tag: real estate

Recently an increasing number of market players operating under the mandatory off-take regime (KÁT) have taken the opportunity to sell their renewable energy in the free market and thus, due to the current favourable market situation, sell their electricity at a much higher price than the subsidised price paid by the state. This flexibility, however, has disappeared overnight.

Two weeks ago, almost on the sly, a legislative amendment was adopted that could solve one of the “hit problems” of the real estate market: the complicated process of selling parking spaces in a condominium building. The changes came into force on 2 May, so it is now up to market players to put the new provisions into practice.

Implementing private property investments using company assets is slowly becoming a national sport. While the approach seems tempting, it carries a lot of risk. And the tax authority, NAV, has this type of arrangement firmly in its sights.

There are many factors to be considered when determining the value of a property. Among many other things, features such as the view from the property or the natural light that enters the interior cannot be left out of account. It’s clear, then, that the sunset at Lake Balaton from our window adds a lot to the property, but it’s often unclear what we need to focus on before and during the building stage if we’re to avoid attracting the ire of our neighbours later on.

2021 could greatly simplify the parcelling of jointly owned arable land. Also, the new rules will settle the status of land registered in the name of unidentifiable owners. At the same time, a clearer and more transparent title structure could not only enhance farming efficiency but also boost greenfield investments.

VAT can cause a lot of complications when it comes to interpreting our regular contracts. Does the purchase price include VAT if the parties have not explicitly stated so? Should a guarantee withholding be made from an amount that includes VAT? Does the stamp duty need to be paid on the gross or the net price of the property? These questions are particularly timely in light of the recent reduction in the VAT rate on newbuild homes: who stands to benefit from this – the builder or the apartment buyer?

So far, it has been relatively easy for neighbours and other stakeholders to challenge the building permit of a major development project during the licensing process. This situation created major potential for extortion for these individuals. However, with the amendment of the building regulations, which came into effect on 1 March, this vulnerability would appear to have been eliminated.

The challenge to mitigate climate change is now present in every industry, and not surprisingly in the construction sector as well. Yet the building regulations adopted for this purpose often give rise to controversy and, in many cases, pose a serious challenge to participants in the domestic real estate market.