Blog / Regulating the conveyancing services market

Real estate transactions comprise both professional services offered by the market and government monopoly in terms of the land registry or similar. If the mandate of the competition authorities restrict the scope of investigations to the market part we indeed have a problem. Perhaps, a consumer protection point of view could broaden the mandate to cover the whole transaction, including the enforcement aspect. Admittedly, a home is not a usual commodity. On the other hand, even the US Republican Administration authorized governmental intervention also to protect customers, as commented by the Republican nominee, Senator McCain: “We need to keep people in their homes”.

Leaving the issue of future investigations, mention is made of three studies in real estate transactions which all model transactions in real estate from start to end, and basically as the transactions are performed in practise. The studies do not include accounts of ex post transactions or enforcement costs. These three studies are:

• International Comparison of Transaction Cost of Proprietary, commissioned by the German Federal Office for Building and Regional Planning,
• a comparative study prepared by the Nordic mapping and cadastral agencies in cooperation with university staff, and
• the research action ‘Modelling Real Property Transactions’, performed 2001-05.

Taken together, the above studies suggest that at least in the EU it is feasible to model transactions in real estate from start to end, and basically as the transactions are performed in practise. None of the above studies included ex post or enforcement costs, e.g in terms of number and cost of title disputes and boundary disputes, etc., and in number and cost of foreclosure processes. These and other routine ex post transactions should be added to get a more complete account of the quality of the regulation of the institution of property right. Other ex post transactions are more difficult to assess: Is it a quality that a family is turned into the street through an efficient foreclosure? Is it a quality that squatters are evicted briskly? Despite these open questions, the methodologies applied in the mentioned studies seem to offer a more adequate result and hence a better base for policy considerations than studies restricted to mandatory parts only.

Follow this link for a more detailed account and references.

The main purpose of the conveyancing process is to transfer the title of the property and any improvements from one owner to another. In the majority of cases this involves a seller (vendor) and a buyer (purchaser). There are examples where this is not the case, such as complying with the terms of a will. Usually the conveyancing process is transacted by way of a contract between the parties although there are occasions where this is not used. During the conveyancing process a number of searches and enquiries are carried out depending upon the nature of the transaction. These searches and enquiries are designed to protect your interests and ensure you obtain a sound Title. Click here for more information.