Property In Italy For Sale
Buying Italian Property
with Tuscany Real Estate and partners.Buying Process for Property In Italy PURCHASING TRANSACTION
When a client, after having visited some properties, decides to go ahead, he must know how the purchasing transaction is divided.
First of all it is important to underline that
if the property in Italy is ready to be sold and it does not require any kind of registration before the completion, it is possible to make the whole process in only 1 month, which is the minimum time required by the agent to put together all the documents and to bring them to the Notary who makes deeper controls .
What is required to stop a property and to take it off from the market is to have a contract signed by both the vendor and the buyer as well as a
deposit made. This is why, to make everything quicker, we allow to our clients to stop the property with a deposit corresponding only to the 5% of the proposed price. This is the first step , called
Stage 1. Buying a property in Italy
Proposal ( Proposta) 5% deposit. a- To prepare the proposal
Riccardo makes sure that everything is all right; so he goes to the Property Registry, he makes all the necessary controls. At the Property Registry he gets also a detailed description of the property mentioning all the particles the property is identified with as well as a map of the place where the property is which shows the particles as well.
b- then we need a copy of the passports of the people making the proposal
( we can say that usually 1 person is enough because the names can be changed within the date of the deed).
c- we need also to know the dates when you want to make the second and the third step ( being the compromise and the deed, which is the completion). Both these dates will be approximative dates meaning “ before and not later than”. The dates are important also to allow the vendor to empty the house in case he has something
there and , in any case, to allow him to be present at that moment.
Once known all these things we are able to proceed by preparing the proposal which is a written document where there are mentioned:
-the name of the person who makes the proposal; his birthday; the place of his birth; the number of his passport;
-the location of the property;
-A brief description of the property;
- the description of the property Registry with all the particles the
property is identified with;
- if the property has prejudicial inscriptions;
-the different steps with the payments and the dates.
Stage 2. Buying a property in Italy
Compromise (Compromesso) 25% deposit. As it is not possible to keep a property stopped with the 5% deposit for a long period, after about 1 month from the deed, we make the compromise. This is a preliminary
agreement of sale consisting of written contract, similar to the proposal, but more detailed, where it is said that both the vendor and the buyer employ themselves . The vendor promises to sell to the buyer who promises to acquire.
There is, again, the description of the property as well as its cadastral description.
The compromise is the moment when the agency fee has to be paid; we are much flexible about that even if this is what the Italian law wants.
We promise to our
clients that our service lasts until the completion and even after that.
THE CAPARRA CONFIRMATORIA ( article 1385 of the Codice Civile)
Both on the proposal and on the compromise we mention an important article of the Italian law which is called “ Caparra Confirmatoria”. This article says that both the parties employ themselves by signing the deed.
If , in fact, the vendor changes his mind after having signed the contract and received the deposit of
money from the buyer, he will have to give back to the buyer not only the money received from him but even the double.
If , instead the buyer changes his mind after having signed the contract and paid the deposit, then he will loose the deposit.
By putting this article on both the proposal and the compromise we are sure that once they have been signed by both the parties, both the parties are sure of what they have done .
Stage 3. Buying a property in Italy
Final Purchasing Deed ( Rogito Notarile) 70%, final payment.
When both the vendor and the buyer are ready we fix the date of the deed.
It is important to know that the notary, who is always very busy, needs to be noticed some time in advance ( not less than 2 weeks ) and also that his office is closed on Saturday and Sunday.
Once fixed the date, then Riccardo goes there bringing all the documentation:
-The “visure catastali” of the
property being the controls made at the property registry ( N.C.E.U.= Nuovo Catasto Edilizio Urbano) and at the Land Registry ( N.C.T.=Nuovo Catasto Terreni) where the property appears as identified by 1 or more particles and also with Category, class and revenue ( which is the basis to calculate then the declared value which is the value the Government knows about the property);
-The copies of the passport/ s of the vendor/s and of the buyer/s.
-The fiscal codes of the vendor/s and of the buyer/s.
- The maps .
-Any kind of certification required by the notary.
At the moment of the deed the notary reads what is the contract and finally declares that the property passes from the vendor to the buyer so that the property is officially sold under the law’s point of view.
This is the reason why at the moment of the deed the payment must be made with cash money or banker’s drafts; as the property
is sold, in fact, the vendor, must be paid with money immediately available as he has not anymore the possession of the property.
TO OPEN AN ITALIAN BANK ACCOUNT
To make the final payment it is necessary to have an Italian bank account already opened so that you will wire there the money about 2 weeks in advance. Then , on the same day of the deed or the day before, we will come with you to the bank to have the drafts for the final payment.
To have
drafts, it takes just few minutes and the bank does not need to be noticed in advance.
If you need a big amount of cash money from your bank account, instead, the bank does need to be noticed a couple of days in advance.
Please ask us for more details about opening an Italian bank account as we always help our clients in doing that.
WHAT IS THE DECLARED VALUE
Every property, here in Italy, has what we call a “Rendita catastale” which is a value
the property is identified with at the Property Registry ( or at the Land Registry in case it is a barn and so still a rural building). It does not correspond at all to the real price of the property and it is always quite lower than it.
The “Rendita Catastale” is something which the property has been identified with at the moment of the registration at the property registry and so, often, something of very old.
Then, in spite of the time passing, this value is updated, but not
following the real properties market; this is the reason why, now most of the properties have a very low declared value.
At the moment of the final deed the Notary will ask you to declare him the value of the house; at that moment it is suggested to declare the lowest possible price. It must be not lower than the value declared the last time the property has been sold . The notary will update it a little bit.
The reason why the value must be kept as low as possible is that it is the
value which taxes are paid above.
IMPOSTA DI REGISTRO
At the moment of the completion ( final purchasing deed) the notary will make you paying , not only his fee which is calculated on percentage considering the declared value of the property( but it is always around 2000/2500 Euros), but also what is called “ Imposa di Registro” which is the tax to be paid on the property.
If you are buying your first property in Italy, there is the possibility to pay the 3%
above the declared value of the property instead of the 10%. To have this kind of reduction you will have just to declare to the Notary that you want to benefit of this privilege. To know more about that, please do not hesitate in asking for more information.
THE FISCAL CODE
As said both to buy a property in Italy and to open an Italian bank account it is necessary to have the fiscal code.
The fiscal code is a sort of identification provided by the Italian
government for everyone wants to buy a property in Italy but, more in general, everything being registered. It is necessary to have a fiscal code to pay taxes in Italy.
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