Notaries are changing the game in real estate transactions
The notary is a trusted partner for real estate investors. In a complex environment, the Baum firm is innovating and enhancing its services by offering Transaction Management support. Interview with Nicolas Baum (E.14), Managing Partner, and Lionel Naturkrejt (H.03), Transaction Manager.
What does a Transaction Manager do, and is it new for a notary firm to offer this service?
Nicolas Baum: Transaction Management provides centralized oversight of real estate transactions for clients with substantial property portfolios. Historically, this service was not typically offered by notary firms. Traditionally speaking, they would draft legal documents and occasionally facilitate real estate deals for private clients or during estate settlements. In today’s market however, innovation is essential to deliver added value to our clients.
Lionel Naturkrejt: This initiative stems from two key observations. First, that large institutional clients increasingly delegate asset management and acquisitions to external operating partners, leading to greater demand for notary firms to handle responsibilities beyond their traditional scope. Second, many private clients lack the organizational structure to efficiently manage their portfolios. This led us to recognize that Transaction Management could be a relevant addition to a notary practice.
What specific challenges does Transaction Management address?
L.N.: I’ll give you three key examples. First, some property owners face refinancing needs and ask us to liaise with banking partners or alternative financiers. Second, clients may need energy audits to ensure their portfolios meet legal requirements. We connect them with technical experts and oversee the enhancement of their properties. And third, clients looking to buy or sell real estate often lack the necessary expertise. In these cases, we assemble and coordinate a transaction team, drawing on our extensive network.
N.B.: Imagine for instance a client wants to sell 30 buildings. We can oversee the work of real estate agents, technicians, and auditors. Our role involves managing the transaction process while providing key data reports and highlighting potential risks that could impact the deal. In a less favorable market, there’s significant uncertainty around the outcomes of such transactions. Our job is to inform clients in advance about potential hurdles that might affect debt repayments, profit distribution, or shareholder obligations.
Do you use innovative tools to develop this service?
L.N.: Yes, we are developing a custom tool in partnership with an AI provider. This tool lets us monitor transactions daily, aggregates operational data, synthesizes it, and provides clients with real-time insights through a dashboard. It also offers predictive analysis of upcoming steps and risks.
Published by La rédaction