Real Property Transactions: Procedures, Transaction Costs And Models Modelling Real Property Transactions Modelling Real Property Transactions

Transactions in land and other real property differ between countries throughout Europe. The transaction procedures reflect formal rules, but they are also normalized through conventions and professional codes of conduct. This complex of technical, legal and economic issues was investigated from the point of view of transaction economics through an ESF-COST supported Action G9 Modeling Real Property Transactions. The research was performed between 2001 and 2005 by researchers mainly from university departments related to land surveying, real estate management, geo-information sciences and knowledge engineering. This book represents the final outcome of that study. A modeling approach was elaborated and tested on a number of countries (especially Sweden and Slovenia, for which the models are shown in this book in the Unified Modeling Language (UML)). The modeling approach leads to transparency and allows comparison. Nevertheless, the influence of the national and social contexts, and the different perspectives that can be taken, prevent a simple ranking of the studied procedures. For those planning or comparing transaction procedures or parts thereof, the book supplies a tested approach and methodology. But the book eventually warns of simplification in this field full of complex national institutional arrangements.IOS Press is an international science, technical and medical publisher of high-quality books for academics, scientists, and professionals in all fields. Some of the areas we publish in: -Biomedicine -Oncology -Artificial intelligence -Databases and information systems -Maritime engineering -Nanotechnology -Geoengineering -All aspects of physics -E-governance -E-commerce -The knowledge economy -Urban studies -Arms control -Understanding and responding to terrorism -Medical informatics -Computer Sciences Title page 2 Contents 8 Preface 14 Part 1 - Overview of action and contents 16 Modelling real property transactions – An overview 18 Introduction 18 The objectives of the COST Action G9 ‘Modelling Real Property Transactions’ 19 Terminology 20 Definitions 21 Procedures 22 Modelling 24 Was the analysis of real property transactions revealed? 25 Transaction costs 28 Performance of the COST G9 Action 31 Conclusion and further work 33 References 36 Part 2 - Procedures 40 Modelling property transactions 42 Introduction: Real property transfers and property formation 42 Systematic approach in general 43 System concepts used and relations between them 43 Limitations and working method 44 Basic components of purchase 45 Basic functions for property formation 46 Conceivable but excluded components 47 Slovenia 48 Background information 48 Rights and encumbrances 49 Purchase 51 Purchase procedure 52 Subdivision 54 Purchase and subdivision combined 56 Sweden 57 Background information 57 Rights and encumbrances 57 Purchase 58 Purchase procedure 59 Subdivision 61 Purchase and subdivision combined 64 Comparisons 65 Simple purchase 66 Ordinary purchase 66 Subdivision 68 Purchase and subdivision 71 Conclusions 73 References 73 Towards more efficient transaction procedures in Latvia 96 Abstract 96 Introduction 96 Real property units and transactions 97 Real property transactions 98 Object of a transaction 99 Outcomes of transaction modelling 101 Pure sale 101 Pure subdivision 104 Subdivision combined with sale 107 Costs and duration of transactions 108 Institutional issues 110 Conclusions 111 References 113 Part 3 – Transaction costs 114 Transaction costs concerning real property – The case of Finland 116 Abstract 116 Introduction 116 Transaction cost theory 117 General transaction cost theory 117 Special characteristics of real property transaction 119 Details of property transaction in Finland 122 Real property transaction costs in Finland 126 The Finnish real property transaction process in an international comparison 129 Conclusions 131 References 132 Towards national real estate accounts – The case of Denmark and other European jurisdictions 134 Abstract 134 Introduction 134 The real estate segment – the core and issues of boundary determination 136 Present ways of addressing transaction costs of real estate 137 The cost of ownership transfer in national accounts and in capital stock statistics for buildings 137 A reading of supply and use tables: the case of Slovenia 139 The SNA classifications applied to the Danish real estate market 141 Market agents 141 Main activities related to the performing agents 143 The activities of the segment in terms of the NACE standard classification 145 Estimate of the costs of real estate transactions in Denmark and Finland 149 Discussion 149 Conclusion 151 References 152 Part 4 – Modelling approaches 156 A socio-technical analysis of cadastral systems 158 Abstract 158 Introduction 158 Terminology and theory behind