DR. LOJKÓ BENCE ZOLTÁN
INDIVIDUAL ATTORNEY
My legal practice focuses primarily on civil law and its related fields. I provide legal representation in contentious and non-contentious civil proceedings, prepare and countersign documents relating to real estate transactions, assist in the establishment and performance of contractual relationships, advise on matters of corporate and company law, including company formation, corporate governance and restructuring, and represent clients in family law and judicial enforcement matters.
In practice, these areas of law are closely interconnected. Real estate transactions frequently involve both the law of obligations and property law; claims arising from corporate relationships often require civil litigation; while family law disputes commonly involve financial settlements and, in certain cases, enforcement proceedings. Accordingly, I approach every instruction with due regard to the wider legal context of the matter as a whole.
Civil disputes arise in a wide range of everyday and commercial situations. They may arise where a contractual obligation has not been performed, where you have suffered loss or damage, or where an unfounded claim has been brought against you.
Areas of Representation
I represent clients in a broad range of civil matters, including claims arising from breach of contract, damages claims, debt recovery proceedings, possession disputes, warranty and guarantee claims, as well as payment order proceedings. I act for both claimants and defendants, at first instance and throughout appellate proceedings.
How to Approach a Dispute
Legal representation does not necessarily begin before a court. Many disputes can be resolved without litigation through a solicitor’s letter before action, negotiations or a settlement agreement, often more quickly, at lower cost and with a more predictable outcome than lengthy court proceedings. For this reason, I begin every instruction by carefully assessing the legal position: whether the claim is well founded, what evidence is available, the prospects of success, and the likely costs and timescale involved. Only once these factors have been evaluated can an informed decision be made as to whether litigation or an amicable settlement best serves your interests.
Key Considerations
Civil claims are subject to statutory limitation periods, and many procedural deadlines are strict, meaning that failure to comply with them may result in the permanent loss of legal rights. It is also common for parties, in the course of a dispute, to make statements or sign documents that subsequently weaken their own legal position. Seeking legal advice at an early stage can therefore help to avoid the consequences of missed deadlines and ill-considered statements, while allowing your claim or defence to be pursued from the strongest possible position on the basis of a carefully planned legal strategy.
Purchasing or selling real estate is, for most people, one of the most significant financial decisions of their lives. For this reason, it is essential to understand the legal implications of the transaction, the terms of the agreement to be signed, and the legal status of the property before entering into any commitment.
Areas of Legal Assistance
I provide legal assistance in connection with the sale, purchase, gift, exchange, lease and other forms of use of real estate. My services include the preparation and attorney countersigning of sale and purchase agreements, deeds of gift and lease agreements, the review of draft agreements prepared by the other party, legal representation in Land Registry proceedings, and the preparation of all related legal documentation.
Why Legal Assistance Is More Than a Formal Requirement
Most legal risks associated with real estate transactions arise long before the agreement is signed, during the preparatory stage of the transaction. An attorney’s responsibilities include verifying that the seller is legally entitled to dispose of the property, ensuring that the property is not subject to a mortgage, enforcement proceedings or any other encumbrance, establishing whether any statutory or registered right of pre-emption exists, and confirming that the information contained in the Land Registry corresponds to the property’s actual legal status. Equally important is the careful structuring of the purchase price payment mechanism, the secure handling of the purchase price where appropriate—such as through an attorney’s escrow account—and the precise regulation of the conditions governing the transfer of possession.
Special legal requirements apply where the purchaser is not a citizen of a Member State of the European Union. As a general rule, the acquisition of real estate by third-country nationals requires the prior authorisation of the competent Government Office responsible for the location of the property. As obtaining such authorisation takes time, this requirement should be taken into account when planning the transaction timetable and drafting the contractual arrangements.
Common Pitfalls
Particular care is required in transactions financed by bank loans, where the agreement must also comply with the lending institution’s requirements. Special attention is likewise necessary where the property is held in undivided co-ownership, as rights of pre-emption and the regulation of the use of the property by the co-owners may have to be addressed. In the case of condominium properties, the deed of foundation and the organisational and operational rules of the condominium may also affect the owner’s rights and obligations. In situations such as these, an incomplete or generic template agreement can easily result in legal disputes lasting for years.
