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Buy a House in Italy - Step 4
By admin | June 9, 2008
Completion takes place before a Public Notary (Il Notaio) and his (or her) involvement is indispensible. Basically a government official, the Notaio witnesses the transfer of title from one party to another and collects the taxes due on the transaction. Contrary to popular belief the Notaio does not act for both parties; he acts for neither party, being - as stated - a witness. With all parties present he will identify them, one by one, and then read through the completion document (Il Rogito) in detail making sure that everyone understands what is being bought and sold.
If either of the parties does not understand Italian sufficiently they will be required to either give a power of attorney (procura speciale) to someone to act for them or have the transaction conducted in both languages with the aid of official translators.
The Notaio will need proof that taxes and dues have been paid and he has to have ‘visure ipotecarie‘ to prove what, if any, mortgages or debts burden the property. With all in agreement he will ask each party to sign and the Notaio will sign and stamp the document. It is at completion that you, as the buyer, must pay the remaining balance of the price of the property, plus the taxes (reduced by the amount advanced at the time of registering the preliminary contract) and notaio fees. The vendor must also pay his taxes if there are any due.
If the parties have used the services of an Italian agent they will be asked to declare in the atto the name of the agent, fiscal code, registration number at the Chamber of Commerce, the amount of the invoice and the manner in which payment was effected. Where the notary finds that the sale has been transacted by an irregular Italian estate agent (one who is not registered at the chamber of commerce as ‘agente di affari in mediazione‘) he must inform the authorities.
Foreign agencies, agencies which are regular in their own home territory but have no legal establishment in Italy should not be required to provide their invoice copy to the notaio but, as with many laws in Italy, sometimes it is asked for.
Since 22 April 2006 the money laundering rules (antiriciclaggio) have obliged various professionals including estate agents and notaries to maintain a register of transactions for ten years. The register must show the parties, fiscal codes, profession, powers of attorney, property and price. In addition, in order to perform the atto, the notary must have copies of transfers/cheques to prove where the money has come from and where it went.
Once the transaction has been completed the Notaio will register the new title within twenty-one days. If you have taken a mortgage he will also register the mortgage deed. It may be some weeks, therefore, before you actually receive your copy of the registered title deed.
As with all property transactions anywhere in the world, there are additional costs to be paid when buying property in Italy. For the purchaser there are three main items; tax, notary’s fee and estate agent’s fee. For the vendor there are two main items, the tax and the estate agent’s fee. Whilst there is no Capital Gains Tax after five years of ownership a vendor is liable to pay CGT if the property is sold earlier. If the vendor is a private individual the CGT is levied at 20% on a normal house. Also worth remembering that the vendor is responsible for producing the required documentation on the property for the sale to take place; so any missing documents have to be procured at the vendor’s expense.
Topics: Essential reading, The buying process |
June 28th, 2008 at 9:53 am
Found your “step-by-step guide to buying an Italian property very helpful and interesting.
Your site is very user-friendly - thank you.
June 28th, 2008 at 3:37 pm
Fantastic! I’ve been looking to buy a property in Italy for a while, but been really unclear as to what the procedure was. Everyone I asked seemed to have a different idea! These four steps have spelled out the entire process really clearly! So glad I found you!
June 28th, 2008 at 6:11 pm
Remember, Jeff, you can ask us any questions you might have now or in the future.
July 13th, 2008 at 11:03 pm
What happens to the orginal deeds when the contract has been signed on the purchase of a property, please? I know that they go off to be registered at the local council but afterwards do they stay with the notary or should I insist that I hold onto the original deeds (and not just an authenticated copy of the original deeds)?
Also, what’s the best way for me to confirm that I own the property? Can I go to the local council myself and ask to see the relevant documents?
Any help much appreciated!
Many thanks
Stella
July 14th, 2008 at 11:27 am
Thanks for this question, Stella. Your ‘deeds’ will always be kept at the land/building register in your provincial capital but the notaio must give you a registered copy for your own files. Most notaios forget to do this so make sure you ask for and get this copy - usually about two to three weeks after the completion has taken place. This is the proof of ownership you require.