INTERNATIONAL REAL ESTATE BRIEFING Acknowledgement Associados - PDF document

August 2004 28 The 31 Mexico 30 Japan 29 Italy 29 Ireland Republic of India 31 27 Hungary 26 Hong Kong 25 Germany 24 France 23 Finland 22 Netherlands Norway England & South Africa 43 Venezuela 42 Taiwan 41 Switzerland 39 Sweden 38 Spain 37 37 32 Slovenia 36 Singapore 35 Scotland 34 Russia 33 Portugal 33 Poland Wales 20 INTERNATIONAL REAL ESTATE BRIEFING Acknowledgement Associados (Portugal); McGrigors (Scotland); Schömherr Rectsanwälte (Slovenia); Webber Wenzel Bowers (South Africa); (Mexico); Bugge, Arents-Hansen & Rasmussen (Norway); SoltysÐski Kawecki & Szlezak (Poland); Macedo Vitorino e Attorneys Limited (Finland); Fusthy & Martony (Hungary); Mason Hayes & Curran (Ireland); Santos Elizondo Cantu Rivera Ladner Gervais LLP (Canada (Quebec)); Carey & Co (Chile); Plesner Svane Grønborg (Denmark); Roschier Holmberg Hahnakamper Staps & Partner (Austria); Machado, Meyer, Sendacz e Opice (Brazil); Gowlings (Canada (Ontario)); Borden particular countries: Romero, Zapiola & Clusellas (Argentina); Blake Dawson Waldron (Australia); Neudorfer Griensteidl rms that have supplied views, information and often text with respect to edge with gratitude the following professional fi ng, we acknowl- In addition to the many talented lawyers within Jones Day who contributed to the production of this Briefi the “expectations gap” between the multinational client and the local market. Rengifo & Diquez (Switzerland). International Real Estate Briefing furnishes an overview designed to assist in bridging and can lower anxiety in choosing the best advice in the particular marketplace. This chartered surveyors or other advisors typically operate can save time and money Knowing the general customs and norms under which local real estate brokers, under which such advisors operate vary widely from jurisdiction to jurisdiction. process. The rules of conduct, underlying assumptions and compensation structures sors with respect to site or building selection, economic terms and the negotiating requirements. Often, advice is sought from international or local real estate advi- enter markets abroad in search of property to purchase or lease for operational REAL ESTATE BROKERS AND CHARTERED SURVEYORS SURVEY OF CUSTOMS AND PRACTICES RESPECTING Mannheimer Swartling Advokatbyra (Sweden); Python Schisserli Peter & Partners (Switzerland); Meher Bon Seigmund United States Denmark 13 18 Republic The Czech 15 of China Republic The People’s 15 Chile 14 (Quebec) (Ontario) 2 Canada 11 Brazil 9 Belgium 8 Austria 7 Australia 6 Argentina CONTENTS

2 • • Regulation: broker? without a specific contractual agreement with the broker’s compensation? Can this responsibility arise Who is normally responsible for payment of the • by the real estate broker ? Who typically bears the incidental expenses incurred legal or other regulatory requirements? licensed? Is the compensation wholly negotiable, or subject to • estate broker? What is the typical nature of compensation to the real • Compensation: the client? aspect to the dealings of the real estate broker with Is there an established duty of loyalty or confidential Are real estate brokers required to be professionally • duty? UNITED STATES of real estate brokerage professionals and businesses, or the ular questions, especially as to the licensing and operation anticipate relative uniformity nationwide, those having partic- As a result, although clients of brokerage service firms may tion of real estate professionals is left to the individual states. the United States, it should be noted that much of the regula- compensation of real estate brokers are similar throughout While professional obligations and expectations as to Overall Practices ■ What laws or regulations govern the conduct of real commercial jurisdictions around the world. vations are provided with respect to other prominent obser issues in their United States context. Following that analysis, tice and expectations, this Briefing will first review these markets against a background of Anglo-American prac- frequently evaluated by decision-makers in the international Since the comparative practices country to country are estate brokers? • To whom do real estate brokers owe a professional ■ advisors, as well as the determination of which principal may to become acclimatized to local conditions. This publication the process of screening and selecting advisors, as well as country may provide a suitable platform from which to begin An overview of the customs and practices country to by the principal. carry unwanted commitments or liabilities that are unintended casual inquiries about property conditions or availability may Moreover, informal discussions with prospective advisors or be responsible for advisory fees and expenses, also differ. sation of real estate services in countries that are repeatedly the focus of major tomed in the home country. The compen vary greatly from those with which management is accus- advisors offer services in the local environment, however, may jurisdictions. The rules and practices under which real estate miliar advice in seeking suitable property, particularly in unfa tional needs are frequently well advised to have independent Businesses seeking to lease or purchase property for opera- INTRODUCTION surveys the general framework of real estate advisory international business enterprises. It is not, however, a • iarizing oneself with the customs and practices in the local clients? In what capacity do real estate brokers work for • work? For whom do real estate brokers or advisors typically • Responsibilities: categories: country or marketplace. These issues fall into three basic There are a variety of questions that should be asked in famil- comprehensive listing of the rules and considerations relevant CONSIDERATIONS ■ selection process of property advisors or commencement of the property of multinational firms is recommended prior to engagement priate experience and an understanding of the perspective any jurisdiction. Consultation with a lawyer having appro- liabilities associated with the property selection process in to the engagement of real estate advisors or the potential technical rules and proprieties of sharing brokerage, “finder’s”