By Blaž Mrva, MRVA Law LLP
Over the last few years, there have been several commercial real estate transactions involving large companies selling their properties and remaining tenants, especially large retailers who sold their supermarkets. Also, shopping centres in big cities have been sold to real estate funds. Hotels in tourist areas on the Adriatic coast and in Alpine resorts have changed hands, mostly to foreign investors. Hotels were, in most cases, very reasonably priced.
By Albert C. Valencia, Ervin Cohen & Jessup LLP
Despite the name, “non-recourse” real estate loans have the potential to increase personal liability due to the so-called “bad-boy provisions” that are included in non-recourse carveout guaranties, often required by lenders to be delivered by the borrower’s principal(s) as a condition to making the loan. Examples of bad-boy acts that would give rise to personal liability of the borrower’s principals could be waste, unpermitted transfers of the property or the interests in the borrower, or the misapplication of funds. These bad-boy provisions serve to make the principal(s) personally liable to the lender in the event of a default by the borrower under the loan and are intended to protect lenders from certain wrongful acts of the borrower that would limit the lender’s ability to be repaid from the borrower’s assets, which assets are often solely the borrower’s ownership interest in the real property securing the loan.
By Tony Nunes and Lishi Huang, Kelly+Partners Chartered Accountants
Foreign residents looking to invest in property in Australia should be aware that in all states, non-residents are subject to additional taxes for buying and holding residential property. It may be possible to structure the investment to minimise the impact of these taxes, however they should be factored into the investment decision.
By Milena Sljivich, BKM | Berkemeyer
The right to private ownership is guaranteed by the constitution of Paraguay. Foreign investors face no specific restrictions to investment in Paraguay. They are guaranteed the same treatment under the law as national citizens. They are also allowed unrestricted repatriation of both their capital and profits. There are certain limitations to the acquisition of land in proximity to borders, when foreigners are native from neighbouring countries.
By Dr Reinhard Nacke, FPS
Due to demographic change, there will be an ever-increasing number of old people’s homes in Germany. The federal states are legally obliged to create a suffcient number of such facilities. It could, therefore, be lucrative for investors to build an old people’s home and rent it out to a home operator. It should be noted, however, that the investor’s negotiations with the home operator will be different from those for ordinary commercial properties. For the latter, a rent is usually negotiated freely. It is also agreed that the rent will change similarly to the cost of living.
By Paul Gambles, MBMG Group
Over the last few months, it’s become clear that Thailand has become the place for manufacturers. When you think of Thailand, you may have hot weather, beautiful beaches, and extremely spicy food in mind. But it also serves as a base for some of the world’s largest manufacturers.
By Biljana Svaljek, Infokorp d.o.o.
Becoming a part of the EU made it easier to purchase real estate in Croatia. Although the country is not large, it has a diverse territory, including many islands. Therefore, each year, interest in purchasing real estate for various touristic services increases. There are several things that must be considered when purchasing and selling real estate in Croatia.
By Dr Martin Lechner, Pichler Dejori Comploj & Partner
From 01 May 2019, Italy is offering tax relief to construction companies in order to promote the recovery of buildings in need of renovation. Between the period of 01 May 2019 and 31 December 2021, companies whose scope consists of the construction and recovery of buildings will be able to purchase entire buildings for a fixed amount of EUR 200 each, for registration, mortgage, and cadastral taxes.
By Joost Donkersloot, TeekensKarstens advocaten notarissen
In Dutch rental legislation, there is an adage: “lease goes before sale”. In short, this means that a lease agreement does not end if the rented space is sold and changes ownership. In practice, however, it is sometimes assumed too easily that the tenant does not suffer from a transfer of
ownership of the rented property.
By Raffaela Lödl-Klein and Mario Kapp, KAPP & PARTNER Rechtsanwälte GmbH
The real estate market in Austria is flourishing; both the volume of sales and the value of sold real estate have increased continuously in recent years. Further growth on all fronts is expected for 2019: more demand and higher prices, though only a minimally growing supply side, especially with regards to land for building and single-family homes. The choice of the right type of real estate financing is of key importance in this context.