Buying a property
Property viewing is free of charge. If you decide to purchase a property that we have introduced to you we will charge you 3% of the sales price plus IVA. This amount is payable upon the signing of the preliminary contract of sale (contratto preliminare). Our minimum fee is € 3,000 plus IVA.
For us to assist you better in finding a property, please complete our property requirement form.
Our fee covers:
- Negotiation with the buyer in order to come to an agreement regarding the terms of the sale.
- Drawing up a letter of offer.
- Obtaining your tax code (codice fiscale).
- Opening a non resident current account for you with a local bank.
- Informing you of what to do and when with clear explanations of why!
- A calculation of your closing costs and how and when they are to be paid.
- Drawing up the preliminary contract along with a translation if you are an English speaker.
- Assisting you when the time comes for you to transfer funds to your own Italian bank account or to that of the buyer.
- The registration of the preliminary contract.
- Booking the notary and providing him or her with all of the details necessary for the sales contract.
- Our presence at the final contract of sale and a full explanation of what will be signed as well as a translation of the document if you are an English speaker.
Our aim is to guide you through the whole process step by step so that you understand it and are comfortable with it. At no time will you be left to fend for yourself.
If you require a mortgage in order to purchase your chosen property we will be happy to assist with the application. If you decide to use the bank that we have introduced you to then this service will be free of charge. For other banks we will charge a fee of € 500 plus IVA.
Once both parties have reached an agreement a preliminary contract of sale is signed with which the vendor and the buyer are mutually obliged to conclude the future contract of sale establishing a date, the price of the property and the method of payment as well as further reciprocal obligations that they intend to agree upon. To reinforce this obligation the buyer hands over a portion of the purchase price as a confirmatory deposit, this is normally a sum that represents between 10% and 30% of the agreed purchase price. If the party who has handed over the confirmatory deposit fails to fulfill the obligations within the preliminary contract, then the vendor may withdraw from the agreement and retain the confirmatory deposit. If on the other hand the vendor withdraws from the contract the person who intended to purchase the property is entitled to a refund of double the amount that was handed over. Generally, 2 to 4 months pass between the date of the signing of the preliminary contract and the date of the signing of the notarized contract of sale; the contract with which the buyer gains possession of the real estate property.
Le Dimore will arrange for the registration of the preliminary contract at the tax office. At this point a portion of the purchase taxes/duties payable by the buyer are due and correspond to 0,5% of the confirmatory deposit (this sum will be deducted from the registration costs paid at the moment of the notarized contract) along with a fixed tax of € 168 and a number of revenue stamps, the sum of which will be calculated at the time of registration.
In Italy it is obligatory for the terms and rights relative to the real estate property to be transcribed at the land registry office (these offices are public and therefore may be consulted by anyone who is interested), the purpose of this is to avoid misunderstandings regarding the property; the title of real and partial rights and the existence of mortgages or other prejudicial contractual obligations. Furthermore, prior to the signing of the preliminary contract of sale, it is opportune to carry out specific searches regarding the real estate property object of the sale.
The actual transfer of the property takes place by public contract or by private agreement with the authentication of signatures, in any event they must both be signed directly by the parties (or by persons acting as proxy for the parties) in front of a notary. The same notary will be obliged to register the signed contract at the tax office, transcribe it at the land registry office and to register the transfer of the property ownership with the cadastral office.
The searches carried out by Le Dimore include:
- Visure Ipotecarie - a document relative to a specific property that displays it's history; sales that have occurred in the past, if the property has been inherited or donated;if there have been foreclosures and/or sequestrations.It also shows if the property has a voluntary mortgage with a bank or if it has encumbrances or contractual obligations.
- Visure Ipocatastali – a document which will identify the title holders of agricultural land bordering the property object of the sale and verification of their eventual right to exercise pre-emption rights.
- Examination of the technical documentation in order to verify that any type of work carried out on the building was authorized by the release of relative permissions.
The costs relative to the notarized contract of sale are all borne by the purchaser.
The notary fee is calculated in proportion to the value of the sale.
The registration taxes (both cadastral and ipocatastali) are paid to the notary at the time of the notarised contract of sale and are then in turn paid by the notary when the contract is registered. If a sale of property for habitation (along with any outbuildings or other pertinent accessories) takes place between private individuals then the taxable value necessary for the registration (both cadastral and ipocatastali) may be calculated using the cadastral value of the property rather than the actual sales price. Both the taxeable value and the sales price are included within the notarised contract of sale. For all other sales contracts in which the buyer is not a private individual and/or regarding land or buildings that are not for habitation, then the taxable value is calculated using the actual sales price of the property and not the cadastral value. For buildings the taxes payable are equal to 10% of the value as described above, whilst land tax is equal to 18%. When a prima casa is purchased (that is a property that is to be a primary residence) then the buyer may take advantage of a concession that will reduce the tax payment. This concession gives the buyer the option to pay the registration tax with the reduced rate of 3% (instead of 7%) and the ipotecarie and cadastral duties at a fixed rate of € 168 each that is 2% and 1% respectively.
In order to take advantage of the concession:
- The property purchased must not be considered to be a luxury property. Luxury status is established according to regulations.
- The real estate property must be located in the municipality in which the purchaser either has residence or in which they intend to take up residence within 18 months of the signing of the notarized contract of sale.
- The purchaser must not already be the title owner of a property, have right of usufruct, use, habitation or residuary right of ownership in another property in the municipality in which the property to be purchased is located.
- The prospective buyer must not own, have the right of usufruct, use, habitation or residuary right of ownership in another property purchased with the concession allowed for a prima casa.
Purchases that differ from the above will be evaluated with our assistance.