HUNGARY Law and Practice Contributed by: Attila Ungár and Júlia Várkonyi, Lakatos, Köves & Partners
landlords may enforce the eviction declaration provided to them by the tenant. 6.18 Right to Assign a Leasehold Interest Generally, tenants may sublease or assign the use of the leased premises to a third party with the prior written consent of the landlord. A com - mon exception in commercial leases is sublet - ting to a company that belongs to the tenant’s group, in which case notification is sufficient. 6.19 Right to Terminate a Lease Both tenants and landlords are entitled to ter - minate the lease in accordance with the general rules of the Civil Code or Act LXXVIII of 1993 on the lease and alienation of apartments and premises, or with reference to the reasons con - tained in the agreement. According to Act LXX - VIII of 1993, the lease agreement ceases: • if it is terminated by mutual consent; • if the apartment is destroyed; • if it is terminated by either party; • if the natural person tenant dies or is expelled from Hungary, or the legal entity tenant is terminated without legal succession; • if the tenant exchanges the apartment for another apartment; • if the tenancy is terminated by a court or other authority; or • by virtue of law. In the case of non-residential premises, the lease agreement ceases if the legal person terminates without a legal successor or if the tenant’s self- employed activity in the premises has ceased. It is typical in commercial leases to limit tenants’ termination rights. Generally, the tenant is enti - tled to terminate the lease if it is obstructed or significantly restricted in the proper use of the
leased premises for a longer period (c. 45–60 days) and the landlord fails to remedy the defect in due course (c. 30–60 days from the tenant’s notification). Landlords’ termination rights are usually broad - er and can be enacted upon the breach of any material tenant obligation, such as: • failure to pay rent, service charge or the cost of utilities; • failure to provide, supplement security; • use of the leased premises is contrarily to the permitted use; or • failure to obtain or maintain licences or insur - ances. 6.20 Registration Requirements Hungarian law requires leases to be in writing. Leases cannot be registered with the land regis - try (contrary to certain other rights of use). 6.21 Forced Eviction Tenants can be forced to leave without a court procedure if a signed eviction declaration incor - 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.
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