Real estate commission rates (fees) and payment schedules
When planning
to purchase a property in Italy, you would usually seek the assistance of a
licensed real estate broker for the initial property search. The real estate broker has the duty to
facilitate the transaction and to inform both the seller and the buyer of all
details and aspects which may be relevant.
Real Estate Agent’s Commission
As in most countries, Italian real estate agents’ commission (provvigione) varies. In Italy, commission payment to a realtor is usually shared between the vendor and buyer. According to art. 1755, paragraph 1 of the Italian Civil Code, commission is paid once, due to the assistance of the estate agent, the sale has been complete. Legally, an estate agent must be the effective cause of the sale. This means that the agent must be able to show that their ‘introduction’ of the buyer led to the formation of a deed of sale between the vendor and buyer.
In Italy spouses can chose between two default[1] matrimonial financial regimes: community of properties/assets (comunione dei beni) and separation of property regime (separazione dei beni).
Married couple buying a house
If no matrimonial regime option is expressly made by both spouses through a notarial deed or upon marriage celebration, Italian married couples’ finances and assets are regulated under the community of property regime.
A certificate of habitability (certificato di abitabilità) confirms a property’s compliance with safety and sanitation rules, the efficiency of the property’s systems and that the property complies with building regulations and planning permission.
Recently the certificate of habitability has been replaced by what could be as certificate of habitability report, which should include the following documents:
Deposito prezzo is the term used for a specific bonded holding account for the balance of payment related to the purchase of an Italian property.
Deposito prezzo protects against the risk of legal claims or encumbrances that may arise between the signing and registration of the deed of sale at the land registry (catasto).
Once you have signed a deed of sale, it is sent to the
land registry, where an official stamp is placed on the deed of sale. The
registered deed of sale is returned to the notary you used to authenticate the
transaction.
It generally takes two to three weeks to obtain the registered deed of sale and thereafter, you can obtain a copy from your notary.
A Last Will and testament is absolutely necessary to avoid causing conflicts among your heirs, especially if you are a foreign citizen who owns goods and property in Italy. Not only can a Will allow you to assign your inheritance to the appropriate beneficiary, but it could also be useful to prevent problems for your heirs, and it could even enable you a tax saving. Let’s see more specifically each case.
Those who are married or in a registered partnership and without children
Make sure to read this, prior to signing any property purchase offer in Italy
You’ve seen it:
the Italian property you’ve always dreamt about.
Now you have a
pen in your hand and the property purchase proposal in front of you, ready to
be signed.
Take your time before putting pen to paper, no matter who drafted that proposal for you.
You deserve a
little hesitation, especially if you are going to sign a boilerplate template
provided by a Real Estate Agent and not by your own legal advisor, or if there is anything
whatsoever that you feel is unclear to you.
If the proposal has
been provided by Real Estate Agents, I am sure they told you that it’s a
standard proposal, drafted as per common
general terms and in compliance with the Italian civil code; and that the
standard template itself has been approved by the Chamber of Commerce.
Property transactions where one of the parties is not an Italian individual, cannot be considered as a normal scenario. The involved professionals are not always experienced to deal with these cases.
Fact: In Italy
you cannot buy a property without the assistance of an Italian Notary Public.
By law, a Notary Public must remain impartial during the property transaction. A Notary can also provide legal advice if requested but must maintain impartiality when providing parties with legal advice . Read this article for further information about Italian Notary Public role.
There is no
legal obligation to engage the services of an independent lawyer for property
purchases in Italy. And, normally Italian
individuals do not hire an independent lawyer for property transactions between
themselves.
In Italy only an Italian Notary Public’s escrow account benefits from full and complete legal protection against possible creditors.
There are two main payments
you are expected to make when buying a property in Italy,or
that you will receive, if you are selling an Italian property; the deposit and the balance.
The deposit is usually paid upon purchase offer acceptance and it is aimed at confirming the parties’ intention to proceed with the purchase-sale contract. The balance is customarily paid upon closing, unless otherwise agreed.
You’ve signed a preliminary contract on a property. You rather rushed in to it because you didn’t want to miss out on what you thought was a great opportunity. It’s long been your dream to own a penthouse in the centre of Rome and when you saw this apartment, you just had to have it.
However, in hindsight and after viewing the apartment again, you realise the penthouse isn’t as big as you thought. When you first saw the place, you could see potential to extend in to the roof space, but you now doubt that the municipality will grant permission to convert the space. Besides, you recognise that even if your planning application is accepted, it’s going to be prohibitively expensive. The date for signing the deed of sale is looming. What can you do? (more…)
Italian inheritance tax, “Imposte di Successione” was abolished by law no. 383 of 18 October 2001. Subsequently, the government re-introduced inheritance tax through law no. 286, dated 24th November 2006. The law has been applicable to inheritance cases since 3rd October 2006. (more…)
opportunity. It’s long been your dream to own a penthouse in the centre of Rome and when you saw this apartment, you just had to have it.
Italian inheritance tax, “Imposte di Successione” was abolished by law no. 383 of 18 October 2001. Subsequently, the government re-introduced inheritance tax through law no. 286, dated 24th November 2006. The law has been applicable to inheritance cases since 3rd October 2006.