The act on the termination of the undivided joint ownership on lands (and on the clarification of the data of the rightholders of properties deemed agricultural land in the land registry) will enter into force on 1 January 2021.
The act ensures the possibility to terminate the undivided joint ownership on the properties considered agricultural and forestry land (a) by the division of the property, (b) by the acquisition of the property by one of the owners or (c) by the expropriation of the property. According to the new rules, any of the owners may initiate the termination of the undivided joint ownership by the division of the property in an application for recording the fact of the ongoing division.
Although the act enters into force on 1 January 2021, the Hungarian Government accepted a decree in the framework of the protection against the second wave of coronavirus pandemic, which provides for that an application for recording the fact of the ongoing division may not be submitted to the land registry office at this moment. The Government decree will be repealed on 8 February 2021, meaning that the procedure for the termination of the undivided joint ownership by the division of the property may be initiated only from this date.
By Lidia Suveges, Attorney at law, KCG Partners Law Firm
