own property, have a place of residence, or a place of stay in the municipality, and who intends to acquire property or establish a residence there.

 

1. What regulations may municipalities adopt?

According to the Hötv., municipalities may adopt decrees concerning the use of property and personal protective measures. Property-related measures apply to transactions involving real estate (in particular, the right of pre-emption), while personal measures concern restrictions on settlement in the municipality, such as prohibiting or making residence registration conditional, or requiring a settlement contribution.

Let us first examine the right of pre-emption. This provision is relevant if the property is to be purchased by a settler or a person not exempt from the rule.

  1. Primarily, the local government or a company owned by it is entitled to exercise the right of pre-emption. If it does not exercise this right…
  2. then the owner of the adjacent property is entitled to do so. If this right is also not exercised…
  3. then any other property owner within the municipality may exercise it.

The applicable deadline rule is as follows: a 30-day forfeiture period.

The time limit for making a declaration starts on the day following direct notification or publication of the contract. Failure to make a declaration within this period is deemed a waiver of the right of pre-emption.

In the case of personal protective measures, the decree must not violate human dignity, the prohibition of unjustified discrimination, or the requirement of equal treatment.

The law also mentions the settlement contribution, the application and amount of which are determined by the municipality.

2. Who is exempt from prohibitions, restrictions, and conditions?

The Hötv. provides an exhaustive list of exemptions:

a) relatives of a person who has a residence or property in the municipality, as well as persons whose place of origin is the municipality;

b) those who prove or at least make it probable that within the first ten years after birth, they or a relative lived in the municipality for at least twelve months;

c) state or municipal employees – including employees of companies majority-owned by the state or a municipality – who move to the municipality for the purpose of performing their work;

d) persons not covered by point c) who prove that the purpose of their settlement is to engage in gainful activity in the municipality;

e) those acquiring property with state housing support;

f) employees of a church or ecclesiastical legal entity;

g) students of public or higher education institutions operating in the municipality;

h) persons living in a religious, healthcare, sports, social, child and youth protection, or penitentiary institution located in the municipality;

i) close relatives of persons meeting the conditions specified in points a)g).

The municipality may grant these exemptions in three ways: 1. without a procedure, 2. through a simplified procedure, or 3. through an individual procedure. In the case of a simplified procedure, the municipality verifies compliance with an objective settlement condition or endorses the applicant’s request with an authorization clause. In such cases, the applicant must submit the documents required by the municipality to prove compliance with the conditions.

à The rules on exemptions also show that prohibitions, restrictions, and conditions do not apply to settlers who purchase property under the Family Housing Benefit (CSOK) or the Home Start Program.

3. What might the procedure look like in practice?

According to the Hötv., the procedure can only be initiated upon application, which may also be submitted jointly with a close relative of the person intending to settle. The application is assessed by the representative body, but this competence may be delegated to a committee or, in the case of a simplified procedure, to the notary. The applicant must present all circumstances and documents required by the municipal decree. The administrative time limit is 30 days, which may be extended by an additional 30 days. However, during the procedure, it may be necessary to prove compliance with the prescribed conditions.

4. Is there an alternative if I do not meet all the conditions?

The municipality may also provide for a discretionary decision-making power in its decree. If a settler does not meet certain objective or discretionary conditions, but there are equitable reasons supporting settlement, the representative body may decide to grant permission to settle.

5. What are the consequences of unlawful settlement?

The law provides for three types of legal consequences: the nullity of the legal transaction underlying the acquisition of the property, the cancellation of the address registration, and the imposition of a fine. Therefore, serious legal consequences may arise if someone fails to comply with the provisions of a municipality, so it is advisable to check the municipality’s website to see whether a decree on the protection of local identity has been adopted and what specific requirements it contains.

Contact us if you have questions about this topic or any other real estate law matter!

Olvassa el szakmai blogunk bejegyzéseit

Szakmai blogunkban gyakran előforduló jogi eseteinkbe engedünk bepillantást

Significant Changes in Consumer Protection in 2026

Significant Changes in Consumer Protection in 2026

Government Decree No. 415/2025 (XII. 23.) on the amendment of consumer protection–related government decrees with a view to ensuring a higher level of consumer protection introduces substantial changes in the field of consumer protection as of 2026.

In this article, we briefly summarise those amendments which will be perceptible to consumers in everyday life and may be of particular practical importance from 2026 onwards.

Government Decree No. 415/2025 (XII. 23.) amends a total of six government decrees related to consumer protection.
The objectives of the amendments are, on the one hand, to strengthen consumer protection and, on the other hand, to reduce the administrative burden on businesses, while also ensuring compliance with EU law and legal harmonisation.

