| BUYING IN ITALY |
| Normally buying property in Italy is arranged in two or three stages: Stage One Either directly or with the assistance of an agent (Mediatore/Agente) the foreign buyer will need to select the property, obtain some basic information and documentation and negotiate general terms of purchase. Sometimes, the foreigh buyer will be asked to sign a reservation agreement (Prenotzione) and pay a deposit (10% or 6000 Euros which ever is greater) to the agent. Also, at this stage you'll need to open an Italian Bank Account and obtain Codec Fiscale (similar to UK's NI Number) Property checks and searches At this stage it will also be necessary to organize a survey, local land registry searches, and all necessary checks with the local authorities (Commune), as far as local planning and building regulations are concerned. This work is usually indertaken by a local surveyor (Geometra) and Public Notary (Notaio), which usually organised by UK-based Italian Lawyer. If these searches reveal any problems regarding the sale of the property then the sale cannot be completed. Usually these checks and searches take two to three weeks to carry out. Checks carried out by Geometra: - The property matches the Land Registry definition - The property was not built without planning permission - Any work done, have recieved approval and have had the relevant taxes paid -The owners as Land Registry Office are same as stated by the vendor Checks carried out by Notario: -The vendor is the lagal owner of the property and is Entitled to sell the house -There are no debts or mortgages on the house -There are no written liens or burdens -The vendor is aware that they must declare any outstanding private agreements regarding the property, For example is the vendor has agreed to allow a highbour to build or extend within the minimum laid down by Italian law or has given a friend a right of way across the property Stage Two - usually skipped (for when seller is present in Agency's office, if not, skip to Stage Three) The second stage is usually spent in negotiating, drafting, signing and exchanging the contract (Compromesso). This part only takes place if the seller of the property is present in Agency office. This is normally binding legal agreement to complete the purchase at some future sepicified date (normally in 8 weeks time), in the offices of a Local Public Notary (Notaio) and requires you to pay up to 1/3 of asking price. In view of the fact that this is unequivocal commitment to buy the property and pay the agreed price at the time of signature, it is vital to have acquired all the documentation and search reports necessary to complete the purchase or, at very least to have ascertained all legal and practical difficulties/problems, and agreed a timetable so sort them out before completion. Italian law requires all contracts relating to land or Buildings to be in writing, signed by both parties. After this stage neither you no seller cannot withdraw without paying compensation for withdraw to other party. Stage Three The last stage relates to the completion formalities which normally take place in the offices of a Local Notary. Notaries have a special duty of drafting the Purchase Deed (Rogito) and to ensure the proper execution, registration, and payment of all Italian taxes ancillary to the completion. The purchaser is liable to pay: - Registration Tax. This is levied at 11% (from declared value of the property - see below) for non-residents and 4% for residents. When purchasing land this is 18%; note that this includes Stamp Duty (Bolli) which is levied at 1% -The Notary's fees - approx 2% of the declared value - Translator fees at the Notary - from FREE to around 150 Euros, depends on property - The Geometra's fees - around 350-550 Euros - Estate Agency fees 3-6% of the market price of the property - Help (if needed) in opening Italian Bank account and Obtaining Codec Fiscale - from FREE to 200 Euros, depends on property IMPORTANT: Declared Value Under Italian Law a property has a legal or declared value. The legal value is statutory value placed on the property by the Government. This value is generally considerably less than the actual purchase price (usually 2/3 of the market price) and it is this figure appear on the documents. The amount of tax and charges a lot less than it appears at first sight Total charges which buyer in Italy is liable to pay should not exceed more than 15% of the price you pay for your property. Feel free to browse our listings or book our Relax&Buy trip to choose your Dream Seaside Holiday Home in Scalea! |
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