ISSUE 35 Real Estate Gazette
FOCUS ON: TECHNOLOGY
www.dlapiperrealworld.com
Australia Mauritius Electronic conveyancing: The property A digital land registry: industry’s new bandwagon The example of Mauritius
Denmark United Arab Emirates The benefits of blockchain The tokenization of real estate: technology in construction A view from the Middle East
Germany Portugal Smart building: A permanent revenue Blending modernity and tradition: stream for real estate developers? Proptech in the rehabilitation of Portugal’s cities
Luxembourg US Building information modeling and the internet Proptech: Is it the future of real estate? of things in the commercial real estate market 2 WWW.DLAPIPERREALWORLD.COM
A note from the Editor
A very warm welcome to all our readers to Issue 35 of the DLA Piper Gazette. In this issue, we focus on the topic of technology.
We have remarked before in these understand the issues facing pages on the constantly evolving technology companies in raising Susheela Rivers nature of the real estate industry. capital; our property lawyers Co-Chair, In this sector, as elsewhere, it is the understand the best way to Global Real Estate Sector emergence of new technology that incorporate new technologies into heralds radical change. There are the entire real estate process; and various reasons why industry players our securities and privacy lawyers may not be willing to embrace these understand the requirements of changes wholeheartedly; concerns applicable securities laws and money about online security in relation to laundering rules. For more on all electronic conveyancing (see our these issues, see our US article on Australian article on page 6), and the page 28. Articles from Germany need to comply with securities (page 12), Luxembourg (page 16) law in relation to tokenization and Mauritius (page 20) delve further made possible through blockchain into technology-related topics. technology (see our article from the Middle East on page 22), Other subjects under the spotlight to name just a couple. Nevertheless, in this issue are product as service the bald fact remains: we are living agreements in Belgium (page 30), in an era of greater and more rapid entitlement to offshore wind farms technological advance than humanity in the Netherlands (page 34), has ever witnessed and serious and legal issues relating to the “We are living in industry players must keep pace with acquisition of agricultural land an era of greater technological developments, or risk in Poland (page 38). being left behind. The DLA Piper and more rapid team takes a multidisciplinary We do hope that you enjoy technological approach to advising clients in reading this issue. this area. Our corporate lawyers advance than humanity has ever witnessed and serious industry players must keep pace with technological developments, or risk being left behind.”
3 REAL ESTATE GAZETTE | ISSUE 35 | 2019 Contents
Technology
AUSTRALIA Electronic conveyancing: The property industry’s new bandwagon...... 6
DENMARK The benefits of blockchain technology in construction...... 10
GERMANY Smart buildings: A permanent revenue stream for real estate developers?...... 12
LUXEMBOURG Building information modeling and the internet of things in the commercial real estate market...... 16
MAURITIUS A digital land registry: The example of Mauritius...... 20
UNITED ARAB EMIRATES The tokenization of real estate: A view from the Middle East...... 22
PORTUGAL Blending modernity and tradition: Proptech in the rehabilitation of Portugal’s cities...... 26
US Proptech: Is it the future of real estate?...... 28
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General
BELGIUM Product as service agreements: A stepping stone to a circular economy...... 30
NETHERLANDS Entitlement to offshore wind farms...... 34
POLAND Fewer restrictions on the acquisition of agricultural land...... 38
SWEDEN Overview of the issues surrounding tenant-owned apartments in Sweden...... 40
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Electronic conveyancing: The property industry’s new bandwagon
Eagul Faigen and Pearl Wong, Perth and Sandra Pepper, Brisbane
The Australian property industry is in the process of converting from the 150-year- old Torrens title physical paper system of exchange and settlement of property transactions to an online electronic conveyancing system. The introduction, and in some cases, mandatory use of the Property Exchange Australia (PEXA) platform for electronic property lodgment is gearing up to make the traditional, paper-based settlement process a thing of the past.
However, as with the introduction PEXA automatically releases the misplaced or lost. PEXA aims to of any industry-disruptive technology, balance of the transaction funds prevent this by providing pre- there can be associated risks to the seller and electronically lodgment verification of documents and property buyers, sellers, and distributes other payments, including processes. It also reduces the financiers should be aware of these loan repayments, stamp duty and time taken for preparation risks as they enter into the new era GST. PEXA automatically lodges and attendance at settlement, of electronic property transactions. the relevant registry instruments by providing electronic signing, for registration with the land real-time electronic settlement and What is PEXA? authority in the state where the immediate registry lodgment of The PEXA platform was launched transaction occurs. documents, as well as streamlining in 2010, providing for the digital the post-settlement tasks. settlement of conveyancing and Benefits of PEXA • Certainty of property title other land transactions in an • Cost and time savings The PEXA platform automatically electronic workspace. Conveyancers There are well-known time and alerts the parties to possible can use the PEXA platform to cost inefficiencies associated disputes around competing liaise with the property buyer or with physical paper settlements interests in the property, seller’s bank, digitally sign and as a result of delays which may for example where a caveat or lodge documents and transfer arise due to inaccuracies and writ is lodged over the property funds, removing the need for bank mismatching information in the title by another party in the cheques and physical exchange paper documents and processes period between settlement and of documents. At settlement, and, on occasion, documents being
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registration. With PEXA, final title PEXA network. It is anticipated into emails between conveyancers searches are carried out minutes that by 2022, the industry will be and sellers, amending account before settlement, reducing the operating from a 100% digital details to redirect settlement registration gap so the chance lodgment and settlement platform. funds without the buyers being of a post-settlement conflict over The use of electronic conveyancing aware. PEXA’s response was to title will disappear. through PEXA is expected to save clarify that the hack occurred numerous hours per transaction, through emails and not through • Sellers receive settlement and is expected to contribute an its platform, and maintained funds quickly average AUD89 million to the that it was for conveyancers and For sellers, PEXA provides them conveyancing industry per year. practitioners to run their own with the proceeds of sale more checks before digitally signing quickly than a paper settlement, Emerging issues for a transaction to proceed. immediately depositing the While the industry prepares to While this may be the case, it is settlement funds electronically reap the expected efficiency a legitimate concern that the in their account allowing access and cost benefits from PEXA, amendments to the account within half an hour of settlement. parties involved in property information were not detected or Electronic settlement also removes transactions should be aware of the flagged for the conveyancer prior the need for bank cheques and the risks associated with jumping on to settlement on the platform. associated fees. the (mandatory) bandwagon. The potential for cybercrime Since its roll-out, Australian state highlights the need for those • Security governments and land registry using PEXA to be vigilant, and to A primary concern is the lack offices have begun mandating that avoid placing undue reliance on of account verification in PEXA’s eligible transactions be lodged the PEXA platform as a one-stop- e-conveyancing process and risks through PEXA. In Western Australia, shop for possessing all of the associated with fund movement New South Wales and Victoria, correct party details to be used at settlement. In the middle of last all eligible transactions must be at settlement. year, several scammers hacked lodged electronically through the
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Another reported incident PEXA amendments What does this all included a situation where the In response to these issues, PEXA mean for parties PEXA platform erroneously has expressed its commitment to looking to buy and sell authorized the transfer of monies implementing more robust security property in Australia? after a settlement was cancelled. measures on its platform, including: For most conveyancing transactions As the transfer of funds occurs in Australia, all buyers, sellers and • security with multi-factor electronically, parties do not financiers will have no choice but to authentication; have the benefit of cancelling use PEXA. While more improvements or retaining cheques paid in • increased monitoring of unusual are expected to the platform as the settlement before these cheques activity around password electronic conveyancing technology are cashed. It is incumbent on resets or changes to BSB and advances, in the interim you should PEXA users to closely monitor account numbers; be aware of the risks involved with the transaction and to make any electronic conveyacing and you • algorithms to detect suspicious or necessary queries to ensure should understand how your legal abnormal activity; and that the transaction monies and advisors can take steps to mitigate electronic certificates end up • workspace timestamps to enable these risks. where they belong. users to monitor when the financial settlement schedule was last DLA Piper is experienced in • Competition updated, and by whom. conducting electronic conveyancing Currently, PEXA is Australia’s only matters in PEXA and implementing mature provider of electronic It has also introduced a maximum strict risk management processes conveyancing services, and the AUD2 million residential seller throughout a transaction. We can wider industry has been critical guarantee on residential property; guide you through the process to that the lack of competition however, there is no similar ensure your electronic settlement might lead to a price monopoly guarantee for commercial property. proceeds smoothly and does not or innovation stagnation produce any unexpected results. in electronic conveyancing. In the face of susceptibility to An alternate platform known potential cybercrime and system as Simpli is in the process errors on both the PEXA platform and of entering the market, but at other services interacting with PEXA present it is new and untested. (such as each party’s associated email In some quarters, criticism has accounts), we are yet to see how the been levied at PEXA for effectively PEXA amendments and the residential having a monopoly on digital seller guarantee will assist with conveyancing and this has led reducing the risks on the platform. some commentators to remark It is also unclear how liability will be that in the absence of a proper apportioned for who is responsible regulatory framework, PEXA is when mistakes or disputes emerge free to do what it wants. from the PEXA settlement process. WWW.DLAPIPERREALWORLD.COM
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The benefits of blockchain technology in construction
Line Rener Nyeland, Copenhagen
Denmark is currently ranked as the country with the highest digitalization in the EU. The construction industry, however, still lags behind. In fact, construction is among the least digitized sectors in Denmark, even though the building stock constitutes a very large socio-economic asset, with values from investments amounting to approximately 45% of the total investments in the Danish economy.
