Brokers get familiar with diplomatic moves.

Diplomats, though entitled to some special privileges are still subject to certain restrictions, often meant to insure their diplomatic immunity is not abused, according to the regional director of the office of Foreign Missions.

The director, Robert Tatge, spoke last week at a meeting, where sponsors included Newmark New Spectrum, a leading city broker, and Wachovia, the nation's fourth largest bank. The Foreign Missions office was created in 1982 by an act of Congress meant to prevent diplomatic abuses--largely brought to light by many complaints of diplomats violating motor vehicle laws. When a diplomat purchases or leases property, Tatge said, the Secretary of State requires the Office of Foreign Missions to be notified ahead of time in order approve the transaction.

"We expect to be given the time and opportunity to exercise that right," Tatge said. "All real estate action of foreign missions comes under our review."

The office scrutinizes the aspects of the transaction, which includes the location, the use of the property and the terms and price of the purchase or lease. All purchases must comply with state and local zoning laws.

Once submitted to the local office, the transaction is then referred to the Office of Foreign Missions in Washing ton, D.C. for State Department review.

Overall, the office has 60 days to send a "no objection" letter or a "note of disapproval." However, he added, most transactions can be decided in 10 business days.

Laura Norman, a lawyer with Greenburg Traurig, a firm that specializes in real estate, said some landords will be reluctant to lease to diplomats, because of the risk of diplomatic immunity being used to prevent eviction, should they default on their leases.

"Waiving immunity helps," she said. In addition, she advised diplomats to sometimes enlist the help of a guarantor, who will agree to be held liable should the diplomatic tenant default on his or her loan.

Ricardo Yepes, of Wachovia Bank N.A., explained the bank's procedures and policies on commercial financing, leaseback to own transactions and retail mortgages.

Yepes explained that loan pricing and terms at Wachovia are dependent on sovereign risk ratings, the size of the transaction and market conditions.

Lease to own transactions are effectively equivalent to 100 percent financing, Yepes said, but are available only to investment grade countries. In addition, these transactions are generally not available on transactions less than $20 million, Yepes said. While sovereign buyers are exempt from city and state transfer taxes, diplomats who purchase or lease property must waive their immunity and obtain evidence of approval from the proper authorities in their home countries, Yepes said.