Inheriting Real Estate: Probate Procedure & Duty

The loss of a loved one is in itself an extremely challenging period, which the administrative and legal tasks associated with the probate procedure often make even harder. In my experience, many heirs stand bewildered before official letters, are unfamiliar with deadlines, and worry about the amount of inheritance duty to be paid. As an attorney, my goal is to lift these legal burdens from your shoulders during this difficult time, assist you in the smooth conduct of the probate procedure, and ensure that the registration of ownership rights and asset distribution are resolved in the most favorable manner for you.

The Legal Background of Inheritance and the Probate Procedure

Under Hungarian law, the inheritance process and the probate procedure are governed by three primary pieces of legislation. The schedule of the probate procedure is established by Act XXXVIII of 2010 on Probate Procedure (Heth.), clarifying the responsibilities of the municipal notary (jegyző) and the notary public (közjegyző). Substantive inheritance law issues – such as the circle of heirs, the validity of a will, or the forced share (kötelesrész) – are regulated by the Hungarian Civil Code (Ptk.) starting from Section 7:1. Finally, the duties potentially payable after acquiring assets are determined by Act XCIII of 1990 on Duties (hereinafter: Duties Act / Itv.). I must emphasize that the probate procedure does not start in court, but takes place before the local municipality and the competent notary public.

The Step-by-Step Probate Procedure in Practice

Notification of Death and the Estate Inventory

The process begins officially (ex officio) when the registrar notifies the municipal notary of the mayor's office at the deceased's last place of residence. Subsequently, the estate administrator obtains the necessary data and is required to compile an estate inventory if the deceased left real property. As part of the inventory, the municipal notary requests the competent tax and valuation group to issue a tax and valuation certificate (adó- és értékbizonyítvány), which records the official market value of the property.

The Notary Public Phase and the Probate Hearing

Once the municipal notary closes the inventory, the complete file is sent to the competent notary public. The notary public sets the date for the probate hearing and summons the heirs, as well as the beneficiaries of any will. At this hearing, the heirs may declare their acceptance or rejection of the estate, or they may conclude a partition agreement (osztályos egyezség), in which they can divide the assets differently from the statutory order of intestate succession.

Transfer of the Estate and Registration

At the end of the procedure, the notary public issues the estate transfer decree (hagyatékátadó végzést). This document certifies the heirs' acquisition of ownership. Once the decree becomes final, the notary public sends it ex officio to the competent land registry office, which registers the transfer of ownership in the property register. The heir does not need to submit a separate application to the land registry, but must pay the administrative service fee for the registration.

Inheritance Duty on Real Estate: When Do We Have to Pay?

Under Hungarian law, the general rate of inheritance duty is 18% of the net value of the estate, but when inheriting residential property and its associated rights in rem, a discounted rate of 9% applies.

However, Hungarian legislation is extremely favorable toward the immediate family: the surviving spouse, direct-line relatives (such as children, grandchildren, parents, grandparents), and siblings of the deceased inherit completely free of duty, regardless of the value of the property. Consequently, a duty payment obligation only arises for more distant relatives (for example, cousins, cohabiting partners) or outsiders inheriting under a will, who must pay the 9% duty on the market value of the residential property. In the case of a minor heir, the law provides a further benefit by granting an interest-free deferral of the duty payment for up to 2 years from the date they reach the age of majority.

Frequently Asked Questions About Real Estate Inheritance

What should be done if a dispute arises among the heirs at the hearing?

If the parties cannot agree at the probate hearing and no partition agreement is reached, the notary public transfers the estate on a temporary basis according to the statutory order of intestate succession. The disputed issues must then be settled by the heirs in court within the framework of an inheritance lawsuit. In such cases, I highly recommend attorney representation to facilitate an agreement.

Can we sell the inherited property before the probate decree becomes final?

We cannot conclude a final sale and purchase agreement without registering the ownership rights in the land registry, so we must wait for the final estate transfer decree. At the same time, there is no obstacle to concluding a preliminary agreement (előszerződés) with the prospective buyer, recording the intent to purchase and the performance deadline after the conclusion of the probate procedure.

What happens if the deceased also had debts alongside the real estate?

Under the Hungarian Civil Code, the heir is generally only liable for estate debts up to the value of the estate assets and their fruits (known as cum viribus liability). If the estate is heavily encumbered and the debt exceeds the value of the property, the heir has the right to reject the estate in its entirety during the probate procedure, thereby becoming exempt from paying the debts.

How Can I Assist You?

Inheritance matters and probate procedures can create complex family and legal situations. I undertake the drafting of partition agreements, the preparation of arrangements between heirs, representation before the notary public, and the professional drafting and deposit of wills.

Biztosítsa a hagyaték békés és jogszerű átadását! Lépjen kapcsolatba irodámmal, és segítünk a teljes eljárás során a jogi biztonság megteremtésében. Kérjen időpontot konzultációra ide kattintva!