Legal Counsel in European Real Estate Conveyances: Brokers and Notaries Ola Jingryd, Jur. dr. Malmö...
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Transcript of Legal Counsel in European Real Estate Conveyances: Brokers and Notaries Ola Jingryd, Jur. dr. Malmö...
Legal Counsel in European Real Estate Conveyances: Brokers and Notaries
Ola Jingryd, Jur. dr.Malmö University
BackgroundThree legal families in the EU
◦ Civil law, common law, Scandinavia
Three/four Basic Models for Conveyances
Two key players◦ The Swedish broker and the Latin notary
General observation
The Swedish broker and the Latin notary seem to perform, in great part, the same functions in real estate conveyances, and to have similar duties.
Licentiate thesis (2008)
Compared the Swedish broker and the Latin notary with respect to:◦ Relation towards buyer and seller◦ Tasks and duties performed
Swedish law compared to nine notary countries:◦ Argentina, Belgium, Brazil, France,
Germany, Mexico, Portugal, Puerto Rico, and Spain
Licentiate thesis, findings
Duty of impartiality
Counseling role
Contract-engineering
Plans for step 2
Law-and-economics analyis◦Transaction costs◦Market failures
Empirical studies difficult to effectuate
Doctoral thesis
Compare duty to counsel
Legal study, not ”empirical” study
Sweden and France
Swedish Conveyance Process
No formalities except written contract signed by the parties◦4:1-3 of the Land Code (1970:994)
Traditionally two deeds◦Contract◦Bill of sale – on day of possession
Title registration at Land Registry◦Declaratory only
Swedish Conveyance Process
No professional intervention required
In practice, however:
◦More than 90 % of all conveyances are accomplished through brokers
French conveyance processPre-contract – avant contrat
◦Binding between buyer & seller, not to third parties
◦Different kinds: compromis de vente, promesse de vente, etc.
Sales deed – acte de vente◦ Acte authentique – notarized◦Binding to third parties, enforceable
Title registration declaratory
Duty to counsel – Swedish broker
Legal basis:
◦Estate Agents Act (2011:666), esp. 8, 16, 21 §§
◦Case law from civil and administrative courts as well as the Estate Agents Inspectorate
Duty to counsel – Swedish brokerDuty to verify
◦Right of disposal, encumbrances, joint facilities
◦Not zoning & planning! ◦Complemented by duty to
investigateDuty to disclose information
◦Concerning the property and other relevant factors connected to the transaction
Duty to counsel – Swedish brokerDuty to advise
◦Matters of import to the transation◦Legal, financial, technical
Contract-engineering◦Tailor the deeds to the needs of the
transaction at hand◦Intertwined with duty to advise
Duty to counsel – French notary
Legal basis:
◦Art. 1382 of the Code Civil
◦Extensive case law from the Cour de cassation
Duty to counsel – French notary
Duty to verify◦Including zoning & planning!
Duty to disclose information
Duty to advise
Contract-engineering
Implications, future researchEconomic effiency
Institutional robustness◦Does it work?◦Can it work◦ Incentives!
Part of housing market ◦Self-owned homes large portion of total
market◦Access to housing on fair terms