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CROBECO(CROss Border Electronic Conveyancing)(CROss Border Electronic Conveyancing)

secretariat@elra.eu

CROBECO 1 

• Project ended July 2012

• Aimed at alternative cross border conveyance process that should contribute to  better cross border service of documents (art. 81 TFEU)

• Developed a Cross border Conveyance Reference Framework

Based on:

i il N h l d /S i‐ experiences pilots Netherlands /Spain

‐ desk research Netherlands/Portugal

‐ discussion with other stakeholders in three conferences

‐ advices Universities of Maastricht (Netherlands), Valencia (Spain), Coimbra (Portugal)

Choice of home country legislation foreign buyer:

‐ for contractual obligations (Rome I, EC 593/2008)

‐ for non contractual obligations (Rome II, EC 864/2007)

Choice of jurisdiction home country courts (Brussels I, EC  44/2001)

Contract of sale in home country language

Contract of sale by home country conveyancer

Cross border Conveyance Reference Framework

Only possible when submission of foreign deeds is allowed

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Submission of foreign documents 

Results questionnaire ELRA: submission possible in 50% of the MS.

Recent Supreme Court of Spain:

Foreign documents comparable to demanded documents in Spain have to be

Registered, regardless of formal differences.

Arguments among else:

f d f t f f d ( ti l 1462 f th S i h Ci il C d )- freedom of transfer of goods (article 1462 of the Spanish Civil Code);

- EU tendency to avoid duplication of formal requirements;

- Commission’s Green Paper Less bureaucracy for citizens.

Pitfalls for foreign conveyancers (1)

a. Different system for Land Registries:- title system, (foreign conveyancer can rely on output from the land register);- deeds system, (foreign conveyancer has to scrutinize the deeds).

b. Foreign languages in Land Register:- if EULIS MS, translation in English for all plots available ;- If non-EULIS MS, translation in English on demand of specific plots.

Deeds systemsCCRF: on demand positive (title) statement registrar in English.

Pitfalls foreign conveyancer (2)

Land registers no info about:- public limitations (for example public domain with restrictions for new buildings);- public obligations (for example obligations to clean up polluted soil).

To be collected from Municipalities or other governmental bodies

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Pitfalls foreign buyer  (3)

Differences cadastral/legal boundary

Cadastral (taxes) boundary: spatial data collected by surveyor

Legal boundary:- description in words based on visual boundary marks (you buy what you see in the field);- changes because of prescription.g p p

Neglecting differences could lead to neglecting public limitations/obligations

Pitfalls foreign conveyancer  (4)

Electronic communication

Different types of process:- eLodging (digital duplicate/ original on paper);- eRegistration (lodgement of documents in electronic format only);-eConveyancing (paperless transactions through all stages conveyance process).

Interoperability:Format-Format

-Electronic signatures-Time stamping

CCRF: principles of good IT governance and best practices ELRA Member States

Support for foreign CROBECO conveyancers

Repository with clauses:

‐ demanded for registration;

‐ optional protection against unknown legislations

Glossary with explanations of national legalterms.R f i f ti b t l lReference information about legalsystems (ELRN).Helpdesk to:‐ fulfil  formalities;‐ collect non Land  Registry info.

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Neutral position registrars/notaries

Does not judge desirability of European law

Notaries have  a duty to inform parties about possible law choice 

(Common Principle 2.4 of the European Notarial code of conduct)

Registrar has to support conveyancer, who because of law choice has to deal with a

legislation he is less familiar with:

CROBECO II

Specialized CROBECO conveyancers in home countries of foreign buyers.

Support for CROBECO conveyancers by implementing:- repository of clauses;- glossary with explanations of national legal terms - helpdesks in countries with many foreign buyers

Start with buyers from England/ Netherlands of property rights in Portugal/Spain

CROBECO in practice, a fake example

Mr FraudMr Smit

Seller Buyer

Buyer and seller both Dutch  agree on contract of sale 

Country acceptingforeign deeds

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Deed in Dutch and foreign language

Contractual and non contractual obligations based on Dutch legislationJurisdiction of Dutch court

Seller Buyer

Smit

Dutch notary public:‐ just around the corner;‐who speaks Dutch .

Mr Fraud

Notary public

Electronic

Notary public

Foreign Land Register

Smit has to pay overdue taxes

Home country court order (Rome 1 , Brussels 1): mr. Fraud has to pay

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The soil is polluted

Home country court order: Fraud must pay for cleaning up because of Rome 2, Recital 30 (culpa in contrahendo) and Brussels 1

Smit misses a tennis court

Legal boundary

Cadastreboundary

Smit claims non performance, court order concerning retransfer with delay penalty and paying back purchase money.