Presentation is loading. Please wait.

Presentation is loading. Please wait.

Costs & Benefits of Cross-Border Electronic Conveyancing Benito Arruñada Pompeu Fabra University ELRA. Barcelona. May 15, 2014.

Similar presentations


Presentation on theme: "Costs & Benefits of Cross-Border Electronic Conveyancing Benito Arruñada Pompeu Fabra University ELRA. Barcelona. May 15, 2014."— Presentation transcript:

1 Costs & Benefits of Cross-Border Electronic Conveyancing Benito Arruñada Pompeu Fabra University ELRA. Barcelona. May 15, 2014

2 Outline ▪ Economic rationale ▪ Surveying ▪ Local conveyancers ▪ Demand

3 1. Economic rationale for CROBECO

4

5

6 2. Mandatory surveying? ▪ Negative: costly + no externalities ▪ Costs ▪ Benefits ▪ How they vary with ♦type of asset ♦legal status of the rights ▪ Incidence of surveying on litigation

7 Table 1. Additional cost of a land survey for an average transaction Estimated cost of a survey in Spain (€)514.08€ PurchaseEngland38.08% Netherlands50.78% Purchase and 70% mortgage England30.97% Netherlands31.72%

8 Table 2. Incidence of boundaries on litigation Approximate translation of keywordsAll courts% demarcat* AND “Land Register” 5, % “first regist*” AND “Land Register” 3, % “double registration” AND “Land Register” 1, % “ownership procedure” AND “Land Register” 1, % “excess of meterage” AND “Land Register” 1, % parcel* AND “Land Register” % Judgments with boundary-related keywords 10, % Total number of title-related judgments (those with the chain “Land Register”) %

9

10 3. Mandatory intervention of local conveyancers?

11 Table 3. Added cost of a local notary in average transactions PurchaseNotary fee € England 46.69% Netherlands 62.23% Purchase and 70% mortgage Notary fees 1,149.97€ England 68.82% Netherlands 70.63%

12 4. Demand for CROBECO transactions

13 Table 4. Relevance for the Spanish market ( ) Nationality of the purchaser Number of transactions % of purchases by foreign nationals % of total purchases UK58, %1.78% The Netherlands6, %0.19% Other countries163, %5.02% Total, foreigners227, %6.99% Spain3,023, % Total, purchases3,251, %

14 Table 5. Purchases according to the nationality of buyers and sellers Nationality of the buyer Total purchases Nationality of the seller same as the buyer Number% Spain ,809, % UK , % Netherlands % France9.8131, % Germany8.9703, % Belgium % Italy % Sweden % Ireland % Norway4.7951, %

15 Table 6. Foreign residents in Spain (Jan. 1, 2013) Age groups Born in the UK Born in The Netherlands Number% % 1 to 64 years214, %36, % more than 65106, %11, % Total321, %47, %

16 Conclusions ▪ Economics: modest fixed cost to reduce cross-border transaction costs & keeping legal security ▪ Surveying costly & not subject to externalities: should be subject to general law and not be made mandatory ▪ Local conveyancers costly & not externalities: should not be made mandatory ▪ Substantial & increasing demand, given the number of foreign owners and their advanced age

17 Thank you


Download ppt "Costs & Benefits of Cross-Border Electronic Conveyancing Benito Arruñada Pompeu Fabra University ELRA. Barcelona. May 15, 2014."

Similar presentations


Ads by Google