Illustration – Photo: wikipedia

Tenants in municipal properties can opt to buy for full market price

Tenants of municipally owned properties located in Hungary's world heritage sites, under an amended law passed on Tuesday, will have the option of buying the property for its full market price unless they have rented for it 25 years or longer, in which case they will be entitled to a discount.

The original law adopted in June which had allowed tenants far more favourable terms was sent to the Constitutional Court for review by President Janos Ader.

Tenants must have rented the property for at least five years to qualify for purchasing it, while those who have rented it for 25 years or longer would pay 15 percent of the property’s market price, according to the amended law in line with the top court’s ruling.

Tenants who trade a property of their own for their rented one are given the option of purchasing it at 35-50 percent of market price, depending on the decision of the local government which owns the property.

Buyers can also opt to pay for their apartments in instalments, in which case they will be charged interest linked to the central bank’s base rate.

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