The New Land Registry Act and the E-ING System

The new Land Registry Act entering into force on 1 February 2023 (Act C of 2021) will bring significant changes to land registry procedures. Among other things, the purpose of the new regulation is to modernise the Hungarian land registry system and make it more competitive through digitalisation. The introduction of the E-ING system and automated decision-making will result in faster administration, while also requiring a higher level of professional expertise than before.

1. The Significance of the Land Registry

The land registry is an authentic public authority register whose recorded real estate data are presumed to be valid unless proven otherwise. The new regulation further increases the importance of registration by providing that rights, facts and data which would fall within the scope of the land registry but are not registered or recorded therein may be enforced only within a narrow scope.

2. The Electronic IT-Based Land Registry System (E-ING)

The key to the digitalisation of the land registry system will be the E-ING system to be created for this purpose. Although the system to be applied from 2023 is currently still under development, it is certain that it will significantly accelerate the conduct of procedures, since land registry matters will be capable of being handled without waiting at the land registry office. By enabling paperless procedures, this will also be advantageous from an environmental perspective. As a general rule, the procedure will require the power of attorney granted to the lawyer acting on behalf of the client, the completed form relating to the specific matter, and any other documents relevant to the case to be uploaded to the E-ING system.

3. Automated Decision-Making for Faster Administration

Perhaps the most important innovation of the new Land Registry Act is the introduction of automated decision-making, an institution that did not previously exist in relation to land registry proceedings. With the exception of certain categories of cases and persons, matters will essentially be processed through automated decision-making. In this process, land registry entries will be made automatically on the basis of the uploaded documents and the data recorded by the legal representative on the prescribed form. It is important to note that automated decision-making is only possible where the application is granted; moreover, within five days following the automated decision, the client may request that the application be examined again in full proceedings.

4. Representation in Land Registry Proceedings

In connection with land registry proceedings, the new Land Registry Act provides, as a general rule, that legal representation is mandatory in application-based procedures aimed at the registration of rights and facts. The reason behind this rule is that, in electronic land registry proceedings, the content of the form uploaded to the E-ING system will be decisive in the course of automated decision-making. Participation in the procedure therefore entails significant legal responsibility for the lawyers involved. It is expected that eligibility to conduct such procedures will be conditional upon the availability of the necessary technical tools, liability insurance specifically connected to the procedure (the details of which are likewise still under development), and the successful completion of specialised training specifically related to land registry proceedings.

Summary

Although the relevant regulation has not yet entered into force, it is already clear that the new land registry procedure will develop into an area requiring substantial professional preparedness in relation to electronic case management. Our law firm is also active in the field of real estate law and, given that it is at the forefront of the digitalisation of legal case management on both the domestic and international markets (see: https://www.nzp.de/webakta/?lang=hu), has extensive practical experience in electronic administration. You may therefore continue to rely on us with confidence in the new regulatory environment for the handling of your land registry matters.