Contract law is one of the fundamental areas of the law of obligations within civil law. The Hungarian Civil Code is founded on the principle of freedom of contract: as a general rule, the parties are free to decide whether to enter into a contract, with whom, and on what terms. They may also, by mutual agreement, depart from the statutory provisions, except where mandatory rules of law apply. This freedom also entails responsibility, as it is primarily the parties themselves who determine the content of the agreement, which will subsequently define their respective rights and obligations.
Contract Drafting and Legal Assistance
I prepare and review contracts and provide legal assistance during contractual negotiations prior to the conclusion of an agreement. My services cover both the nominate contract types regulated by the Hungarian Civil Code—including sale and purchase agreements, deeds of gift, contracts for services, agency agreements, lease agreements and loan agreements—as well as bespoke, mixed and atypical contractual arrangements tailored to the parties’ individual requirements. I also advise on and draft contractual security provisions, including deposits, liquidated damages, pledges and guarantees.
The Stages of a Contract and the Associated Legal Risks
Legal risks may arise at every stage of a contractual relationship: when the contract is concluded, during its performance and upon its termination. At the formation stage, particular attention must be paid to issues affecting the validity of the contract, including nullity and voidability. During performance, questions of breach of contract may arise, including delay, defective performance and the resulting warranty, guarantee and damages claims. Upon termination of the contractual relationship, the chosen method of termination—whether by notice, rescission or mutual agreement—and the subsequent financial settlement become of central importance. A carefully drafted contract anticipates and regulates these issues in advance, thereby significantly reducing the likelihood of future disputes.
The Importance of Reviewing a Draft Agreement Before Signing
In practice, a significant proportion of contractual disputes arise because the agreement was not drafted with the particular legal relationship in mind. Instead, the parties rely on a generic template that fails to regulate essential matters, such as the time and manner of performance, the legal consequences of breach, the conditions governing termination and the contractual security available to the parties. For this reason, it is of particular importance to have any draft agreement prepared by the other party reviewed by an attorney before signing. Prior to execution, the contractual terms may still be negotiated and amended; once the agreement has been signed, however, any modification will, as a general rule, require the mutual consent of all parties.
Corporate law in Hungary is primarily governed by Book Three of the Hungarian Civil Code, while the rules relating to the Company Register and company registration proceedings are set out in separate legislation. The statutory framework is largely permissive, allowing the members, within the limits prescribed by law, to regulate their mutual rights and obligations, as well as their relationship with the company, in the constitutional document. This flexibility also entails responsibility, as the provisions of the constitutional document will determine the company’s long-term operation and the members’ ability to enforce their rights.
Company Formation and the Constitutional Document
I provide legal assistance in the establishment of business associations, particularly private limited liability companies (kft.) and limited partnerships (bt.). My services include the preparation and attorney countersigning of the constitutional document (articles of association or deed of foundation), as well as legal representation in company registration proceedings, where legal representation is mandatory under Hungarian law. At the time of incorporation, particular attention should be paid to matters that most commonly give rise to future disputes, including the decision-making procedures of the members, the conditions governing the transfer of quotas, and the consequences and financial settlement associated with the termination of membership.
Corporate Changes and Registration of Amendments
Any significant change in the life of a company—including changes in the managing director, relocation of the registered office, increases or reductions of the registered capital, and amendments to the constitutional document—must be reported to the Court of Registration through amendment registration proceedings within the statutory deadline. The Company Register is an official public register: information recorded in it is presumed to be accurate, and a company may not rely, against a bona fide third party, on the fact that any registered information does not correspond to reality. Failure to comply with the statutory reporting obligations may result in regulatory supervision proceedings and financial penalties. Timely and compliant registration of corporate changes is therefore not merely an administrative formality, but an essential requirement for the lawful operation of the company.
