New Economics Papers
on Law and Economics
Issue of 2014‒08‒02
nine papers chosen by
Eve-Angeline Lambert, Université de Lorraine

  1. Legal Counsel in European Real Estate Conveyances: Brokers and Notaries By Jingryd, Hans Ola
  2. Legal implications for property valuers and property professionals By Leshinsky, Deborah Miriam
  3. Innovation on the seed market: the role of IPRs and commercialisation rules By Marc Baudry; Adrien Hervouet
  4. Disorder, Social Capital, and Norm Violation: Three Field Experiments on the Broken Windows Thesis By Keuschnigg, Marc; Wolbring, Tobias
  5. Effect of Joint Custody Laws on Children's Future Labor Market Outcomes By Maiti, Abhradeep
  6. Redesign of Real Estate Market by Legal Regulation By Hoffmann, Martina
  7. Legal Due Diligence in Commercial Real Estate Transactions By Foerster, Martin
  8. The Legal Conditions for Neglected Buildings in Germany By Saxinger, Andreas
  9. How does the Change in Accessibility Impact Commercial Property Values? By Lee, Jae-Kwang; Ke, Qiulin

  1. By: Jingryd, Hans Ola
    Abstract: Purpose - Real estate conveyances are accomplished in different ways and by different players in the EU member states. In Sweden, the key player is the broker, whereas in France and other civil law countries, the notary has that role. The purpose of the paper is to examine the scope and nature of the non-litigious legal counsel buyers and sellers of residential real estate can expect to receive from the broker under the Swedish regime, compared to the notary under the French regime. The purpose is also to discuss and evaluate the two regimes, with respect both to the desirability of legal counsel in residential real estate conveyance, and to assigning those tasks to the broker and the notary respectively.Methodology/approach - The paper is based on my doctoral thesis presented in January, 2013. The study is a comparative legal study conducted in two steps: first, the role of the broker is compared to that of the Latin notary in nine civil law countries. After that, the duty to counsel of the broker is juxtaposed with that of the French notary. Being a legal study, it is based on legal sources such as statutes, case law, and jurisprudence.Findings - The Swedish broker and the Latin notary are both held to a duty of impartiality and a duty to counsel. The duty to counsel of the Swedish broker and the French notary consists in four sub-duties: to conduct verifications and ascertain certain facts, to disclose relevant information, to give adequate advice, and to draw up the necessary deeds. The desirability of mandatory legal counsel, as well as the choice of assigning counseling role to the broker or the notary, has clear economic implications. However, it is less than clear whether or not regulation of the examined kind is conducive to economic efficiency. One problem is that the existing models fail to take into account central factors such as one's ideological view on consumers' rights and state intervention in the marketplace. Therefore, it seems a more fruitful enterprise to evaluate the regimes' institutional robustness; that is, their ability to fulfill their intended purpose. For instance, the incentives of the key players may be detrimental to the proper functioning of the regime. Future research should focus on institutional robustness.Originality/value - The paper highlights an important, though often neglected, factor for evaluating the regimes for conveyances, namely impartial legal counsel to consumers.
    Date: 2013
  2. By: Leshinsky, Deborah Miriam
    Abstract: This research paper will show the challenges property valuers and property professionals are facing in their working environment and an understanding of the current job requirements in regard to what they are required to do according to the law. A property valuer is hired to place a dollar value on a property. Hyam (2004) mentions that the valuation of land and building involves a matter of judgement and those opinions vary on this subject matter.Property Valuers concerns are about whether they are acting within the law for the last few decades have impacted on individuals at an increasing rate. In addition to property valuers doing their job there are always concerns about their limitations within the industry. This topic pertains to other professionals in the property real estate industry as well.This article will look at case law and relevant guidelines for property valuers and professionals who are at times scrutinised. We professionals are attending risk seminars and working for organisations that follow protocol, however there are still some concerns about what is and is not permitted that are not addressed every day which need to be examined closely. This paper will be both informative and instructional for universities teaching new property laws and also property valuers starting up in the industry and more experienced property professionals who have obtain bad habbits over the years.This paper will show entry level valuers as well as more experienced valuers that there are restrictions and constraints in their role as a valuer. Additionally will focus on field notes, sales evidence provided, valuation methods and several reasons why valuers are sued and at what point in the sales/valuing process the lawsuits usually occur and what the typical outcomes are. Few studies to date have directly addressed recent court cases and duties of property valuers and or property professionals in regards to negligence. In this study and research paper it will be shown principles that can be followed by property professionals that will make property professionals aware of their duties and in turn reduce potential court cases in the future, both on an international and national level. Liability insurance and premiums on current insurance will also be addressed. Insurance premiums are escalating every year; reasons for this will be explored in relation to the working professionals through there every day working life.
    Date: 2014
  3. By: Marc Baudry; Adrien Hervouet
    Abstract: This article deals with the impact of legislation in the seed sector on incentives for variety creation. The first category of rules consists in intellectual property rights and is intended to address a problem of sequential innovation and R&D investments. The second category concerns commercial rules that are intended to correct a problem of adverse selection. We propose a dynamic model of market equilibrium with vertical product differentiation that enables us to take into account the economic consequences of imposing either Plant Breeders’ Rights (PBRs) or patents as IPRs and either compulsory registration or minimum standards as commercialisation rules. The main result is that the combination of minimum standards and PBRs (patents) provides higher incentives for sequential and initial innovation and may be preferred by a public regulator when sunk investment costs are low (high) and the probability of R&D success is sufficiently high (low).
    Keywords: Intellectual Property Rights, Plant Breeders’ Rights, Catalogue, Product differentiation, Seed market, Biodiversity
    JEL: D43 K11 L13 Q12 Q16
    Date: 2014
  4. By: Keuschnigg, Marc; Wolbring, Tobias
