Preparing for the New Electronic Land Registry in Hungary (E-ING)

Why the New E-ING System Matters: Secure Property Ownership for Golden Visa Investors

Secure and verifiable property ownership is essential for Golden Visa applicants seeking to establish a stable investment in Hungary. The new electronic land registry (E-ING), launching on January 15, 2025, brings significant advantages that align with the requirements for foreign investment in Hungary’s national economic interests.

As a guest investor, you can acquire property valued at €500,000 or more. This property will be registered within a cutting-edge digital system that provides:

• Enhanced Security: The E-ING system uses multi-layered digital protections and real-time database mirroring, reducing risks associated with traditional record-keeping.
• Increased Transparency: The unified digital platform provides immediate, accurate property records accessible to investors and legal representatives, ensuring that all transactions are traceable and safeguarded.
• Reliable Ownership Verification: Even amid potential cybersecurity concerns, the E-ING system incorporates provisions for paper deed backups and emergency protocols to guarantee uninterrupted access to property ownership records.

By integrating these advanced features, Hungary ensures that property ownership remains secure and transparent, meeting the high standards expected by international investors and supporting their long-term commitment to the country’s economic landscape.

What to Expect with the E-ING System

The E-ING system will bring about a fully electronic administration process, where property registration applications are submitted and processed digitally. While paper-based procedures will still be available for a transitional period, they are expected to phase out within six months.

Key features of the E-ING system include:

• Automated Decision-Making: For straightforward transactions, legal representatives can apply on behalf of their clients, and decisions may be processed automatically.
• Integrated Database: Real-time data updates will enhance the accuracy and accessibility of property information.

Paper-Based Sale and Purchase Contracts Remain Valid

Despite the shift to digital records, paper-based real estate sale contracts will remain valid. Real estate lawyers can still draft contracts in paper form, converting them to digital versions as required. This ensures that clients have an original document while lawyers retain a paper copy as a backup, providing a sense of security amid the digital shift.

Mandatory Training and Examination for Legal Professionals

To participate in the E-ING process, attorneys must undergo mandatory training and pass an assessment. This training covers theoretical and practical aspects, equipping legal professionals to handle electronic property registrations competently.

Training Requirements:

• Theory and Practice: Training includes two hours each for legal and system theory, as well as hands-on practice in the E-ING system.
• Assessment: To pass, candidates must achieve an 80% score in the theoretical section and a 100% score in practical exercises. If unsuccessful, candidates may retake the exam before February 1, 2024.
• Liability Insurance: Attorneys must carry a minimum liability insurance coverage of 50 million HUF.

The bar association offers e-learning modules and in-person sessions. Examination locations and schedules are determined by the bar, and legal professionals are expected to use their own devices.

Ownership Deeds: Digital and Physical Copies

Contrary to some recent rumors, property owners will not lose access to physical copies of their deeds. The Property Registry Act permits the issuance of paper deeds even as digital records become standard.

Property owners may request:

• Summary Deed Copy: Reflecting current rights and facts.
• Full Deed Copy: Including historical data.
• Agricultural Land Deed: Providing specific details for agricultural properties.

Emergency Protocols for System Failures

In the unlikely event of a system outage, paper-based application submissions are permitted. This contingency ensures that property rights are safeguarded, even during technical difficulties.

Authorization Requirements: Moving to Digital

Under the E-ING system, authorization for property transactions, such as buying or selling on behalf of another party, must be submitted digitally. This shift eliminates paper-based authorization forms, replacing them with electronic documents authenticated by digital ID.

For property transactions conducted abroad, authorization must now be registered digitally by a Hungarian notary. This change aims to standardize and secure the property transaction process.

Security and Efficiency in Digital Property Records

The E-ING system has been extensively tested to ensure data security and operational reliability.

The digital transformation of the property registry is designed to:

• Increase Efficiency: Speeding up administrative tasks.
• Enhance Data Access: Real-time updates in the unified database.
• Strengthen Data Security: Features such as database mirroring minimize risks of data loss.

While this shift raises concerns, particularly around cybersecurity, the system’s multi-layered security measures, including paper-based backups, ensure that digital records are resilient against potential threats.

Important Dates to Remember

• October 1, 2024: Bar Association opens applications for attorney rights in the E-ING system.
• January 15, 2025: Official launch of the E-ING system and the digital land registry.

As the E-ING system rolls out, we encourage property owners and legal professionals to stay informed about these changes. At Illés and Szabó Lawyers Association, we are prepared to assist our clients with all aspects of the new property registration process, ensuring a smooth transition to digital property records while maintaining the security of their property rights.

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