Real Estate Contracts Research Articles

LEGAL REGULATION OF ADVANCES AND DEPOSITS UNDER CONTRACTS RELATED TO REAL ESTATE. NATIONAL AND FOREIGN EXPERIENCE

In this comprehensive article, the authors delve into the intricate legal landscape surrounding advances and deposits in real estate contracts, offering valuable insights drawn from both national and foreign jurisdictions. The article begins by highlighting the significance of advances and deposits in real estate transactions and the challenges posed by varying legal regulations across different regions. The authors provide a thorough examination of the regulatory frameworks governing advances and deposits in real estate contracts, focusing on key principles, practices, and case studies from national perspectives. They discuss how statutory law, common law principles, and industry standards shape the treatment of earnest money deposits in countries like the United States, emphasizing the importance of understanding jurisdiction-specific requirements to avoid disputes and liabilities. Drawing from foreign experiences, the article explores alternative approaches to regulating advances and deposits, such as deposit protection schemes implemented in countries like the United Kingdom and Canada. By analyzing the mechanisms and effectiveness of these schemes, the authors highlight valuable lessons for enhancing consumer protection and promoting confidence in real estate markets worldwide.

Reimagining real estate and facilities management outsourcing : A bp and JLL case study

In 2019 bp set out to renew its facilities and real estate contracts. What began as a typical request for proposal exercise turned into a complete reinvention of the bp workplace organisation. The team got a boost when Bernard Looney took the helm as bp’s Chief Executive Officer (CEO) in February 2020. Looney’s vision was the most far-reaching transformation in bp’s 112-year history: to transform bp from an international oil company to an integrated energy company by shifting bp’s focus from producing oil and gas resources to one that delivers energy solutions. bp’s ambition is to become a net-zero company by 2050 or sooner, and help the world get to net zero. bp’s workplace team accepted the challenge; the simple contract renewal they had started needed to be reimagined. This case study goes behind the scenes and shows how the parties pulled off what many in bp thought was impossible, especially in the middle of a pandemic when 100 per cent of the work had to be done virtually.

Applied sentiment analysis on a real estate advertisement recommendation model

ABSTRACT Recently, the data generated are exploding in the information age. In the post-COVID-19 era, some real estate contracts have been signed online, and online advertisement recommendation has become a new way to reduce the searching cost. Therefore, the model in which real estate online recommendations can be made suitable without user preferences has become a tricky problem. This study uses sentiment and economic data to predict real estate sales and then made an advertisement recommendation from the forecast results. The 2SA-RERec (Two Sentiment Analysis of Real Estate Recommendation) model is proposed, which shows the highest accuracy among the others.

Implementation of real estate contract system using zero knowledge proof algorithm based blockchain

A real estate contract is a high-risk contract with a large amount of money, and there are many problems in the risk and reliability of fraud. In particular, online contracts have low reliability and high risk. If you can manage information on these issues and prevent forgery and duplication of contract information, you can maintain low cost and high efficiency. Blockchain technology is being used as an alternative to the enormous cost and reliability issues associated with offline real estate contracts. When blockchain technology is applied to an online contract management system, reliability and scalability are efficient and confidentiality can be ensured. However, as real estate transactions using blockchain technology increase online, problems arise in scalability. Therefore, in this paper, we implemented an Ethereum-based online real estate contract system that solved the scalability using the zero-knowledge proof algorithm. The real estate contract system enables online contract management and discrimination of contract forgery through blockchain. In particular, it was possible to prevent fraud until the contract was concluded and the contract was terminated.

UNDER INVOICING IN THE RESIDENTIAL REAL ESTATE MARKET IN PAKISTAN

In this paper the meaning of “under invoicing in a real estate market” signifies that the market value of real property exceeds its record value appearing in government documentation. The purpose of this study is to identify the level of under invoicing and determine the factors that affect the under invoicing in real estate markets in Pakistan. We apply OLS and Extreme Bounds Analysis techniques to test our propositions. The statistical sample consists of 338 real estate contracts. We find that under invoicing is determined by a multiplicity of factor. These include: the capital gains tax rate, the measurable amount of corruption in the economy, the risk-free rate, a buyer’s profession, the reputation of the local housing authority, and the degree of disequilibria in regional real estate markets. Our findings are consistent with four distinct hypotheses: (a) tax evasion hypothesis, (b) widening gap hypothesis, (c) a corruption hypothesis and (d) a signaling hypothesis. The evidence suggests that higher rates of taxation and a larger statistical incidence of corruption in markets tend to be associated with a greater probability of under-invoicing. The findings of the study have practical implications for those investors who are interested in real estate markets of emerging and developing economies.

