The concept of transparency in the European union's residential housing market: A theoretical framework

The purpose of this paper is to provide a theoretical framework for the subsequent analysis of the European Union internal market's concept of transparency in residential real estate transactions. Specifically, it seeks to identify the essential factors that should be addressed within any such analysis. The study is based on a review of the literature on the general concept of transparency, and on other related aspects. Based on this study, five dimensions of transparency are identified, namely transparency in transaction procedure, legal information, financing, taxation and transaction costs. The essential points are that an increase in cross-border transactions increases demand for easy access to information held in other countries. The studied literature focuses on the coordination of legal systems, making systems more uniform and legally secured, and on broadening of the mortgage market. The study highlights the complexities involved in achieving transparency, as well as the length of time that this will take to achieve in practice. The paper identifies different dimensions of transparency in residential real estate transactions. There is little prior research in the area which focuses specifically on residential transactions. The study therefore draws upon work in other areas, including financial markets and taxation, and places this within a residential housing context.