Italian Property Buying Guide

[detulliolawfirm]

Property buying guide

A short guide helping you to understand the basics steps of the Italian conveyancing process

We sincerely hope that our guide will answer some of the questions you may have.

When purchasing a property in Italy you should go through 3 stages :

1) Proposta irrevocabile d’acquisto ( reservation offer)

2) Contratto preliminare di vendita (preliminary contract)

3) Atto di vendita ( deed of sale)

Once you have chosen your property you should engage the services of a solicitor, whether you buy through a real estate agent or directly from the vendor. An Italian solicitors knowledge of Italian Real Estate Law is invaluable and he is there to look after your interests and your interests only!

When buying a property in Italy the first document you will be called upon to sign is the so called “proposta irrevocabile d’acquisto” (reservation offer), this is normal practice when purchasing through an estate agent. On the other hand when purchasing directly from the vendor (private sale) this document is not normally used. This is one of the many reasons why a solicitor should always be engaged.

By signing the proposta irrevocabile d’acquisto you will be taking the property off the market for a limited period of time, normally 15 days. During which time your solicitor, and where necessary assisted by a surveyor, will make all the necessary searches to ascertain that the property is without any debts, mortgages, claims etc. Thereby assuring that there will be no unpleasant and possibly costly surprises during the last stage of the purchase. At this stage you will be required to pay a small deposit , which is normally held by the estate agent or solicitor until the offer is formally accepted (signed) by the vendor. Should you finalize the purchase, this deposit will be considered as partial payment of the purchase price. If the vendor does not formally accept the offer your deposit shall be returned to you. It is important to highlight the fact that the reservation offer is only binding for the buyer until formal written acceptance of the vendor. Once signed by both parties it becomes a legally binding contract.

Normally at this stage, buyer and vendor having agreed to go ahead with the conveyance will formalize their agreement with the “contratto preliminare di vendita” (preliminary contract). Some estate agents and especially private sales choose or recommend leaving out this particular essential part of the purchase process. This legal document is essential because it sets detailed terms and conditions of the sale. This is why its highly advisable to engage the services of a solicitor as one of the services they offer is to draft this contract where possible and when not at least examine it very carefully before you sign it.

One of the essential legal elements of the preliminary contract is the payment of a deposit (caparra confirmatoria), normally equivalent to a minimum of 10% of the purchase price. This deposit will not be returned if you back out of the contract without a valid legal reason on the other hand, if the Vendor changes his mind about the sale he/she will under Italian law have to refund your deposit in full. You have the right if you wish, to also claim an amount equal to the deposit through the Italian courts.

In the preliminary contract the parties also set the date to finalize the conveyance in front of the notary public.

The Notary is a public official who has the authority according to Italian law to validate contracts transferring the ownership of a property, he is also charged with paying all registry fees and cadastral taxes and carrying out the relevant searches on the property. But having engaged a solicitor beforehand you will be confident that no unpleasant surprises will be revealed at this late stage of the purchase process.

The notary is supposed to be an absolutely neutral and impartial party in the transaction. This is why he cannot be a substitute for a solicitor in the defence of the interests of the buyer. The only way to be assured of total impartiality is to engage the services of an independent solicitor.

The final step of the conveyance is the so called “atto di vendita” (deed of sale). The deed is drafted by the Notary in his office, it has to be fully compliant with the preliminary contract. So it is the preliminary contract that is the document setting all the essential elements of the transaction. Once the Deed has been signed by all those present at the signing, the balance of the purchase price is paid to the Vendor and the keys are handed over to the new owners.

A copy of the Deeds will then be given to the new owners approximately one month after the signing. This is because it takes approximately one month for the new deeds to be registered at the relevant Registry Office.

If one of the parties does not understand the Italian language, according to the law the deed of sale must be drafted in both Italian and English.

If the buyer cannot be present in front of the Notary he can give power of attorney to his solicitor who will sign on his behalf.

