Interested in an investment in Hungary? This real estate glossary is for you!
Although it’s important to be familiar with the common real estate terms used in the Hungarian market, it is also crucial to know the standards that are used worldwide.
The alphabetical list below will prove useful for first time investors who might not yet be familiar with the full terminology used in the market.
– A –
Appraisal: Real estate appraisal is the process of valuing the market price of a real estate property. It is usually done by comparing the attributes of the apartment to other apartments for sale within the same category.
– C –
Certificate of Occupancy (C of O): a document specifying the allowed uses of the property and it’s suitability for occupancy.
Commission: The fee due to the real estate agent brokering the transaction. The commission is mostly paid by the seller, though in many cases, especially when the property is of great value, the buyer pays part as well. For buyers, the commission is usually around 1.5%, and for sellers it’s around 4%.
Common areas: The space in a building which is used by more than one tenant (for example – public corridors, roof, elevator, etc.)
Condominium (condo): A form of housing compound where a certain real property is owned by an owner, while other real properties are owned by other owners.Foreigners looking to buy real estate in Budapest mostly own properties in condominiums, as the regulations are more flexible than with other types of real property owners, such as a co-operative.
Conversion (Change of use): This term describes a process in which the allowed usage of the building is changed, for example – changing from residential to commercial usage.
Common charges: The monthly amount due to be paid by an individual real property owner in a condominium or in a cooperative to cover the proportionate share of the common areas expenses. This amount covers, among others, the cleaning of the building, waste removal, common areas insurance, and daily management. In addition, the common charges may partly include a fund for renovation and development of the building (such as adding an elevator).
– D –
Duplex: A single apartment that is spread over two floors which are connected by an inner staircase.
– E –
En-suite: The term En-Suite (or ensuite) bathroom refers to bedroom which has a direct connection to a bathroom or shower.
Escrow: an amount of money held by a third party (usually a lawyer) on behalf of the buyer and the seller. The money may be released only after the fulfillment of previously mutually agreed terms.
– F –
Façade: The exterior front of a building.
Floor-thru: an apartment which space occupies and entire floor of a building, extending from the Façade to the real wall.
– I –
Insulated windows: As part of performing renovation of a property, or installed commonly in newly built apartments for sale, this type of windows can be used for several reasons, such as noise reduction and heating isolation.
– L –
Property listing: the advertised description of available apartments for sale or rent by an agent or real estate agency.
– O –
Open kitchen: A popular interior design choice, started with the perfection of the extractor hood, which allows a seamless integration of the kitchen into the living room.
Original detail: Relates to various ornaments, ceiling moldings, decorations and unique original craftsmanship that can still be found in pre-war classical building and apartments.
– P –
Possession: The time in which the possession of a property is handed over (to a buyer or a tenant).
– R –
Room: A room has to be at least 13sqm in order to be counted as a room. If smaller than that, it will be considered as a “half room”. In addition – the kitchen does not count as a separate room in the total count.