The purpose of this Law is the establishment of market oriented conditions in the agricultural sector based on private ownership. Land transfer and the use of land as guarantee for land-based credit should promote the efficient operation of new businesses. This Law basically regulates the use of arable land and aims to create landed properties suitable for competitive agricultural production, avoiding to burden land with the effects of excessive subdivision. The reduction of agricultural land should remain within reasonable limits and the conservation of land quality should have legal backing. In Chapter I introductory provisions regarding the effect of the Law and definition of terms are set forth. The Law applies to all arable land in the national territory, to the utilization and conservation of land, to the acquisition of landed property and its restrictions and to the creation of plots. The provisions apply to urban land, whether under agricultural or forestry cultivation. Chapter II deals with the acquisition of ownership of arable land by Hungarian and foreign private persons or legal entities. EU citizens enjoy the same rights as Hungarians if they have been living and operating in the field of agriculture for at least 3 years in Hungary, and if they meet certain requisites and undertake some obligations. The Law covers acquisition under any form except: legal inheritance, adverse possession, construction over others' property, expropriation and through auction for compensation purposes. Use of arable lands is provided for in Chapter III. Use rights are regulated in the Civil Code as is the lease of arable land, unless this Law provides otherwise. Chapter IV deals with procedures for the creation of estates (general land reform, voluntary exchange of lands). Provisions on the utilization and protection of arable land are set forth in Chapter V. Cultivation profiles should be respected. Changes in cultivation profiles are to be authorized, otherwise penalties are foreseen. In the light of these purposes, soil conservation has an important role and aims to maintain the productivity and quality of the soil. Soil conservation is provided for in Chapter VI which sets forth State duties, the obligations of land users and provides for soil conservation authorities and their duties. Soil conservation penalties shall be applied to offenders.