PROBLEMS OF LEGAL REGULATION OF CONTRACTS ON CAPITAL CONSTRUCTION OBJECTS

The article analyzes the system of legal regulation of contracts on capital construction objects. A number of problems in the law enforcement practice of concluding contracts on real estate objects were identified. Measures to improve the mechanisms for compliance with the forms of real estate contracts are suggested.

개업공인중개사의 감정노동과 직무스트레스가 이직의도에 미치는 영향

This study is to draw conclusion of what causes licensed real estate agents’ emotional labor and job stress and to establish hypothetical model which explains their turnover intention. In order to achieve the study’s purpose, I have derived the emotional labor and job stress factors of real estate agents and statistically analyzed the effects on the turnover intention of 158 individual real estate agents in Seoul. As a result, it was analyzed that the emotional labor and job stress of a real estate agent had a statistically significant effect. The followings are measures to reduce the intention to turn over due to emotional labor and job stress of licensed real estate agents. First, it requires that real estate agents learn how to respond to customers, how to negotiate in the process of real estate contracts, and how to make marketing. Second, taking various specialty education programs run by qualified institution such as Korea Association of Realtors can be an alternative measure to reduce fear and anxiety of doing brokerage job, such as making the contracts, identifying and explaining real estate brokerage objects, and preventing brokerage accidents.

Verification Plan Using Neural Algorithm Blockchain Smart Contract for Secure P2P Real Estate Transactions

Blockchain and artificial intelligence are the most important keywords in the Fourth Industrial Revolution. This study sought to apply these core technologies to future validated algorithms that make real estate transactions secure to come up with an encryption algorithm. In addition, the real estate transaction is being paid a large fee by the middlemen, the real estate agent. Furthermore and recently, P2P (peer-to-peer) real estate exchange is used a lot. However, these P2P real estate exchanges also have problems that have not been identified by each other between landlords and tenants. In particular, a research model was established to compare and verify the PBFT (practical Byzantine fault tolerance) algorithm of Hyperledger through the blockchain agreement process. Subsequently, a process for verifying the real estate contract was established. Through VM (virtual machine) research methodology for the verification of blockchain real estate contracts, ElGamal communication was provided to prove quantum cryptography. We also automated lightweight encryption test verification tools and blockchain smart contract VM (virtual machine) models using artificial intelligence. Verification was performed through a reservation server and a monitoring server using a test verification tool for network-based lightweight security IoT (Internet of things) GW (gateway). It presents important ECP (elastic curve program) and elastic curve Qu-Vanstone (ECQV) models among the main functions of the blockchain smart contract, and it is equipped with quantum-based encryption algorithm. In addition, the necessary UML (unified modeling language) source code and performance data were calculated according to the actual experimental environment, and the average value for blockchain for administrative or government authorized assets—4000 TPS (transaction per second) were tested. In the future, we want to use this technology for real estate transactions.

북한 부동산거래법의 변모과정과 향후 추이*

This paper examines the change of North Korea’s real estate contract laws, predicts their future transition, and considers the possibility and limitation of mutual approach in real estate contract laws between South and North Koreas. North Korea used to not use the legal term of ‘real estate’ previously, but set forth ‘real estate’ and ‘real estate contracts’ as legal terms when instituting the 1990 Civil Act (Article 94). As opposed to reality, however, the Civil Act (Articles 148 and 179) and Real Estate Control Act (Article 28(6) and Article 30) of North Korea still prohibit the contracts of real estate, including sale and lease. The Civil Act (Article 94) of North Korea does not specifiy the specific contents of ‘real estate contracts,’ but they may be understood as claim contracts by the media of real estate and agreements on real right. On the other hand, North Korea received the legal system of China, and allows real estate contracts such as sale, exchange, lease, and mortgage in special zones and to foreigners in accordance with the Land Lease Act, RERKIZ (Real Estate Regulations for Kaesong Industrial Zone), and real estate regulations. To predict the future transition of North Korea’s real estate contract laws, the civil act shows the possibility of restrictively granting the loan for use of housing, and it is forecast that sale and the contract of exchange will be gradually accepted. In addition, it is expected that RERKIZ will be revitalized according to the reopening of South-North economic cooperation and be enhanced as a real estate contract law in special zones, and that the current system of China’s real estate contract laws will possibly be received with respect to land usufruct.

