PROPERTY SEARCH, PURCHASE & MANAGEMENT SERVICES. PROPERTIES FOR SALE IN ABRUZZO, ITALY
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HOW to Buy in ABRUZZO?
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The Main Stages of Property Purchase (Compravendità)

1. PURCHASE OFFER (Proposta d’Acquisto)

The first step after finding your ideal house is to make a purchase offer, in writing, addressed to the seller and to pay a small deposit, usually by cheque (made payable to the seller), which is held by the estate agent.

The estate agent will fill in the appropriate form in your presence, incorporating all your conditions relating to the sale.

If the seller accepts your conditions (written acceptance), the parties will be bound to complete the sale as it has been established in the proposal.  The seller will collect your cheque, and this becomes your deposit (caparra confirmatoria) on the property. 
If the seller does not accept your offer, the estate agent will return the cheque to you. From that moment you are free to walk away, or you can reformulate a new proposal following the same procedure as above.

NOTES:
  • If you pull out of the sale, after your offer has been accepted, you will lose your deposit.  If, on the other hand, the seller pulls out of the sale, he must refund your deposit and pay you the same amount again, as a penalty.
  • When you make your offer to the seller, you must also decide on the dates by when you would like to sign the preliminary and final contracts. These dates are seen as deadlines, but you can sign anytime beforehand, as long as it is agreed by the seller.

  • It is not strictly necessary to pay the small deposit as soon as you make your offer.  This can usually be negotiated with the seller, as can the method of payment.


2. PRELIMINARY CONTRACT OF SALE (Compromesso)

The compromesso is an agreement where both parties promise to conclude a future contract (notarial deed) and in which they record and expand upon all the terms of the proposed purchase.

In the compromesso the following information must be clearly stated -  the identities of both parties, the features and cadastral data of the property, the cost and method of payments, and the date by which both parties agree to sign the final act (when the property officially becomes your own).  

It must also be stated that the house will be sold without any outstanding debts, encumbrances or mortgages and is completely in order with town planning regulations. 
 
A further payment is made to the seller, usually around 20% of the total purchase price (including the deposit already paid).  
 
NOTES:
  • By this stage, you need an Italian tax code (codice fiscale) which can be obtained from any tax office in Italy or from your Italian Embassy. 
  • The estate agency fee is due to be paid when the compromesso has been signed.  The estate agent fee is usually around 3% of the purchase price + VAT.
  • It is a good idea to open an Italian bank account at this stage, in preparation for the final act.
 
3. NOTARIAL DEED (Rogito Notarile)

The notarial deed is the FINAL ACT of the sale and is signed before a public notary (notaio) and the interested parties (seller and buyer).

Before the signing, the notary performs all the relevant checks on the property (land registry searches, legal and mortgage checks, etc.)  He draws up the act which is signed in his presence and then he lodges the necessary taxes and registers the title deeds with the land registry, making the property officially yours. 

If you are taking out a mortgage, you will sign a separate act for the mortgage at this time, and the notary will record your bank as your mortgage lender. 
 
At the time of the signing, you also pay the balance on the price of the property, the notary fee and the related taxes. 
 
NOTARY FEES
 

Notary fees vary, usually it is around 1.5% - 2% of the purchase price, but it is always advisable to request a quote. However, as an example, for a house costing €100,000, you can expect to pay around €1,500 - €2,000 (including VAT) to the notary.  If you are taking out a mortgage, you have to sign 2 separate documents, so the cost will be around double.


TAXES

Below is a table of taxes payable on the purchase of a property:
 
Seller 
Tax 
Primary Residence 
Secondary Residence 
 
Purchase from
a private seller
 
Registration Tax 
3% of cadastral value
7% of cadastral value 
Local Tax 
€168  
2% of cadastral value 
Stamp Duty 
€168  
1% of cadastral value 
 
Purchase from
a developer or
constructor 
VAT 
4% of purchase price
10% of purchase price
Registration Tax 
€168  
€168  
Local Tax 
€168  
€168  
Stamp Duty 
€168  
€168  
 
 
THE NOTARY
 
The notary is chosen by the buyer, however he is an impartial public official. He cannot act in the interest of one party, to the detriment of the other.  Having one official, rather than 2 opposing solicitors, makes the process simpler than in other countries and also saves money.  The notary ensures the validity and effectiveness of the act.  He checks that the property is legally owned by the seller, that there are no outstanding debts and he carries out all the safeguards to protect the interests of both parties.  His work is guaranteed, so if he makes an error, he must reimburse you for any losses that you incur.
 
NOTES:
  • If the contract is between 2 private individuals, the law states that the deeds must state the actual price paid for the property.  However, for tax puposes, the figures can by calculated using the cadastral value (valore catastale), which is a figure decided by the land registration office and is usually a lot lower than the purchase price. 
  • If the buyer is unable to read Italian, the documents must be translated into your language, or a trusted person can be given Power of Attorney (Procura) to sign on your behalf.
  • In order to buy a property as your primary residence, to qualify for the lower tax value, you must obtain Italian residency within 18 months of signing the final act.
  • On 1/7/2009, a new law came into force requiring an energy performance certificate (ACE) to be attached to the notarial deed.  It is issued by a qualified technician, and it is the seller's responsibility to organise this.
 

A NOTE FROM US

Buying a house in Italy may seem very complicated and bureaucratic, but it is usually straightforward and can be relatively swift. The process also has certain safety nets for the buyer, which aren’t present in the English system. We will help you at each stage and ensure that you are ready to proceed to the next step. If you have any questions about the process, please contact us:

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