As a result of the new Hungarian Code of Civil Procedure, from 1 January 2018 the parties of a dispute may conclude a settlement in civil cases before a public notary without initiating a court proceeding in the framework of a new non-litigious procedure.
A settlement procedure before a notary public may only be conducted if at least one of the parties has residence (registered seat) in Hungary and the parties are able to freely dispose over the subject of the proceeding.
The new provisions of the act on certain non-litigious notarial procedures list the cases when no settlement procedure may be initiated before a notary public, such as cases relating to intellectual property rights, personal status or public assets.
In the settlement procedure, no taking of evidence may be performed. The settlement agreement approved by the ruling of the notary public will have the same effect as an agreement approved by a court.
By Levente Csengery, Partner, KCG Partners Law Firm
