Introduction
When it comes to real estate sale and purchase transactions, the involvement of a lawyer is natural for most people: the contract is drafted, the transfer of ownership is registered, and the legal due diligence is performed by an attorney. But what happens when a lawyer is not only involved at the “end” of the process, but also conducts the real estate brokerage itself?
This complex service — which requires a project-management approach — offers an increasingly transparent and legally grounded alternative to traditional real estate brokerage for both sellers and buyers. In this article, we examine how attorney-led real estate brokerage works and why it is worth knowing more about this option.
Presentation of Real Estate Brokerage Activities
Engaging in real estate brokerage as a business activity requires a notification to the real estate enterprise supervisory authority under the Act on the General Rules for Starting and Pursuing Service Activities.
Real estate brokerage may be pursued by a person who meets the conditions for carrying out real estate brokerage activities on a professional basis, which include passing the relevant professional examination, holding the required qualifications, and satisfying all other prescribed conditions. The detailed rules are set out in Government Decree 499/2017 (XII. 29.) on the conditions for pursuing the business of condominium management, property management, real estate brokerage, and real estate valuation and intermediation, as well as on the rules of registration.
Real estate brokerage includes the intermediation of the transfer (e.g. sale, exchange) of properties — in particular, buildable plots, residential buildings, and apartments. It also covers sourcing properties, determining their market value (valuation), and completing tasks necessary for obtaining and preparing documents required for the transactions.
Naturally, beyond the objective core tasks of real estate brokerage, the service can be supplemented with a variety of additional activities, such as:
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Organising viewings: scheduling property tours, welcoming prospective buyers, and providing on-site presence.
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Professional advertising: preparing online listings, taking high-quality photographs, and creating targeted, engaging descriptions tailored to the relevant audience.
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Home staging: providing aesthetic, furnishing, and functional recommendations to improve the property’s market appearance.
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Professional network: offering access to specialists (e.g. lawyers, architects, technical experts) who can assist with questions relevant to successful transactions.
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Communication management: handling enquiries from potential buyers and regularly updating the seller on the progress of the sales process.
Legal Basis of Attorney-Led Real Estate Brokerage
A common question is whether real estate brokerage may be carried out only after registration and obtaining the required professional certification. The general rule is indeed this: the activity requires specific registration and professional qualification.
However, for attorneys, the situation differs. Under Section 64/C (5) of Act LXXVIII of 1993 on the Lease and Alienation of Dwellings and Premises, attorneys may pursue real estate brokerage as a supplementary service within their law practice even without obtaining the otherwise mandatory professional qualification. Attorneys — and in some cases in-house counsel — may perform real estate brokerage and prepare the related transaction documents without the special certificate.
There are two important limitations, however:
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market value appraisal, and
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real estate valuation
may only be carried out by an attorney who holds the necessary specialised qualification.
According to Section 3 (1) j) of Act LXXVIII of 2017 on Attorney Activities, real estate brokerage may be conducted as a supplementary activity within the practice of law. This option is not unlimited. The statute clearly states that the same client cannot be provided both brokerage and legal services by the same attorney at the same time, unless the engagement is performed by a law firm. Within a law firm, this is permitted: one attorney may handle the brokerage, while another provides the legal representation for the sale.
This structure is lawful only if:
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the two activities are performed by different individuals,
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the client is properly informed, and
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the client provides written consent to the dual engagement within the law firm.
A single attorney cannot simultaneously act as broker and legal representative in the same transaction — including drafting or countersigning the contract, holding funds in escrow, participating in loan administration, or filing with the land registry.
The purpose of these rules is to prevent conflicts of interest and to preserve the independence of attorneys during real estate transactions.
Real Estate Transactions Managed With a Legal Project-Management Approach
In real estate purchases or sales, it is not only the price that matters, but also the legal security of the entire process. Drafting and countersigning the sale and purchase agreement, managing deposits and the purchase price in attorney escrow, and handling the land registry procedures are tasks that only an attorney or in-house counsel may perform under current Hungarian law. This ensures that every step of the transaction is legally transparent.
