Hungarian Regional Development Ministry To Outlaw “Pocket Contracts”

  • 23 Apr 2012 9:00 AM
Hungarian Regional Development Ministry To Outlaw “Pocket Contracts”
The signing of “pocket contracts” – illegal agreements to circumvent the ban on the sale of land to foreigners – will be classified as a crime, Regional Development Ministry state secretary Gyula Budai said in an interview with Magyar Hírlap at the weekend. Most such contracts have been signed in western Hungary over the past 20 years, often disguised as rental agreements.

According to plans a six-month transition period would be provided for those who concluded pocket contracts to admit to them, during which time they would be exempted from any consequences, Budai said.

However once that six-month period expires, those involved – including lawyers and notaries – can expect serious punishment, he warned.

Budai promised draconian rigour and no mercy, vowing to retrieve a considerable part of the illegally obtained areas of land.

He stressed that legislation will have to be enacted which does not run counter to EU law but which ensures that no Hungarian land is owned by foreigners.

Source: Hungary Around the Clock

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