    Abstract: Adding to the debate about the “broken windows” thesis we discuss an explanation of minor norm violation based on the assumption that individuals infer expected sanctioning probabilities from contextual cues. We modify the classical framework of rational crime by signals of disorder, local social control, and their interaction. Testing our implications we present results from three field experiments showing that violations of norms, which prevent physical as well as social disorder, foster further violations of the same and of different norms. Varying the net gains from deviance it shows that disorder effects are limited to low cost situations. Moreover, we provide suggestive evidence that disorder effects are significantly stronger in neighborhoods with high social capital.
    Keywords: broken windows theory; disorder; field experiment; low cost situations; norm violation; social capital
    JEL: C9 C93 K42 R23 Z13
    Date: 2014
  5. By: Maiti, Abhradeep
    Abstract: In a joint custody regime, both parents are given equal preference by the court while granting the custodial rights of their children in the event of divorce. Using 50 years of census data for the United States' population, I show that growing up in a joint custody regime leads to lower educational attainment and worse labor market outcomes. My results are robust to different model specifications and apply to both males and females.
    Keywords: Joint Custody Laws, Labor Market Outcomes
    JEL: J01 J12 J13
    Date: 2014–07–27
  6. By: Hoffmann, Martina
    Abstract: This paper shows how the real estate market is influenced by the new Energy Performance Certificate Template-law 2012, focused on condominium market in Vienna. The purpose of the following study was to analyze the changed role of real estate agents and to show their reactions towards the new market situation. Therefore it was decided to observe the advertisement market carefully. The observation concentrated on the following two questions: 1. Changed role of the real estate agent 2. Changes on the condominium advertisement market until December, 1st, 2012?Since November 17th, 2012 until December 22nd 2012, 1474 advertisements of the Viennese condominium market, listed in the IMMO Kurier were analyzed. The IMMO Kurier is a supplement of a well-known Austrian daily newspaper, which appears every Saturday. Due to the investigations it could be identified, that the total amount of advertisements decreased whereas the quantity of advertisements including the calculated heating demand increased. Therefore real estate agents are fulfilling the legal requirements of EAVG 2012 and do not risk penal provisions. In conclusion the real estate market was redesigned by EAVG 2012 and the impacts have to be observed and analyzed.
    Date: 2013
  7. By: Foerster, Martin
    Abstract: Purpose - The purpose of the paper is to give an overview on the goals of the legal due diligence in the greater context of commercial real estate transactions.Design/methodology/approach - The paper first analyses the purpose of the legal due diligence in an acquisition process. In a second step it analyses those legal issues that – in the experience of the author – frequently arise in standard transactions and how to address them. Thirdly, it analyses the consequences of each of these issues on the acquisition process.Findings - Legal issues that frequently pop up during a due diligence are categorised in (a) deal breakers, (b) issues that need to be resolved before signing the purchase contract, (c) issues that need to be addressed in the acquisition contract and (d) risks that need to be accepted but may have implications on the purchase price.Research limitations/implications - Although the legal issues are similar in most continental European States, the overview is limited to Austrian law and limited commercial real estate transactions. Non legal issues (in particular: tax, financial, environmental and technical issues) as well as other areas of real estate (residential) are excluded. As each real estate transaction is different, the list is non-exhaustive.
    Date: 2013
  8. By: Saxinger, Andreas
    Abstract: During the last few years a new phenomenon arose in some cities in Germany. Especially in Eastern Germany and in economically undeveloped regions a significant number of houses are in poor condition. House owners are not able or not willing to maintain their buildings. Neglected buildings may have a negative impact on the attraction of the surroundings, but also may represent a danger for the public security.Efficient legal activities against the house owners are difficult for the authorities. Building law is in the legislative competence of the German Länder. Usually the range of legal activities is focussed on illegally erected buildings, but many neglected buildings were erected legally. Some Länder decided to add a new regulation to the building law, which permits the authorities to demolish neglected buildings even against the home owner's will. It is only necessary, that a building is not in use any more, is in dilapidation und there is no public interest in the conservation of the subject building. The question, if the neglected building has been legally erected, is not a condition of the new regulation. German planning law, which is in the legislative competence of the German Federation, was for a long period only applicable to whole quarters or entire streets of neglected buildings. Without a plan of the municipality, measures were not possible. In 2012 the Federation changed the planning law to make it better applicable also to single neglected buildings. Now a demolition order is allowed for the municipality even when there is no local statute for the quarter. On the contrary an expropriation of neglected buildings needs a local statute for the quarter far off. In the next years it remains to be seen, if the new federal planning law will solve the problems of the municipalities with neglected buildings.
    Date: 2013
  9. By: Lee, Jae-Kwang; Ke, Qiulin
    Abstract: As numerous transport infrastructure projects have been implemented, recent years have witnessed a significant increase in transport network in urban and regional areas. A number of studies have been undertaken to examine whether transport improvement impacts commercial property values and have found that proximity to public transits leads to an increase in rental values of commercial properties. Few studies, however, have focused on investigating the relationship between change in accessibility and commercial property values with a longitudinal analysis. This study therefore seeks to investigate how change in accessibility impacts commercial property retail values. A gravity-type accessibility indicator will be developed in order to enhance the measurement of accessibility in the analysis. This accessibility will gauge accessibilities of commercial properties to the market potential for two time points: 2000 and 2010. Drawing on that accessibility indicator and commercial property attributes collected from private companies, this study will develop a longitudinal econometric model to analyze the impact of the change in accessibility on commercial property rental values. A hypothesis to be tested is that an increase in accessibility does not lead to a rise in rental values of commercial properties.
    Date: 2013

This issue is ©2014 by Eve-Angeline Lambert. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
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