Letét

Letét is a term used in Hungarian law and finance to describe the act of placing property or funds under the custody of a third party for safekeeping, often to secure an obligation, await a transaction, or resolve a dispute. The term encompasses both the act of depositing and the item deposited, and it implies that the custodian holds the asset separate from their own property until the agreed conditions are met.

In banking and fiduciary practice, letét arrangements function as escrow or custody services. Common examples include escrow deposits for real estate transactions, safekeeping of documents or valuables, and securities held in custody by a bank or broker. The precise terms—what may be deposited, under what conditions it may be released, and who bears risk—are defined in contract, statutory law, and relevant regulations.

In court and administrative contexts, letét can refer to deposits with a court, notary, or administrative body as evidence, security, or guarantee. The depositor typically remains the owner, while the custodian has a custodial duty to preserve the asset and to release it only when the stipulated conditions occur or a decision is reached. Letét arrangements emphasize custody and conditional release rather than transfer of ownership.

Related concepts include escrow, custodial deposits, and security deposits. In Hungarian usage, letét is contrasted with related terms such as “letétbe helyezés” (the act of placing something in custody) and with general notions of deposit and custody found in fiduciary practice across jurisdictions.