Legal and Institutional framework for land and real estate property markets in Hungary András Osskó COST Workshop SOPRON, Hungary October 2003

INTRODUCTION Land administration infrastructure is one of the most important pillars supporting the well operational land and real estate property markets in developed countries And basic requirement to establish active land and real estate property market in transition and developing countries No sustainable development without sound land administration ( Bathurst Declaration) Land administration „ the process of determining, recording and disseminating information about ownership, value and use of land when implementing land management policies „ UNECE land administration guidelines„

LAND markets in Central Europe study /R. Baldwin/ Conditions needed for land and real estate markets to work clear definition and sound administration of property rights a minimum set of restrictions on property usage consistent with common goods the transfer of property rights must be simple and inexpensive there should be transparency in all matter capital and credit must be available

THE LAND markets is made up of the following elements The legal basisthe rules of the game The regulating institutionsland administration (land registry, cadastre, Valuation, spatial planning, building regulation, land consolidation ) Taxation, financial institutions The participantsthe land owners and tenants The goods and servicesthe land and its use The financial instrumentsmortgages, credit, capital revenue generation, Tax raising

Legal and institutional framework for land and real estate property market activities in Hungary Legal frameworkland law Land registry law Land surveying and mapping law Land consolidation law Building law Property taxation Expropriation law

Existing lawsland law, land registry law,land surveying and mapping law, Building law, expropriation law Not existing lawland consolidation law, overall property taxation LAND law on agricultural land Regulating acquisition of ownership Using of agric land Land lease Land consolidation Protection of agric land

Land registry law (on land and property registration) This Act defines the rules of computerised land and property registration The land registry contains data, specified by law, of all land and real estate properties in the country by settlement, rights related to land and property and other legally material facts

Land surveying and mapping law The aim of this Act is to define the state responsibility on the field of land surveying and mapping furthermore to regulate the conditions and rules for the land surveying and mapping activities –Establishment and maintenance of control point network –cadastral mapping _ topographic mapping _ basic map data service

BUILDING law -spatial planning -town planning -building construction regulation - subdivision regulation - protection of built up area expropriation law Condominium law

INSTITUTIONAL FRAMEWORK Land registry and cadastre are the most important institutions within land administration There is Unified Land Registry system in Hungary, integration of legal registry and cadastre on legal basis and institutional level Multipurpose nature of registry system The Unified Land Registry system serves legal and economic purposes –the legal aim the security of tenure of land and real estate properties –economic aims to provide basic information for economic planning, taxation, mortgaging and collecting statistical data for users

REGISTERED Properties Land parcels Buildings Condominiums (flats,apartments, others ) All land and real estate properties in the country have been registered Land lease registration is a separate registration, there is a link with the land registry data base

THE LAND REGISTRY CONSISTS 1, property sheets 2, cadastral maps 3, archive of documents

PROPERTY SHEET Property sheet is the legal document of properties, contains 3 parts I. descriptive part Name of the settlement, location of the land (urban-agric), parcel number, area, street name and number In case of agric land additional information : cultivation, soil quality, value of the land ( golden crown) and other data

II. ownership information Name(s) of the owner with the date and type of acquisition of the property Address of the owner (s), personal ID number III. other rights and facts related to properties ( specified by law ) Usefruct and right of use, easements, restrictions, mortgage, preemptive rights and others There are 19 facts which can be registered

CADASTRAL MAP Name of the settlement, index of map sheet, administrative boundaries (state, county, settlement, zoning ) boundaries of parcel, parcel numbers, buildings and other structures, street names and numbers. In case of agric land : sub parcel, cultivation, etc.

INSTITUTIONAL NETWORK Ministry of Agriculture and Rural Development, Land and Mapping Department Supervising authority, responsible for managing, supervising Land Office institutional network LAND OFFICE network 116 District Land Offices 19+1 County Land Offices

District Land Offices- first instance authority Responsible to register legal and cadastral mapping changes, maintenance of legal and mapping data Data service Registration of land lease Land protection

County Land Office- second instance authority Responsible for managing and supervising district land offices Certifying of new cadastral maps IT support to district land offices INSTITUTION of Surveying and Remote Sensing- professional background institution Establishment and maintenance of control point networks Topographic mapping IT support Remote sensing Professional support to the supervisory authority