Purchasing Property in Italy
You have found an Italian property to buy, now what?
Step 1) If you wish to secure the property, you have to make a deposit corresponding to 5% of the agreed price for the property. (For foreign clients we usually ask for a money transfer to the Estate Agency account). After this deposit the house is considered sold.
Step 2) After approximately 15 days a preliminary contract (a private agreement between the owner and the purchaser) is signed. In the case of English clients who can travel to Italy, 2 copies of the agreement are signed by both the buyer and seller. A date is then agreed for the signing of the final purchasing deed (see step 3), and a payment schedule is agreed. If the purchaser cannot travel to Italy for the agreement, we send by e-mail the original copy, written in both Italian and a copy translated into English (our UK office can help with this).
The purchaser has to print the Italian copy of the agreement and sign it. Send the signed agreement by fax and and the signed copy must also be sent by airmail. At this time, the purchaser must make a money transfer of 25% of the purchasing price (depending on whether it is a new or resale property. The agent books an appointment with the notary for the final signing of the Purchasing Deed. The date is as agreed in Step 2.
Step 3) Final Purchasing Deed. Before this date the notary checks the Land Register, checks there are no outstanding mortgages or debts, checks rights in the land etcetera... The Notary, is a representative of the Government and is independent of the vendor and buyer. As he represents the Law, the Notary will NOT allow the Deed to be signed if everything is not correct.
Step 4) ENJOY YOUR ITALIAN HOME!
The following explains the details and procedure for Buying your Italian Home
The good news is that Italy has a well defined and regulated property register and property is transferred from seller to buyer in much the same way as in the UK or elsewhere.
THE CONTRACT - When you have decided upon a property to purchase, the agreement will be usually contained in a private contract - The Contratto Preliminare di Vendita or Compromesso di Vendita. The document should contain details of the agreed purchase price; payment of deposit; any schedule for payment of the balance; any extras that you have agreed to purchase, and the intended date for completion together with all other relevant terms and conditions.
CONVEYANCE - The sale and purchase of all property in Italy is required to be registered in the registro immobiliare - the equivalent of the land registry. They maintain details of the property and record other matters that may effect the title and financial charges against the property or its title.
THE NOTARY - Il notaio - prepares the conveyance - la Scrittura Privata or Atto di Compravendita - from the information supplied to him by the vendor or his representative, and will check compliance with the Italian law. Before the visit to the notary, a check will be made against the property to ensure that no adverse entries have been made beyond those disclosed, or to which the purchaser may be subject. This is very important and is a service that we provide. Once the formalities have been completed before the notary, the scrittura (title deed)must be delivered to the Stamp Duty Office for tax purposes, and then to the Land Registry for title to be recorded in the Register of Property.
The next stage relates to the completion formalities, which normally take place in the offices of a local Notary. Notaries have a special duty of drafting the Purchase Deed (Rogito) and to ensure the proper execution, registration, and payment of all Italian taxes relating to the completion.
To recap, these are the checks carried out by the Notaio
1. The vendor is the legal owner of the property and is entitled to sell the house
2. There are no debts or mortgages on the house
3. There are no written liens or burdens
4. The vendor is aware that they must declare any outstanding private agreements regarding the property. For example if the vendor has agreed to allow a neighbour to build or extend within the minimum laid down by Italian law or has given a friend a right of way across the property.
IMPORTATION OF FUNDS - There are no restrictions on purchase monies being imported into Italy but, to ensure that the proceeds of any resale can be repatriated, it is recommended that the purchaser obtains official documentation of the importation of purchase funds and incidental costs. The funds should be deposited in an Italian bank, and this can be easily arranged through your own bank or through Life International who will arrange banking services for you. Re-sales involving the payment of the purchase money outside Italy are permissible between non- residents but rights to repatriation of funds should be expressly included in the conveyance.