Notification of professional real estate property value assessor and agent activities

The performance of professional real estate property value assessor and agent activities must be notified to the supervisory authority for real estate agents, and duly registered.

Kulcsszavak: real estate, real estate assets, real estate valuation, valuation, professional, notification, real estate agent, rental, sale, apartment, premises, plot, residential building

Within their scope of activities, real estate property value assessors and agents carry out tasks related to:

  1. determining the value of real estate according to its use (developmental areas, parcels and plots, buildings or any other real estate residential or non-residential property) based on their knowledge of the real estate market and the characteristics of the actual real estate,
  2. the application of concepts, methods and procedures defined by European valuation norms/standards,
  3. the application of different valuation methods and variations,
  4. the management and control of work performed by expert valuators,
  5. carrying out tasks according to their mandate with a full-scale documentation of the results,
  6. preparing studies on potential use or investment, and enforcement of clients’ interests

are realised.

The supervisory authority for real estate agents shall register the real estate property value assessor and agent activities, if the notifying party:

The person providing professional real estate property value assessor and agent activities shall be a member or an employee of an entity, involved in a range of activities and services related to real estate, including services as an agent or property manager, as defined by an up-to-date version of the Hungarian activity classification (TEÁOR/NACE).

The entity providing professional real estate property value assessor and agent activities shall have at least one member, an employee or a worker who is personally involved in the day-to-day operation of the business, and listed in the registry of real estate property value assessors and agents.

Failure to comply with the notification obligation may result in a fine that equals to HUF 50 000, or, in case of repeated failure, to HUF 75 000.

The notification obligation shall be complied with before taking up any professional real estate property value assessor and agent activities. The registering authority will examine the application within eight days from the receipt of the notification, and issues the certificate for a compliant application, or identifies the shortcomings of a non-compliant notification and alerts the applicant about the legal consequences of continuing the services without a proper notification.

To comply with the notification obligation, the following shall be submitted:

a)      proof of the professional qualification in real estate property value assessor and agent  activities by a certified copy of the certificate attesting the professional qualification,

b)      a certificate (dated within a maximum period of 30 days) issued by and carrying the authorised signature (stamped) of the employer showing that the person is a member, an employee or a worker of an economic entity involved in a range of activities related to real estate, including services as an agent or property manager, as defined by an up-to-date version the Hungarian activity classification (TEÁOR),

c)      a certificate of incorporation (dated within a maximum period of 90 days) in case of a legal person, attesting that the range of activities of the economic entity includes real estate agency or management services, as defined by an up-to-date version the Hungarian activity classification (TEÁOR/NACE); for self-employed persons, a certified copy of the certificate of official registration as sole traders,

d)      a notarised document on the lack of any outstanding public debt that is issued by the National Tax and Customs Administration, and the competent municipal tax authority according to the notifying party’s domicile or primary place of business (dated within a maximum period of 30 days),

e)      a criminal record extract to prove the absence of any criminal history, and the fact that the notifying party is not banned from practising any profession that would preclude the performance of services in the notification.

A procedural fee of HUF 3 000 shall be paid upon starting the procedure.

The supervisory authority for real estate agents is the city or county clerk with jurisdiction for the place of domicile or primary place of business of the notifying party; that is, in Pest county, the county clerk for local government, and in Budapest the chief clerk of the Municipality of Budapest.

The competent county or municipal government office according to the principal place of business of the competent body/authority.

Preparation of case description: 17 April 2020.

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Act LXXVIII of 1993. on certain rules pertaining to the lease and alienation of apartments and premises

Act LXXVI of 2009 on the general rules on the taking up and pursuit of service activities

Government Decree 499/2017 (29 December) on the conditions and detailed rules of registration pertaining to the professional performance of condominium management, real estate management, real estate agent, real estate property value assessor and agent

Act CL of 2016 on the Code of General Administrative Procedure

Act XCIII of 1990 on duties

Government Decree 186/2009 (10 September) on the fines payable in case of failure to register service activities subject to registration, and on the general appointment of authorities performing the supervision of services

Act C of 2001 on the recognition of non-national certificates and degrees

Government Decree 33/2008 (21 February) on the designation of authorities dealing with cases falling within the scope of Act C of 2001 on the recognition of non-national certificates and degrees as well as the list of services subject to declaration

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