Transfer of Business Quotas and Changes in Membership
The transfer of a business quota is one of the most complex transactions in Hungarian corporate law, requiring both the contractual arrangements between the parties and the company’s internal legal relationships to be properly regulated. Where a quota is transferred by way of sale, consideration must be given to the statutory rights of acquisition that may be exercised, in order of priority, by the other members, the company itself, or a person designated by the members’ meeting. Appropriate safeguards for payment of the purchase price should also be established, and non-compete and confidentiality provisions are often advisable. The transferee must notify the company of both the transfer and its date, as membership rights may only be exercised against the company following such notification. The managing director is responsible for updating the register of members and reporting the change to the Court of Registration. Accordingly, completion of the transaction requires not only the execution of the agreement, but also the proper completion of these statutory formalities.
Corporate Restructuring and Dissolution
The restructuring or orderly winding-up of a company involves a separate and often complex legal process. I provide legal assistance in corporate transformations, mergers and demergers, including every stage of the procedure, from the resolutions of the supreme decision-making body through the preparation of transformation plans and draft balance sheets to compliance with creditor protection requirements. I also advise on voluntary liquidation procedures, from preparing the members’ resolution on liquidation, through the required filings with the Court of Registration during the process, to its completion and the submission of the application for the company’s deregistration.
Family law relationships are governed by Book Four of the Hungarian Civil Code. A distinctive feature of this area of law is that legal issues almost invariably arise in emotionally challenging life situations. Calm, objective and professional legal representation is therefore of particular importance. In addition to protecting my clients’ legal interests, I consider it equally important to help them avoid hasty decisions that may have adverse legal consequences in the future.
Divorce Proceedings
I provide legal representation in divorce proceedings. Under Hungarian law, a marriage may be dissolved where it has broken down irretrievably, which is primarily evidenced by the cessation of the matrimonial relationship and the absence of any realistic prospect of reconciliation. The irretrievable breakdown of the marriage is also established where the spouses jointly and voluntarily decide to divorce. In such cases, the court does not examine the reasons for the breakdown, provided that the parties reach an agreement on all statutory ancillary matters, including the exercise of parental responsibility, contact arrangements between the child and the non-resident parent, child maintenance, the use of the former matrimonial home and, where applicable, spousal maintenance, and that such agreement is approved by the court. Proceedings based on mutual agreement are generally faster and less burdensome for the parties; wherever possible, I also assist clients in negotiating and preparing such settlement agreements.
Parental Responsibility, Contact Arrangements and Child Maintenance
I represent clients in matters relating to parental responsibility, the regulation and enforcement of contact arrangements, and child maintenance. In all such cases, the child’s best interests constitute the fundamental consideration. This is not only a statutory principle but also the guiding standard consistently applied by the courts. Accordingly, regardless of which parent seeks legal assistance, I provide representation in a manner that is fully consistent with the child’s best interests. I do not assist in pursuing claims that are manifestly contrary to those interests; instead, I seek solutions that appropriately balance the legitimate interests of the parent with the paramount interests of the child.
Matrimonial Property Law
The settlement of financial matters between spouses is one of the most complex legal aspects of divorce. Under Hungarian procedural law, claims relating to matrimonial property cannot be pursued within divorce proceedings, as proceedings for the division of matrimonial property cannot be joined with the divorce action. Accordingly, financial matters must be resolved either by agreement between the parties or in separate court proceedings.
Unless the spouses have agreed otherwise, the statutory matrimonial property regime applies throughout the duration of the marital community of life. Under this regime, all assets acquired by either spouse during the marriage generally form part of the matrimonial community property. Assets qualifying as separate property under the Hungarian Civil Code—including assets owned before the commencement of the matrimonial property regime, assets acquired by inheritance or gift, and assets acquired in substitution for separate property—remain excluded from the community property.
