Buying a property in Italy can feel like a dream come true. After all, who wouldn’t want a lovely house in the rolling hills of Tuscany or a cute apartment in the beautiful streets of Venice?!
But when it comes to all those legal and technical steps, things are not always as ‘simple as they seem’, and Italian contracts make an important part of the process.
Here’s our “stress-free” guide to help you through it all.
Two Main Italian Contracts
In Italy, buying a property typically involves two main contracts:
- The Preliminary Contract (Compromesso)
This is the agreement where the buyer and seller outline the terms of the sale. It’s legally binding and usually involves a deposit (caparra confirmatoria), which can be anywhere from 10% to 30% of the property’s value.
- The Final Contract (Rogito)
Signed in front of a notary, this Italian contract finalizes the sale and transfers ownership of the property to the buyer. The notary ensures everything is legally compliant and officially registers the property in your name.
Have a Trusted Notary
The notary (notaio) is your go-to person for making sure the sale is legal. In Italy, they’re neutral. They don’t work for you or the seller, but the buyer usually chooses the notary. Pick someone you trust because they’ll check if the property has any hidden issues like unpaid taxes or disputes.
Be Clear on What’s Included
Sometimes, what’s advertised isn’t what you get. Does the price include furniture? Appliances? Fixtures? Be super clear in the preliminary contract about what’s included, in case you’re expecting the property to have these facilities. It’s better to over-communicate now than be disappointed later.
Watch for Zoning and Building Permissions
If you’re planning to renovate or expand, make sure the property is up to code and has the right permissions (permesso di costruire). This is especially important for those thinking of investing in the future. The last thing you want is to buy your dream house only to find out you can’t make the changes you’ve been dreaming of.
Budget for Additional Costs
The price tag isn’t the whole story. Here’s what else you need to budget for:
- Taxes: These depend on whether it’s your main home or a holiday spot.
- Notary Fees: Usually 1% to 2% of the property’s price.
- Agency Fees: Real estate agents typically charge 3% to 5%, split between buyer and seller.
- Legal Help: A lawyer isn’t required, but if afforded, having one is always a good idea to make sure everything’s done correctly.
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Check for Debts or Liens!!
Before signing anything, confirm the property doesn’t have any unpaid debts, mortgages, or liens. The notary will check this, but it doesn’t hurt to double-check. You know what they say: better safe than sorry!
The “Right of First Refusal”
In Italy, neighbours or tenants of certain properties may have the right of first refusal (diritto di prelazione) when the property is sold. This is more common in rural areas and can delay the process if not addressed early.
Translate and Double-Check Everything
Unless you’re fluent in Italian, have all Italian contracts translated by a professional translator or bilingual lawyer. Never sign anything you don’t fully understand. A small misinterpretation can lead to big headaches down the line.
Plan for Closing Day
On the day of the final contract signing, you’ll need to:
- Provide proof of payment for the agreed price (usually via bank transfer).
- Present all necessary identification documents.
- Pay the remaining fees and taxes.
Once everything is signed and the funds are transferred, congratulations, the property is officially yours!
Trust the Process
Italy’s property-buying process can take longer than you might expect, so this is a reminder to stay patient and trust the process. “Good things take time”. A little preparation goes a long way toward making your Italian property dreams a reality, and it’s all worth it at the end of the day.
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Sources
What is a contratto preliminary
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