1 / 13

Preliminary Findings from the Study on “Conveyancing Services Regulation in Europe”

Explore the impact of professional services regulation on the conveyancing market in Europe. The study analyzes the relationship between regulations and market outcomes, focusing on market entry, conduct, intervention, and consumer protection. A comprehensive methodology includes questionnaires, surveys, case studies, and input from industry experts. Findings highlight different regulatory models, such as the Latin notary system, the deregulated Dutch system, the lawyer system, and the Scandinavian licensed agent system. Discover how varying levels of regulation influence prices, service quality, consumer choice, and transaction speed in conveyancing services.

leroyt
Download Presentation

Preliminary Findings from the Study on “Conveyancing Services Regulation in Europe”

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Preliminary Findings from the Study on “Conveyancing Services Regulation in Europe” Centre of European Law and Politics, University of Bremen (ZERP): Christoph U. Schmid (Project Co-ordinator) International Real Estate Business School, University of Regensburg: Gabriel S. Lee and Steffen Sebastian Institute for Advanced Studies Vienna (IHS): Marcel Fink and Iain Paterson

  2. Background • Agenda of the European Commission to promote reform and modernisation of restrictive regulation in the professional services area • IHS Vienna Study on regulation in various professional sectors (2003) • Commission Report COM 83(2004) and Communication of 5 September 2005 • World Bank Report „Doing Business“(2005) outlining wide discrepancies in costs and time to register property transfers

  3. Aims (1) • Analysis of one key market and the impact of professional services regulation on it • Conveyancing chosen on account of its high significance for the economy • Study awarded to ZERP in August 2006, to be concluded at the beginning of 2007

  4. Aims (2) Analyse the relationship between the level of regulation and market outcomes in conveyancing services: 1. Level of regulation : compute a regulatory index on regulation governing: • market entry • market conduct • mandatory intervention • consumer protection 2. Market outcomes: price, quality of services, choice for consumers and speed of the transaction

  5. Methodology • Questionnaire on basic legal and economic aspects of conveyancing, answered by 20 national reporters (SE, FI, DK, DE, FR, UK, Scotland, IE, LU, BE, NL, ES, PT, SI, SL, CZ, HU, PO, A, IT) • Web-based survey on market outcomes: price, quality, choice, speed of services • Case studies on the reforms in the UK and the Netherlands, on Germany and Sweden • Input from professional associations and national competition authorities and questionnaire addressees

  6. Basic legal findings • Basic orientation: focus on legal professionals, as regulated strongest • Four regulatory models: • traditional Latin notary system (ES, PT, FR, BE, LU, DE, A, PO, IT, SL, SI) • deregulated Dutch notary system (NL) • lawyer system (UK, IE, Scotland, HU, CZ) • Nordic licensed agent system (DK, SE, FI)

  7. The Latin Notary System (1) • One neutral professional enjoys exclusive rights and needs to be involved on a mandatory basis • Different degree of involvement: • Mandatory for sales contract (PO, DE) or property transfer (NL, ES) • Mandatory for the registration only (FR, BE, IT, LU, PT) • Mandatory certification of signatures only (SL; SI; A; CZ [also lawyer])

  8. The Latin Notary System (2) • highly regulated: • numerus clausus • fixed fees • fixed location • strong limitations on: • interprofessional cooperation, • business structure, • advertising

  9. The Latin Notary System (3) • Exceptions: • Austria: • no mandatory involvement of any professional, but notary/lawyer have exclusive rights • fees not fixed, but high in practice • CZ and HU: lawyer or notary • Italy: liberalisation of fees in 2006 • consequences not yet clear • Greece: hybrid model: notary + 2 lawyers • most expensive system

  10. The Deregulated Dutch Notary System (1) • Reform of 1999: • numerus clausus abolished • only business plan to be presented by applicant • fees completely liberalized • freedom of establishment enlarged

  11. The Deregulated Dutch Notary System (2) • Consequences: • Relatively strong competiton among notaries • Number of professionals increased by ca. 30% since 1995 • Fees for conveyancing decreased whereas fees for other notarial services (e.g. family law, wills) increased • Concerns over integrity and quality of advice frequently voiced, but no major problems reported

  12. The Lawyer System • Adversarial model (British Isles): • both parties have their own lawyer vs. „notarial lawyer“ system (HU, CZ, A): one lawyer may act for both parties • Low degree of regulation: no numerus clausus, liberalised fees (often flat fees) • Reform of 1987 admitted licensed conveyancers as competing service providers • Consequence: only small number exists, but solicitors‘ fees decreased

  13. The Scandinavian Licensed Estate Agent System • Licensed real estate agents provide also legal services • Low degree of regulation • no numerus clausus, negotiable fees • few problems due to frequent use of standard contracts • Peculiarities • DK: buyer usually represented by a lawyer • FI: authentication of signatures by notary mandatory • Best performance – lowest legal costs of all systems

More Related