Buying property in Italy differs from the purchase procedure in many other countries. It doesn’t always seem straight forward or easy to grasp. At first sight, Italy’s real estate market may seem bureaucratic, non-transparent and expensive. We can say that luckily it’s not always true, and the market is changing. The purchase procedure may be complex, but with preparation and professional assistance from trusted companies a purchase can be straight forward, safe and fun. SteiVell Properties prepares you for selecting area, and finds the property of your desires. We then assist you through the entire purchase.
Since entering the EU, and through financial crises, Italy has faced and dealt with several hardships. From planning how to recover severe budget deficiencies, to counteracting economic criminality and motivating political as well as personal efficiency.
Whilst in recovering stage, Italian property prices has been declining for more than 5 years. Sellers are eager to sell and open to negotiate prices. Even though Italy has a better economic forecast for 2015, Italians are in general careful with spending or investing themselves. With an understatement, we can say that it’s the buyer’s market in Italy right now, and especially for anyone who has money on the pocket. Prices will likely continue to decline for the two coming years, but are then seen to stabilize. If you select wisely you may now buy property to a significantly lower price than in many years, which will keep or increase its value over time. With careful research and professional advisors, a property purchase in Italy can be a good investment today.
5 recommended steps before buying property in Italy
The Italian property market doesn’t offer the same cohesion or one synchronized platform on the internet as other markets do. The procedure in Italy is not easily overlooked, and you may find it hard to know where and how to start. But as long as you start in the right end and know what you want, it can be very smooth and secure. Following we will give you our best advices about what to think of when buying Italy.
1. Write down and review your needs and desires The need’s analysis may seem obvious to you, but reviewing it several times makes you more clear on what you want and helps you and your broker to eventually find that. Take your time to brainstorm and analyze, write down all that is important to you. Decide what type of surroundings you prefer, which interests you like to pursue, when and how you will like to enjoy and use the property. What are your reasons for buying in Italy; what’s the purpose? Make sure to be able to explain to your agent so that they can makes sure to fulfill your needs. Decide your budget and what you’re prepared to pay for a home that perfectly matches your desires. Once you have a ”wish list” it is easier to start researching for what areas in Italy may match your preferences.
Download your Need’s Analysis here to get started!
2. Locate your area Italy is full of wonders, and fantastic property can be found in many places. Anyhow, location is, and always will be the most important factor when buying property. The location needs to fit your personal needs and budget, as well as any buyer’s, if you plan to sell. What is important for you in terms of availibilty/flights from your country, surroundings, nature, views, activities? Try to be as specific as possible. Welcome to use SteiVell’s support for finding the right area just for you. It doesn’t cost you anything but helps you narrow down your search.
3. Go visit the area(s) that you consider. It doesn’t matter how strategic or smart a location seems to be; most important is that you love the spot in real life. Go see it, feel, experience it! SteiVell will do personalized area researches on your request, ask us for more information.
4. Research When you have located your area in Italy, research the market of the area. Double check and confirm that it’s a good area for you, and make sure you may find s suitable property in that area. SteiVell shares our knowledge of that market with you, and will do personalized area researches and property finding finding for you.
5. Get an overview of the procedure Before you start a purchase, get a brief overview of the steps a purchase implies. Once you have the overview, you can prepare yourself for future steps and that way save time and money, and you will avoid getting stuck along the way. Steivell will keep you prepared in each step of the purchase.
The purchase procedure in Italy
Bidding Once you have found a property that you like to buy you lay an official bid in writing on the property, together with a symbolic payment which signifies your serious interest. The bid can be accepted or negotiated by the seller and may take up to a few weeks to settle.
Reservation and deposit The buyer pays a small (symbolic) deposit and receives the seller’s acceptance of the offer in written notice. The property is now reserved by you.
Codice Fiscale This is your Italian birth certificate that you need in order to sign the preliminary contract and for many other things, like paying taxes, electricity, and water bills or even purchasing a fixed mobile phone number. SteiVell helps you arrange your Codice Fiscale.
Inspection of the property An inspection may be recommended to verify its current state and in order to draft the specification of work that the seller shall undertake before finalizing the sale.
Fiddeiussione The insurance bond or bank guarantee secures the money paid for a property not yet completed or built. The seller of such property is by law bound to provide, at his own cost, a suitable bond to to protect the money paid in advance. The buyer will in case of the building company’s bankruptcy and failure to deliver the property, be covered by this bank/insurance bond and its insurance company, who will cover all the payments.
Preliminary Contract – Compromesso The Compromesso is a legally binding agreement to sell/buy the property. It is a complex legal document which should contain all premises of the purchase. It defines the property in detail, including registry numbers from the Local Land Registry (Catasto) and blue prints. It states conditions such as agreed price and payment stages, deals with any existing mortgages or third parties’ rights and all other agreed conditions regarding the property purchase. When signing Compromesso, a deposit will be payable, ranging between normally 10% and 30% of the total price. The contract should be submitted to a specialized Italian lawyer for advice before signing. In some cases, you may choose to go directly to Rogito, the final contract and skip the procedure of Compromesso. In that case you are subjected to the same procedure but you will close the deal at once and will be entitled the direct access to the property.
First stage payment is due at the time of signing the Compromesso. Before payment you shall receive the bond/Fiddeiussione. At this stage also the payment/commission to the broker, who receives a commission both from the seller and the buyer, is to be paid in full or in part as previously agreed.
Opening a bank account A bank account will be needed for check payment at Rogito, the final contract, and for running costs such as water, electricity etc.
Inspection After completion of agreed works according to Compromesso, it is recommended to verify the work through an inspection. If the state of the property complies with the premises of the Compromesso all should be in order for moving on to final contract. If not, a list of remaining work shall be communicated to the seller with a deadline.
Final Contract, Rogito This is the last step which finalizes the purchase. The Rogito is signed at the Notary selected by you, who has controlled and prepared all documents in advance. Contracts are read out load and if you don’t speak Italian you should have a trusted Italian-speaking person present during the meeting to represent you. You pay the remaining amount of the agreed property purchase price, either with a bank check of your Italian bank or with a bank transaction with immediate effect. Immediately after signatures has been exchanged and the money is available on the sellers account transferred, you are the owner with immediate access to your property.