The process of selling a home in Italy consists of several steps that must be completed with great care in order to guarantee that both the seller and the buyer meet all legal and bureaucratic criteria. Using this as a foundation, I’ll walk you through the many steps involved in selling a home in Italy.
Your property’s selling price should be determined by looking at nearby comparable properties, its current condition, and the current supply and demand in your region before creating a marketing campaign. Buyers will almost always want to negotiate the purchase price, so it’s a good idea to put a floor price on your home. You have the option of using a real estate firm to advertise your house or coming up with your own plan from scratch. Because a real estate agent’s commission is often between 2 percent and 3 percent of the purchase price, the first alternative is more expensive. However a real estate agent may give your listing better publicity, thereby reaching a larger number of potential buyers.
A number of standards must be met when putting your home on the market. A passport and bank statement showing where you pay taxes are required if you don’t live in Italy. Please be aware that all documents that are not in Italian must be verified translations. It is also necessary to get a “Energy Performance Certificate” (EPC) at the beginning of the negotiating process, which offers information on the property’s energy consumption level. It is granted by an energy certifier, who can be an architect or an energy engineer who does an energy diagnosis of a property in order to estimate the building’s energy usage. Energy-efficient buildings range from A4 to G. (low energy saving building). It costs between €150 and €250 to get an Energy Performance Certificate, depending on the property type and the location in which it’s located. Furthermore, before signing the final contract, the buyer must review all of the property’s papers to confirm that everything is in order. Papers such as the deed to the property, the building permit, the use and occupancy permit, the cadastral documents, the environmental certification, and the technical administrative documents all need to be examined in great detail throughout this process.
Potential buyers who are interested in your home should give you a written proposal in which they formally express their interest and declare the price they are willing to pay for your property. Generally, a 5% deposit of the property’s worth is required as part of this contract, which lays out the main terms and conditions of the sale. After receiving an official offer, you must either accept or reject the deal in writing by that deadline. Preliminary Contract of Sale may be signed if you accept the buyer’s offer if the property is temporarily removed from market.
Both the seller and buyer are bound by the Preliminary Contract of Sale, which defines selling terms. The buyer makes a down payment of 10% – 30% of the property’s worth at this point. Note that it is more difficult to alter the purchase agreement once the buyer has previously paid a deposit. It is possible to cancel the contract and retain the full deposit if the deposit is classified as “Caparra Confirmatoria” and the buyer no longer wishes to proceed or fails to meet specific conditions. However, if you fail to meet your contractual obligations, the buyer will be entitled to a refund (which is normally double the amount of the deposit paid). The arrangement can be terminated if the deposit is classified as “Caparra Penitenziale,” in which case any party can do so.
Prior to signing the Final Contract of Sale, you must decide whether you or the buyer will be responsible for paying off the property’s mortgage or if the buyer is willing to take it over.
The final phase of the procedure is signing the Final Contract of Sale, which is the document that states the transfer of the property rights from the seller to the buyer. Notary Publics are government-appointed lawyers who act as both a witness to and registrant of property transfers, design the final contract of sale, and represent both parties in contract signings. Even while the buyer often foots the bill for the notary, the seller is sometimes on the hook for a tiny amount of it as well. Signing this contract implies duties for both parties; in other words, the purchaser will need to hand over the keys and ensure that there is no risk of eviction. On the other side, the buyer must pay the stipulated amount. Once the contract has been recorded at Land Registry Office, the notary will transmit the payment to the seller. Even if the negotiated amount has not been paid in full or the keys to the property have not yet been provided to the buyer, the transfer of ownership rights takes place immediately after the signing. You must pay personal income tax (IRPEF) or any other capital gains tax if you decide to sell your “first house” (prima casa) within five years of the purchase. However, if you acquire a new residential property in Italy within one year following the sale, you do not have to pay this tax.
Finally, if you wish to sell property in Italy, you must be aware of the legal and bureaucratic procedures. When it comes to purchasing real estate in Italy, foreigners who are unfamiliar with the market should enlist the help of an expert. Buy or sell property in Italy fast with us.