Notification of professional real estate agent activities

The services of professional real estate agents must be notified to the supervisory authority for real estate agents, and duly registered.

Kulcsszavak: real estate, real estate agent, professional, notification, real estate agency, rental, sale, apartment, premise, plot, residential building

Within their scope of activities, real estate agents perform tasks related to:

  1. brokering the sale and exchange of real estate (building plots, or residential or non-residential property),
  2. brokering the exchange of lease and ownership of residential and non-residential premises,
  3. conduct research and market value appraisals of real estate related to their services,
  4. obtaining and preparing documents and deeds necessary for real estate transactions.

The supervisory authority for real estate agents will register the services of professional real estate agents, if the notifying party:

Any natural person engaging in professional real estate agent activity must be a personally involved member or employee of an entity whose activity relates to the services of real estate brokerage or management, as defined by an up-to-date version of the Hungarian activity classification (TEÁOR).

The economic entity engaging in professional real estate agent activities shall have at least one member, an employee or a worker who is involved in the activities, and is listed in the registry for professional real estate brokers.

Failure to comply with the notification obligation may result in a fine that equals to HUF 50 000, or, in case of a repeated failure, to HUF 75 000.

The notification obligation shall be complied with before taking up any professional real estate brokerage activity. The authority shall examine the application within eight days of receipt of notification, and may issue a certificate for a compliant application, or identifies the shortcomings of a non-compliant notification, and alerts the applicant about the legal consequences of continuing such services without the necessary notification.

To comply with the notification, the following shall be submitted:

a)      a certified copy of the certificate attesting the necessary professional qualification in real estate brokerage,

b)      a certificate (dated within a maximum period of 30 days) issued by and carrying the authorised signature (stamped) of the employer showing that the person is a member, employee or worker of an economic entity that is involved in a range of activities related to real estate agency or management services, as defined by an up-to-date version of the Hungarian activity classification (TEÁOR/NACE),,

c)      a certificate of incorporation in case of a legal person (dated within a maximum period of 90 days), attesting that the range of activities of the economic entity includes real estate agency or management services, as defined by an up-to date version of the Hungarian activity classification (TEÁOR/NACE); for self-employed persons, a certified copy of the certificate of official registration as sole traders,

d)      a notarised document on the lack of any outstanding public debt that is issued by the National Tax and Customs Administration and the competent municipal tax authority according to the notifying party’s domicile or primary place of business.. This document shall be dated within a maximum period of 30 days.

e)      a criminal record extract to prove the absence of any criminal history, and the fact that the notifying party is not banned from practising any profession that would preclude the performance of services in the notification.

The procedural fee of HUF 3 000 shall be paid within the start of the procedure.

The supervisory authority for real estate agents is the city or county clerk with jurisdiction for the place of domicile or primary place of business of the notifying party; that is, in Pest county, the county clerk for local government, and in Budapest the chief clerk of the Municipality of Budapest.

The competent county or municipal government office according to the principal place of business of the acting body/authority.

Preparation of case description: 17 April 2020.

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Act LXXVIII of 1993 on certain rules pertaining to the lease and alienation of apartments and premises

Act LXXVI of 2009 on the general rules on the taking op and pursuit of service activities

Government Decree 499/2017 (29 December) on the conditions and detailed rules of registration pertaining to the professional performance of condominium management, real estate management, real estate agent, and real estate property value assessor and agent

Act CL of 2016 on the Code of General Administrative Procedure

Act XCIII of 1990 on Duties

Government Decree 186/2009 (10 September) on the fines payable in case of failure to register service activities subject to registration, and on the general appointment of authorities performing the supervision of services

Act C of 2001 on the recognition of non-national certificates and degrees

Government Decree 33/2008 (21 February) on the designation of authorities dealing with cases falling within the scope of Act C of 2001 on the recognition of non-national certificates and degrees as well as the list of services subject to declaration

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