The lack of digitalization is world’s resources, the players in the technology has lots of other potential presumably due to a conservative construction industry are also looking and beneficial applications, including industry that has not yet had the for ways to incorporate sustainability in construction. necessary financial incentive to keep into their field; be they developers, up with the times. If, however, the contractors, architects, or engineers. Blockchain: construction industry does not keep A groundbreaking up with the increasing digitilization Fortunately, to a large extent, technology? of other industries, there is a risk the technology needed to increase Blockchain is referred to by many of that great value will be lost in digitalization in construction – and those with technical savvy as the new the long term. ultimately a more sustainable building internet, as it has the potential to be – is already available. However, it is not groundbreaking in the same way Sustainability as a driver being used to its full potential. as the internet was in the 1990s by for digitalization setting information free. Many argue that sustainability might Some of the available technologies just be the driver that will lead to a that can be used (and which, to some So, what is blockchain technology? And more digitalized construction industry. extent, are being used) in various how is it beneficial in construction? phases of construction are 3D Given that construction accounts for printing, AI/deep learning, big data, Blockchain is: a large share of society’s energy and BIM model, digital twin, drones, IoT, • a technology and a business resource consumption, digitization robotics and VR/AR. practice built on peer-to-peer can ultimately lead to more transactions, allowing trust- sustainable building by promoting Another available technology is based interactions, shifting productivity, quality and resource blockchain or other distributed ledger the governance from central saving. And as sustainability is technology. Most people have heard institutions to distributed networks booming and there is generally more of blockchain in connection with of peer-to-peer collaboration; focus on making better use of the cryptocurrency; however, blockchain
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“Most people have heard In practice, a blockchain is already New legal challenges established in the production of The industry is seeking clarification of blockchain technology the building materials, registering of the legal framework when using in connection with the product and the product’s blockchain (and other) technology in declaration. The product is then construction and sees the current lack cryptocurrency; however, registered with its location, the of clarification as a major disincentive blockchain technology has person who has the product in to adopting it. hand, its condition and expected lots of other potential and purpose. At the same time there An increase in digitalization in beneficial applications, is an ongoing process of logging construction – and the consequent potential recycling options and increased sustainability in also within construction.” extraction instructions, depending construction – therefore also depends on the status of the product’s on those providing legal advice in delivery, incorporation and this area. It places demands on • a packet of information (a block) extraction. All data is verified by legal advisors to understand how a with the ability to create an every individual in the network and blockchain works in order to be able historical and permanent ledger of distributed 1:1 to all individuals in to identify the new legal challenges transaction details, allowing data to the network, where it remains for as and solutions to which the application be stored identically with everyone long as needed (throughout the life of this technology gives rise. in the network, for as long as it is in cycle of the building and beyond). digital form; and General legal challenges in The blockchain thus creates a chain using blockchain technology are, • at the same time, every blockchain of custody for building materials, for example, data protection law has a specific structure and rules enabling a more sustainable – and and competition law, as free-flowing (smart contracts) making it much circular – approach to the use of data in a network in some cases more than an ordinary database. building materials. might not be in compliance with These key qualities make blockchain these laws. Other legal challenges technology good at handling complex The blockchain will also allow the are jurisdiction, allocation of risk and transactions, establishing a chain of tracking of building materials liabilty, intellectual property rights, custody and history, as well as serving that, many years after having enforcability of smart contracts and as a secure and open database been built into a building, may exit assistance, all of which must be available to users – all of which be found to be faulty or unfit for regulated by the contract(s) setting up can be beneficial in construction. purpose. This enables building the specific blockchain. In particular, blockchain technology’s owners to track if the specific ability to build data layers in the value building materials – with a specific DLA Piper Denmark is currently chain is unique. composition, from a specific working on an analysis of the possible manufacturer, from a specific legal challenges associated with A passport for production, from a specific date the use of blockchain and other building materials – have been used in a building, technology in construction, including Today there are no obvious thereby avoiding a long and costly how we can help our clients to meet ways to track building materials investigation on the issue. these challenges. throughout the life cycle of a building, and information regarding This type of passport is not suited to NB: Inspired by the need to increase production, condition and potential being put into an ordinary database digitalization in construction, DLA Piper recycling options of the building since the information is provided by Denmark has developed a small piece materials goes to waste, as does the various sources in the supply chain. of construction technology (contech), potential value of such data. It is clear that the blockchain’s peer- which also serves as legaltech. to-peer validation – where every DLA Piper Denmark has launched an An example of the benefits of using individual in the network must verify app with the new Danish agreement- blockchain in construction is using the data, thus creating a consensus based set of rules for construction, a blockchain to document and track about what has happened with the including legal comments. The app building materials, serving as a sort of building materials and when – is key AB 18 – altid ved hånden is ready for passport for those materials. to its success. download from the App Store and Google Play.
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Smart buildings: A permanent revenue stream for real estate developers?
Lukas Weidner and Fabian Hafenbrädl, Munich
As all real estate professionals know, commercial buildings are evolving – triggered by rapid technology changes as well as changes in workplace patterns. Buzzwords like efficiency and productivity are omnipresent and buildings are being seen more and more as virtual gateways to connect people with each other and the outside world. Brick and mortar of the future integrates people, technology and communication.
At the same time, many real estate developers are on turnover in a growing field. Beyond that, they ignore exploring new ways to keep their business model the opportunity to potentially generate long-term gains profitable and – despite this ever-changing real by owning the data despite having disposed of the estate world – sustainable. Even (or indeed especially) property at the beginning of its life cycle. It is the same very successful players in this field are mindful of business model that many industries, like machinery the general threats to their business model such as and plant construction, apply or at least are currently shrinking margins due to higher construction costs trying to establish. Last but not least, developers and land prices, higher execution risks, and increased stay “connected” with the buildings and their current pressure/scrutiny of society toward the project details. owners. Why deal with a third party for an update of the Several progressive developers do not see their future navigation system of your car if this can be purchased necessarily in scaling up their construction activity as part of the annual services? And what of the situation or the individual features of the property. From their where a developer repurchases at a later stage a perspective, the key is to diversify into actually operating property it had earlier disposed of? smart buildings. This approach of using opportunities can be called Vertical diversification vertical diversification. It is vertical because designing Selling properties that are packed with cutting- and setting up the property is the developer’s core edge technology is nothing new for most real estate business. Staying involved with the building post developers today. However, many seem to leave the completion – even if only through sister companies for operating part to third parties and therefore miss out tax or other reasons – makes the developer a player
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in the downstream market too. The individual value this does not necessarily mean that these services chain extends, but the trade remains the same. As with work to the satisfaction of all involved stakeholders, virtually all kinds of diversification (and played out in first and foremost the daily users of the building. many other branches of the economy), the underlying Given the complexity of current building technologies, rationale is a mixture of growth strategy and risk it can regularly be observed that data is misinterpreted mitigation. Operating smart buildings goes far beyond and that the smart building does not live up to its full providing a simple service to the purchaser of the potential. This is particularly true for building control property besides facility and property managers. systems. There is an opportunity for developers to forge ahead in this field and offer one-stop solutions Prospects of success from the source. Vertical diversification strategies are generally most effective in mature areas. While this cannot be said Maintenance as a building- about the proptech aspect to this business model, related service there is certainly no doubt about the maturity of the Operating a smart building directly leads to a new core business at hand. Therefore, the relevant players business. Maintenance of a smart building can be seem well positioned, notably: seen as a new building-related service that has to be carried out either by the owner of the building or by a MARKET ACCESS third-party provider. While it is market standard in The developer will in many instances be in a position Germany that a tenant (even outside triple net leases) to dictate the operator’s identity for the building or at is responsible for certain maintenance works, a landlord least steer the tender process as part of the combined will in most cases still be obligated to carry out a vast acquisition negotiations. There may even be some array of such works (particularly if the work affects level of control on prices. This constitutes a significant a system that serves all premises in a multi-tenant competitive advantage compared to third-party building). Last but not least, it will in many instances operators – be they competitors for individual smart simply be more convenient and efficient for the tenant building services, existing facility management services – against an additional fee – to instruct the landlord or for the whole package for a project. with specific maintenance works. Institutional investors typically lack the required know-how or such services MARKET KNOWLEDGE AND EXPERIENCE do not fit into their business strategy. Consequently, The wealth of knowledge that real estate developers they are already using third parties for these services have gathered over the years should not be and so the floor may as well be open for the developer underestimated. So, while numerous third-party to generate new turnover using the aforementioned operators for smart building technologies exist, competitive advantages.
