Formal requirements of a contract in Hungary

The purpose of formal requirements

The main purpose of a contract is to document an agreement between two or more parties. While its text should cover specific aspects of the agreement to prevent future misunderstandings regarding rights and obligations, there are certain formal requirements that should be observed too.

Technically, these are all security measures that ensure that the contract cannot be tampered with after signature.

2 copies

Every contract needs to be signed in at least 2 copies. One is for you, for future reference, and one is for the other party. Of course, if there are more parties, each of them should receive their own copies.

Blue ink pen

Signatures and other information added after a contract was printed must be written with a blue ink pen (in some cases, it is even specified that it should be a ballpoint pen rather than a fountain pen – because the ink from a fountain pen blurs more easily if water is spilled on the paper). This is to prevent fraud by using a copy machine or a printer for adding signatures.

Your signature where it belongs

A contract will have several dedicated spaces for signatures to be provided by each party. Make sure to add your signature only to the spaces designated for you. The space will most probably be marked by a single or a dotted line. Put your signature above the line.

E.g. in a rental agreement, there will be dedicated spaces for the signatures of both the landlord and the tenant. If you are the tenant, sign only the space indicated for the tenant. 

Initials on every page

Depending on the type of contract, you might be asked to sign every page of the contract to prevent pages being added to or removed from it after signature. In this case, it is usually enough to put just your initials, not your full signature. If only your initials are required, probably there will not be a designated space (dotted line) for them – in that case, just put your initials at the bottom of the page.

Please note: never sign a blank page. (If a blank page has to be signed, it should have a note to the effect of “This is a blank page” or “This page was intentionally left blank”.)

Numbered pages

To ensure that nothing can be added to or removed from a contract after signature, pages should be numbered. The same goes for sections and paragraphs, too.

Attestation

Attestation is how you prove a document is authentic, meaning that it was actually signed by the relevant parties and that they signed it willingly. There are various forms of attestation in Hungary:

• Attestation by 2 witnesses
• Attestation by a notary or a consul
• Attestation by an attorney
• Apostille

Electronic storage

In most cases, if contracts need to be used for dispute resolution, hard copies are requested. However, it makes sense to store contracts electronically too, as an extra safety measure. In this case, make sure to scan the entire contract, not only the pages that have signatures on them.

Other official documents

Most of the above formal requirements apply not only to contracts but also to other official documents, such as application forms, e.g. for your Hungarian residency application. When submitting forms, the following are especially important:

Sign in front of an official

Even if you are supposed to fill out most forms in advance, at home, before your appointment, you might be required to add your signature only in front of an administrator (so the administrator can attest that it was really you who signed the document). If that is the case, our colleagues will let you know.

Scan the entire document

When you are submitting files for a residency application, you might be asked to submit scanned documents, such as your passport or a rental agreement. In these cases, you must scan the entire document – meaning your entire passport, even if it has several empty pages, or the entire rental agreement, even if only the last page has your signature.

Paperwork with expert assistance

Helpers Hungary has 20+ years of experience helping foreigners navigate bureaucracy in Hungary, which of course include calling your attention to formal requirements of paperwork during any administrative process. Whether you need help with business setup or residency application, you can count on our team of committed professionals and receive solutions tailored to your needs.

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