Judgment of the Court (Fourth Chamber) of 12 December 2024.CN v Nemzeti Földügyi Központ.Reference for a preliminary ruling – Article 63 TFEU – Free movement of capital – Article 17 of the Charter of Fundamental Rights of the European Union – Right to property – Right of usufruct over agricultural land – National legislation extinguishing, without compensation, the rights of usufruct – Judgment establishing a failure to fulfil obligations – Reinstatement in the land register of a previously deleted right of usufruct, without examination of the lawfulness of the original registration – Finality of the original registration.Case C-419/23.

This judgment concerns the interpretation of EU law regarding rights of usufruct over agricultural land in Hungary and has direct implications for Ukraine and Ukrainians. Here are the key points: Essence of the Act:
The Court ruled on whether EU law allows Hungary to reinstate previously cancelled rights of usufruct over agricultural land, even when the original registration was contrary to national law. The case involved a German resident’s property rights in Hungary and the reinstatement of a third party’s usufruct rights that were previously cancelled. Structure and Main Provisions:
– The judgment examines whether reinstating cancelled usufruct rights violates EU free movement of capital rules and property rights
– It analyzes whether such reinstatement is justified and proportionate under EU law
– The Court found that reinstating usufruct rights is permissible even if the original registration violated national law, as long as the contract creating those rights was legal when made Key Provisions:
– Member States must restore rights that were cancelled in violation of EU law
– Property rights acquired through illegal cancellation of usufruct rights are not considered ‘lawfully acquired’ under EU law
– National authorities can choose to disregard past registration irregularities when reinstating cancelled rights
– The principle of legal certainty supports reinstating definitive registrations even if originally unlawful

Full text by link