Buying Properties in Italy - Italy
Three key stages exist in the buying process:
- Offer to Buy - this is a formal written offer from the potential buyer to seller. The offer will normally be accompanied by a deposit which usually ranges from 2-5%. In return, the property should be removed from the market. Conditions can be placed within the offer to protect the buyer (e.g. subject to ..). Prior to this, we recommend that a survey is undertaken by a surveyor (Geometra) in order to establish the planning status of the property and its boundaries. Fees typically range from EUR 500 – 1,000.
- Full Preliminary Contract (Compresso) – also known as the contratto preliminare di vendita. This agreement commits both parties. When purchasing an unfinished property, 3 types of preliminary contract exist: Contract for immediate sale of land – agreement by the buyer to sign title deed in respect to anything the seller has so far built. Contract ‘on plan’ – agreement by the buyer to purchase the property once it has been built and to make staged payments throughout the process. Contract to buy once the property has been built – the buyer agrees to pay once the property has been built.
- Deed of Sale (Rogito) – this a legal document which registers a property in the buyer’s name. This must be signed in front of a notary (notaio) by the buyer or a person holding the ‘Power of Atornye’. At the same time, the balance of the price is paid to the seller, usually by a Banker’s Draft. Once completed, all taxes must be paid.
Fees relating to a purchase include:
- Real Estate Tax (Impost Ipotecaria a Catastale) – 3% Local Tax – based upon the official tax value of the property (Valore Catastale) – i.e. the declared value of the property and typically lower than the purchase price – ranging from 0.8-0.8%
- Estate Agent Fees – often split between the buyer and seller – typically 3-6% Stamp Duty – ranging from 3-7%
- Notary fees – based upon a sliding scale dependent upon the price of the property – ranging from EUR 1,000 – 4,500 Typically total fees and charges total 15% of the property price.