If the Sale Falls Through: Deposits Under Italian Law

You have signed the compromesso (the Italian preliminary contract) and paid a deposit. Then something goes wrong: the mortgage is refused, the seller changes their mind, you find another home. What happens next is decided by Italian law, whatever your nationality. Here are the rules.

1. No cooling-off period
Once signed, the preliminary contract binds both parties (art. 1372 Italian Civil Code). There is no period to change your mind: in France the compromis de vente gives the buyer 10 days to withdraw, in the UK buyers can usually walk away until contracts are exchanged. In Italy, the commitment starts at signature.

2. Confirmatory deposit (caparra confirmatoria)
This is the most common kind (art. 1385 Civil Code).

• If the buyer fails to complete without good reason, the seller can withdraw and keep the deposit.
• If the seller defaults, the buyer can withdraw and claim double the amount paid.

Alternatively, the party who kept to the contract can ask an Italian court to enforce it (a judgment that transfers the property, art. 2932) or to terminate it with damages, which must be proved. You cannot do both: keeping the deposit replaces a damages claim.

3. Penitential deposit (caparra penitenziale)
If the contract calls the deposit "penitential" (art. 1386), it is the price of a right to withdraw. Whoever walks away loses the deposit (or pays it back doubled), and that is the end of it. The word written in the contract changes everything.

4. If your mortgage is refused
If you need a mortgage, the contract must say so as a condition (art. 1353): "if the loan is not granted by [date], the contract has no effect and the deposit is returned". Without that clause, a refused mortgage does not release you.

5. If completion does not happen: formal notice
If the completion date passes and the other side does not turn up, you can serve a written notice giving at least 15 days; after that, the contract is terminated (art. 1454). The breach must be serious, not a minor delay (art. 1455).

6. Missing documents and surprises
It is also a breach if the seller cannot provide the documents needed for the deed, or if undeclared mortgages, seizures or planning irregularities appear. That is why checks must be done before you make an offer.

How we work
Since 2003 Aquamarina Real Estate has helped international buyers in Sanremo, Bordighera and across the Riviera di Ponente. Before any offer, our technical collaborators check the property; in the contract we write the type of deposit, conditions and dates clearly.
Call +39 0184 26.16.87 or visit us in Sanremo, Via Roma 32, and Bordighera, Via Vittorio Emanuele 302.

Read also: The Compromesso: Signing a Preliminary Contract in Italy · Buying a Home in Liguria from Abroad · Properties for sale

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This guide is for information only and does not replace advice from a notary or lawyer.