The most complex issues arising in the division of matrimonial property typically concern the distinction between community property and separate property, the valuation of assets, the preparation of the matrimonial balance sheet, and the settlement of reimbursement claims relating to expenditures made from community property for the benefit of separate property, or vice versa. Particular attention is required where the matrimonial property includes a business, a business quota or high-value real estate. I provide legal assistance both in negotiating and drafting matrimonial property settlement agreements and, where no agreement can be reached, in representing clients in matrimonial property litigation.
A matrimonial property agreement enables prospective spouses and spouses to regulate their financial relationship differently from the statutory matrimonial property regime, for example by choosing a deferred community of property regime or a separation of property regime. For validity, such an agreement must be executed either as a notarial deed or as a private document countersigned by an attorney. It is enforceable against third parties if it has been entered into the National Register of Matrimonial Property Agreements or if the spouses can prove that the third party knew or ought to have known of its existence and contents.
Property Relations Between Cohabiting Partners
The property regime applicable to cohabiting partners differs significantly from that governing marriage. During cohabitation, each partner acquires property independently. Upon termination of the relationship, either partner may claim a share of the increase in the other partner’s assets accumulated during the period of cohabitation in proportion to his or her contribution, including work performed within the household and in raising children. Where the extent of the contribution cannot be determined, equal contributions are presumed. A cohabitation property agreement provides an effective means of regulating these financial matters in advance, and I also offer legal assistance in drafting and countersigning such agreements.
Judicial enforcement represents the final stage of the enforcement of civil claims. It is the legal procedure through which an enforceable claim is satisfied by means of state enforcement where the debtor fails to perform voluntarily. The procedure consists of two distinct stages. Enforcement is ordered by the court or, in cases prescribed by law, by a notary public, while the enforcement measures themselves are carried out by the judicial enforcement officer. The available legal remedies reflect this procedural distinction.
Commencement of Enforcement Proceedings
Enforcement proceedings commence with the issuance of an enforceable instrument. An enforcement order may be issued, among other things, on the basis of a final and binding court judgment ordering performance or a final payment order. Certain notarial deeds that satisfy the statutory requirements may also be endorsed with an enforcement clause, thereby becoming directly enforceable without the need for separate court proceedings. I assist clients in preparing and submitting applications for the commencement of enforcement proceedings, including the preliminary assessment of whether the claim is capable of enforcement and the realistic prospects of recovery in light of the debtor’s known financial circumstances.
Representation of Judgment Creditors
The primary objective of the judgment creditor is to secure the prompt and effective recovery of the outstanding claim. I represent creditors in matters relating to enforcement measures, including wage garnishment, enforcement against bank accounts, attachment of movable and immovable property, and judicial auctions. I also provide legal assistance where enforcement proceedings are delayed or where the judicial enforcement officer fails to take the measures required by law, including the pursuit of the available legal remedies.
Representation of Debtors
Debtors and other persons with a legitimate interest in the proceedings are also entitled to statutory legal protection during enforcement. An enforcement objection may be lodged against any measure taken by the judicial enforcement officer, or against the failure to take a required measure, where such conduct materially infringes the rules governing enforcement proceedings and significantly affects the rights or legitimate interests of the person concerned. Court proceedings may also be initiated to terminate or restrict enforcement. The grounds available depend on the enforceable instrument on which the enforcement was based. Where enforcement was ordered on the basis of an enforcement order, the debtor may generally rely only on circumstances arising after the underlying decision became final, such as subsequent performance or the subsequent expiry of the limitation period. Where enforcement is based on a notarial deed bearing an enforcement clause, it may also be argued that the underlying claim was never validly created. In addition, the law exempts certain categories of assets and part of a debtor’s income from enforcement. A third party claiming ownership of, or another right in, attached property that prevents its lawful sale may seek its release from attachment by bringing a third-party claim before the competent court.
The Importance of Time Limits
Time limits for legal remedies in enforcement proceedings are strict, and many are preclusive, meaning that failure to comply may result in the irreversible loss of legal rights, particularly in cases involving the judicial sale of real estate. For this reason, anyone who receives enforcement documents should seek legal advice without delay, regardless of whether they are acting as the judgment creditor or the debtor.