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Such maintenance includes on the one hand, hardware end that facilitates the usage of the building. Every party upgrades as well as software updates and repair of is a potential customer of the operator of the smart items like sensitive sensor nodes, but on the other hand, platform. By facilitating third-party services, for instance also service levels including an emergency repair service on a commission basis, nearly all consumables can for the smart building. The liability coverage of the ultimately (and more or less exclusively) be integrated service provider is of great importance, since a smart into the smart building concept. building with, for example, closed doors or no heating can lead to extensive damages. If the developer and the Relevant stakeholders operator of the building are associated with one another While the general upside of these products or are the same entity, there is also obviously a fine line seems obvious, it is important to bear in mind between generating additional ongoing pieces of work the different roles and primary smart goals of the and potentially triggering the liability regime under different stakeholders. the purchase agreement with the investor/new owner. This is not to be treated lightly from a sales perspective A developer intends to build the best possible buildings and needs to be carefully considered when drafting the in order to attract new investors. They require usage relevant purchase agreements. data to enable them to identify new trends and developments in the usage of buildings. The investor’s Data access and data ownership aim is to obtain the greatest possible long-term rental Smart buildings produce huge quantities of data that income, which is ensured by efficient use of space and have to be collected, analyzed, prepared and finally this is where smart building data can, for instance, provided to the key players. It is not sufficient to help to identify and avoid inefficiencies. Today’stenant install server rooms in the building; a complex cloud is looking for comfort and easy digital access to the infrastructure is required. “Data is the new oil” is an outside world. Comfort indicators like the ability to often-cited saying. In fact, one of the key issues for properly and easily control the room temperature along smart buildings is the question of who has access to and with convenient ways to operate a business from within controls the data that is generated by the building itself the premises are very attractive features to potential and by the people that are using the building on a daily tenants. The individuals actually using the building are basis. Data ownership has to be discussed between all typically employees/customers of the tenant or people relevant stakeholders. Due to a lack of statutory legal living in the building. This group operates the smart protection, the focus is on the contractual clauses to be technology on a daily basis to open doors, turn on agreed between the involved parties. lights, or control the AC by using hardware as well as smart phone applications, etc. As described above regarding maintenance, the purchaser of a property might be interested in a high- This ultimate focus on individuals means that data end smart building, though running an IT platform protection law comes into play as well. Both in does not always fit into its portfolio. However, having residential and office buildings, the data obtained from direct access to the building data can be the decisive sensors and the user patterns might regularly qualify as competitive edge in a more and more difficult real personal data under the applicable data protection laws. estate market. This allows the developer to sell a smart building with access to the developer’s own smart Summary platform. Furthermore, the developer is probably the Some developers are wondering how to amortize player who can profit the most from the analytics of the higher costs of smart buildings if the investors building data. Such data may provide new insights are not willing to factor the existing opportunities regarding trends in the usage of buildings and thereby into higher purchase prices. One answer might be: enables the developer to build today the buildings operate such smart buildings yourselves. investors will ask for tomorrow.
Data analytics and smart phone applications Analyzing building data and preparing it for individual user groups presents challenges for the operator. Furthermore, they must provide a user-friendly front-
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Building information modeling and the internet of things in the commercial real estate market
Olivier Reisch and David Alexandre, Luxembourg
The commercial real estate market is constantly evolving, and the emergence of new technology tools has brought radical change to the sector. At the forefront of such tools, Building Information Modeling (BIM) and the Internet of Things (IoT) are most likely to leave a significant imprint on the market in the coming years.
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According to the International This data collection process for the activity-specific models. For instance, Telecommunication Union, the purpose of analyzing a situation in the architect will keep their model, IoT is “a global infrastructure order to achieve added value for while the general contractor will for the information society, an object is already undergoing work on their own model reflecting enabling advanced services by fast-paced growth in the commercial their own specific needs, the same interconnecting (physical and real estate market, changing the being applicable to the electrical virtual) things based on existing and deal for stakeholders, especially engineer, the heating engineer, the evolving interoperable information with regard to management, plumber, the mason, and all others and communication technologies.” space usage and energy efficiency. involved in the construction process. For instance, sensors placed in a All these models are merged into Through the use of identification, building can detect sudden change one master model to detect and data capture, processing and in energy consumption, enabling resolve any conflicts between them. communication capabilities, the building managers to alleviate the The reconciled master model is IoT makes full use of objects to costs at a very early stage. Another then used to produce the execution offer a wide array of services and example would be sensors placed plans that will be distributed at the applications, while ensuring that in the parking lot of a building to construction site. security and privacy requirements detect how many parking spots are fulfilled. are actually used throughout the Construction companies also day. This data can then be used use the model to carry out their Major players in the construction for future projects, and increase measurements, planning or phasing. sector have already begun taking cost efficiency. During the work, the model is kept up advantage of the IoT and, above to date by the designers and builders all, of IoT-generated data, to offer BIM, the other game changer, mainly so that at the end of the work, the construction professionals better consists in providing relevant actors model is exactly in accordance with tools, but also new services with with efficient tools to share reliable the structure as it was built. high added value. Introduced in paperless information throughout the 1990s to collect telemetry the life of a building or infrastructure, This model, delivered to the project information, sensors, for example, from design to demolition. manager with the keys to the are now part of the basic equipment property, gives them the capability to of new construction machines. BIM achieves such purposes manage the building electronically, in Nowadays, data flows in real time through the use of specific working order to carry out subsequent work, over mobile networks, before being methods and a 3D parametric manage the assets, integrate home stored in remote databases and digital model, which is a digital automation systems or carry out processed by advanced analytical representation of the physical and various simulations. tools, allowing live enhancement functional characteristics of the of construction processes building that contains intelligent and BIM is therefore a transposition into and ensuring unprecedented structured data. the world of commercial real estate responsiveness to specific of construction processes that construction needs. BIM is often reduced to a mere already existed in other industrial software or technology, while it is sectors such as aeronautics or the A great number of contractors are actually much more than that. BIM is automotive industry. already benefiting from the IoT in fact a series of processes or work without actual knowledge of it: methods used throughout the design, Combining both BIM and the IoT IoT can be as simple as a light on construction and use of a building. could bring even more changes to the a construction machine blinking, It defines who does what, how commercial real estate market. signaling that one of its parts and when. needs changing. Only a few users Currently, BIM allows contractors of such machines will know that The 3D model is first created in to communicate with architects to achieve this result a connected the hands of the architect, and and project managers. They have sensor detected some kind of is then made available to the a digital avatar of the building that abnormality, collected the relevant various design offices in order to allows them to manage their assets data and sent it to be analyzed, be completed or even technically collaboratively. Combined with the which eventually enabled the modified. The model will most often IoT, such parties would be able to machine to signal accordingly. be replicated into several distinct, inject further elements into the
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BIM-created model of the building, Indeed, it seems reasonable to for example, energy consumption or imagine that the use of such more advanced data. It will become technology could be extended to possible to integrate information on answer all the legal obligations the equipment that has been installed that arise during the building in the building into the BIM-created construction and operation process. model, and regulate the properties As an example, BIM could be used to of each object in a building through make certification reports automatic. a simple click, from a partition, a Competent authorities would be able window, a boiler, or a component of to allocate all required certifications the air conditioning system. via BIM based on the data collected and injected into the model, which Some contractors have already would save time and money for all implemented this type of integration, parties involved. BIM technology which means they can now monitor could also be used to ensure that the energy consumption of all their all applicable legal standards are buildings, with an instant view of complied with at each stage of the consumption. While it is possible construction, as the building process to integrate IoT-collected global goes. The same could apply to energy energy consumption data into efficiency certification for instance. BIM, it is also possible to take a granular approach, and integrate Some countries have already taken data generated by multiple a step further, by making it a legal temperature sensors, presence of requirement to use BIM in certain people, lighting information, etc. construction projects. In 2016, the UK The possibilities are endless. became the leader in legally requiring all publicly funded projects to use When considering the average BIM. Other countries soon followed, operating life of a commercial such as Germany, which will require building (usually 30+ years), the the use of BIM in all transportation savings that can be expected from projects as of 2020. such an approach are potentially much greater than those that can BIM combined with the IoT will have already be achieved during the a game-changing impact on the design/construction phases. There is commercial real estate market at therefore a great potential for gains large, allowing stakeholders – as well by using BIM combined with the IoT as legal and compliance professionals for any building. advising them – to design and manage buildings in a drastically While it appears clear that BIM more efficient fashion, leaving them will make life easier for architects, time to focus on value-added tasks. engineers and contractors, allowing them to work on a common project and to profit from cost savings, the technology behind BIM could also have advantages from a legal point of view.
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19 REAL ESTATE GAZETTE | ISSUE 35 | 2019 A digital land registry: The example of Mauritius
Arvin Halkhoree, Ebène
It was the Italian novelist Umberto Today, it is administered by the receive their registered documents Eco who said that “we like lists Registrar General Department, in electronic form. Documents are because we don’t want to die.” which operates under the now registered on a quasi-real-time List-making and list-keeping Ministry of Finance and Economic basis. Data accuracy is another are integral parts of human life. Development. It is the central advantage. Since each transaction Lists can range from the trivial, registry for maintaining a repository is automatically registered on an like shopping lists, to the more of all documents that are registered, electronic database with minimal important, like the land registry. including title deeds relating or no human handling, the risk of The latter lists the ownership and to immoveable properties. It is errors is minimal. It also allows for movement of land and, in so doing, administered by the Registrar greater transparency since any helps to protect property rights, General, who is also the Conservator stakeholder or member of the facilitate transactions in immoveable of Mortgages. The Registrar public can access land records, properties, and enable such General Department has been on payment of a nominal search properties to be used as collateral, successful in making a paradigm fee. The Mauritius eRegistry to name but a few purposes. shift from a paper-based system Project provides for an integrated A land registry is particularly to a paperless one in less than system by allowing for automatic important as land is often the most a decade; a transition which has inclusion of information on valuable asset of any individual or involved legal, technological and registered properties dating back business. The land registry, which human considerations. to 1978 and also for different is the central repository of proof of government departments to share property ownership and evidence of In 2011, the Registrar General information, thus increasing their title, is therefore one of the pillars of Department embarked on the operational efficiency. modern society. Mauritius eRegistry Project, a visionary system aimed at The digitalization of the Registrar Information on land is a prime transforming the department into General Department has helped requisite for making decisions an e-service body. This project Mauritius to considerably improve related to land investment, provided the Registrar General its Ease of Doing Business ranking development and management. and its stakeholders (including the with the World Bank. In relation The land registry of Mauritius general public) with an electronic to registering property, Mauritius has moved in leaps and bounds dashboard through which they can has moved from 98th position a from its origins in 1804 when carry out registry searches, submit decade ago to 35th in the 2019 Mauritius was still under the documents for registration, pay Doing Business Report, with a global French colonial administration. the registration fees online, and ranking of 20th out of 190 countries.
