tag: real estate

Construction trusteeship works, except when it doesn’t

Levente Bihari | 30 October 2018

With almost ten years of hindsight we can safely say that although the construction trusteeship system created to prevent circular debt in the construction industry has essentially lived up to expectations, the system still has some unresolved flaws. What’s more, the taking effect of the new Civil Procedure Code  this January will present a further challenge for the system.

Separating the titles of land and buildings – what is the point?

Levente Bihari | 20 November 2017

Under a less-known rule of the new Civil Code it’s now possible for a property owner to separate the titles to a plot of land and the buildings built on it, and to manage or commercially exploit these as separate properties. Businesses are taking a cautious approach to making use of this opportunity in practice: although splitting titles can make property development or borrowing more flexible, for the time being legal uncertainties are preventing it from becoming more widespread.

Performance Certification Expert Board grows in stature – but some legal pitfalls remain

Levente Bihari | 2 August 2017

The Performance Certification Expert Board (PCEB) is playing an increasingly important role in disputes between construction-industry firms. Nevertheless, a few legal questions relating to the PCEB remain to be clarified, including that of for how long an expert opinion issued by the organisation can prevent the enforcement of contractual security (e.g. a bank guarantee). Until this issue is resolved, a party to the dispute that would otherwise possess legitimate security could be put at a disadvantage.

‘Au naturel’, or packaged within a company? – The dilemmas of buying property

Ákos Baráti | 10 November 2016

Back in the day, buyers and sellers were better off selling shares in a company with possession of the property, rather than the property itself; but over the years, legislators have chipped away steadily at the benefits of acquiring property through a company purchase. Contrary to common belief, however, buying real estate through a company can still bring a number of tax advantages; and the range of these is set to expand from January of next year.

Luxembourg is deleted from the map of Hungary

István Csővári | 28 October 2015

The recent amendment of the Luxembourg - Hungary double tax treaty will result in a sharp decrease of Luxembourg-based schemes for Hungarian real estate transactions. Those groups which currently use such schemes for holding their Hungarian real estates will need to react fast.

A lease may not always be a lease for VAT

Tamás Fehér | 16 March 2015

Lease services often lead to uncertainty from a VAT perspective. Some services which seem like lease at first glance do not meet the criteria for “lease” for VAT purposes. The improper classification can lead to surprises: on the one hand the lessor’s deduction right can be challenged, on the other hand a seemingly VAT-exempt transaction could trigger VAT liability. A recent ECJ decision will set standards for these situations.

Can I be certain that I acquired the property?

15 October 2014

Before purchasing a real property it is obvious that the purchaser examines whether the seller is the registered owner of the property and whether the title deed lists any encumbrances relating to the property. If, however, the investigation stops at this point and does not cover the transaction on the basis of which the seller acquired the property, the purchaser may face some unpleasant surprises.

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The law is constantly in flux. While many people may find this intimidating, for us it’s precisely what makes it so exciting. We’d like to share this attitude with businesspeople and managers, and with those who just have an interest in business law, in the form of a regularly updated blog that discusses the latest tax law and commercial law issues in an accessible style. Feel free to send your questions and suggestions for topics you’d like us to cover to blog@jalsovszky.com.

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