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US buyers and investors in Italy, to buy in italy, buying in italy
An increasing number of US buyers and investors have been investing in Italian real estate, especially in recent years. Italy, indeed, is recognized worldwide for its impressive artistic patrimony, beautiful cities, relaxing vacation des tinations, and overall quality of life. Many US buyers/investors have been taking advantage of the friendly relationship that has traditionally joined together the United States and Italy, and have beneficially explored the opportunities that the Italian real estate market has to offer, both for residential and commercial purposes.
It is generally advisable to the US buyer to seek the assistance of a licensed real estate agent (agente immobiliare) for the initial property search; All real estate agents must be registered with the local Chamber of Commerce (Ruolo degli Agenti d’Affari in Mediazione); if the agent is not registered, he/she will be liable to fines and other penalties and, more importantly, will not be entitled to the agreed upon commission. The buyer will generally be required to sign a standard contract to retain the services of the real estate agent: such contract should always be carefully analyzed before its execution, and special attention should be paid particularly to the terms relating to the amount of the agent’s commission, the time when it will become payable, and the available mechanism for controversy resolution in case of fee dispute.
The “Proposta” is a written proposal. Italian law requires all contracts involving the transfer of real estate to be in writing. Usually, the Proposta takes the property off the market for a specified period of time during which the buyer, together with his/her attorney and technical advisor/s, can conduct the necessary checks on the property. The buyer should always pay special attention before signing any Propostaas this offer is usually irrevocable (proposta irrevocabile) and, thus, binds the buyer - for the specified period – in the purchase of the property, but it does not bind the seller until the moment the seller formally accepts it.
The “Compromesso”. When the seller accepts the buyer’s offer and formally communicates his/her acceptance to the buyer, the two of them have entered into a binding agreement, which is usually formalized in the “preliminary contract” (Contratto Preliminare di vendita or Compromesso). In general terms, the Compromesso stipulates that both parties agree to buy and sell the property, and that they concur on the terms and conditions of the sale. The Compromesso is often prepared by the real estate agent or by the construction company; however, all buyers should always seek the assistance of their Italian attorney to check all terms and conditions of this document properly as any errors, misunderstandings, or omissions in it could have far-ranging legal as well as financial consequences. In short, the Compromesso is a binding legal agreement to complete the purchase at some future specified date, in the offices of a local Italian notary. As mentioned before, the notaio is a public official who is legally empowered by the Italian government to witness, validate, and register deeds and contracts for the sale and purchase of Italian property. The activity and functions of the notary are regulated by the Italian notarial law (legge notarile); the notary, although usually selected by the buyer, is independent and impartial, and charges legally-fixed fees for his/her services, computed on a sliding scale of charges, depending upon the declared sale value of the specific property.
The “Rogito Notarile”. The executed preliminary contract will be the basis upon which the final “Deed of Sale” (Rogito Notarile) will be drafted by the notary and executed by the parties. Usually the choice of the notary will be made by the purchaser as he/she will be the party responsible for the payment of the notary’s legal fees. The execution of the Rogito will normally take place in the offices of the notary and, eventually, in the presence of two witnesses (testimoni); during the stipulation (Stipula), the notary will read and explain to the parties the clauses of the deed, providing the parties with impartial advice as to all legal aspects arising from the transaction. At the moment of signing the deed, the buyer will tender the previously agreed-upon payment to the seller and the seller will deliver to the buyer all ownership documents and the keys for the property.