Tovább olvasom
Important Changes in 2026 for Those Planning to Build

Important Changes in 2026 for Those Planning to Build

Government Decree No. 448/2025 (XII. 29.) amends Government Decree No. 327/2015 (XI. 10.) on the detailed rules of professional practice related to surveying and cartographic activities for non-cadastral purposes by introducing a new concept and new rules. These amendments will enter into force on 14 January 2026.

The most significant change is the introduction of the concept of the planning base map, the preparation of which now mandatorily requires the setting out of the property boundary.

In practice, the new regulation aims to ensure more uniform, more accurate and, from the perspective of the planning process, more reliable base maps, which may help prevent future conflicts and legal disputes. At the same time, the additional requirements are likely to slow down procedures and increase costs, and stakeholders should be prepared for this impact.

Tovább olvasom
New Rules on Freight Traffic and Transit Routes as of 1 January 2026

New Rules on Freight Traffic and Transit Routes as of 1 January 2026

What Do Carriers and Affected Businesses Need to Know?

On 23 December 2025, two new pieces of legislation affecting public roads and freight traffic were promulgated, both of which entered into force on 1 January 2026. The primary objective of the new regulatory framework is to ensure that international and domestic transit traffic is conducted along uniform, legally designated routes, primarily using high-capacity dual-carriageway (2×2 lane) road networks. The regulation serves both to enhance road safety and to reduce the burden on residential areas and secondary roads.

The two relevant legal instruments are: 

  • Decree No. 44/2025 (XII. 23.) of the Ministry of Construction and Transport (ÉKM), aimed at defining the Hungarian sections of the transit route network; and

  • Government Decree No. 439/2025 (XII. 23.), aimed at curbing freight traffic diverted from expressways.

Tovább olvasom
Regulation of Advertising and Commercial Communications in the Influencer Sector

Regulation of Advertising and Commercial Communications in the Influencer Sector

Opinion leaders, commonly referred to as influencers, have become key actors in modern communication as a result of the rapid expansion of the internet and social media.
The development of digital technologies, the widespread use of smartphones, and the global proliferation of social media platforms—such as Facebook, Instagram, YouTube, TikTok, and Twitch—have fundamentally transformed users’ content consumption habits, as well as their entertainment and purchasing behaviours. As a consequence, influencer marketing has emerged as one of the most significant and fastest-growing tools of the modern advertising market.

By way of an interesting observation, it should be noted that, from a legal perspective, the category of influencers is not limited to natural persons acting as opinion leaders. An influencer may also include a CGI or deepfake character, an animal, or even an object.

The rapid growth of this phenomenon and the intermingling of personal and commercial content on social media platforms primarily justify the need for regulation in this field. For consumers—particularly audiences younger or older than the average user—it is often not clear whether an influencer’s recommendation is based on a paid collaboration, the provision of a gifted product, or another form of material interest.

Tovább olvasom
Division of Increase in Assets Between Cohabiting Partners and Allocation of Residential Use in Current Hungarian Legal Practice

Division of Increase in Assets Between Cohabiting Partners and Allocation of Residential Use in Current Hungarian Legal Practice

The Hungarian Civil Code recognises the existence of a domestic partnership in two distinct forms. It sets forth the institution of marriage, which several legal scholars have described in elevated terms as an “emotional and economic alliance,” and it also provides for the possibility of living together without entering into marriage, in the form of a cohabitation (élettársi kapcsolat). The law strictly characterises this latter form as an obligational legal relationship, regulated under Title XXV of the Book on the Law of Contracts.

Tovább olvasom
International connections

International connections

in 100+ countries

Extensive experience

Extensive experience

in litigation disputes

Quick response

Quick response

you can count on us even in urgent situations

  • Comprehensive services in the establishment, amendment, and transformation of business entities, as well as legal representation in liquidation, bankruptcy, and insolvency proceedings.
  • Empathetic and well-founded legal support in matters of divorce, division of assets, child support, child custody, parental responsibility, paternity, and guardianship.
  • Expert legal drafting and execution of real estate sales and purchases, gifts, leases, as well as development and investment agreements.
  • Prompt and precise legal services in connection with information technology contracts, data protection, and software-related matters.
  •    
  • Effective advice and representation to both employers and employees in connection with employment contracts, internal policies, and employment disputes.
  •    
  • Comprehensive legal assistance in drafting wills and inheritance contracts, examining their contestability, and representation in probate proceedings and enforcement of inheritance claims.
  •    
  • Strong representation in litigation proceedings across a wide range of legal fields to protect and enforce our Clients’ interests.
Address

Address

H-1136 Budapest, Balzac u. 37. mf. 2.

Phone Number

Phone Number

+36 (1) 786 66 07 / +36 (70) 381 22 22

E-mail

E-mail

office@hsloffice.com