HUNGARY Law and Practice Contributed by: Attila Ungár and Júlia Várkonyi, Lakatos, Köves & Partners
porated into a notarial deed is available. In the event of default, the notary must attach an enforcement clause to the eviction declaration, on the basis of which the bailiff will force the tenant to leave the property. The enforcement procedure generally takes about six months. 6.22 Termination by a Third Party According to the Act on Bankruptcy Proceed - ings and Liquidation Proceedings (Act XLIX of 1991), the liquidator may terminate contracts concluded by the debtor with immediate effect, except for leases of natural persons for residen - tial properties. According to judicial practice, damage claims or compensation due to the ter - mination may not be asserted. 6.23 Remedies/Damages for Breach In the case of early termination due to the ten - ant’s breach, it is standard that the tenant must pay rent (and service charge) for the remaining term; however, in practice it is rare that land - lords request or could enforce such payment for longer than 6–12 months. The actual payment request also depends on the incentives (rent- free period, fit-out contribution, etc). Landlords are interested in re-letting the property as soon as possible at least on the previous rent level, so the tenant is required to cover the period until rent income is ensured from a new tenant, which is primarily covered by the security provided by the tenant at the start of the lease. Landlords may enforce statutory liens on assets owned by the tenant located within the leased premises, but this is often challenged by the ten - ant. Landlords may request the issuance of a payment order to the tenant by the notary pub - lic – ie, if the tenant fails to dispute the request within the statutory deadline, the landlord’s pay - ment request becomes enforceable (if the ten - ant disputes the payment request, the process
may be continued before the civil court). It is also an option to enforce claims by initiating a liquidation procedure against the tenant, but this is not a standard route, as it requires effort from the landlord and the settlement of claims is not ensured. Please see 6.16 Forms of Security to Protect Against a Failure of the Tenant to Meet Its Obli- gations regarding security deposits. 7. Construction 7.1 Common Structures Used to Price Construction Projects Construction contracts typically set out a fixed contract price for the scope of work covered (ie, the contract price is determined before the fulfil - ment of the work). Unit/itemised prices are also commonly used, which means that the contrac - tor is paid based on the effective fulfilment (ie, the contract price is determined following the fulfilment of the work. 7.2 Assigning Responsibility for the Design and Construction of a Project If a separate architectural services firm is involved, such firm (designer) will usually be responsible for obtaining the building permit, while the general contractor is responsible for the construction and obtaining the occupancy permit. Engineering, procurement and construction (EPC) agreements under which the contractor is responsible for both design and construction are also widespread. In the case of EPC agree - ments, the contractors undertake higher respon - sibility for budget, milestones/completion dead - lines and quality/remedying defects.
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