20 The digitization of the land registry delivering a Parcel Identification render such a central repository even helps greatly in the reliability of Number (PIN) for use by Surveyors more secure and tamper-proof, while the records. However, it is equally in Land Survey reports and allowing easier and cost-effective important to have a proper land eventually in title deeds evidencing back-to-birth traceability of land. identification system whereby new land transactions. parcels of land can be easily The transparent nature of blockchain’s identified. The government of Keeping track of who owns which distributed ledger technology makes Mauritius embarked on a ground- pieces of property is difficult when it the perfect fit for public records breaking project known as the we have hundreds of years of land systems. Governments across the Land Administration and Valuation records. Discrepancies within the world are increasingly integrating or Information Management System paperwork are common, including at least considering how to integrate (LAVIMS) between 2006 and forged documents, counterfeit titles their land registry into the blockchain. 2011 aimed at improving access and, in some cases, a complete loss Such initiatives are seen both in to information and enhancing of all documentation. When these developed and developing countries. administrative processes in relation situations arise, it can lead to costly In relation to developing countries, to land by introducing a cadastral court battles. Digitalization does not which suffer from notoriously database as a comprehensive provide a solution to these problems. bad land registry records due to a register of land parcel extents and combination of factors, the blockchain ownership. This involved, among The next step is likely be the shifting allows these countries to leapfrog other things, the digital capture of of the land registry from databases stages of improvement and adopt existing paper records, data capture stored on physical servers and/ the blockchain to exponentially of deeds, integration of cadastral or cloud servers to the blockchain. boost confidence in their land plans, and digital aerial imagery for The blockchain promises secure and registration system. the whole island to identify land immutable record-keeping using parcels. The integrated information a distributed ledger technology. Countries across the globe management systems of the The blockchain is now widely acknowledge the undeniable LAVIMS provide up-to-date data accepted as being the single source advantages that blockchain on land parcels in Mauritius as well of truth inasmuch as, once stored technology provides to the land as keeping an updated cadastral on the blockchain, records cannot registry and its potential to index map and individual land be tampered with without detection. transform the real estate sector. parcel boundaries. The Cadastral There are already a number of Technological change will only Unit of the Ministry of Housing startups which are interested in a continue to accelerate. It is is responsible for this and for blockchain-based land registry to important that we respond to that change in a timely manner, and make best use of it.
“The digitalization of the Registrar General Juristconsult Chambers is a member Department has helped Mauritius to of DLA Piper Africa, a Swiss Verein whose members are comprised considerably improve its Ease of Doing of independent law firms in Africa Business ranking with the World Bank.” working with DLA Piper.
21 REAL ESTATE GAZETTE | ISSUE 35 | 2019 The tokenization of real estate: A view from the Middle East
Emily Southon and Sean Cope, Dubai
Followers of blockchain technology will be familiar Tokenization with the prediction that it is only a matter of time Tokenization refers to the process by which an asset before every asset class – shares, bonds, currencies, is digitally represented on a blockchain-based system commodities – is digitalized. The digitalization or and divided into fractional ownership interests that are tokenization of assets and the creation of new capable of being traded digitally. Issuers raise funds, infrastructure to trade and manage these digital assets in fiat or cryptocurrencies, by selling tokens that operate or tokens using blockchain technology is set to be as on a network or exchange platform. This is known as transformative to the world economy as the advent of an Initial Token Offering or, more commonly, an Initial the internet. A report published by the World Economic Coin Offering (ICO). Forum predicts that, by as early as 2027, around 10% of global GDP could be stored on blockchain On a basic level, two broad categories of tokens technology. The tokenization of real estate in the US is have emerged: (1) utility tokens; and (2) security or well underway, with the partial sale of the St. Regis asset tokens. Aspen Resort in Colorado in 2018 earning headlines as one of the first major real estate properties in the US to Utility tokens are digital assets designed to be spent tokenize. This has been followed by an announcement within a particular blockchain platform. They can be from Inveniam Capital Partners (ICP) of its plans to thought of as currency in a micro-economy, where the tokenize USD260 million in four private real estate and tokens grant holders rights in the usage of the issuer’s debt transactions, including downtown Miami’s WeWork products or services and could, for example, be used by building and a 469-unit apartment development on hoteliers to tokenize a hotel inventory. Florida’s gulf coast, with ICP set to accept investment denominated in the top 50 cryptocurrencies by market Security or asset tokens are tokens which represent capitalization at launch. ownership in underlying assets. They can represent an ownership interest in an investment vehicle, for In this article we aim to provide a jargon-busting example, a share in a single-asset special purpose introduction to tokenization, an analysis of its potential vehicle (SPV) or a unit in a Real Estate Investment and challenges in the real estate sector, together with Trust (REIT), where token holders expect to receive an an overview of the regulatory responses and anticipated economic return in the form of appreciated value and/ developments in relation to the digitalization of assets or distributions. This is private securities investment in and real estate in the Middle East. the traditional sense, enhanced with a digital wrapper
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which allows investors to trade their tokens on Regional regulatory developments a peer-to-peer platform without the involvement of a The United Arab Emirates (UAE) Securities and third party. This is particularly exciting for investments Commodities Authority (SCA), the country’s markets in non-listed securities and other illiquid assets and regulator, has announced that it will introduce is the basis on which the tokenization of real estate is regulations for ICOs in the UAE in 2019. This, proceeding. Developments are required in relation to in addition to the UAE being noted to accelerate land registration formalities before authorities can issue blockchain adoption in the country with its launch of tokenized title on a blockchain. Authorities will have to the Emirates Blockchain Strategy 2021 (which involves be capable of pre-vetting token holders for anti-money transformation of 50% of government transactions into laundering (AML) compliance with changes required the blockchain platform), will seek to make the UAE to land transfer rules in many jurisdictions to permit an attractive destination for new projects willing to raise electronic transfers of real property interests. capital through token sales.
Why tokenize real estate? It is interesting to note the developments in recent From a developer or sponsor perspective, the potential years in this area. The recent announcement that we for increased capital access is a primary attraction are expecting regulations on ICOs in the UAE reflects of tokenization. Fractionalizing ownership shares to a turnaround from the SCA’s previous position in offer lower minimum investments and undertaking February 2018 and they are currently working towards the fund-raising process in a digital marketplace has a regulatory sandbox and a rulebook for the issuance the potential to increase access to capital globally. of ICOs. The aim of the regulations is encourage The ability to sell minority ownership interests also crypto fundraising and develop a market for trading gives the issuer a desirable level of flexibility, allowing within the UAE, while still ensuring protection against for extraction of liquidity without the loss of control. key risks such as AML and consumer protection. The challenge to the so-called democratization of the real estate asset class to retail investors is the need When the Central Bank of UAE in January 2017 to comply with securities laws, resulting in sales being issued the Regulatory Framework for Stored Value restricted to accredited or qualified investors. This not and Electronic Payment Systems (Stored Value only restricts the pool of potential investors in a given Regulations), a one-sentence provision stated that market, but threatens the global reach of real estate “All virtual currencies (and any transactions thereof) security token investments as issuers are required to are prohibited,” which was interpreted to mean ensure that the marketing of their tokens complies with that cryptocurrencies and digital tokens were not the regulations in the jurisdictions where the investors permitted within the UAE. Despite this, several real are located. estate brokers and entrepreneurs were willing to receive property payments in bitcoin and it became Perhaps the greatest selling point, and differentiator, a tolerated practice. The governor of the UAE Central for tokenization is the aspirational transaction Bank, Mubarak Al Mansouri, was later quoted as stating efficiencies made possible through blockchain that the Stored Value Regulations do not cover digital technology and its indisputable ledger of ownership. currency, defined as “any type of digital unit used as The goal is for blockchain to enable tokens to trade a medium of exchange, a unit of account, or a form 24/7/365 with near instant settlement. It is widely of stored value” and “do not apply to bitcoin or other acknowledged that blockchain is an excellent tool to cryptocurrencies, currency exchanges, or underlying enhance security and transparency of a real estate technology such as blockchain.” asset, such reasons underpinning why it has long been presented as the future of land registries globally. In addition to the proposed ICO regulations, it is interesting to note that the Central Bank of UAE However, the challenges arising from tokenization has announced plans to launch a digital currency in are numerous and varied and include complicated collaboration with the Saudi Arabian Monetary Authority questions regarding availability of exemptions from for cross-border transactions. securities laws, investment vehicle structuring and token-holder voting rights, AML and sanctions In a bid to lead the way in blockchain technology, compliance on initial and secondary sales, tax treatment, the Financial Services Regulatory Authority (FSRA), currency exchange regulations, data transfers, the financial regulator of the Abu Dhabi Global Markets custody solutions and cybersecurity, to name a few. (ADGM), a free zone in Abu Dhabi, was the first
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regulator in the UAE to issue guidance and regulations some countries in the region such as the Kingdom of on cryptocurrency-related activities. FSRA issued Saudi Arabia do not ban bitcoin specifically but they supplementary guidance on the regulation of Initial promote risk awareness in particular against their Coin/Token Offerings and Virtual Currencies (under its speculative natures. The central banks of Lebanon Financial Services and Market Regulations), under which and Jordan, however, do not permit dealings in it commented on ICOs. Under the guidance, FSRA virtual currencies. will, on a case-by-case basis, determine whether a proposed coin token is a security or a commodity. Most recently, on February 21, 2019, the Central Bank of If the former, the ICO would be subject to the Financial Bahrain (CBB) published a new Module on Crypto-Assets Services and Market Regulations but if not, the ICO is (CRA Module) which was pioneering for the Middle East. unregulated. Following on from this, on June 25, 2018, As the CBB accepts that the market for crypto-assets is FSRA issued a publication on the Regulation of Crypto growing both in the Kingdom of Bahrain and globally, Asset Activities in ADGM which introduced a regulated the CRA Module has been published as part of the activity of operating a crypto asset business, which CBB’s recent initiative to nurture Bahrain’s financial includes operation of crypto assets exchange houses, technology ecosystem and help mitigate against the risk but excludes issuances of ICOs. of financial crime and illegal use of crypto-assets within or from Bahrain. A variety of reforms (including those from the Dubai Financial Services Authority (DFSA), the regulatory This is an exciting space to watch in the region and the vehicle of Dubai International Financial Centre) imminent publication of the ICO regulations, in addition and new regulations point to increased awareness to all developments in the free zones and neighboring on a policy maker level. Historically, we have seen countries will most definitely lay the foundations for central banks and regulators be more cautious in stratup financial technology companies to flourish their approach in supporting digital tokens and in the Middle East.
