In its decision of 19 December 2025 (V ZR 15/24), the German Federal Supreme Court (Bundesgerichtshof, BGH) ruled that the so-called Nachbarerbbaurecht—i.e., the right to construct buildings extending onto neighboring plots (Erbbaurecht)—is permissible and can be validly established. This ruling provides significant legal certainty in Germany for real estate developments spanning multiple plots with different ownership.
This raises the question: what does this mean under Hungarian law? Does a similar legal mechanism exist, and how do Hungarian regulations treat buildings that are indivisible and stand on multiple plots?
The Starting Point in Hungarian Law: Plot-Linked Ownership and Use Rights
One of the core principles of Hungarian civil law is that, as a general rule, a building is part of the plot and follows its legal status (Civil Code, Section 5:14). However, in response to economic and development needs, Hungarian legislation has created several institutions that allow deviations from the classical plot–building unity.
These include, in particular:
- land-use rights,
- usufruct rights, and
- construction rights, which since 2023 have existed as an independent, transferable real right under Hungarian law.
Buildings Spanning Multiple Plots: An Existing Issue in Hungary
In practice, developments affecting multiple plots—especially in urban environments—are increasingly common in Hungary. These typically:
- involve several plots with different ownership,
- take the form of shopping centers, office complexes, or mixed-use urban districts, and
- cannot be physically separated along plot boundaries without disproportionate cost or damage.
In such cases, developers have typically attempted to manage the situation through:
- easements,
- usage agreements, or
- complex corporate structures.
However, these solutions do not always provide adequate marketability or long-term legal certainty.
Parallels with the German Decision: Lessons for Hungarian Practice
Although German Erbbaurecht and Hungarian construction law are not identical, the logic and reasoning of the BGH decision are instructive for Hungarian legal practice.
The German court held that:
- a structure partially extending onto neighboring plots under a construction right is not unlawful, and
- the mere fact that a building stands on multiple plots does not invalidate the legal basis.
This reasoning aligns with the Hungarian approach that real estate developments should be governed not by formal dogmatic obstacles, but by forward-looking contractual arrangements agreed by the parties.
The Greatest Challenge in Hungary: What Happens When the Right Terminates?
As in German law, the most critical issues in Hungary arise not when the right is created but when it ceases, particularly:
- who becomes the owner of an indivisible building spanning multiple plots,
- whether and to what extent compensation is due, and
- how the situation is handled in cases of enforcement, liquidation, or succession.
Hungarian Civil Code provisions (on components, superstructures, and unjust enrichment) do not always provide clear or commercially acceptable answers. Therefore, contractual regulation plays a key role in such structures.
Forward-Looking Structuring: Not Optional, but Essential
One of the most important messages of the BGH decision, fully applicable to Hungarian practice, is that these legal relationships must be addressed at the time of creation, not “sometime later.”
Particular attention should be paid to:
- cases of termination of the right,
- pre-arrangement of the building’s legal status,
- methods and calculation bases for compensation, and
- ensuring financing and marketability.
These issues can directly affect the value of the development even decades later.
Conclusion
The German Federal Supreme Court’s decision reinforces a Europe-wide trend toward legal practice increasingly accommodating the realities of complex urban real estate developments. While Hungarian law employs different mechanisms, the fundamental issues and risks are the same.
It is clear in Hungary as well: the key to legal success for construction projects spanning multiple plots lies in forward-looking, detailed, and structured legal planning.
Dr. Géza Katona, LL.M., Attorney at Law (Rechtsanwalt / attorney at law)
Katona & Partner Attorneys’ Association
H-1106 Budapest, Tündérfürt u. 4.
Tel.: +36 1 225 25 30 | Mobile: +36 70 344 0388 | Fax: +36 1 700 27 57
Email: g.katona@katonalaw.com | www.katonalaw.com