This essay outlines an alternative “law and economics” interpretation of the concept of the land market. According to neo-institutional researchers, institutions provide the framework and the rules in a society, including legal regulations. This study is based on the legal background in Hungary, and it analyses the current agricultural legal norms of land property. The method used for this research was observing the legal norms in practice and adopting the methods of the economic analysis of law, including game (negotiation) theory and regulatory impact analysis. Describing the different legal institutions, such as easement, lease, agricultural subsidies, that has pecuniary value, the present article describes the transaction costs of selling and purchasing arable land, and the outcome of the decisions and options of the transaction participants.