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Blending modernity and tradition: Proptech in the rehabilitation of Portugal’s cities
Luís Filipe Carvalho and Filipa Arrobas da Silva, Lisbon
It has been a while since technology ceased to be simply an auxiliary tool designed for specific individual tasks and became an essential element of our day-to-day personal and professional activities. In a short space of time, the union between technology and traditional sectors has transformed the way we communicate in a constantly evolving marketplace, and the real estate sector is no exception. Proptech (property technology or real estate technology) has emerged through a combination of real estate infrastructure, market habits, transactions and technological development.
The term proptech refers to adding a technological competitive advantage to adopters due to its ability to component to a business model, resulting in add innovation to every stage of the business process technologically innovative products and new business and by rethinking existing systems. Proptech is often approaches to the real estate market. This innovation designed to streamline and connect processes for represents the transformation of the industry, and it is participants in all stages of a real estate transaction, predicted that the technological changes will influence including purchasers, sellers, real estate agents, brokers, consumer mentality, the operation of construction investors, lenders and landlords. Examples of some of activities and real estate transactions, creating cities of the most common proptech technologies include: virtual the future. Specialized companies are and will continue to reality software that allows website visitors to virtually walk revolutionize the real estate market, making it more digital, through properties; software for reporting repairs or for in constant growth and with new consumption standards. splitting rent payments; and platforms for crowdfunding new real estate projects. All over the world a wide variety of companies are using big data technology to process information; The arrival of proptech will shape tomorrow’s real estate from real estate management platforms to real estate industry. Below are some of the innovations that proptech investment companies. The use of proptech gives a brings to the real estate market:
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“Proptech is no longer a speculative This is a critical issue that must be addressed if Portugal is to remain competitive in attracting both internal and investment; it is a smart one.” external investment to its real estate sector.
Considering the difficulty in creating real estate product • Artificial intelligence– the use of AI allows, for due to, on the one hand, the scarcity of available land in example, language processing and image recognition city centers and, on the other hand, the multiplicity of state for the purposes of scanning purchase and sale regulations over the use of land and new construction, documents and importing data into a customer the rehabilitation of historical areas has become a crucial relationship management (CRM) system. It can also strategy for Portugal. This requires market players to help to automate communication between an agent have a strong sense of local tradition and of the natural and potential buyers; sending the right message to character of a given city, mainly from architects, engineers, the right buyer at the right time is essential in creating investors and, in general, real estate consultants. The big a productive relationship. Through validation of data, issue is how to conciliate these two dimensions; the need communication automation and workflow within a for implementation of proptech solutions in order to CRM system, AI frees up agents to dedicate themselves create a supply of modern real estate product and the to their clients. It does not end there; multiple home preservation of the historical architectural and functional and office appliances and amenities can be automated traces of these urban environments. All market players and managed using AI, a trend that is gaining significant must make the effort to enhance local economic activity, ground in construction and architectural trends. while ensuring it does not destroy the historical tradition and legacy of each city. • Blockchain is probably the technology that has had the greatest impact in the real estate industry, Market players need to understand that this effort will not with near limitless potential to revolutionize the way only promote a good relationship between new residents, transactions are conducted. Blockchain technology tourists and corporations with the local population, adds transparency to real estate transactions through a but also protect their own investment on a long-term simpler and less regulated system. basis, avoiding conflict with local “anti-bodies,” either of • Big data allows participants to identify desires, trends, a social, economic or political nature. Using proptech to needs and even the interests of users, offering a serve people, by increasing real estate efficiency, cost more personalized experience. Corporations use this reduction, conservation status, maintenance standards, technology to make better decisions and strategic environmental quality, residential amenities and tourist moves, adapting their approach to the consumer. needs, while respecting each city’s history and typical day-to-day life, is an important step towards creating a • Geolocation allows users to better analyze locations well-balanced market. and explore assets in more detail by offering building data, sales values, and points of interest with some All this can only be achieved by introducing technological of its features. solutions, and providing autonomous management • Drones for panoramic photography and capabilities to each property. This would also be necessary virtual reality are one of the main tools for developers for new forms of real estate, such as co-working, co-living, and real estate platforms. Augmented reality technology short-term, senior living and new hotel concepts. allows buyers to have a close-to-real experience, as if they were virtually transported to the property, In countries like Portugal, where the old cities require in person, even before it is built. rehabilitation, introducing this technology is more demanding and will play an even more relevant role. The use of applications based on proptech innovations It is not only a management decision; it is a strategic should, however, be flexible enough to allow local players decision for the future and for the competitiveness of to adapt them to the specific needs and circumstances cities. Proptech is no longer a speculative investment; of each local real estate market. In the specific case of it is a smart one. Portugal, historical city centers are aging and require rehabilitation and urban intervention. There is a significant The future of successful cities and harmonious societies lack in the supply of modern, sophisticated products able lies in blending modernity and tradition with the help of to satisfy the ever-growing needs of the local population, proptech and its responsible application. of corporations and of the booming tourism industry.
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Proptech: Is it the future of real estate?
Tony Alfonso, Miami
Following the significant impact businesses. Given the potential The blockchain verifies transactions that new technologies are having reputational risk associated with using complex cryptographic on the financial sector (commonly using new technologies and technology. A common industry referred to as fintech), the real its potential effect on legacy misunderstanding about blockchain estate industry has now become systems, one can understand is that it suffers the same negative a focus of disruptive technologies why real estate companies are perceptions as cryptocurrencies, which are claiming to change how cautious about adopting proptech. like bitcoin. Blockchain is not the real estate is purchased, developed Additionally, blockchain and same as bitcoin: it is only the and sold. Players in the real estate other new technologies raise technology that makes bitcoin industry have become increasingly concerns about the potential legal and other cryptocurrencies work. focused on the impact that proptech consequences which may result There are many different potential will have on real estate. However, from adopting software that may uses of blockchain technology in in order to determine the potential not be fully compliant with existing the real estate industry that go well impact of proptech, the industry first legal requirements. beyond the creation of tokens and needs to have a clear understanding other cryptocurrencies. of exactly what proptech means. Digitizing real estate Although proptech is often defined assets: The impact An important use of blockchain is as real property technology or of blockchain the digitization of real estate assets, technology that is focused on the Blockchain is one of the most which can occur in two important real estate industry, the definition talked-about proptech technologies ways. First, using blockchain, could be expanded to refer to that will impact the real estate real estate owners can create innovative technologies, processes, industry. Blockchain is a distributed part-ownership interests in real standards and uses which are ledger or database which contains estate assets through issuance of transforming the real estate a record of information, and, tokens, which can then be sold to industry. By taking advantage of in relation to real estate, works as third parties. The tokens simply proptech, companies can make follows: once a transaction occurs refer to a digital representation of more profit, while also having a and the parties have satisfied all a typical share in a company which positive impact on the community. conditions for completion of the is recorded on the blockchain. transaction, it is then verified by the Once the tokens are created, One of the main concerns that network of computers or nodes on the owner of the real estate asset many companies have is whether the blockchain. If a transaction is can raise capital through the sale proptech is simply the latest buzz verified by the network, then a new of the tokens using blockchain. word or whether proptech will have block for the transaction is added All of the information related to a lasting impact on the industry. to the blockchain and everyone on the sale and ownership of the Therefore, many companies the blockchain can view the block tokens is digitally recorded on the have not been early adopters in containing specific information blockchain and preserved so that it incorporating proptech into their related to the transaction. is fully transparent and available to
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third parties. Additionally, creation can verify real estate transactions loans. Although the title insurance of secondary markets for the sale of and maintain an immutable and requirements will not completely be the real estate tokens can provide transparent record of the transfer replaced by blockchain, perfecting liquidity for owners of the tokens of real property. This information the transfer of title to real property to easily sell tokens for one project will be available to all third parties digitally using blockchain can create and purchase tokens in another who have access to the blockchain. additional trust in the validity of real estate asset. The process of In order to change the process as real estate transactions. digitizing the real estate assets little as possible, the deed that is through the creation and sale digitally recorded on the blockchain Proptech: Next steps of tokens will provide real estate can be prepared using the same Although proptech is positioned owners and developers with access form and can be physically recorded to help the real estate industry to new domestic and global markets in the current local recording office decrease costs and increase that were previously unavailable just as it is now. Once the deed is efficiency, technology alone is due to the barriers inherent in the recorded it can then be digitally not sufficient to bring significant traditional process of raising capital. uploaded onto the blockchain. changes. Traditional real estate A critical aspect of digitizing the industry players and other The next critical step in digitizing recording process will be to create stakeholders will need to shape the real estate assets relates to the a consensus of what constitutes a future of the industry through the deed recording process. This has valid conveyance. However, digitally thoughtful integration of proptech. historically been subject to a recording the transaction on the Although many claim that proptech significant amount of counterparty blockchain can be an important will disrupt the industry, the reality risk, which is lessened by the way of reducing counterparty is that the promise of proptech is title insurance industry which risk. Capital markets and lenders more likely to serve as a tool to help creates insurance to trust and rely heavily on title insurance in industry players create the future certainty in real estate transactions. underwriting traditional acquisition of real estate. However, by moving towards a and construction loans as well as in digital recording process, blockchain securitizations of mortgaged backed
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Product as service agreements: A stepping stone to a circular economy
Alec Van Vaerenbergh, Antwerp and Félix Leyman, Brussels
Introduction A prime example of this is Philips, a lamp manufacturer The transition towards a circular economy contributes that has been offering lighting as a service for a to a sustainable and low-carbon economy, as is well- number of years now. Instead of selling light fittings and known by now. In addition, the transition towards lamps, users pay for the purchase of a certain amount a circular economy creates financial opportunities. of light over a certain period of time. This approach Businesses are increasingly aware of this economic creates an incentive for manufacturers to ensure that potential and are increasingly willing to respond to the their products are as sustainable as possible. After all, transition. However, this requires appropriate business sustainable products mean that fewer repairs will be models and therefore an appropriate contractual required, which in turn increases the producer’s profits. framework that takes into account the characteristics of a circular economy. Just as Philips offers lighting as a service, other products may also be offered as a service. Where consumers An emerging class of agreements: used to buy a washing machine and a coffee machine, Product as service agreements for example, consumers can now choose to only pay for The question arises as to why the transition to a circular the use of a washing machine/coffee machine instead economy requires a contractual framework that differs of paying for the ownership of a washing machine/ from the usual contractual framework. In order to coffee machine. If so, the consumer will be provided answer that, it is important to understand the principles with a washing machine/coffee machine of which the of a circular economy. The circular model aims at a ownership remains with the producer or supplier. long-term preservation of the value of a good, thereby Subsequently, the consumer periodically pays an extending its life cycle. The recycling of raw materials is amount for the use (or, in other words, availability) of the not a priority. After all, it is possible to obtain the optimal machine, or the consumer may pay for the number of yield of raw materials at various other levels. coffees made/washes done.
