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Buying a home in Italy is a simple and safe procedure, governed by laws to protect both parties. There are 3 stages in the process:
- Making an acceptable offer
- A formal agreement, known as the 'Compromesso'
- The final legal transfer, known as the 'Rogito'
or 'Atto Di Comparavendita'
There is
a lot of out-of-date and inexpert advice on the internet. The
following summary was last updated on 16th June 2007 and is, to
the best of our knowledge, up-to-date and correct. If you feel
anything below is incorrect, please let us know by email,
and we will endeavour to check and correct it.
Making an offer
You are free to make an informal offer for a house, but if you wish to formally 'reserve' the house and block other potential buyers from offering, you need to make a written 'Proposta Irrevocabile d'Aquisito' This is a legally binding offer and, once accepted, if the vendor withdraws before the next stage, your deposit will be returned, however if you withdraw, you may forfeit your deposit. You are under no compulsion to pay this deposit, but it may be to your advantage to do so to secure the house.
At this stage, you should
expect the Agent to be able to provide you with official documents
from the Land Registry proving the legality of the property and
that the owner has title to it.
The Compromesso
The Compromesso
is a firm commitment between vendor and buyer to complete the transaction
within a given time and at a definite price. The agreement is backed by
law, although, unlike in the UK, it is not necessary for a legal representative
to be involved. In practice, you will probably have already chosen the
Notaio (Notary Public) at this stage and they will offer to check the
document for you as part of their service.
As well as stating
the date and price, it is possible to include other conditions in the
contract, such as items of furniture to be bought and the availability
of a mortgage. Be as precise as possible.
The buyer will
pay the vendor a mutually agreed sum, usually between 10% and 30% of the
final price at this stage. If the buyer then fails to complete the transaction,
for no good reason, or changes his or her mind, the deposit will be forfeit.
On the other hand, if the seller withdraws, they will have to return the
deposit and the same amount again in compensation. For this reason,
it is essential not to enter this stage lightly.
It is standard
practice to pay Agents their fee at this time.
The Rogito or Atto Di Compravendita
The definitive act
of transfer is completed at the office of the buyer's chosen Notary Public,
usually with all parties present (unless you have chosen to give someone
power of attorney)
The Notaio is
responsible for checking the legal validity of the documents pertaining
to the home and making formal entries in the public property records.
By this stage, the Notaio, in association with the agent and vendor should
have ascertained that the vendor has legal title to the property, has
no outstanding debts and has not made illegal additions to the property
which do not appear on the public record. If the vendor has a mortgage
to discharge, a separate cheque will usually be presented to the bank
or building society. The whole contract will be read in Italian and
you must either have a translator or understand Italian well enough to
satisfy the Notaio.
Until recently it was common practice to declare less than the full price paid for the house, to avoid property taxes. At the start of 2006, a new law was introduced allowing buyers to declare the whole price, but only pay taxes on the registered value (the 'valore catastale') of the house, which is often much less that the market value. Under this new system then, there is no reason not to declare the full price of the house.
Agency fees
Itili does not charge any fees whatsoever on homes on which we have been engaged to sell directly by the owners. It is the usual practice however, for agents to charge buyers and sellers about 3% (plus VAT) each. This fee is not fixed and you may negotiate a lower fee, but you must establish the terms before you engage an agent. Great care should be taken when making a formal offer, since withdrawing it may mean that you not only lose your deposit, but that the agent claims commission. We do not approve of this practice and will endeavour to protect our clients from it.
Employing a lawyer
In theory, the professional services of a registered agent and the Notary engaged by the buyer should be sufficient protection in the buying process. Some buyers, however, choose to employ their own English-speaking lawyer - the main benefit being that having the documents draughted, checked and explained at the earliest possible stage can avoid costly mistakes being encountered later on.
Itili's no-fee policy leaves buyers the choice of employing a lawyer, usually at lower cost than they would have paid an agent. In such cases, we will provide necessary documents to the buyer's lawyer.
In some cases,using lawyers can introduce unnecessary delays and expense into to buying proccess; in particular, where a house has clear and recent transaction record at the Land Registry. Where this is the case, we will usually recommend buyers to rely on the service of the Notaio alone.
Taxes and fees
If the home you have just bought is to be your principal home in Italy,
you will pay 3% of the declared value of the property in tax, as
long as you apply for residency in your local community within 18
months. You should do this in person at your local commune's office.
There is a higher rate of taxation, 10%, for second homes, though
whether having a home outside Italy makes one liable, is a debatable
point. The higher rate is easily avoided. If you are buying a new
home, or buying from a commercial developer you will pay IVA (similar
to VAT) at 4% on a principal home.
Other fees payable
include those of the Notary and his disbursements to public bodies such
as the land registry. In total, you will probably pay about 8-10% of the
cost of the house in fees and taxes
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Our on-screen calculator gives you an estimate of the expenses involved in buying a typical house in Italy.
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The following links open printer-friendly guides.
Glossary of Italian terms
Bilingual Compromesso
Agenzia immobiliare
Real estate agency
Anticipo
Deposit, sometimes requested before the Compromesso
Atto di Compravendita
The formal term for the Rogito; the definative act of sale, recorded by the Notary
Caparra or cauzione
A deposit paid by the buyer to the vendor, at the time of the Compromesso, or contract
Compromesso or Promessa di Vendita
The written contract between buyer and seller which commits them to the transaction
Geometra
Surveyor. Project manager
I.C.I.
Imposta Comunale Su Immobili. Council Tax. A property tax payable in two installments anually, based on the notional rental value of a property, were the occupier to let it.
Metri quadri
Square metres. Properties are usually described by their size in square metres, including walls
Notaio
Notary. The notary is chosen and paid for by the buyer
Perizia
Survey, or valuation. Perizia strutturale = structural survey
Proposta Irrevocabile d'Aquisito
A legally binding offer to buy a property. Depending on the wording, this may also make the person making the offer liable to pay agency fees, even if the offer does not progress to the next stage.
Provvigione
The fee paid by either, or both, vendor and buyer to an agent
Rogito
The legal act of transferring the property from vendor to buyer
Valore catastale
The value of a property as recorded at the Land Registry office (and used as the basis for taxation)
Vani
Rooms. Where used as a description of a property (i.e. ‘3 vani’) it refers to the number of habitable rooms in a home excluding kitchen, bathrooms and hallways, etc.
Vendesi
For sale
Visura catastale
Search of property records made at the Land Registry office
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