Purchase agreement of real estate property in Italy

The closing of the final agreement for the purchase of property in Italy determines the transfer of ownership of the property, it must be made ​​in writing, with the involvement of a notary which confirms the transfer of ownership of the property between seller and buyer jointly with the payment of the agreed price (as per art. 1350 of Italian civil code).

 

It is mandatory to entrust the notary because the transcription of the final deed to the immovable property register is a formality necessary to make public the deed and therefore enforceable against third parties.

 

The activity of the notary allows to ascertain, through cadastral and mortgage surveys:

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• the correct stacking of the property

• the presence or absence of mortgages, foreclosures and other rights of third parties.

 

If there are any mortgages on the property, they should be removed at the expense of the seller; often the seller pays the debt secured by mortgage on the sale price of the property, this comes at the same time of the drafting of the deed; the buyer prepares a cashier's check made ​​payable to the creditor who has registered the mortgage which withdraws it at the time of signature of the deed issuing a receipt.

 

The mortgage can also be canceled immediately by an act of the notary at the expense of the seller; if the seller is an individual and the debt originates from a mortgage loan, it will  be possible to perform the automatic cancellation of the mortgage at the expense of the bank, this has to be done within 30 days from the payment.

 

The notary is responsible for all act he drafts, he:

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• is obliged to carry out all the necessary audits

• reads the final deed to the parties.

 

The parties must submit:

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• identity card

• tax ID code

• certificate of civil status (stating if he or she is married or not)

• or marriage act.

 

The seller must:

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• attach the cadastral certificate and the plan

• attach the title deed of the property

• ensure the constructive and urban plan regularity of the building and conformity with the plans and land registry data (it is recommended that the purchaser appoint a technician who verifies the regularity of planning and zoning before the deed).

 

The property purchase agreement:

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• is read by the notary before the parties

• signed by the parties on each page including the attached plans.

 

The notary:

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• then within 30 days shall register the deed with the Revenue Authority

• transcripts the deed at the Property Register

• affixes the stamps on each page

• delivers to the parties a copy of the full deed.

 

Sometimes it happens that the parties declare in the deed a price lower than the real one in order to save on taxes which must be paid as a percentage of the price; this practice is not recommended because it is prohibited by law, in fact, if the value declared is less than the limits provided for by law it is possible to incur a tax assessment with the application of sanctions, this  happens if the Revenue Authority receives any documents proving which was the price actually paid (eg. the preliminary agreement).

 

It is recommended that for each payment prior to the final deed (such as an intermediate payment made before the signing of the compromesso) be issued a receipt.

 

As per anti laundering rules are prohibited payments in cash or by check transferable amount in excess of € 999.99, therefore, checks for amounts over shall have, necessarily, of all the elements required by law:

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• date

• name of the beneficiary

• "non-transferable" clause.

 

For violation of this rule there is an administrative penalty of up to 40% of the amount transferred.

 

The costs of the final deed shall be borne by the purchaser.

 

The notary rates are established by the State and notarial bars; the rates vary based on the value of the act (in percentage, are more expensive sales of lower value) and can be further increased in case of particular difficulties in the preparation and drafting of the act.

 

At the time of signing the deed, the parties declare the price of the property on which will be calculated taxes to pay; on signing, the notary will charge along with his honorary, the amounts of taxes for the transfer of ownership, he will collect and pay them to the treasury.

 

The cost for heating of a building depends on the class home's energy, the energy performance certificate is prepared by the seller and attached to the deed.

 

If the purchase of the property is run by a couple of spouses, they can choose that the purchased asset be governed by the regime of community of property.

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