A real estate transaction is not merely a commercial decision; it is also a significant legal decision. A well-prepared transaction saves time, money, and reduces risk — especially when an attorney is involved in the brokerage. Attorney-led real estate brokerage offers the following advantages:
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With attorney involvement, the entire process — from legal preparation to land registry registration — takes place within a transparent and professional legal framework. This results in faster administration, fewer errors, and less time lost for both seller and buyer.
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Attorneys understand real estate transactions both legally and commercially. They assist in realistic pricing, reducing negotiation time and risks arising from unrealistic expectations.
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Issues such as pre-emption rights, usufruct, title retention, condominium regulations or banking requirements are identified early and handled properly. This prevents unclear contractual terms and avoids future disputes.
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Attorney services do not end with a single task: they accompany the client through the entire transaction, from the property’s market appearance to drafting the contract and up to handover — applying a legal project-management approach. This ensures unified legal responsibility and seamless administration.
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Attorney activity is backed by mandatory professional liability insurance, which provides real financial protection in case of error — something that most real estate brokers cannot offer. Ethical rules of the Bar further ensure fairness and client-first conduct.
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Attorney involvement goes beyond contract drafting: tax and duty considerations are taken into account, and attorneys may also act before the tax authority in such matters. This allows well-founded financial decision-making and increases the transaction’s predictability and security.
Attorney-led real estate brokerage is more than simply assisting in property sales — it is a legally sound, ethical, and professionally grounded solution that saves time, effort, and reduces risk for the client.
How Can an Attorney Assist?
In today’s digital world, the real estate market has undergone a major transformation. Thanks to online advertising platforms, property listings are now accessible to everyone: anyone can advertise their property free of charge or at a low cost. This shift has changed the role of real estate brokers. While previously their main value lay in “connecting” sellers and buyers, today — when anyone can post a listing in seconds — the focus has shifted to preparing the transaction, forming agreement between the parties, and creating legal certainty.
Most people think of a real estate transaction as a simple process: the seller meets the buyer, they agree on the price, and sign the contract. In reality, it is far more complex. The key to a successful real estate sale is not merely matching the parties, but establishing a structured, legally grounded process in which the interests of both parties are balanced and protected. This requires multi-level coordination, professional preparation, and trust.
While real estate brokers concentrate on managing client relationships and publishing listings, attorneys provide specialised legal services essential for completing the transaction:
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drafting the transfer documents,
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managing deposits and escrow,
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countersigning documents and ensuring legal compliance,
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representing clients in land registry — and, where necessary, tax authority — procedures.
Many consider the transfer of a property merely an “entry update” — as if it were an administrative formality. In reality, the transfer of ownership is a multi-stage legal process requiring preparation, careful administration, and full legal compliance. The transaction is built on trust, intent, and legal guarantees. Multiple legal acts, conditions, documentation steps, and authority procedures are needed for the lawful registration of ownership.
One advantage of attorney-led real estate brokerage is that it does not involve exclusivity. This means the seller or buyer may freely decide to work simultaneously with other brokers or market the property themselves. The attorney’s engagement does not restrict sales opportunities — yet provides legal supervision from the earliest stage. This is especially beneficial for clients who do not want to rely on a single sales channel but require legal certainty and transparency.
Conclusion
Real estate transfer is a complex process that often requires the involvement of brokers and other professionals (e.g. valuers, lawyers). Real estate brokers play an important role in the market: they advertise, present properties, help connect clients, and perform basic documentation tasks. Their work requires professional qualifications, registration, and authorisation.
However, the legal finalisation of the transfer can only be carried out by a legal representative — an attorney — especially when it involves drafting and countersigning the contract, handling escrow, or performing land registry procedures. Attorneys may, in certain cases (such as within the framework of a law firm), perform brokerage-related tasks as well — but to guarantee integrity and impartiality, these must be performed by different individuals for the same client.
Involving a legal representative is not only mandatory in certain phases, but it offers significant advantages as well, particularly regarding professional expertise, liability insurance, legal guarantees, and ethical conduct. The attorney does not merely prepare documents; they manage the entire process with a legal project-management perspective, understanding the interplay between various professional fields, and ensuring that each step of the transaction is structured and secure.
Author:
Dr. István Herdon, LL.M.
Managing Attorney, Specialist in Economic Law
Herdon Law Firm