socio-technical systems 159 Socio-technical systems 161 Concluding the exposé of the socio-technical framework 165 The socio-technical cadastral system 167 Actors 167 Social elements 169 Technical elements 170 Relations 171 Boundaries 172 Discussion 173 Conclusion 177 References 178 Real property transactions An approach towards standardisation of legal issues 182 Abstract 182 Introduction 182 The legal domain 184 Terminology 186 Classification of real property rights and restrictions 187 Conclusions 193 References 194 Ontology engineering for comparing property transactions 198 Abstract 198 Introduction 198 Initial comparison of property transactions 199 A formal, ontology-based comparison 201 Overview of the approach 201 Developing the domain ontology 202 The ontology models 204 Ontological reasoning to compute correspondences 204 Comparing purchase in Denmark and England/Wales 205 Evaluation 211 Evaluation of the results 211 Evaluation of the approach 212 Future work and conclusions 213 References 215 Ontology-based development of reference processes 218 Abstract 218 Introduction 218 Reference Models for Processes 219 A software engineering reference process: the rational unified process 220 Business processes in the R/3 reference model 221 Reference models in the cadastral domain 222 Designing reference processes with an ontology-based approach 224 Inductive development of reference processes 224 Selection of similar process models 226 Preparing the ontology models 227 Computing correspondences by ontological reasoning 227 Suggesting candidates for reference concepts 228 Evaluating the candidates 230 Examples from purchase processes 230 Conclusions 232 References 233 Hierarchies in subdivision processes 236 Abstract 236 Introduction 236 Hierarchies and their application 237 Subdivision process in an ontological framework 239 The hierarchies for the subdivision process 243 Creating the physical objects 243 Creating the social objects 244 Fulfilling the intentions 245 Formalisation of a real world and a socially constructed object 246 Conclusions 249 References 250 Part 5 – Expanding the scope 254 The real property and general boundary system of England and Wales 256 Abstract 256 Introduction 256 The evolution of boundaries, property and land ownership in England and Wales 257 The medieval landscape of boundaries 260 Formal enclosure 262 The role of the Ordnance Survey 266 Conclusion 268 References 269 Pre-emption rights compared – The Netherlands, Slovenia and Sweden 276 Introduction 276 Sources of pre-emption rights 277 Beneficiaries of pre-emption rights 277 Ways of effectuating the pre-emption right 278 Pre-emption rights in the Netherlands 279 Pre-emption rights in Slovenia 282 Pre-emption rights in Sweden 286 Comparative analysis 290 Conclusions 292 References 293 Contributors 294 Title page......Page 2 Contents......Page 8 Preface......Page 14 Part 1 - Overview of action and contents......Page 16 Introduction......Page 18 The objectives of the COST Action G9 ‘Modelling Real Property Transactions’......Page 19 Terminology......Page 20 Definitions......Page 21 Procedures......Page 22 Modelling......Page 24 Was the analysis of real property transactions revealed?......Page 25 Transaction costs......Page 28 Performance of the COST G9 Action......Page 31 Conclusion and further work......Page 33 References......Page 36 Part 2 - Procedures......Page 40 Introduction: Real property transfers and property formation......Page 42 System concepts used and relations between them......Page 43 Limitations and working method......Page 44 Basic components of purchase......Page 45 Basic functions for property formation......Page 46 Conceivable but excluded components......Page 47 Background information......Page 48 Rights and encumbrances......Page 49 Purchase......Page 51 Purchase procedure......Page 52 Subdivision......Page 54 Purchase and subdivision combined......Page 56 Rights and encumbrances......Page 57 Purchase......Page 58 Purchase procedure......Page 59 Subdivision......Page 61 Purchase and subdivision combined......Page 64 Comparisons......Page 65 Ordinary purchase......Page 66 Subdivision......Page 68 Purchase and subdivision......Page 71 References......Page 73 Introduction......Page 96 Real property units and transactions......Page 97 Real property transactions......Page 98 Object of a transaction......Page 99 Pure sale......Page 101 Pure subdivision......Page 104 Subdivision combined with sale......Page 107 Costs and duration of transactions......Page 108 Institutional issues......Page 110 Conclusions......Page 111 References......Page 113 Part 3 – Transaction costs......Page 114 Introduction......Page 116 General transaction cost theory......Page 117 Special characteristics of real property transaction......Page 119 Details of property transaction in Finland......Page 122 Real property transaction costs in Finland......Page 126 The Finnish real property transaction process in an