The notary will read and explain the contract, the buyer will be able to read the English version and through the support of a bilingual solicitor, is entitled to ask questions.

Avv. Giandomenico De Tullio

www.detulliolawfirm.com

[email protected]

GLOSSARY:

Proposta irrevocabile di vendita : This is where an initial formal offer is made and a small deposit is left. The price you are willing to offer has been determined and also any conditions you may wish to make.

Contratto preliminare di vendita : This is the contract that sets out in detail the terms and conditions of the sale and also all the relevant cadastral and registry information. It is also known as a Compromesso.

Atto di Vendita : The moment when in front of a Notary public the exchange of contracts is made, the outstanding amount of the purchase price will be paid and the keys to the property will be handed over to the new owners.

Caparra confirmatoria : This is a deposit that is regulated under art.1385 of the Italian Civil Code . If a deposit is defined as a “caparra confirmatoria” it endows legal rights upon both parties.

[Caribbean Beauty]

Aha - now that is clear, I am just popping downstairs to tell the Mrs we are flying to Rome in the morning to buy an Italian Villa. It never appealed to me before, but you make it sound so simple and safe.

The explanation really made all the difference to my decision, thanks.

Just one thing she is bound to ask me about - what about the part of the transaction where one wakes up with a severed horse head in the bottom of the bed?

[forestfire]

For one fleeting moment I thought you were being sarcastic CB. Now I know that a cultured man such as yourself will understand that severed horse heads are just part of doing business on the continent and are not philistine enough to scoff at the way our Italian brothers do business...

But seriously, I will be at bank first thing tomorrow with empty suitcases which I will be stuffing full of Euros. See you there around noon -the cappucinos are on me -sounds like a great "investment opportunity" doesn't it???

Someone pass the mustard...

Edited February 15, 2009 by forestfire

[West Hampstead]

But seriously, I will be at bank first thing tomorrow with empty suitcases which I will be stuffing full of Euros. See you there around noon -the cappucinos are on me -sounds like a great "investment opportunity" doesn't it???

Now Now. I read today that Italy has totally missed out on the over inflated property prices period and credit bonanza and therefore is not taking part in the house price crash. It could be an opportunity for someone with cash and ryan air fly cheap cheap Italy

[sleepless]

Italy is a beautiful country and I would dearly love to buy a house there.

Would you mind posting details of what you believe are the 3 best value-for-money houses currently for sale.

[carleneg]

Italy is a beautiful country and I would dearly love to buy a house there.

Would you mind posting details of what you believe are the 3 best value-for-money houses currently for sale.

If you are looking for good value and the best weather, then Calabria has to be a very good option. Many changes are happening within this area which will see the area grow well into the future. Did you read the article in the Telegraph recently?

You will find an excellent selection of properties on www.firstpropertychoice.com which will help you, or for price comparisons please contact me direct [email protected].

You will find the area of Calabria is well below the national average and very affordable unlike Tuscany. You can find more information on this area by logging onto http://www.propertyincalabria.blogspot.com where you will also find details of the €3 billion being spent by the EU and Italian government in this location through the Cohesion Plan which will be complete by 2013. This is also on the EU website.

I wish you every success in your search.

[forestfire]

So while the global property market slides into the abyss, you reckon that you've got an area that " will see the area grow well into the future."

2 Questions:

1) Just exactly how stupid do you think we are?

2) How desperate are you?

Do me a favour a find another forum to spam numbnuts.

[Dangerous Woman]

Now Now. I read today that Italy has totally missed out on the over inflated property prices period and credit bonanza and therefore is not taking part in the house price crash. It could be an opportunity for someone with cash and ryan air fly cheap cheap Italy

Unfortunately there was a bit of house price silliness in Italy caused by - you've guessed it! - us Brits.

[derharper]

Italy is indeed a lovely place, my favorite place in Italy is Tuscany but just far too expensive for me,