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Parlt Approves Law Allowing Former Home Owners to Buy back Properties

Hungary Today 2018.12.12.

Parliament on Wednesday approved legislation that allows tenants residing in homes owned by the National Asset Management Agency (NET) to buy back their former properties at a discounted price.

NET was established earlier to buy foreclosed homes and allow borrowers to continue living in them as renters.

The legislation’s part requiring a qualified majority was passed with a vote of 133 for, none against and no abstentions. The part requiring a simple majority was passed with a vote of 132 for, none against and no abstentions.

The discounts will be determined by decree. However, the press department of Andrea Bartfai-Mager, Hungary’s minister without portfolio in charge of managing state assets, who authored the legislation, earlier said the discount could be set at 15 percent for homes in the capital, 25 percent for other cities and 35 percent for smaller communities.

In addition to the discounts, NET will also count rent payments against the purchase price of the properties.

The legislation will affect some 32,000 tenants who have made their rent payments on time.

NET has acquired some 36,000 properties since its establishment in 2011, paying 137.1 billion forints for properties on which mortgages added up to 324.4 billion (HUF 100 = EUR 0.3090).

via MTI