Luxury Law, though this article, has decided to answer the most common questions when buying a house. We have sintetized some of the most frequent asked questions which our clients ask us just before instructing our law firm.
How to buy property in Italy, process?
Very often, we have to explain our clients that buying a property involves different moments. Before giving our answer, we always ask if our client has already negotiated the price and made an offer. The answer to this question is very important, just because a lawyer may introduce him/herself since the first approach with the vendor and/or the real estate agent.
Therefore, the first process of buying a house in Italy, starts with negoziations!
Second important step is the due diligence process, checking title deeds, possible incumbrance, illegal constructions, plan permission checks, etc. These are just few things your lawyer needs to check before making a formal offer to the vendor.
Once your lawyer has carried out an initial due diligence, you are ready to make an offer. This is another important moment, since your offer will be a binding contract such as a preliminary contract. That’s why when you make a formal offer, you need to be very carefull on what you are signing! Read this article if you wish to now more about the due diligence process.
When you make your offer, you usually pay a small percentage as a deposit (usually 10%). The deposit is usually paid to the real estate agent or any other intermediator, if not directly to the owner.
There is an important different between a deposit called “Acconto”, and a deposit called “Caparra”. Be aware of the reason why you are paying this amount to the vendor because consequences are different in case of breach of contract from one of the parties.
Once you have paid your deposit, many things might happend, this depends on the preliminary agreement signed with the vendor. Difficult to sintethize, in just one article, all circumstances which might arise during this time.
Before committing to your final purchase, you need to contact a Notary. The Notary is chosen by the buyer who will pay him/her. He/she will ask to the vendor all documents related to the property and will draft the final deed of sale/purchase.
Once the contract is ready, buyer and vendor will sign a publich deed before the Notary. Finally he/she will register the final deed of sale at the revenue office.
He/she will release you a copy of the deed usually within 1 month.
How much is the cost of a lawyer for closing on a house?
The cost of a lawyer for closing on a house can be determined by the parties – client and lawyer – in writing, and any lawyer and client can decide what value to give to this job.
However, when both parties do not agree a certain price, in Italy we refer to the parameters which are established by law.
Some of the criterias for calculating a lawyer cost, are the followings:
In any case, a lawyer will require 15% for Overhead Expenses, and for documented expenses.
In terms of giving you a better idea of the average costs, here are the parameters set by law in case of an extra-judicial work:
If the value of the matter is higher than €520,000.00 it is usually applied a percentage in addition to the above costs.
Despite what mentiond above, a lawyer might provide you with a higher or lower estimate. The above just gives you an idea of the potential attorney fees. In case you have not received a precise estimate, a lawyer is entitled to release you an invoice for the amount established by law.
Buying a house in Italy as a foreigner, is it possible and how?
A frequently asked question when buying a house is the above. Meaning that some people may thing that the process is much different for a foreigner rather than for an italian.
If you are a foreigner, the process for purchasing a house will be the same as you were an Italian, however there are certain information you need to be aware of.
Here some of the info you need to know:
If you wish to move your residency to Italy, it is convenient for you to declare it in the deed of purchase. In this case, if you do not own any other property in the Country, you will pay a less amount of taxes.
Moreover, you need to declare to the Municipality where you have bought your house, that you reside at that address. Once your residency has been formally enstablished at the new address, you will not pay taxes such as IMU and TASI.
How much does it cost to buy a house?
The purchase price is not the sole cost you have to bear. You have to consider some other costs which are exclusively on the buyer’s account. These are:
Property taxes in Italy, what are the annual costs?
Each year you are required to pay IMU and TARI. Some Municipalities decide to divide this cost in two or more tranches to be paid within certain expiring dates.
IMU is a tax due by homeowners.
TARI is the rubish tax which everyone is required to pay, and depends on the square meters of the property, or on the number of people living in the house.
TASI is an additional tax which aim is to cover all publich expenses of the Municipality.
You do not have to pay IMU and TASI for the property you live in as your primary home where you have established your residency.
Why you need a lawyer for a home purchase? – Click here!