Tag Archives: civil code

ILN Today Post

Separating the titles of land and buildings – what is the point?

Under a less-known rule of the new Civil Code it’s now possible for a property owner to separate the titles to a plot of land and the buildings built on it, and to manage or commercially exploit these as separate properties. Businesses are taking a cautious approach to making use of this opportunity in practice: although splitting titles can make property development or borrowing more flexible, for the time being legal uncertainties are preventing it from becoming more widespread.

The old Civil Code set out, as a fundamental principle, that the owner of the land has the right to own the building built on the land, and there were only limited cases in which it permitted a person other than the land’s owner to obtain stand-alone title to the building, thus enabling the land and the buildings on it to be separately sold or encumbered.

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ILN Today Post

You only need to ask – security-related bankruptcy rules are to change

Although the new Civil Code that took effect in 2014 made it impossible to use a good few commonly used types of loan security, since then the legislature has gradually restored them to their rightful place. Indeed, the amendments to the Bankruptcy Act coming into effect on 1 July will go further than the previous rules, giving security options and security assignments, the same priority status as mortgages. This case is a good example of the effective cooperation between the legislature and the banking industry in Hungary.

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ILN Today Post

New Hungarian Civil Code – Top Ten Survival Tips

An Article by Ádám Illés seeks to summarize the ten most important matters that have the largest influence on businesses.
1. Compliance of statutes and by-laws of companies with the new law; higher minimum equity capital for limited liability companies
2. Liability of executive officers for damages caused to third persons
3. Less mandatory approach, more latitude in company law
4. Offer of Contract
5. Conflict of general terms and conditions
6. Extended warranty rights for customers
7. Damages may not be claimed on grounds of failing to conclude a contract
8. Premature delivery must be accepted
9. New concept in contractual liability
10. New contract types

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