So, from point of view of big economic powers, Monaco should be punished, and so deserves any country daring to offer a better taxation alternative, putting at a disadvantage their high-tax based economy. The OECD has a project on "harmful tax practices" stipulating a set of punitive measures for non-cooperating jurisdictions.

Invoking money laundering and international terrorism tracking, many OECD governments promote a policy of free information exchange that has as main purpose limiting tax competition, beyond intention to limit tax evasion and to combat serious crime.

Estimated negative results of OECD policy:

* Eliminating tax competition would result in uniformizing taxes to amount dictated by some governments. Without possibility of choosing a better alternative, there is no reason for governments to reduce taxes and make tax system more efficient.

* This policy would change present status of emigrants that pay taxes only to their new country and would promote premise that state still has a right to benefit from its former national labour. This sounds to me like a violation of fundamental human rights.

Although in 2004 still on OECD black list of tax policy non-cooperating jurisdictions, Monaco has changed its policy regarding high confidentiality of financial data in light of expected, recent admission to Council of Europe (Monaco joined Europe Council on October 5, 2004 ). Modifications to legislation:

* October 2001: French citizens living in Monaco since 1989 must pay a wealth tax beginning with 2002.

* Information on French nationals are to be unconditionally provided to Bank of France when required. Information may be passed on to authorities of France or of a third country if necessary.

* 2004: Under EU's Savings Tax Directive, Monaco will impose a witholding tax on returns on savings such as bank interests earned by EU citizens. The tax quantum will be same as in Austria, Belgium and Luxembourg (initially 15%). 75% of such revenues will be handed over to Member State of respective EU resident. This will be applied beginning with 2005.

* December 2000: Monaco signs United Nations Convention Against Transnational Organised Crime. The treaty stipulates that its members do not permit anonymous accounts requiring identification of customers. Banks must keep accurate records of accounts and report any suspicious transaction. Moreover, domestic law enforcement officials are permitted inspection of accounts.

With all these measures, it seems that Monaco's attraction as a personal income tax haven will decrease. It remans to be seen how all these measures will affect Monaco financial and banking system after becoming operative.

Laura Ciocan writes for http://www.ilovemontecarlo.com where you can find more information about Monte Carlo.

If you've decided to work with a dual agent, this will need to be disclosed to both buyer and seller, and they both have to agree, in writing. Dual agents are bound by law and ethics to treat both buyers and sellers honestly, equally, and fairly. Dual agents can be prevented from divulging confidential information about each party to other. This could severely harm negotiating positions.

The bottom line in dealing with a dual agent is to remember that buyer and seller have conflicting interests in price and other terms of sale. It's very difficult for an agent to truly and equally represent both parties, since conflicting interests make that inherently impossible. If you do choose to use a dual agent, be sure exact nature of your relationship with dual agent is clear, know what services agent will be performing for you during transaction, how agent will be paid, and how any conflicts that arise will be handled.