Condominium management is an independent economic activity performed for commercial purposes - in order to produce a profit, regularly, involving economic risk-taking-, as defined in the law on the general rules of the commencing and performing of service activities, during which the condominium manager prepares a proposed plan on the maintenance of the condominium building, on the basis of the characteristic features of the condominium building and an economic analysis,; pursuant to the contract of engagement concluded with the co-owners, he/she organizes the tasks related to operation and maintenance, directs and supervises the planned renovations, develops proposals under the contract of engagement concerning matters of management of the condominium building, and the utilization of the commonly owned building parts. In the Standard Classification of Economic Activities (TEÁOR’08) condominium management is within sector 68 Real estate matters, and within the sub-sector 68.3 Real estate agent, management service, it belongs to the specific sub-category of 68.32 Facility management.

The commencement and continued performance of commercial condominium management service is subject to the following conditions in the case of natural persons: the service provider must have a professional qualification in condominium management, built on condominium manager’s qualification; he or she must have a clean criminal record and must not be banned from providing such service, in a manner that precludes the performance of the activity; he or she must be a taxpayer with no outstanding public debt.

Such economic associations with no outstanding public debts may perform commercial condominium management activity that have at least one personally involved member or employee - in the case of sole traders, if the sole trader does not perform the activity himself/herself, at least one employee - who complies with the conditions listed.

Procedures related to the commencing and performing of the service activity

The authority tasks applying to commercial condominium management are performed, as the authority in charge of the supervision of real estate enterprises, by the clerk of the locality functioning as the centre of the district (or a district in Budapest) (hereinafter: clerk), through the documentary office operated as part of the mayor’s office. That documentary office is the competent authority in the procedure, in the territory of which the place of residence, for lack of a place of residence the temporary place of residence, in the case of economic associations, the registered office or branch office of the enterprise is located.

Parties who intend to perform condominium management activity are required to notify the authority in charge of real estate enterprise supervision on their relevant intention.

The notification on the commencement and performance of commercial condominium management activity may be submitted in writing or personally, verbally, to the clerk (the documentary office). For technical reasons, cases cannot be initiated electronically at this moment.

The service provider must certify that he/she meets the conditions included in the notification by the following documents:

1. an authentic copy of the certificate proving special qualification,
2. a public instrument issued not earlier than thirty days, which proves that the service provider is a taxpayer with no outstanding public debt, unless the service provider is contained in the database of taxpayers with no outstanding public debt;
3. evidence of payment of the procedural duty
4. in the case of a sole trader employer - if he or she is licensed to provide service through a personally involved member or employee -, an authentic copy of the record in the official registry of sole traders.
5. if the employer is a different economic association - if it is licensed to provide service through a personally involved member or employee - a certificate of incorporation not older than three months.

The economic association must certify meeting the conditions included in the notification by the following documents:

1. a public instrument issued not earlier than thirty days, which proves that the notifier is a taxpayer with no outstanding public debt, unless the notifier is contained in the database of taxpayers with no outstanding public debt,
2. in the case of economic associations, the certificate of incorporation issued not earlier than three months, in the case of sole traders an authentic copy of the certificate of registration in the official database of sole traders,
3. evidence of payment of the procedural duty.

The notification remains valid for an indefinite term, about which the clerk will advise the notifying person in a certificate issued on the day of notification.

After the receipt of the notification the clerk immediately verifies whether the notification complies with the requirements and will send a certificate within eight days starting from the day of the receipt of the notification, at the latest.

The notifying person must pay a general item procedural duty for the procedure, in the amount of HUF 3,000. The duty must be paid upon the submission of the notification, by affixing duty stamps on the document containing the notification.

In the procedure related to the notification, the clerk in charge of supervision of the service will register the condominium manager ex officio, within fifteen days starting on the day following the day of receipt of the notification. The clerk will publish the public contents of the registry maintained by him/her on the Internet.

The service provider engaged in commercial condominium management activity is required to notify the clerk immediately about any changes made to the data contained in the notification after the date of submission. If the obligation of notification concerning any changes in the data of the registry maintained by the clerk is fulfilled, no stamp duty or fee has to be paid.

The service provider engaged in commercial condominium management is required to notify the clerk on the termination of service provision within eight days following the termination of the service. After the receipt of this notification the clerk will immediately delete the service provider from the registry.

