The guide to buying property in Italy

Once you have chosen a property to buy, the two parts (the seller and the buyer) have to agree on the conditions (terms) of payment.

Usually (once the price is settled), the buyer leaves a deposit (“caparra confirmatoria” of at least 10% of the house price) and undersigns together with the seller a preliminary contract (Compromesso) between private parts where all the terms of the agreement are underlined including the date by which the transfer of property and the consequent total payment will be made.

The seller will have to take this Compromesso to the Notaio (Public Notary). The Notaio will do all the legal checking on the property (mortgage deeds, foreclosures or other impediments on the sale)

Once the Notaio has checked that everything is regular, the date of the transfer of the property is fixed (7 to 10 days from the date of the preliminary contract). Basically a government official, the Notaio witnesses the transfer of title from one party to another, collects the taxes due on the transaction and his (or her) involvement is indispensable.

Buyers Deposit

Why does the buyer have to leave a deposit even when the transfer of the property happens shortly after?

The logic of this procedure comes from previous experience. Once the price is settled, there is a period of time (even if very short) when the Notai has to verify every aspect of the transaction.
Within this period of time it might happen (and it has happened before!!) that the seller sells the property to another buyer for a higher price.
Therefore the deposit legally protects the buyer and avoids the above to happen. Hence the Compromesso establishes that if after the deposit has been paid, the seller refuses him/herself to sell, he/she will have to pay back double the deposit he has received to the buyer.
Besides if the buyer is the one not to respect the conditions of the Compromesso, he/she will lose the deposit already paid which will cover for the seller time spent.

In the case that the buyer is not an Italian national, for further protection, the deposit can be paid directly to the Notaio who will then hand it over to the seller only after carrying out all the legal checking’s on the property.

BUYER MAIN EXPENSES - the property price

1. Tassa di Registro.
2. Public Notary bill.
3. Estate Agent mediation

Note. All the property prices are excluding all the expenses above.

*Please do not rely on this information due to changes in the law.