Sale and purchase of real estate in ancient Russian law

Contract on sale and purchase of real estate is one of the most important obligation contracts, which needs to be concluded in writing. In the ancient Russian law, it was regulated by several provision of the Pskovska Sudna Gramota (PSG), a collection of normative acts of Medieval Russia (1397-1467). Numerous preserved and published ancient Russian sale and purchase private law documents confirm that the mentioned PSG provisions were applied in practice. In the ancient Russian law, they were known as the 'kupche gramote' (sale and purchase documents). Over 120 preserved documents are the best testimony of the fact that the written sale and purchase of real estate contracts were being concluded. It mostly refers to the cities of Novgorod and Pskov, the two significant centers in the north-west of Russia, which enjoyed a high level of autonomy from the central authorities. The majority of documents had the unified structure and the standardized legal form by which they were written.

Effective methods of consumer protection in Brazil. An analysis in the context of property development contracts

<p>This study examines consumer protection in arbitration, especially under the example of property development contract disputes in Brazil. This is a very current issue in light of the presidential veto of consumer arbitration on May 26, 2015. The article discusses the arbitrability of these disputes based on Brazilian legislation and relevant case law. It also analyzes of the advantages, disadvantages and trends of consumer arbitration in the context of real estate contracts. The paper concludes by providing suggestions specific to consumer protection in arbitration based on this analysis.</p>

UNDERSTANDING OF EXTERNAL USERS OF THE BRAZILIAN MARKET TOWARDS REVENUE RECOGNITION ON LONG-TERM CONTRACTS: CONCEPT AND MOMENT

The majority of the contracts for the construction of real estate are long-term in nature because their construction covers more than one year. The real state and construction has been gaining visibility, especially after the US real state crisis and the IPOs of several companies between 2004 and 2007. Given the sector’s growth in recent years in the country and its importance for the economy associated with the Brazilian convergence with the International Accounting Standards, it is required that users of financial statements and its preparers are understanding these new accounting practices. A controversy in the accounting treatment of these contracts is the moment of revenue recognition. The objective of this paper is to analyze the perception of Brazilian users – analysts, managers, professors, students, researchers and auditors - with respect to revenue recognition of long-term real estate contracts. Ten questions were asked using the Likert scale; they seek to analyze the understanding of the participants facing the issue. It was applied the multivariate technique HOMALS (Homogeneity Alternating Least Square). The results indicate that the participants do not show a specific understanding towards the concepts discussed, therefore, it is not possible to identify a market consensus.

Revising the Arbitration Clause in Real Estate Contracts

This article discusses arbitration clauses between buyers, sellers, and brokers. In California. CCP 1298 is preempted by 9 USC 2, but agreements, however, may still require being initialed. Brokers are cautioned on using the CAR Residential Purchase form because the arbitration clause may be ineffective.

도쿄 오쿠보(大久保) 외국인 집주지구 형성과 ‘다문화 병생(倂生)’ : 한국인 커뮤니티를 중심으로

Okubo is widely known as a multinational city, the typical Korean town in Japan. But, its formation and development have the strong connection with the exclusive feature of Japanese society. Many foreigners, who reside in Japan, have experienced rejection of real estate contracts and employments. Also, Japanese government has not approved formal ethnic education. As a result, foreigners tend to settle around the areas where they can find the jobs, housings and education opportunities. It was observed that those circumstances forced foreigners to gather around Okubo. However, majority of Japanese residents in Okubo perceives foreign residences negatively. They prefer to keep homogeneous society and believe that foreign residents are incapable of adapting to Japanese authentic lifestyle.<BR> Japanese and foreign residents in Okubo uphold mutual noninterference lifestyle for social harmony. The social conditions that enable noninterference lifestyle are weakening of community solidarity and increasing supplies of housings which protect privacy, as well as tolerance on globalization, and accumulation of “know-how” on troubles that occurred in coexistence of Japanese and foreign residents. Thus, it can be argued that Okubo is not the city that Japanese and foreign residents live together, but the city that they live separately.

Old Habits Are Hard to Change: A Case Study of Israeli Real Estate Contracts

This article presents a case study on the persistent dollarization norm in the Israeli real estate market. For many years Israeli real estate contracts have been denominated in American dollars. This contracting norm has remained surprisingly stable despite tremendous changes in the structure of the Israeli foreign currency market that severed the connection between the dollar and local inflation and added significant risks to exchange rates. Using an array of theoretical tools, I explain this puzzling phenomenon and demonstrate the centrality of social norms to the design of high-stakes contracts. Finally, I explore the interaction between social norms and the law and highlight the potential obstacles to regulating contracting norms.