The transition towards a circular economy is also marked It is expected that both businesses and consumers will by a shift in production and consumption patterns. When increasingly opt for a product as service agreement it comes to consumption, for example, the traditional in the future, rather than the traditional agreements focus on ownership shifts to sharing products and whereby the user acquires ownership of the product. purchasing services instead of products. Instead of The rest of this article provides an overview of purchasing a certain product, parties may (merely) the essential characteristics of such a product as predetermine a certain result, after which the supplier is service agreement. free to choose the means to achieve this result.
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Essential provisions in a product as PERIODIC AVAILABILITY FEES AND service agreement POTENTIAL AVAILABILITY DISCOUNTS The user pays the service provider a periodic availability CORE OBLIGATION: ENSURING THE SERVICE AND fee for the services provided. This availability fee will KEEPING THE PRODUCT AVAILABLE obviously have to allow the service provider to recover The service provider is first and foremost under their purchase and investment in the goods provided the obligation to take the necessary steps to provide by the service provider within the duration of the the stipulated service. The provision of the product contract, but neither the periodic fee nor the duration of as service also means that the product (either certain the contract will usually be directly linked to this. Indeed, specific goods or more general, intangible concepts the service component is just as essential and it is such as light, furnishing, sanitation, washing facilities, precisely the intention of such a circular agreement that etc.) must be made available to the user. the duration does not depend on the economic lifetime of the goods made available. As the user is merely interested in obtaining a certain result or service, the service provider will also be The user, for their part, will desire certainty about responsible for the maintenance of the products in the availability of the services. This should also be accordance with a maintenance plan. Through this addressed in the product as service agreement. maintenance, the service provider must ensure that For example, parties may include a clause granting the the user can enjoy the service for the entire duration user a certain discount in the event that the service of the contract. In addition, the service provider is also provided does not correspond to the agreed level of responsible for remedying malfunctions and repairing service (in particular if the service provider does not and replacing defective or worn parts. achieve the performance indicators (or KPIs) set out in the agreement). This system of flat-rate availability Thus, the service provider will have to guarantee a discounts is a well-known concept in DBFM agreements high degree of product continuity (availability) as a (design, build, finance, maintain agreements), which are result-based obligation. This can be a permanent regularly concluded with public-private partnerships for continuity or availability at any time (24/7, 365 days a major infrastructure works. Likewise, parties can also year), but usually it is a high degree of continuity where agree that the service provider will receive a bonus if the the user will tolerate certain moments of planned or service provider provides the services entirely correctly. unplanned unavailability.
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THE USER’S DUTY OF CARE However, such an obligation to take back the product Subsequently, the parties to the contract will stipulate in no way guarantees that the service provider will that the user must maintain the goods in their repurpose the product in a sustainable manner. It is possession with due care. This obligation is of great therefore recommended that the parties include a importance in this service contract. After all, the user clause in the service agreement in which the service is not the owner of the goods, which creates a risk of provider guarantees that they, or a third party, will reuse reduced care on the part of the user. the product (or components thereof) in a high-quality manner (in order to guarantee its circular nature). OBLIGATION OF THE SERVICE PROVIDER TO INNOVATE AND KEEP THE PRODUCT UP TO DATE In the absence of clear rules on what constitutes In view of the transition to a circular, and therefore more circular usage (and in many cases a lack of technical and sustainable economy, parties to the service contract commercial clarity on re-use), it is often necessary for may determine whether and how the service provider the contracting parties to be creative in this respect. has an obligation to innovate. The user naturally wants to benefit from innovative developments on the market. Conclusion By analogy with the ESCO agreement, the parties can Due to the growing interest in a circular economy, it can link the innovation obligation to a bonus-malus system be expected that the product as service contract form that may or may not reward the service provider when will continue to grow and will be acknowledged as a the service provider achieves a contractually determined distinct type of agreement. As explained above, this will energy saving. In this way, the service provider often involve the use of more innovative contractual has an extra incentive to make the products more mechanisms (mainly in terms of determining the energy efficient. remuneration), as we also know from ESCO or DBFM agreements. Although this type of agreement is TAKE-BACK OBLIGATION AND SAFEGUARDING THE becoming more and more commonplace, at present CIRCULAR CHARACTER the notion of a product as service agreement remains The service provider commits themself to take back a tailor-made option which must take into account the the goods made available or to have them taken back service offered, the party who will acquire the service by a third party with whom the service provider has a and the context in which the service is provided. contractual relationship. The goods made available are taken back at the end of the lifespan of the products, at the end of the service agreement or in case of innovation of the products made available.
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Entitlement to offshore wind farms
Max van Drunen, Amsterdam
Introduction (UNCLOS). The following maritime Netherlands. This external border was By 2023 the Dutch government zones are of importance for wind established in boundary delimitation intends to generate 4,450MW from farms: the territorial sea and the treaties with Belgium, Germany and wind parks at sea. As the current exclusive economic zone (EEZ). the UK. capacity is about 1,500MW, several wind farms will have to be built TERRITORIAL SEA In the EEZ, the Dutch Civil Code does in the North Sea. A great deal of The sovereignty of the Netherlands not apply. Under UNCLOS, insofar attention is being paid to public extends over the seabed and as is relevant to offshore wind farms, law aspects of the construction subsoil of the territorial sea, namely in the EEZ the Netherlands has: and control of offshore wind up to 12 nm (22.22 km) measured farms. Property law aspects remain from the low-water mark. In the • sovereign rights (a) for the somewhat neglected. Who is the territorial sea, the Dutch Civil purpose of exploiting and owner of wind turbines at sea? Code applies. This determines that managing the seabed and its This article deals with entitlement to the seabed of the territorial sea subsoil and (b) with regard to offshore wind farms. belongs to the Dutch state. other activities for economic exploitation such as the Legal zones in the EXCLUSIVE ECONOMIC ZONE generation of wind energy; North Sea The EEZ is the zone that starts at • jurisdiction with regard to The location of an offshore wind the border of the territorial sea. the construction and use of farm impacts its legal status. In connection with the proximity of installations and facilities; and The North Sea is divided into various other North Sea states, the EEZ does • the exclusive right to build maritime zones, each with its own not extend to the maximum 200 nm and to authorize and arrange legal regime. This legal zoning from the low-water mark allowed construction, activities and is based on international law as under UNCLOS, but the external use of installations and contained in the United Nations border is at the outer limit of the facilities such as wind farms for Convention on the Law of the Sea continental shelf part allocated to the economic purposes.
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The two pictures show the territorial sea, the EEZ, the existing wind farms and the designated locations. They also show where the Dutch Civil Code and the Law of the Sea Convention apply.
