By Reka Fulop, Attorney at Law, KCG Partners
Amendments to the Land Registry Act, in force since July 2025, bring long-anticipated relief for owners of ‘zártkert’ (garden or holiday plot) properties.
These parcels, historically registered as agricultural land, have often hosted weekend houses or even permanent residences, yet their outdated legal classification has created practical barriers. Owners faced difficulties obtaining mortgages, were excluded from certain housing subsidies, and found sales constrained by agricultural land rules.
Under the new regime, owners may apply to have their property recorded as “land exempt from cultivation.” This reclassification better reflects actual use, while avoiding the costly land protection fee, since it is not treated as a “change of land use.” Moreover, once exempted from cultivation, these plots are no longer subject to the strict rules of the Land Transactions Act, including pre-emption rights designed for agricultural land. For the first time, partial reclassification is also possible, providing greater flexibility to landowners.
The reform, however, is not automatic. Local municipalities must adopt regulations designating the areas where reclassification is permitted. Accordingly, owners will need to monitor local council decisions carefully and act once opportunities arise. Where applicable, the change can enhance property value, ease financing and sale, and remove legal uncertainties that have long complicated ownership of these plots. Detailed implementing rules are also expected in the form of a government decree, which will further clarify the framework.
Given the potential benefits, property owners should review their holdings and consider initiating reclassification where appropriate, and remain attentive to both local legislation and forthcoming national regulations in order to make informed decisions regarding reclassification.
Originally published on CEE Legal Matters on October 3, 2025.