Upon identifying your dream home, visiting it, and confirming its suitability, it’s essential to understand the legal complexities of purchasing property in Italy before finalizing the deal.
Authentic Sicily takes pleasure in guiding you through the legal terms and prerequisites involved in the property acquisition process in Italy:
1) THE FISCAL CODE
Primarily, to proceed with a property purchase in Italy, you must obtain an Italian national insurance number, commonly referred to as the ‘codice fiscale.’ This unique identifier, issued by the Italian Tax Office, is obligatory for all investment ventures, contractual agreements, and legal proceedings within the country. The issuance of this code is facilitated by Italian embassies or consulates.
2) OPENING AN ITALIAN BANK ACCOUNT:
In preparation for the purchase, it is essential to establish an Italian bank account. This account serves multiple purposes, including facilitating the transfer of funds for the final payment, typically conducted via Italian bankers’ drafts, and enabling the automatic payment of various utilities. We are available to assist you in arranging and managing this process before finalizing the transaction.
3) FORMAL OFFER OF PURCHASE
Afterward, you can proceed to draft a formal offer, known as a ‘proposta d’acquisto,’ for the property, confirming your intent to purchase. However, it’s vital to involve a solicitor at this stage to safeguard your interests throughout the process. Upon the seller’s acceptance, the formal offer transforms into a legally binding contract, and you’ll typically need to submit a deposit called ‘caparra,’ typically 10% of the property’s price. This deposit is non-refundable should you withdraw from the deal, but if the seller withdraws, they are obliged to return the deposit along with an amount equivalent to it. We advise caution when signing the preliminary purchase agreement, especially if mortgage approval is required for finalizing the purchase. In such cases, consider adding a suspensory clause, ensuring final mortgage approval before proceeding.
4) CADASTRAL CHECKS
Before proceeding further, it is advisable to conduct a thorough investigation of the property’s title at the Land Registry (Conservatoria e Catasto). This step is essential to verify the property’s regular registration, its ownership by the seller, and whether any existing loans are associated with it.
5) PRELIMINARY AGREEMENT OF SALE (Compromesso)
The deposit marks the inception of a contractual agreement known as a preliminary agreement of sale (‘compromesso’ or ‘contratto preliminare di vendita’ in Italian), also referred to as the ‘promessa di vendita.’ This significant contract outlines all the conditions of the sale comprehensively, including pertinent registry details. There are two forms of agreement: one as a public document and the other as a private contract. The notary is authorized to either draft public documents or authenticate private deeds.
Upon the signing of this contract and the payment of a “caparra confirmatoria” (confirmatory deposit), typically about 10% of the purchase price, the seller can only retract if they reimburse the buyer the deposit plus an equivalent amount. For instance, if a deposit of €10,000 is made, the buyer receives a refund totaling the deposit (€10,000) plus an additional €10,000.
It’s essential to note that the deposit amount may vary based on several factors; generally, lower property prices correspond to larger deposits and vice versa. Should the buyer choose to withdraw, they forfeit the entire deposit.
The executed contract must be registered within 20 days, incurring a cost of approximately €200, along with a €16 stamp duty for each page, rendering it legally binding. However, it’s worth mentioning that the preliminary agreement is not obligatory, and the final contract can be immediate. Nevertheless, it’s crucial to remember that the offer of purchase, once accepted, holds legally binding status.
6) DEED OF PURCHASE (Rogito)
The subsequent step involves obtaining the property’s title deed, commonly referred to as the ‘atto di compravendita’ or simply ‘Rogito’ (final contract), with the assistance of a notary, known locally as the ‘notaio’. The notary will authenticate the contracts about the transfer of property ownership, prepare a new deed designating you as the new legal owner, and oversee the closing of the transaction as you make the final payment and receive the property’s keys from the seller. Upon completion, the notary issues a certified copy of the deed of sale and registers it with the Land Registry (Catasto).
Notary fees vary depending on the town and the property’s purchase price. Their services play a crucial role in facilitating the purchase process smoothly. While there may be variations in the property buying process, this general framework is typically followed across most parts of Italy. This information aims to provide insight into what to expect when purchasing your desired property in Italy.
We are available to represent you during the initial signing process only. If you are unable to attend the second signing and final deed signing, the Italian notary can issue a power of attorney in the solicitor’s name to act on your behalf. You will receive this document to review with a solicitor in your home country and sign it in their presence before returning it to the Italian notary. This entire procedure can be completed in Sicily at no cost to you.
For buyers from the USA and other non-European Economic Community (EEC) countries, our solicitor assures us that purchasing property in Sicily is uncomplicated. You do not need to be physically present; we can represent you and complete the initial contract signing on your behalf. For the second part, involving the signing of the deeds, we can continue to act on your behalf, provided you sign a power of attorney authorizing our solicitor to finalize the sale