Interest Rates and the Foreclosure Process: An Agency Problem in FHA Mortgage Insurance

Interest Rates and the Foreclosure Process: an Agency Problem in FHA Mortgage Insurance Unlike private mortgage insurance that establishes a coinsurance relationship with the lender, Federal Housing Administration (FHA) insurance provides full coverage of all losses including foregone interest on defaulted loans. The foregone interest component of the indemnity is at the original mortgage contract rate. This arrangment offers lenders an opportunity to exploit changes in interest rates. Specifically, lenders have an incentive to expedite (slow) the foreclosure process when the market rate is above (below) the contract rate. If the market rate is above the contract rate, the lender will expedite the process (within the constraints of the legal requirements) and reinvest the indemnity at a higher rate. Conversely, if the market rate falls below the contract rate, the lender is better off by slowing the process (again, within the constraints of legal parameters) because the loan balance earns the higher contract rate. Evidence presented below shows that this behavior can be costly to the FHA. A 10 percent decrease in interest rates (say from 10 percent to 9 percent) costs the FHA an estimated $1,151 per claim. Numerous examples of agency problems exist in financial contracting (see Jensen and Meckling [1976]). In real estate contracts in particular, examples of agency problems include borrower maintenance of property facing foreclosure, covenants included in mortgages (Smith, 1982), and terms of shopping center leases (Benjamin, Boyle, and Sirmans, 1990). Similarly, agency problems associated with insurance contracts have been noted (see Mayers and Smith, 1981). Mulherin and Muller (1988) pose an incentive conflict whereby lenders have no motivation to expend costly effort to make repairs on foreclosed properties. Mulherin and Muller (1987) note the possibility that lenders may encourage default (rather than continued performance through a workout) on a fully insured mortgage that is in danger of default. As is true of the present study, the incentive conflict results from a divergence of the market and contract rate. They conclude that a rise in the market rate will lead to more defaults as lenders seek to improve the quality of their loan portfolios. They conclude a rise in rates is, therefore, costly to the FHA. In the current study the conclusion is different since the focus is on the post-default incentive conflict. That is, given a default and a rise in rates, the lender has an incentive to foreclose as quickly as possible. A quick foreclosure minimizes the total claim including carrying costs such as property taxes, hazard insurance, maintenance expenses, and so forth. A fall in rates proves costly in our model. This article proceeds as follows. The next section discusses the effects of the incentive conflict on the speed of the foreclosure process and the per claim loss for FHA loans. Next, data and methodology are presented. Empirical results are then followed by conclusions. Lender's Incentives: FHA Insurance Consider a lender holding a defaulted mortgage loan. After the foreclosure process the lender will submit a claim to the FHA for losses. (In a few cases the lender can assign the loan to the FHA which will, in turn, attempt a workout with the borrower.) Those losses will consist of two parts: foregone interest on the loan balance and property carrying costs such as taxes, insurance, and maintenance expenses. Initially, the lender will not have made expenditures for carrying costs so if the contract rate is above the market rate, there is an incentive to delay the foreclosure process. As carrying costs occur, the lender must meet these out of pocket and get reimbursed at a later date without interest, reducing this incentive to delay. Appendix A demonstrates that the strength of this incentive to delay is negatively related to the market rate of interest. …

Impossibility and Related Doctrines in Contract Law: An Economic Analysis

… The typical case in which impossibility or some related doctrine is invoked is one where, by reason of an unforeseen or at least unprovided-for event, performance by one of the parties of his obligations under the contract has become so much more costly than he foresaw at the time the contract was made as to be uneconomical (that is, the costs of performance would be greater than the benefits). The performance promised may have been delivery of a particular cargo by a specified delivery date – but the ship is trapped in the Suez Canal because of a war between Israel and Egypt. Or it may have been a piano recital by Gina Bachauer – and she dies between the signing of the contract and the date of the recital. The law could in each case treat the failure to perform as a breach of contract, thereby in effect assigning to the promisor the risk that war, or death, would prevent performance (or render it uneconomical). Alternatively, invoking impossibility or some related notion, the law could treat the failure to perform as excusable and discharge the contract, thereby in effect assigning the risk to the promisee. From the standpoint of economics – and disregarding, but only momentarily, administrative costs – discharge should be allowed where the promisee is the superior risk bearer; if the promisor is the superior risk bearer, nonperformance should be treated as a breach of contract. “Superior risk bearer” is to be understood here as the party that is the more efficient bearer of the particular risk in question, in the particular circumstances of the transaction.

Contracts: Consideration: Effect of Clauses in Real Estate Contracts Conditioning Buyer's Promise

Contracts: Consideration: Effect of Clauses in Real Estate Contracts Conditioning Buyer's Promise