Most Italian properties are freehold. A deposit of around 10% is usually accepted and is paid to a notary.
If the vendor decides not to sell after signing the preliminary contract, they must pay double the deposit back. It is wise to check the wording of the deposit, a
" penitenziale " means you will only lose your deposit if you withdraw from the sale, while a " confirmatoria " would mean the seller could take legal action to force the purchase.
When buying property in Italy, you will first sign a preliminary contract, this can
be drawn up by the vendor, agent or a solicitor/lawyer. The preliminary contract may be preceded by a binding 'buying proposal' called a compromesso, where
the buyer is legally bound to buy, but the vendor and agent are free to consider other offers.
The preliminary contract contains the details of the sale, the purchase price and financing, plus the completion date which is normally six to eight weeks.
The sale will be completed before a public notary when the final deed or
conveyance of transfer is signed. The notary issues a certified copy of the deed of sale and registers the original document with the land registry, which makes you
the legal owner of the property.
There are two kinds of deeds in Italy; a private deed and a public instrument, this provides more protection and costs slightly more. When a property is bought by private deed and is subsequently found to have a charge against it, such as a mortgage, the notary isn't responsible. When buying by public instrument you can seek legal action against the notary for professional misconduct.
Solicitor / Lawyer
You will need to hire the services of a solicitor/lawyer to draw up your initial contracts and instruct the notary.
Fees
Total fees for buying a property in Italy are usually between 10-20% of the purchase price.
Registration tax/stamp duty should be 10% of the declared price for urban property, up to 17% for agricultural property, with a reduced rate of around 4% for first time buyers. If you're planning on becoming a resident, you should to do so before purchasing your home in Italy.
It's important to deal only with a qualified and licensed agent, and to engage a local lawyer, before signing anything or paying a deposit. A local surveyor may
also be necessary, particularly if you're buying an old property or a property with a large plot of land. Your lawyer or surveyor will carry out the necessary searches regarding such matters as ownership, debts and rights of way.
Enquiries must be made to ensure that the vendor has a registered title and that there are no debts against the property like mortgages or taxes and check the property has the relevant building licences, conforms to local planning conditions and changes have been authorised.
Check for selling consent of all family registered owners and water supplies for countryside properties. |
