handbook for real estate transactions

Insights

Second Edition of the Deloitte Legal Handbook for Real Estate Transactions 

Real estate transactions are characterized by an ever increasing internationalization. The planning and implementation of real estate projects in foreign countries requires a detailed analysis of the legal parameters for the construction and usage of real estate prevalent in the respective jurisdiction. This is also true for users/occupiers of real estate located in foreign countries.

The Deloitte Legal Handbook for Real Estate Transactions which is now available in a re-edited version describes the most relevant elements of the legal framework for real estate transactions in 20 European countries as well as China, Colombia, Mexico and Thailand, thereby representing a valuable tool for getting familiar with local regulations relevant for any type of real estate.

Did you know that the provisions of statutory law regulating public registers in China have been completely revamped with effect as of January 1, 2016? Or that Chinese law does not provide for a general requirement for the execution of real estate transactions by notarial deed? Were you aware of the fact that in some countries you cannot lawfully acquire ownership in coastline real estate? Or what countries would under what circumstances allow a compulsory dispossession? Did you know that customary practice for representations and warranties in real estate transactions considerably deviates from country to country? And what legal parameters and restrictions need to be taken into consideration when planning for the commercial use of real estate? Do you know what roles are assigned to notaries public in various countries and in which countries real estate transactions are not required to be executed by notarial deed?

More and more real estate transactions have a cross-border character. Institutional and private investors no longer limit their activities to their respective home markets but, for reasons of diversifying risks, achieving higher yields, political insecurities in their respective home countries or other reasons look at other countries. Real estate and investment funds which for a long time have been engaged and active on an international basis expand their activities into countries and jurisdictions which not too long ago would have been considered as rather exotic, often driven by yield expectations of their investors. Companies of all segments expand into new production or sales markets or are forced to relocate individual branches or segments to other countries, also against the background of political regulatory developments. In all such events, it is vital to delve into the legal framework prevalent at the respective real estate’s location. Only by doing so, one can establish whether and in what form ownership in plots of land and/or erected buildings can be acquired, what prerequisites need to be taken into consideration in obtaining permits for the construction and usage of buildings, what limitations exist with respect to the use of objects and what transaction cost and taxes need to be taken into consideration when calculating net yields.

The Deloitte Legal Handbook for Real Estate Transactions which has just recently been published in a re-edited version provides an overview on the most relevant legal framework in 20 European countries as well as China, Colombia, Mexico and Thailand. As part of individual country chapters, the legal basis for real estate law, the types and nature of ownership rights as well as other rights in rem, the registered system, approval and notarization requirements as well as the role of notaries public are depicted. Thereafter, the topics that are of particular relevance for transactions, namely representations and warranties and liability regime as well as the creation of collateral/mortgages, etc. with respect to real estate are being described. Moreover, the country chapters elaborate on regulations and restrictions for the lease of real estate, transaction cost and transaction tax as well as other taxes, public law permits and approvals as well as regulations related to contamination and associated liability regimes.

In describing the legal parameters for real estate transactions, the Deloitte Legal Handbook for Real Estate Transactions perfectly complements the Deloitte Property Handbook, which looks at the economic parameters of real estate transactions in numerous countries.

The Deloitte Legal Handbook for Real Estate Transactions is available for download free of charge here.

In case of any questions related to the Handbook or additional questions with respect to Deloitte Germany’s competencies in Real Estate and how Deloitte Legal can assist you in Germany, Europe and around the globe, please visit our website or contact Felix Felleisen (Rechtsanwalt | Partner | Deloitte Legal), +49 (0)211 8772-2553 | ffelleisen@deloitte.de).

You may download the Deloitte Legal handbook for Real Estate Transactions here.
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