international comparison......Page 129 Conclusions......Page 131 References......Page 132 Introduction......Page 134 The real estate segment – the core and issues of boundary determination......Page 136 The cost of ownership transfer in national accounts and in capital stock statistics for buildings......Page 137 A reading of supply and use tables: the case of Slovenia......Page 139 Market agents......Page 141 Main activities related to the performing agents......Page 143 The activities of the segment in terms of the NACE standard classification......Page 145 Discussion......Page 149 Conclusion......Page 151 References......Page 152 Part 4 – Modelling approaches......Page 156 Introduction......Page 158 Terminology and theory behind socio-technical systems......Page 159 Socio-technical systems......Page 161 Concluding the exposé of the socio-technical framework......Page 165 Actors......Page 167 Social elements......Page 169 Technical elements......Page 170 Relations......Page 171 Boundaries......Page 172 Discussion......Page 173 Conclusion......Page 177 References......Page 178 Introduction......Page 182 The legal domain......Page 184 Terminology......Page 186 Classification of real property rights and restrictions......Page 187 Conclusions......Page 193 References......Page 194 Introduction......Page 198 Initial comparison of property transactions......Page 199 Overview of the approach......Page 201 Developing the domain ontology......Page 202 Ontological reasoning to compute correspondences......Page 204 Comparing purchase in Denmark and England/Wales......Page 205 Evaluation of the results......Page 211 Evaluation of the approach......Page 212 Future work and conclusions......Page 213 References......Page 215 Introduction......Page 218 Reference Models for Processes......Page 219 A software engineering reference process: the rational unified process......Page 220 Business processes in the R/3 reference model......Page 221 Reference models in the cadastral domain......Page 222 Inductive development of reference processes......Page 224 Selection of similar process models......Page 226 Computing correspondences by ontological reasoning......Page 227 Suggesting candidates for reference concepts......Page 228 Examples from purchase processes......Page 230 Conclusions......Page 232 References......Page 233 Introduction......Page 236 Hierarchies and their application......Page 237 Subdivision process in an ontological framework......Page 239 Creating the physical objects......Page 243 Creating the social objects......Page 244 Fulfilling the intentions......Page 245 Formalisation of a real world and a socially constructed object......Page 246 Conclusions......Page 249 References......Page 250 Part 5 – Expanding the scope......Page 254 Introduction......Page 256 The evolution of boundaries, property and land ownership in England and Wales......Page 257 The medieval landscape of boundaries......Page 260 Formal enclosure......Page 262 The role of the Ordnance Survey......Page 266 Conclusion......Page 268 References......Page 269 Introduction......Page 276 Beneficiaries of pre-emption rights......Page 277 Ways of effectuating the pre-emption right......Page 278 Pre-emption rights in the Netherlands......Page 279 Pre-emption rights in Slovenia......Page 282 Pre-emption rights in Sweden......Page 286 Comparative analysis......Page 290 Conclusions......Page 292 References......Page 293 Contributors......Page 294 Modeling Real Property Transactions-- An Overview / Erik Stubkjær, Andrew Frank & Jaap Zevenbergen -- Modeling Property Transactions / Miran Ferlan, Radoš Šumrada & Hans Mattsson -- Towards More Efficient Transaction Procedures In Latvia / Armands Auzins -- Transaction Costs Concerning Real Property : The Case Of Finland / Arvo Vitikainen -- Towards National Real Estate Accounts : The Case Of Denmark And Other European Jurisdictions / Erik Stubkjær, Ivo Lavrac & Christian Gysting -- A Socio-technical Analysis Of Cadastral Systems / Maarten Ottens & Erik Stubkjær -- Real Property Transactions : An Approach Towards Standardisation Of Legal Issues / Jesper Paasch -- Ontology Engineering For Comparing Property Transactions / Claudia Hess & Marina Vaskovich -- Ontology-based Development Of Reference Processes / Claudia Hess & Christoph Schlieder -- Hierarchies In Subdivision Processes / Gerhard Navratil & Andrew Frank -- The Real Property And General Boundary System Of England And Wales / Robert Dixon-gough & Glyn Hunt -- Pre-emption Rights Compared : The Netherlands, Slovenia And Sweden / Jaap Zevenbergen, Miran Ferland & Hans Mattsson. Jaap Zevenbergen, Andrew Frank, Erik Stubkjær (eds.). This Book Represents The Findings Of The Cost (european Cooperation In The Field Of Scientific And Technical Research) Action G9 'modelling Real Property Transactions' Research Performed Between 2001 And 2005.--information Found In Prefatory Pages, Back Cover, And Chapter 1. Includes Bibliographical References.