Legal zones in the North Sea Schematic view Designated locations ne c zo mi 12 nm no co Existing wind e farms ve si Law of the Sea ConventionDCC lu a c l se x ria E ito rr e T 12 nm 22.22 km ffshore wind farm ffshore platform O O Transformer statio n High-voltage grid
Existing wind farms
Ownership in the EXCLUSIVE ECONOMIC ZONE The sovereign rights and offshore setting The Dutch Civil Code does not apply authorization are not property rights This section discusses ownership in the EEZ. The rule that the seabed within the meaning of the Dutch of offshore wind turbines. In this of the sea belongs to the Dutch Civil Code. The question arises: case, a distinction is made between state does not apply. Neither do on the basis of which rules can it the territorial sea and the EEZ. civil law definitions in the Dutch Civil be determined who the owner is of Code such as moveable property, wind turbines in the EEZ? TERRITORIAL SEA immoveable property, specification, The Dutch Civil Code applies in accession and registered property At the time that the wind turbine’s the territorial sea. Here, the same apply in the EEZ. In the EEZ the components are in the Netherlands, rules apply as for wind turbines on rules of UNCLOS apply. UNCLOS before they are shipped to the land. Under the Dutch Civil Code, does not govern who is the owner location in the EEZ where the ownership of the land includes of an installation or facility in the wind turbine is being built, these structures with permanent EEZ. Therefore it is not possible components are moveable property. foundations (vertical accession). to designate an owner based on If the wind turbines are assembled A wind turbine is a structure with UNCLOS. As indicated, UNCLOS on the mainland or in the territorial permanent foundations. The seabed does grant the Netherlands sea, ownership of the wind turbine is of the territorial sea is owned by the (i) sovereign rights for the purpose acceded through ownership of the state. This means that a wind turbine of activities for generating wind land. The owner of the components built in the territorial sea is owned by energy and (ii) the exclusive right then loses their property right. Under the state. By establishing a right of to authorize use of wind farms. Dutch Private International Law it can superficies, under the law of property This authorization is the legal basis be argued that the property right of the state can grant entitlement to the for the operator’s entitlement to use the components continues to exist wind turbines to a third party. wind turbines in the EEZ. if the wind turbine is assembled in the EEZ. This is explained below.
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The components are shipped to a legal no man’s land, where the Dutch Civil Code does not apply. Neither do civil law definitions in the Dutch Civil Code, such as moveable property, immoveable property, specification, accession and registered property, apply in the EEZ, as noted previously. If an object is transferred from one state to another state, under Dutch Private International Law, rights obtained or established under the law of property remain vested in it (Section 130, Book 10 of the Dutch Civil Code). If a component for a wind turbine is transferred from the Netherlands to another state, this means that under Dutch Private International Law, the property right remains vested in the component. If the components are shipped to the EEZ, strictly speaking Section 130 of Book 10 of the Dutch Civil Code does not apply, as the components are not brought to another state, but to an area that does not belong to the territory of a state.
If a Dutch court should assess who the owner is of the constituent components of the wind turbine, it is the author’s opinion that – in the absence of any other points of reference – a natural consequence is to analogically apply Section 130 of Book 10 of the Dutch Civil Code.
As there is no regulation in the EEZ from which it is evident that the property right ceases to exist if the components are assembled (which constitutes the wind turbine), it must be assumed that the property right of the components continues to exist. Therefore, the owner of the components is the owner of the wind turbine.
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37 REAL ESTATE GAZETTE | ISSUE 35 | 2019
Fewer restrictions on the acquisition of agricultural land
Michał Pietuszko and Paweł Szymański, Warsaw
In 2019 we celebrate the 15th anniversary of Poland’s accession to the EU. In this period, Poland’s economy has strengthened significantly and its real estate market remains strong due to the country’s location in the heart of Europe, its excellent economic performance, and the availability of a well-trained workforce, combined with historic low interest rates. These conditions provide for excellent opportunities for foreign investment, which is growing year by year.
However, there is one real estate sector in particular The transferability of such properties is currently limited which been significantly transformed as a result of by a law suspending the sale of land belonging to the Poland’s accession to the EU. For the past 15 years, National Agriculture Support Institution. This was amended thanks to European funding, Poland’s transport in 2003 to limit the possibility of acquiring agricultural and infrastructure has been redeveloped so that new forestry land. It is also applicable to foreign investors. infrastructure now connects major Polish cities and gives better access to the existing European highway Ironically, the law was introduced as a result of Poland’s network. This has the effect of opening Poland to accession to the EU because the public authorities new markets. feared that foreign investors would have an unfair advantage over Polish investors. Today it is clear that The improved roads network allows faster and cheaper such fears were unjustified, and the excess of demand movement of goods. This helps the warehouse market over supply for property along the main communication in particular which, as a result, has been performing routes has resulted in a change of approach from the extremely well over the past few years. The influence public authorities in Poland. of technology is another factor affecting the growth of the warehouse market. New services connected with The Act on Shaping the Agricultural System was adopted e-commerce, such as the delivery of products bought by the Polish Parliament on April 26, 2019 and is now or sold online, create the need for specially designed awaiting the president’s signature. This can be viewed warehouse premises. as the first step to facilitating the transferability of the agricultural land in Poland. Such changes will offer more The above factors combine to create a significant demand opportunities for investors as more land will become for properties which can be developed into warehouse eligible for development. premises. Real estate located outside cities but with suitable access to the main communication channels Under the previous regulations, only an individual farmer is sought by developers. Given the structure of land in could acquire real property constituting agricultural land Poland, such properties are mainly designated for the (with a few minor exceptions such as the acquisition cultivation of agricultural production or forestry purposes. of agricultural property by the relatives of the seller,
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“15 years’ membership of the right of perpetual usufruct) and had also introduced a pre-emption right of the National Agriculture Support EU and a steady flow of foreign Institution in relation to the purchase of shares in a investments into Poland’s market commercial company which owned agricultural property or was a perpetual usufructuary of the agricultural is evidence that Poland remains property. This meant that any share deal to be a competitive and economically undertaken by the company owning agricultural property was subject to a right of pre-emption of the National attractive country.” Agriculture Support Institution. Also, for example, in the case of change of partners in a partnership which owned agricultural property, the National Agriculture Support Institution was entitled to submit a statement on the State Treasury or local government authority). As a result, acquisition of the agricultural property owned by this the transfer of agricultural land by foreign investors was partnership for the market value of the property. all but eliminated (again with a few minor exceptions such as properties located in areas designated in the local These limitations no longer apply where the company zoning plans for non-agricultural purposes). The new Act owns agricultural property with a total area of less than has introduced significant amendments. First, limitations 5,000 m2. As a result, the company’s share deals are with respect to the type of entity acquiring agricultural no longer subject to the National Agriculture Support property will no longer apply to agricultural property of Institution pre-emption right. This change undoubtedly less than 1,000 m2 this means those properties can be benefits foreign investors who own, via an SPV, less than acquired by entities other than individual farmers, such 5,000 m2 of agricultural land. Such investors will not as special purpose vehicles (SPVs).Additionally, the term be required to notify the National Agriculture Support for using the acquired property as an agricultural holding Institution of the potential transaction and will not have to and the period for which the property must be held worry about its exercising the pre-emption right towards have been decreased from ten years to five. Further, the SPV’s shares or the property. this limitation no longer applies to agricultural property with an area of less than 1,000 m2 located within the city’s At first glance, the changes may not seem revolutionary, administrative boundaries. but they are undoubtedly the first step to more accessible trade in private and public agricultural land, applying also In relation to foreign investors, who generally act through to foreign investors. Fifteen years’ membership of the EU SPVs, another limitation had a very serious consequence. and a steady flow of foreign investments into Poland’s The previous Act on Shaping the Agricultural System market is evidence that Poland remains a competitive and extended the pre-emption right of the National economically attractive country. This has a direct impact on Agriculture Support Institution to any agricultural Poland’s legislators, who must implement the legislation, property (this pre-emption right applied to agricultural required to create an investor-friendly legal environment. properties that were subject to an ownership right or
39 REAL ESTATE GAZETTE | ISSUE 35 | 2019
Overview of the issues surrounding tenant-owned apartments in Sweden
Blanka Kruljac Rolén and Towa Svensson, Stockholm
About 40% of all apartments in Sweden are tenant-owned by tenant owners’ associations. When buying a tenant-owned apartment, the buyer becomes a member of, and entitled to a share in, the association, which means they obtain a right to use one of the association’s tenant-owned apartments.
