It is true most Italians don’t have a survey done, but of course you can. The cost is usually €500 + Vat, and we can provide a translation in English (extra fee applies). If you buy an apartment which has been completely restored by a company the Italian Civil Code requires that company to guarantee the property from all defects for 10 years (Similar to the NHBC in the UK) so a survey isn’t really necessary.
To take out a mortgage on an Italian property you have to go through an Italian bank (or a foreign bank which has branches in Italy). If you find a property with us, our agents will assist you in obtaining a mortgage. We have a close and continuous partnership with Top Italian Mortgage. Our customers are followed at any time of the mortgage application (see the post)
Bear in mind that quite a lot of documentation is required by Italian banks and the future rental income of the property will not be taken into account, you need to provide information about your income and financial status.
Only properties that are habitable and accessible can be mortgaged.
For non-residents who wish to obtain a mortgage in Italy, usually the most you can borrow is about 50-60% LTV.
The cost of arranging a mortgage can be quite high with arrangement fees to pay as well as a government tax of 2% of the amount borrowed, in addition to an extra notary deed (usually €2500 – €3000).
If you own assets in other countries it may be simpler to mortgage them and pay cash for your Italian house.
As anywhere else, some are, some aren’t. It depends on the owners and how quickly they would like to sell, and how long it’s been on the market etc. In general, the lower the price the less negotiable it is.
In Italy it is possible to sign a purchase agreement (a ‘Proposta Irrevocabile d’Acquisto’) which reserves the property for you for usually about a month maximum until you sign the compromesso (preliminary contract). A deposit is required (usually €2000 – €10,000) which is held by the agency and returned to you at compromesso, or which becomes a payment on account. If you change your mind about buying you would lose your deposit, but you are protected against any legal or planning issues should they arise.
It depends on the situation of the buyer and seller. If the buyer is ready to go and the house is vacant, about 6 – 8 weeks is usual. Quite often paperwork has to be prepared, registrations or plans updated, occasionally there are planning issues sorted out, and this means it can take longer. It also depends on whether you are coming in person or arranging power of attorney, as this takes a bit longer to arrange too. If the property is vacant, and all paperwork is up-to-date it is possible to buy immediately, as soon as we can make an appointment with the notary.
Firstly of course, and most importantly, the current situation will not change until we actually leave the EU, so not for about 2 years.
The current situation is this – anyone from any country can buy a property in Italy, whether they are from the EU, non EU countries in Europe, the USA, China or anywhere else in the world!
So British people post Brexit will still be able to buy property in Italy.
Yes. If you do not speak fluent, enough to understand detailed legal contracts, you will need to have a translator at the notary deed. Your agent or the notary will usually arrange this so you don’t need to worry about it.
The total fees for buying a property in Italy are approximately 10 to 20 per cent of the purchase price. Anyway, it may vary from case to case
1) THE FISCAL CODE (Codice Fiscale)
If you are thinking to purchase a property in Italy, in fact as well as to open an Italian bank account you will need a CODICE FISCALE.
It is an identification code calculated on the basis of your surname, your names, the place of your birth and the date of your birth
and which will be used any time you will need to deal with the Authorities:
2) OPENING AN ITALIAN BANK ACCOUNT
In the event of a purchase it is essential to open a bank account in Italy not only to
transfer there the funds for the completion (as the final payment normally happens in Italian bankers drafts)
but also to get the various utilities paid automatically.
3) FORMAL OFFER OF PURCHASE (Proposta di acquisto)
When a client, after having visited some properties, decides to go ahead and to buy one of those,
the negotiation starts with an OFFER. The offer of purchase (proposta di acquisto) must be in writing.
Then, if the offer has been accepted it can be verbally communicated.
Once the vendor signs it, accepting the offered price this means that he undertakes not to sell the
property to anybody else until a certain date. This letter is to protect the buyer from losing the opportunity to purchase.
4) CADASTRAL CHECKS
Before going ahead would be better to investigate the title of the property at the “Land registry” (Conservatoria e Catasto).
This would be useful to check that the property is regularly registered, that it belongs to the person who is undertaking to
sell it and if there are loans on it.
5) PRELIMINARY AGREEMENT OF SALE (Compromesso)
The Compromesso is drawn up and this is a legally-binding document which states the agreed sale price,
the completion date (Rogito) and any information and rights the property has.
[But it needs to be kept in mind that also the offer of purchase, once accepted, is legally binding.]
The Rogito is then drafted and it is usually executed 1 to 3 months after the execution of the Compromesso.
Once this contract is signed and a “caparra confirmatoria” (a deposit) of about 10% of the purchase price is paid,
the seller may only withdraw if he pays back to the buyer the deposit plus an amount of money which is equal
to the deposit itself. Should the buyer wish to withdraw, he will lose his deposit in its entirety.
6) DEED OF PURCHASE (Rogito)
The deed of purchase, final contract or ‘atto notarile’ is usually signed after the compromesso –
which is not mandatory as the definitive contract can be immediate – and only when all the
documentation is available. It is signed by both parties, the balance is paid and the property is officially transferred.
Following completion, the notary issues a certified copy of the deed of sale and registers a
certified copy of the deed with the Land Registry (Catasto).
Earnest money is money put down to demonstrate your seriousness about buying a home. It must be substantial enough to demonstrate good faith and is usually between 1-5% of the purchase price (though the amount can vary with local customs and conditions). If your offer is accepted, the earnest money becomes part of your down payment or closing costs. If the offer is rejected, your money is returned to you. If you back out of a deal, you may forfeit the entire amount.
It’s not required, but it’s a good idea. Following the inspection, the home inspector will be able to answer questions about the report and any problem areas. This is also an opportunity to hear an objective opinion on the home you’d like to purchase and it is a good time to ask general, maintenance questions.
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