Buying Process

How To Buy In Italy

1)THE FISCAL CODE

The first word you need to get familiar with  is CODICE FISCALE.
If you are thinking to purchase a property in Italy, in fact  as well as to open an Italian bank account (or to buy a car)  you will need a CODICE FISCALE.
It is an identification code calculated on the basis of your surname, your names, the place of your birth and the date of your birth and which will be used any time you will need to deal with the Authorities.
If you decide to purchase a property with us we will undertake to obtain the codice fiscale for you without any extra charge.

2)OPENING AN ITALIAN BANK ACCOUNT

In the event of a purchase it is essential to open a bank account in Italy not only to transfer there the funds for the completion ( as the final payment normally happens in Italian bankers drafts) but also  to get the various utilities paid automatically.
We will be happy to introduce you to a local bank with English speaking manager.
Then, on the same day of the  completion or the day before, we will come with you to the bank  to  organize the final payment.

3)FORMAL OFFER OF PURCHASE

When a client, after having visited some properties, decides to go ahead, and  to buy one of those, we are then happy to  start a negotiation on his/her behalf.
Usually just a verbal offer is enough, sometimes instead  a  written formal offer of purchase is exchanged ( lettera di intenti or proposta di acquisto) . If the vendor signs it accepting the offered price this means that he undertakes to not sell the property to anybody else until a certain date.
This letter is to protect the buyer from losing the opportunity to purchase.

4)CADASTRAL CHECKS

Before going ahead we take care of investigating the title of the property by going personally to the Urban and Land property registry office (catasto). We check that  the property is regularly registered, that it belongs to the person who is undertaking to sell it and if there are  loans on it.
A meeting with the Notary then will confirm that everything is 100% in order.

5)PRELIMINARY AGREEMENT OF SALE (Compromesso) 20-30 % deposit

As it is not possible to keep a property  off from the market for a long period without a deposit, it is important to make sure that the preliminary agreement of sale is signed as soon as possible.
The preliminary agreement of sale called in Italian “ compromesso” is a private agreement between the two parties where  a price is agreed and where the vendor undertakes to sell the property within a given date, to the buyer  who undertakes to purchase it.
This document is drawn up and translated by us.
On the compromesso there is a detailed description of the property  including the  cadastral details.
The document is private because it is not registered unless something goes wrong, but it is, at the same time legally binding. At this stage of the purchase a deposit is paid to the vendor.
Upon the signing of the preliminary agreement of sale, the buyer normally pays a deposit between 20 and 30% of the agreed price.
Once the deposit is paid, then, if the vendor backs out, he will have to pay back twice of the deposit; while, if the  buyer backs out, he loses his deposit.
This important clause is included in the article of the “Caparra confirmatoria”.

6)THE CAPARRA CONFIRMATORIA  ( article 1385 of the Codice Civile)

On the compromesso we mention an important article of the Italian law, called “ Caparra Confirmatoria”, which regulates the payment of the deposit.
If the vendor withdraws or fails to complete the transaction, in fact, the purchaser is entitled to a refund of twice the amount of the “caparra confirmatoria”, while if  the buyer withdraws or fails to complete,  he /she will lose the deposit.
This is the reason why the compromesso is a very important document, legally binding  and why the deposit  is a strong disincentive to back out the deal.

7)FINAL PURCHASING DEED ( Rogito Notarile)  70%-80%,  final payment.

When both the vendor and the buyer are ready  we fix the date of the deed.
It is usual that the final contract takes place between 1 to 6 months from the date of the compromesso. The Atto di Compravendita is a public contract which, after having been read by the Notary,  is signed by both the vendor and the buyer in front of  him who, as public official, lauthenticates  it with  his/ her signature and stamp. At the moment of the deed the purchaser takes full title and possession of the property.
At this stage the remainder of the price is paid in bankers drafts .

*It is important  to know that the appointment with notary, who is always  very busy, needs to be booked some time in advance and also that his/ her  office is closed on Saturday and Sunday.

8) IMPOSTA DI REGISTRO

At the moment of the completion (Rogito Notarile) the buyer pays, not only the Notary’s fee (normally about 2.4% of the property’s declared value) but also  the property’s purchase tax, called “ Imposa di Registro” plus  the expenses of the Notary for stamps and Duties .
If you are buying your first property in Italy, there is the possibility  of paying the 3% of the declared value of the property instead of the 10%.  This reduction can be obtained  only if you will become resident in the property within 18 months from the date of the completion.
The Notary  will therefore  write on the deed that you want to benefit of this reduction and you will therefore undertake to become resident in the property within 18 months .
To know more  about that, please do not hesitate in requiring us more information.
We can help you in getting the residency without charging any extra fee.

9)CLEAR AND LEGGIBLE SIGNATURES

It is very important to know that the Notary will require you to sign the deed with  a clear and legible  signature in handwriting  with  your first, middle and second name.

10)REGISTRATION OF THE DEED

Within  a period of 6 to 8 weeks the Notary is responsible to register the deed at the “conservatoria dei registri immobiliari”. Thanks to this registration  your title will become effective at the Land and Urban property Registry. After this the  Notary will be able to  provide you a copy of the deed which will act as your title deed.

11)  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  actual 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.

Typical Cost:-
Purchase Price (- deposit)
Purchase Tax
Notaio’s fee
Estate Agency fee 3% of Purchase Price
Bolli (Stamp duty)