Recovery Faith On The Real Estate Sector

"The need for a indefeasible system for the transfer of real property that preventively limits the scope for litigation is now felt in every country in the world: this is due both to economic considerations (real estate represents about two-thirds of national wealth in OECD countries) and to the need for legal certainty. The subprime crisis was a financial crisis arising from the collapse in the value of ìtoxicî debt, i.e. bonds whose repayment (interest plus capital) was theoretically supposed to be guaranteed by the underlying mortgages, home loans that the original bank """"securitised"""", i.e. passed on to third parties who had no way of checking the reliability of the data. The problem was that the underlying mortgage related to real estate whose real value did not cover the debt to be repaid, either because the property was overvalued, or because in reality mortgage loans had been granted to false owners or because the value of properties had fallen as a result of foreclosures. For certain kinds of fraud (false identity, false ownership of assets, misleading of the mortgagors as to the true legal contents of the documents they were signing) the intervention up front of a truly independent third party, ìrepresentativeî of the State (gate-keeper) like the Latin notary would have prevented ñ or in any case much reduced ñ the possibility of mortgage fraud. Our paper will be focused on a comparison between civil and common law orders, trying to suggest new ways of legal standards useful for save-protect-recover the international real estate sector trying to elaborate new ideas for feasible legal standards which could be useful to save-protect-recover the real estate sector at an international level."