Preparation of a purchase contract

Buying a property in Italy requires the necessary preparation. To find the house, you have probably used a local Italian or international real estate agent who mediates with your purchase. After a house is found and a price agreement has been reached, the time comes to put things on paper and record all agreements made. That is a crucial phase because, under Italian law, oral agreements have no legal force whatsoever. Only what is on paper counts!

In Italy, three steps can be distinguished in the buying process, but nowadays the buying usually takes place in two steps and that is not without reason: First, the provisional purchase contract ('compromesso' or 'contratto preliminare') is signed followed by the transfer deed (' atto notarile '). The written offer does not offer the buyer complete certainty that is desirable to guarantee that the seller does not sell the property to a higher bidder. It is therefore advisable, after successful oral negotiations, to work directly towards a real purchase contract. Before signing a contract, it is advisable for the buyer to be certain about a few important issues.

Co-owners

For example, if the seller is the real (and only) owner of the property to be sold. It may happen that, after the buyer has paid the deposit, the person who signed the contract as the seller appears not to be the sole owner. The buyer cannot buy the house if the co-owner, for example the almost divorced wife of the seller, does not want to sell. It then takes the greatest effort for the buyer to get his deposit back. A procedure to persuade the co-owner / owners to also agree to the sale is certainly a difficult, if not impossible, case. We occasionally experience this situation and vigilance is then required.

Land Registry

In addition to the case of divorces, inheritance by heirs with conflicting interests can also cause problems. It often happens that children inherit a property and only part of them want to see money, and others have a bond with the house and do not want to sell. A visit to the local land register provides insight information on ownership relationships and on who may rightly consider themselves authorized to sell a property. That is why it is important that when drafting the purchase contract the most recent land registry extracts are being provided. It is more difficult when heirs want to sell a house. Often only the name of the testator appears in the land register, a certificate of inheritance must then provide clarity about who is authorized to sell.

Permits

At the transfer, the seller must also be able to prove that the object to be transferred was built in accordance with all granted permits. Particularly with older properties, smaller (or major) adjustments to the house have been made without the required permits. This does not have to be a major problem, but the situation must be resolved by the seller before the legal ownership is transferred.

Mortgage debt

Another check that must be carried out is if a mortgage debt is registered on the property to be purchased. The seller must pay off his mortgage at the latest at the time of the transfer, otherwise the mortgage will be transferred to the new owner. The mortgage debt in Italy follows the property and not the person who has ever taken the loan. And in most cases that surely will never be the intention of the buyer. If there is a mortgage debt, the purchase contract and the notarial deed must clearly state how and when it will be repaid by the seller. In Italy, the notary who is going to pass the building has a legal obligation to check the mortgage register for the presence of any mortgage debts.