“Carefully regulated notarial systems produce a lower final cost for citizens” according to an economic study


“Carefully regulated notarial systems produce a lower final cost for citizens” according to an economic study


On October 19, at the annual conference of the French Association of Law and Economic (AFED), the Italian economist Antonio Cappiello presented an economic study aimed at highlighting the good performance and peculiarities of the notarial function through an analysis of the critical issues of the OECD PMR indicator.

According to the study, carried out in collaboration with Claudio Ceccarelli (Director of the Italian Institute of Statistics Istat), and based on the elaboration of the OECD and World Bank data, an higher level of regulation is necessary to overcome the market failures and is beneficial to consumers, the State and the overall economy. Far from being a drag on the economy, as the OECD's PMR indicators might suggest, the notarial regulation is a real benefit to society as a whole.

The study of Dr. Antonio Cappiello and Dr. Claudio Ceccarelli has led to the following conclusions:

The econometric analysis show a tendency of an inverse correlation between the level of notarial regulation (PMR) and cost supported by the consumer for the real estate transfer. In other words, carefully regulated notarial systems produce a lower final cost for the consumers. Moreover, if on civil law notary control, the real estate transfers are conducted quickly and with higher quality (reliable legal control and registration system)

In the fight against money laundering, notaries are also essential for the State in terms of efficiency and reliability. The study shows that more regulated notarial systems tend to have a higher level of compliance with FATF (Financial Action Task Force) standards.

The Notariat thus appears to be a real advantage for the State, for the clients involved in the transaction, but also for third parties (e.g. banks and creditors) and the community. Indeed, notaries are highly qualified legal professionals, appointed by the State to provide a public service as part of preventive justice system. They ensure the compliance with the law and the credibility and certainty of the public registers, and can be seen as ex ante judges since the notarial authentication ensures that the content of the document complies with the law conferring to it probative and enforcement power.


For more information:

Link (PDF) to the study on the OECD PMR indicator applied to notaries(A. Cappiello)

Link (PDF) on the in-depth analysis relating to the homogeneity of the PMR notarial sample (by C. Ceccarelli and A. Cappiello) 

Link (PDF) Study on the performance of civil law notaries: an analysis of the World Bank's DB indicators shows that countries that adopt civil law notaries for real estate transactions perform better (reduced costs and delays; higher quality) by A. Cappiello





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