A necessary premise

The purchase of a property in Italy is undoubtedly an operation to be carefully analyzed, in the light of the consequences that may arise in the case of imprudent or ill-considered choices. Through many years of experience, I have been able to ascertain that the majority of customers already present themselves with a precise idea of the property they intend to buy. Often the object has already been chosen, for which in some cases an advanced negotiation or even a preliminary sale or a signed proposal has been made. Well, the first unfailing piece of advice, in my opinion the most important, is: do not sign any document without having the certainty of full “technical knowledge” about the property to be purchased!

The role of the technicians and the lawyer

What do I mean? I am referring to a careful appraisal by a trusted technician who verifies the overall condition of the property, so as to be able to guarantee, by way of example, the absence of encumbrances, the state of the systems, and its full cadastral urban compliance. Most properties in Italy, also because they were built in the past decades (or centuries!), present critical issues of a technical, urban and cadastral nature that need to be remedied before the deed of purchase. It is therefore essential to carry out a careful analysis of the overall situation of the property. This must be done by a trusted technician (surveyor, engineer). The roles of the technicians and the lawyer are undoubtedly fundamental to coordinating the sale and resolving a whole series of critical issues that may arise during the negotiation, or simply prior to formalizing the purchase through a notarial deed.

The negotiation, the proposal, and the deposit

A technical analysis of the property is also essential in order to proceed with a negotiation with the seller, which is common practice in Italy. The initial price is notoriously subject to negotiation–even a close negotiation–which can lead to a reasonable reduction in the amount to be paid, so it is advisable to know “the property’s state of health” before making an economic proposal. Once such an analysis has been carried out, it is possible to proceed with the formalization of a proposal, or with the stipulation of a preliminary contract. Both options are usually accompanied by the simultaneous payment of a sum, as a deposit, pursuant to art. 1385 of the civil code. The deposit plays a fundamental role, as it legitimizes the contractor to exercise the right of withdrawal in the event of default by the counterparty, requesting, for the purchaser, double the amount paid by way of lump sum and advance payment of the damage suffered. Note that if the party who paid the deposit is in default (i.e. the buyer who hypothetically refuses to buy the property without a justified reason), the counterparty will be entitled to retain it in full.

The total costs of the economic operation

The purchase of a property involves a whole series of costs that must inevitably be considered. These can be decidedly huge. In addition to the purchase price, in fact, the costs of the technicians in charge (surveyor, lawyer, notary) and the real estate agency (which normally requires a commission ranging from 2 to 4 percent) must be included. The tax aspects of the sale should not be underestimated. If the purchased home does not benefit from first home benefits, it will suffer a decidedly high taxation (the registration tax itself is equal to 9 percent of the purchase price).

… and the duration

Another aspect to consider is the timing of the operation. The presence of building discrepancies, or more generally of technical problems of the building and the consequent need to remedy them before reaching the deed may lead to long delays. The request for amnesty measures and the relative authorization from the competent bodies can in some cases take several months. This circumstance inevitably affects the negotiation and outcome of the operation. The technical offices of the Italian municipalities unfortunately are not brilliant for their speed.

The role of the notary

This quick examination should end with a brief mention of the role of the notary, i.e. the professional in charge of drawing up and signing the deed of sale. Many customers are amazed by the presence of various formalities for signing the deed, for example the need for the presence of a translator, if the party does not understand the Italian language, or the need to sign a deed of several pages in which the cadastral details, the boundaries, and the composition of the house are identified in a “manic” way. Ultimately they remain dazed by the presence of the notary, who is nonetheless essential. The purchase and the sale of a property are in fact operations that must be taken with due care as they are extremely complex and must be tackled with the advice of experts. Precisely to ensure a high level of security and seriousness in the purchase of property, in Italy as in other countries, the notary is a unique legal figure, who has characteristics of seriousness, absolute impartiality, and considerable technical preparation.

… and their duties

The intervention of the notary, who places himself in a situation of total impartiality regarding both seller and buyer, guarantees to both of them the positive conclusion of the deed, since this professional assumes full and heavy responsibilities in this regard. The Notary is in fact required to carry out a whole series of checks relating to the presence of encumbrances on the property, title of origin, and its building and cadastral regularity (since the marketing of properties presenting abuses that are not correctly registered in the cadastre is prohibited). The Notary also carries out a whole series of checks regarding the powers of signature, the capacity of the contracting subjects, their marital property regime, the tax regime, etc., which are inevitably included to protect the contracting parties.

In conclusion

The sale of a property is an operation that should not be taken lightly. If handled correctly, by valid professionals, this can be concluded easily within a reasonable time frame. However, it is necessary to take into consideration and resolve a whole series of aspects that are very often underestimated and which instead can be harbingers of various headaches. The simple but valuable advice for potential buyers is to contact a valid and prepared professional who can carefully evaluate the steps to be taken, before any deed of commitment is signed.

— by Avv. Luca Trinchera