The Prevention of Conflicts of Interest in the Area of Act on Land and Real Estate -Concerning the recent LH scandal

2021 ◽  
Vol 4 (2) ◽  
pp. 39-63
Author(s):  
Myeong-Ho Bae
Author(s):  
Stephanie M. Stern ◽  
Daphna Lewinsohn-Zamir

This chapter examines how the psychology of cognition, decision making, and deception affects buyers and sellers in real estate transactions. The chapter describes how some aspects of property law, such as standardized forms of property (e.g., fee simple ownership, leasing) may reduce information-processing costs and enhance understanding of transactions. Yet other laws, such as property defect disclosure, fail to respond to buyers who struggle to process, update, and price complex, late-coming information and sellers who are subject to motivated reasoning and tendencies toward deception. The chapter also considers emerging psychological evidence on conflicts of interest that calls into question the prevailing approach of allowing dual agency by brokers (i.e., representing both buyer and seller).


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dustin C. Read ◽  
Danielle Claire Sanderson

Purpose Motivated by behavioral theories of the firm, this study aims to consider the extent to which knowledge gaps, organizational inertia and conflicts of interest prevent large real estate investment management firms from approaching asset management in a comprehensive manner. Design/methodology/approach Results of 93 semi-structured interviews conducted with real estate practitioners working in the USA are thematically analyzed. Findings All of the aforementioned factors are found to influence real estate asset management practices and serve as potential obstacles to operational excellence. Research limitations/implications The qualitative analysis is limited in the sense that it focuses exclusively on the perceptions of real estate practitioners in the USA who work for relatively large organizations. However, it offers compelling evidence that comprehensive asset management is difficult under the best of circumstances, and becomes even more so in the presence of knowledge gaps, organizational inertia and conflicts of interest. Practical implications Those working in asset management or with asset managers must be mindful of the obstacles discussed if they hope to encourage and facilitate process improvement. Originality/value The study contributes to a small but growing, body of research examining the challenges large real estate investment management firms face when trying to derive value from their asset management platforms.


2020 ◽  
Vol 35 (102) ◽  
pp. 213-267
Author(s):  
Ozlem Akin ◽  
José M Marín ◽  
and José-Luis Peydró

Abstract Banking crises are recurrent phenomena, often induced by excessive bank risk-taking, which may be due to behavioural reasons (over-optimistic banks neglecting risks) and to conflicts of interest between bank shareholders/managers and debtholders/taxpayers (banks exploiting moral hazard). We test whether US banks’ stock returns in the 2007–8 financial crisis are associated with bank insiders’ sales of their own bank’s shares in the period prior to 2006Q2 (the peak and reversal in real estate prices). We find that top-five executives’ sales of shares predict bank performance during the crisis. Interestingly, effects are insignificant for the sales of independent directors and other officers. Moreover, the top-five executives’ impact is stronger for banks with higher exposure to the real estate bubble, where a one standard deviation increase of insider sales is associated with a 13.33 percentage point drop in stock returns during the crisis period. Finally, even though bankers in riskier banks sold more shares (furthering their own interests), they did not change their bank’s policies, for example, by reducing bank-level exposure to real estate. The informational content of bank insider trading before the crisis suggests that insiders knew that their banks were taking excessive risks, which has important implications for theory, public policy and the understanding of crises, as well as a supervisory tool for early warning signals.


2017 ◽  
Vol 9 (3) ◽  
pp. 191-222 ◽  
Author(s):  
Panle Jia Barwick ◽  
Parag A. Pathak ◽  
Maisy Wong

This paper documents uniformity in real estate commission rates offered to buyers' agents using 653,475 residential listings in eastern Massachusetts from 1998–2011. Properties listed with lower commission rates experience less favorable transaction outcomes: they are 5 percent less likely to sell and take 12 percent longer to sell. These adverse outcomes reflect decreased willingness of buyers' agents to intermediate low commission properties (steering), rather than heterogeneous seller preferences or reduced effort of listing agents. Offices with large market shares purchase a disproportionately small fraction of low commission properties. The negative outcomes for low commissions provide empirical support for regulatory concerns over steering. (JEL D82, L85, R21, R31)


2019 ◽  
Vol 3 (2) ◽  
pp. 63-69
Author(s):  
Kely Roxana Pérez Pérez

La investigación, parte de la insuficiente respuesta del derecho registral inmobiliario frente a la inscripción de inmuebles, lo cual limita el derecho de propiedad en los Registros Públicos, considerándose para ello, que la escritura, que es elaborada por el Notario, no sólo debe ser registrada en los libros de esta persona, sino que debe ser remitida al Registro Público a fin de que se cree un antecedente de propiedad inmueble, ello al verificarse que el ordenamiento jurídico actual no provee las herramientas eficaces para prevenir ni solucionar los conflictos de intereses derivados de los casos en que se presenta más de una venta sobre el mismo bien. El objetivo principal, consiste en elaborar un proyecto legislativo para adicionar al artículo 2022,  el artículo 2022 A) del Código Civil, en registro público de las escrituras notariales de transferencia propiedad de inmueble y la oponibilidad para determinar la propiedad de un predio. Se emplearon métodos de observación, análisis y de síntesis. Se empleó un diseño No Experimental con una metodología de tipo descriptiva y explicativa. Se aplicó la revisión de casos en materia civil y penal derivados de conflictos por la concurrencia de varios propietarios sobre un mismo bien. Partir de las deficiencias obtenidas se propuso elaborar una propuesta legislativa con la inclusión del artículo 2022-A, la misma que está orientada para que a través de la función del Notario Público se pueda registrar la transferencia de un inmueble, para verificar también la acreditación del titular del derecho que se transfiere.   Abstract The investigation, part of the insufficient response of the real estate registry right against the registration of real estate, which limits the right of ownership in the Public Registries, considering that the deed, which is drafted by the Notary, should not only be registered in the books of this person, but must be sent to the Public Registry in order to create an antecedent of real property, it is verified that the current legal system does not provide effective tools to prevent or solve conflicts of interest arising of the cases in which more than one sale is presented on the same good. The main objective consists of preparing a legislative project to add to article 2022, article 2022 A) of the Civil Code, in public registry of notarial deeds of property transfer and the effectiveness to determine ownership of a property. Methods of observation, analysis and synthesis were used. A non-experimental design was used with a descriptive and explanatory methodology. The review of cases in civil and criminal matters arising from conflicts was applied due to the concurrence of several owners over the same asset. Starting from the deficiencies obtained, it was proposed to elaborate a legislative proposal with the inclusion of article 2022-A, which is oriented so that through the function of the Notary Public, the transfer of a property can be registered, to verify also the accreditation of the holder of the right that is transferred. Keywords: Public Registry - Oponibility - Notarial Deeds - Transfers of Real Property - Legal Security


2008 ◽  
Author(s):  
Daniel Bradley
Keyword(s):  

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