Italian Real Estate Lawyer – legal assistance

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The Italian Purchase Keys Procedures

Buying property abroad is an exciting and rewarding journey, but the process can be complex, even for those who are well-prepared. Understanding the key procedures involved in purchasing property in Italy is essential for a smooth and successful experience, helping you make informed decisions every step of the way.
The first step is determining whether you’re eligible to buy property in Italy as a foreigner. For EU citizens, the process is relatively straightforward, as there are typically no restrictions. However, for citizens from non-EU countries, the rules can vary. It’s important to check the bilateral agreements between Italy and your home country before starting your search.
For example, let’s consider Swiss citizens: they are allowed to buy property in Italy, but there are certain conditions. The property must meet specific requirements, and the land associated with it must also comply with Italian regulations. By understanding these rules upfront, you can avoid wasting time and ensure you’re on the right track from the start.
The procedure for buying real estate in Italy involves several key steps and is governed by both legal provisions and practical considerations, and a Real Estate Lawyer can play a crucial role in the whole process (for more details, have a look at the article “Why a Real Estate Lawyer”).
Below is an overview of the Italian procedure for buying property, including relevant rules from the Italian Civil Code:
1. Preliminary Phase (Agreement Stage)
Before signing the final contract, the buyer and the seller typically agree on the terms and conditions of the sale through a Preliminary Contract of Sale (“Compromesso” or “Contratto Preliminare di Vendita”). This phase includes the following:
Negotiation and Agreement: The parties negotiate the price, payment conditions, and other terms of the sale.
Due Diligence: The buyer should conduct thorough checks to ensure that the property is free of legal encumbrances, such as mortgages, liens, or disputes. This typically involves checking the land registry, cadastral records, and any urban planning restrictions.
Deposit: The buyer usually pays a deposit (often 10-30% of the agreed price) at the time of signing the preliminary contract. This deposit can be subject to specific rules about forfeiture and conditions in case of non-performance by either party.
The Italian Civil Code, particularly Article 1351, governs this phase, especially regarding the formalities of contracts. The Preliminary Contract is legally binding and obligates both parties to complete the sale unless there is a valid reason for cancellation.
2. Notary Involvement (Public Deed)
The final transfer of the property is done before a Notary Public (“Notaio”). The notary plays an essential role in ensuring the legality of the transaction, confirming the identity of the parties, and registering the deed.
Final Contract (Atto di Vendita): The sale is finalized with the signing of the Deed of Sale (Atto di Vendita) in front of the notary. This document contains the final price, payment conditions, and other key details.
Payment: The remaining amount of the purchase price is paid at this point, and the buyer assumes ownership of the property.
According to Article 1350 of the Italian Civil Code, a contract for the transfer of real estate must be in writing and authenticated by a notary to be valid. The notary ensures that all the necessary checks have been made, such as verifying that the seller has the right to sell the property and that the property complies with planning regulations.
3. Registration of the Deed
After the deed is signed, the notary registers the transaction in the Land Registry (Catasto) and Property Registry (Conservatoria dei Registri Immobiliari). This makes the sale official and publicly binding.
Land Registry: This is used to record the property’s geographical location, size, and boundaries.
Property Registry: This records the legal status of the property, such as its ownership, mortgages, or encumbrances.
This process ensures that the transfer of ownership is legally recognized and protected against third parties. For more details about both the preliminary contract and the notary deed, take a minute to read our guide on the “Italian Buying Process“.
4. Taxes and Fees
Several taxes and fees are involved in purchasing real estate in Italy:
Registration Tax: This is the main tax paid at the time of registration. It can vary depending on whether the buyer is purchasing a primary residence, a second home, or an investment property. The tax is calculated based on the cadastral value or sale price, whichever is higher.
VAT (Value Added Tax): VAT may apply, particularly if the property is newly built or purchased from a company.
Notary Fees: The notary charges fees for drafting the contract, verifying the property’s legal standing, and registering the transaction. These are usually a percentage of the sale price.
Other Fees: There may be additional administrative costs for the checks and registrations, real estate agents fees, etc.
Key Rules from the Italian Civil Code
The Italian Civil Code (Codice Civile) outlines various provisions related to the purchase of real estate. Key articles include:
Article 1350: This article specifies that the contract for the transfer of real property must be in writing and executed in front of a notary to be valid.
Articles 1470-1479: These articles outline the rules regarding contracts of sale in general, including the obligations of the buyer and the seller, such as the seller’s duty to transfer clear ownership, and the buyer’s obligation to pay the agreed price.
Additionally, the Urban Planning and Construction Laws may also affect the buying process if there are zoning laws, building permits, or property irregularities that need to be resolved.
Conclusion
The process of buying real estate in Italy is a highly regulated procedure aimed at ensuring clarity, fairness, and legal security for both the buyer and seller. It requires the involvement of professionals (notary, lawyer, surveyor) to ensure that all requirements are met, the transaction is properly recorded, and taxes and fees are paid. Legal aspects from the Italian Civil Code play a significant role in ensuring the rights of both parties and the smooth transfer of ownership.