Caveat Emptor : A Comparative Study of Swedish and Irish Real Property Law

Abstract: With the advent of the EULIS project, the purpose of which was the unification of national real property registers, it is particularly interesting to study the differences between European legal systems in respect of real property registry law. This thesis compares Sweden and the Civil law system with Ireland and the Common law system. The purpose of this comparison is to illustrate the complications that might arise in transactions between different systems, and it will argue that future cooperation will benefit from being subject to one unified European Real Property Law. Sweden and Ireland differ in their definition of real property and land. Whereas the Swedish legislature defines land as a unit of earth surface that is registered in the Real Property Register, the Irish definition is broader and more abstract. This can cause confusion as to what is really purchased when a buyer from one country wishes to operate within the other. Both systems emphasise the necessity of form, not only in the actual purchase but also when registering the sale. Whereas registering the sale gives right of ownership over previous buyers, it is sufficient to present a contract of sale to establish right of ownership over any third party who might have a claim towards the seller. Registering the property also serves the purpose of having the transaction recognised by the state. The Irish system, however, has two systems of registration, where only one grants the buyer such recognition. This double registration system creates confusion for foreign actors on the Irish property market. EULIS has been developed to provide a single register to facilitate cross-border purchases. As of today it is simply a merged database consisting of information provided by each national real property register. As a consequence, units of property defined according to different legal definitions are presented as if they were similar, which might cause confusion. We propose that EULIS be accompanied by a single code of European real property law to avoid unnecessary bureaucracy and misunderstanding.