In the case of cross-border service provision

The professional qualification necessary for the commencement and performance of commercial condominium management activity is classified as a regulated trade, accordingly, in the case of cross-border service provision the qualification necessary for the performance of the activity and obtained abroad, related to the authorization for service provision, can be acknowledged according to the rules applying to the recognition of professional qualifications. In this regard, it must be highlighted that condominium management activity is one of those trades that are subject to the so-called preliminary notification obligation. The service provider also has to submit the preliminary notification to the clerk.

In the territory of Hungary, in the case of an activity intended to be performed in the form of cross-border service, the preliminary notification related to the performance of the regulated trade must include the following:

1. name of the service provider,
2. the home address of the service provider, or the registered office in the case of an organization,
3. description of the service to be performed,
4. the citizenship of the service provider, in the case of a legal entity or association lacking the legal status of a legal person domiciled in another EEA country and registered in that country, identification of the registry of the EEA member state where it is domiciled and the registration number of the service provider,
5. name of the EEA member state of establishment of the service provider,
6. the statement the service provider to the effect that he or she intends to perform the activity as a cross-border service,
7. name of the authority in charge of licensing or the maintenance of records and the license number or registration number of the service provider, if the service activity of the service provider requires a license or registration in the EEA member state having jurisdiction for the domicile of the service provider.
8. the term of service provision planned for the given calendar year,
9. the professional address intended to be used when providing service in Hungary.

Please click here to read the general conditions of cross-border service provision in Hungary.

 An attachments, the following must be enclosed with the preliminary notification of the service provider

1. a copy of the public instrument verifying citizenship,
2. an authentic copy and translation of a document that proves that the service provider is authorized to practice the given trade, as an authorized party domiciled in a member state,
3. authentic copies and authentic translated copies of the deeds certifying the successful completion of the training of the service provider in the member state where the training was provided,
4. in the event the in the state where the service provider is domiciled the given trade is not a regulated trade, the authentic copy and authentic translation of the deed certifying that the service provider had practised the given profession in the state where it is domiciled for at least two years during a period of ten years prior to the submission of the notification.

The proceeding authority will publish on its web site the list of the languages for which not authentic translations are also accepted concerning the above-mentioned documents. Please, look them up on the web site of the relevant local government!

If, as part of cross-border service provision the service provider does not perform the given activity himself/herself in practice, then the professional title intended to be used when providing service in Hungary, furthermore, the data specified in the documents to be enclosed as attachments with the preliminary notification, must be notified concerning the person actually providing the service.

The preliminary notification of the service provider is valid for one year. If, after the expiration of the notification made for the first time, the service provider once again intends to provide cross-border service in Hungary and no material change has been made to the circumstances evidenced by the deeds enclosed with the former notification, then the notification of the service provider only has to include the following details:

1. name of the service provider,
2. the home address of the service provider, the registered office in the case of an organization,
3. description of the activity intended to be performed,
4. the citizenship of the service provider, in the case of a legal entity or association lacking the legal status of a legal person domiciled in another EEA country and registered in that country, identification of the registry of the EEA member state where it is domiciled and the registration number of the service provider,
5. name of the EEA member state of establishment of the service provider,
6. the statement the service provider to the effect that he or she intends to perform the activity as a cross-border service,
7. name of the authority in charge of licensing or the maintenance of records and the license number or registration number of the service provider, if the service activity of the service provider requires a license or registration in the EEA member state having jurisdiction for the domicile of the service provider.

Legal regulations relevant to the service activity and procedures

Legal regulations of the sector, primarily relevant to condominium manager activity and procedures:

1. Act CXXXIII of 2003 on condominium buildings,
2. ÖM Decree 31/2009. (XI. 18.) on the conditions of the performance of commercial condominium management and commercial facility management activity and the detailed rules of the procedure,
3. Government Decree 217/2009. (X. 2.) on the designation of authorities in charge of supervision of real estate enterprises,
4. ÖTM Decree 25/2008. (IV. 29.) on the issue of the professional and examination requirements of the special qualifications subject to the powers of the Ministry of Local Government and Rural Development,
5. Act CXL of 2004 on the general rules of the procedures and services of administrative authorities,
6. Act LXXVI of 2009 on the general rules of commencing and performing of service activities,
7. Act C of 2001 on the Recognition of foreign certificates and degrees,
8. Government Decree no. 33/2008 (II.21.) on the designation of the authorities acting in matters under Act C of 2001 on the Recognition of Foreign Certificates and Degrees and the listing of services requiring declarations.