The Property Banks Buyers Guide to Italy
The real estate sales and
purchasing process in Italy is fairly streamlined and not
particularly complex. For the most part, a foreign national stands
in the same shoes as does an Italian citizen, with one exception.
When it comes to the purchase of real property in Italy, a foreign
national must pay a 11% purchase registration tax after the sale
itself is consummated. An Italian citizen must only pay a 4%
purchase registration tax.
In Italy, the first step towards the purchase of property is the
initial agreement between the parties. Once the initial agreement is
signed and executed, there are some primary tasks that must be
completed by the parties. For example, the buyer must obtain
appropriate and sufficient financing. The seller must work to make
certain that title to the property is free and clear of any and all
encumbrances so that it can be conveyed to the buyer.
When this initial agreement is signed, the seller will post a
deposit in the amount of at least 10% of the total purchase price of
the real estate being sold. It is not uncommon in Italy for deposits
to run as high as 50% of the overall purchase price of the property.
Deposits in Italy tend to be higher than what is seen in many other
countries around the world.
Generally speaking, the deposit is not refundable if the buyer
simply decides that he or she does not want to buy the property.
Indeed, the only real circumstances in which a buyer can obtain a
refund of the deposit -- even a hefty deposit of upwards to 50% of
the purchase price -- is when the buyer backs out of the deal or in
circumstances when clear title to the real estate cannot be obtained
within the time set forth in the initial agreement between the
parties.
The real estate purchase process is overseen by a notary in Italy.
The notary actually has more duties than is normally associated with
a notary involved in real estate transactions in other countries the
world over. For example, the notary in Italy is responsible for
carrying out title searches to make certain that the title to the
property is free and clear of any obvious defects or liens.
Many real estate experts in Italy recommend that a purchaser take
the time to hire what is known as a geometra. The geometra will
survey the physical boundaries of the property for sale to make sure
that it actually does comport with what is listed on the legal
description that is subject to a contract for sale. (These experts
maintain that this particularly is important when it comes to older
properties in Italy.)
The real estate purchasing process can take upwards to six months to
complete in Italy. For this reason, unlike in many other countries
around the world, it is a commonplace occurrence for a purchaser to
move into residential property after the initial agreement is
signed. In most countries around the world, the purchaser does not
take possession of the property until the final agreement is
executed and the deed to the property is transferred from the seller
to the buyer.
Real Estate Prices in Italy
Range Varies, for example:
From £30,000 / 58,000 for a small property in need of extensive
development.
From £35,000 / 150,000 for an apartment.
From £50,000 / 250,000 for a rural home.
Generally speaking, Italy is fast becoming popular as an alternative
to the like of Spain/France and as a result property is starting to
increase rather quickly in certain areas especially in Tuscany and
the coastal areas.