Agreements known as prior proceedings. It does not attempt acquire the apartment and assume agreements, relating to newly built to provide an exhaustive account the tenant-owner rights (5:1 BrL). tenant-owned apartments, have of the regulations governing From the association’s point of been the focus of some interest in prior agreements. view, one advantage of the prior Sweden recently. A prior agreement agreement is the possibility of tying is normally signed before the Regulation of housing applicants in at an early building is even constructed and prior agreements stage and financing the project is followed by a grant agreement A prior agreement is a form of through the advance payments. under which ownership of the contract regulated by law, where The prior agreement allows the buyer apartment is transferred to the tenant owners’ association to purchase a particular apartment the buyer. The discussions regard and the future holder of a tenant- and, where applicable, order the validity of the prior agreement owned apartment agree on a supplementary fittings and have a say and the circumstances in which the future acquisition of a tenant- in the design of the apartment. pre-signatory buyer may withdraw owned apartment. The relevant from it. These issues are topical regulation is found in Chapter 5 of There are few formal requirements at the moment because of price the Swedish Tenant Owner Act (BrL; for a prior agreement but they are reductions on the housing market, Sw. Bostadsrättslagen (1991:614)). not entirely uncomplicated. 5:3 BrL but also because of regulatory The prior agreement is binding on states that a prior agreement must changes making it more difficult for both the association and the pre- be executed in writing. The contract buyers of tenant-owned apartments signatory buyer. The association is must include: the name of the to finance such purchases. obliged to grant the pre-signatory parties, the apartment, estimated buyer membership in the association date on which the grant agreement This article discusses some of and transfer the tenant-owner will be signed, the estimated fees the issues surrounding prior rights of the apartment to the and, where applicable, the amount agreements, which have recently buyer. The pre-signatory buyer, to be paid in advance. The estimated been the subject of court on the other hand, is obliged to fees are based on a cost calculation
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drafted by the board and reviewed The meaning and consequences of In another decision from the by two certifiers. This cost calculation this formal requirement have been District Court of Stockholm, handed shall be available to the pre-signatory hotly debated. When the current down on May 21, 2019, regarding a buyers before the prior agreement regulations came into force in 1991, dispute between two pre-signatory is signed. A prior agreement which no particular discussions of how the buyers and the tenant owners’ does not meet the requirements laid estimated point in time should be association Brf West Side Solna, out in 5:3 BrL is invalid. expressed in the prior agreement the District Court ruled that took place. However, it was clear the use of the terms “time” and In certain cases, the pre-signatory that the information is important in “time point” in the preparatory buyer is entitled to withdraw relation to the pre-signatory buyer’s work to BrL, indicates that there from the prior agreement after right to terminate the contract, is no formal requirement for an submitting a notice of termination if the association is tardy in granting exact date. However, the time (5:8 BrL), as follows: possession of the apartment. must be sufficiently specified so that the pre-signatory buyer is • if the buyer does not obtain In a case from March 7, 2019, able to establish whether or not the tenant-owner right to the regarding a dispute between two the association is acting timeously. apartment on the day they pre-signatory buyers and the The District Court also noted that should be able to move in to the tenant owners’ association HSB Brf the regulations governing prior apartment (at the latest); Tollare Strand, the District Court of agreements are, to a certain Stockholm examined whether the degree, classified as consumer • if, due to the association’s preliminary point in time for granting law, which should be taken into negligence, the buyer does of the apartment, which was stated consideration when making not obtain the tenant-owner to be “from quarter two, 2019 until the assessment. right to the apartment within quarter three, 2019” met the formal a reasonable time from the requirements. In the preparatory HAS THE GRANTING OF THE estimated date the buyer work for BrL the terms “estimated APARTMENT BEEN MADE WITHIN A was due to have obtained the point in time” and “estimated time” REASONABLE TIME? tenant-owner right; and were both used. When considering A pre-signatory buyer is, as stated • if, on the day the buyer obtains common practice regarding the above, in certain situations listed in the tenant-owner right, the fees interpretation of other statutory the Tenant Owner Act, entitled to are substantially higher than formal requirements, the District withdraw from the prior agreement the amount stated in the prior Court came to the conclusion that the after giving notice of termination. agreement and the pre-signatory objective of the formal requirement One of these situations is if the buyer terminates the contract is of great importance. According granting of the apartment is not within a specified time. to the District Court, one of the made within a reasonable time objectives of the current regulation from the estimated point in time for Points to note in 5:8 BrL is to establish the starting granting of the apartment and the point when assessing any delay. The reason for the delay is attributable TIME FOR ENTERING INTO A District Court found that even if one to the association. GRANT AGREEMENT interprets the regulation very widely, One of the formal requirements the above mentioned objective is In the decision regarding the in 5:3 BrL is the obligation to state deemed to have been reached. dispute between the two pre- the estimated point in time at The District Court also considered signatory buyers and HSB Brf which the grant agreement shall be whether the phrase used was Tollare Strand mentioned above, entered into. Before this happens, reasonable, and concluded that an the District Court of Stockholm the pre-signatory buyer is granted estimated point in time, which covers noted, in its evaluation of the formal membership in the association. a longer time frame than one day or requirements regarding the prior The grant agreement governs a couple of weeks, does not make the agreement and the establishment the payment of the price of the prior agreement invalid. Furthermore, of a starting point for the delay tenant-owned apartment. Normally the District Court determined that assessment in terms of 5:8 BrL, that a proportion of the total amount is not even the fact that the point in the last day in a time interval must paid when the grant agreement is time is preliminary will invalidate be considered to be the starting signed and the rest when the buyer the agreement. This decision is point for the delay assessment. is given access to the apartment. currently under appeal.
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In its decision of April 29, 2019, the this should be deemed reasonable, about the association and has the District Court of Nacka, in a dispute especially considering that the time potential to affect its decision- between two pre-signatory buyers point is preliminary. making, as well as the right to use and the tenant owners’ association the apartment. One issue that has Brf Södra Hällmarken argued that Similarly, in a decision of May 27, become important in connection the pre-signatory buyers were 2019, the District Court of Solna with the prior agreement is whether entitled to withdraw from the prior considered approximately the calculated point in time for agreement, since the granting eight weeks’ delay to be within signing the grant agreement also of the apartment was delayed by reasonable time. includes the right to take possession several months and the access date of the designated apartment on was delayed by at least ten weeks. NEGLIGENCE ATTRIBUTABLE the same day the grant agreement This was not considered to be a THE ASSOCIATION is entered into; that is, should the reasonable delay when comparing In order for the pre-signatory buyer apartment be habitable on the day the dates with the estimated point in to be entitled to withdraw from the the grant agreement is signed. time for granting of the apartment prior agreement under 5:8 BrL, Regarding this issue, it was stated stated in the prior agreement. In the the delay must be a consequence in the Act of 1930 that granting and same decision the District Court of negligence attributable to the access are two separate concepts. determined that the expression association. In the preparatory “reasonable time” is intended to be work it is stated only that the In BrL there are no regulations interpreted fairly restrictively. reason for the delay is of a minor regarding access. There is nothing importance as long as the delay in the preparatory work to indicate It should be noted that 5:8 BrL only is not attributable to the pre- why the legislator has chosen not applies when the date for granting signatory buyer. In our opinion, to regulate the issue of possession, of the apartment is delayed. In the preparatory work and the that is, when can the holder of a our opinion, a pre-signatory buyer wording in BrL contradict each tenant-owned apartment access cannot withdraw from the prior other. Negligence is an established the apartment. For the majority of agreement in terms of the above concept, which does not correspond buyers, this is of greater importance mentioned regulation due to a with the information given in the than the time point for entering into delayed access date. If the parties preparatory work. This issue must a grant agreement. in the prior agreement have agreed be clarified through legal practice. an access date, although this is not The District Court of Nacka, in Final comments a formal requirement, any delays the decision referred to above, Some of the issues referred to in regarding the possession date concluded that the reason given this article have been known for should meet the requirements of by the association for the delay some time to lawyers working in the general contractual regulations, was not significant when assessing this area. However, since they have and not those in 5:8 BrL. In the negligence and further, that in this not been taken up by the legislator, decision between two pre-signatory case, the association was negligent affected parties have no choice but buyers and the association Brf and caused the delay in granting to litigate. What is required is an West Side Solna, as mentioned the apartment. overall review of the regulations in above, the District Court of this area by the legislator. Pending Stockholm also looked at the issue POSSESSION IS NOT REGULATED such a review, and the consequent of delay. The court found that if the IN BRL passing of more stringent apartment is granted within one A tenant-owner right may only be legislation, we must await further month from the estimated point in granted to a member. A member court decisions, at first instance and time for granting of the apartment is entitled to obtain information appeal, regarding these issues.
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Contributors – Issue 35
Eagul Faigen David Alexandre Alec Van Vaerenbergh Perth Luxembourg Antwerp +61 8 6467 6094 +352 26 29 04 26 14 +32 2 500 16 46 [email protected] [email protected] [email protected]
Pearl Wong Arvin Halkhoree Félix Leyman Perth Ebène Brussels +61 8 6467 6116 +230 465 00 20 +32 2 500 1631 [email protected] [email protected] [email protected]
Sandra Pepper Emily Southon Max van Drunen Brisbane Dubai Amsterdam +61 7 324 64236 +971 4 438 6223 +31 20 5419 316 [email protected] [email protected] [email protected]
Line Rener Nyeland Sean Cope Michał Pietuszko Copenhagen Dubai Warsaw +45 33 34 0130 +971 4 438 6389 +48 22 540 7481 [email protected] [email protected] [email protected]
Lukas Weidner Luís Filipe Carvalho Paweł Szymański Munich Lisbon Warsaw +49 89 23 23 72 122 +351 21 358 36 20 +48 22 540 7483 [email protected] [email protected] [email protected]
Fabian Hafenbrädl Filipa Arrobas da Silva Blanka Kruljac Rolén Munich Lisbon Stockholm +49 89 23 23 72 139 +351 213 583 688 +46 8 701 78 09 [email protected] [email protected] [email protected]
Olivier Reisch Tony Alfonso Towa Svensson Luxembourg Miami Stockholm +352 26 29 04 2017 +1 305 423 8559 +46 8 701 78 19 [email protected] [email protected] [email protected]
43 DLA Piper is a global law firm operating through various separate and distinct legal entities. Further details of these entities can be found at www.dlapiper.com. This publication is intended as a general overview and discussion of the subjects dealt with, and does not create a lawyer-client relationship. It is not intended to be, and should not be used as, a substitute for taking legal advice in any specific situation. DLA Piper will accept no responsibility for any actions taken or not taken on the basis of this publication. This may qualify as “Lawyer Advertising” requiring notice in some jurisdictions. Prior results do not guarantee a similar outcome. Copyright © 2019 DLA Piper. All rights reserved. | JUL19 | A00859