The house buying process
Getting it all together
It’s all part of the process
How does it all work?
So, you’ve got this far and everything is fine. The price is agreed - the next part of the process is writing and signing an agreement called the ‘compromesso’. This means compromise or agreement. You don’t have to be here in person to sign this contract.
This binds you into buying and the owner to sell to you at the agreed price and timeline.
The document is prepared by the agent.
You’ll need one or two things:
- Codice Fiscale. This is an Italian tax ID code. It’s easy enough to get and it doesn’t sign you up to the Italian tax system - please no! It’s just an ID code. The agent can help you get it and it’s a good idea to get it when you’re here.
- You’ll need a bank account too but that’s not crucial at this point. More on that in a moment.
The contract has these details:
- Details of the property - land parcels, etc
- Name of the owner
- Name of the buyer
- Deposit amount to be paid and by when - usually it’s a couple of weeks
- Date the deposit expires - the closing has to be before this date
If you pull out of the sale or don’t close in time you lose your deposit. If the seller pulls out they have to pay you back double.
Typically the deposit is paid within 10 days and the handover, the deed signing, is usually within 2-3 months but can be adjusted according to the agreement you have with the seller.
The deposit is usually paid directly to the seller’s bank account and it’s usually 10%. If you’re not comfortable with this it could be paid into a notary’s escrow account. Be aware you will have to pay a fee.
Once this contract is complete the agent registers it with the local tax office.
The next step is the handing over of ownership, the signing of the deeds.
The agent gets everything ready well beforehand, all the documentation. They’re responsible for gathering these 5 documents and getting them to the notary:
- Ownership titles of the house
- Floor plan of the house
- Land registry documents
- Energy certificate
- Building permits if the house was built after September 1967
A date is agreed upon with all parties - the sellers, you, the notary and the agent.
If you can’t be present for the signing someone else can sign for you. They have to be verified - their identity and signature and they need a Codice Fiscale.
The deed is usually done in Italian so a translator has to sign on your behalf. You have the right to choose the notary. Some notaries are authorised to do the signing in English, but not many.
If the notary isn’t authorised to do the deed in English and you don’t speak good Italian you need to pay a translator for a proxy as you have to delegate that person to sign on your behalf. They have to ensure that you understand the deed. This might cost around €1,000.
At the signing you pay the balance - this can be done through an Italian bank account if you had a chance to set one up or you can send it to the notary beforehand, into an Escrow account. This is safe and easy.
You will also have to pay the notary’s fee and purchase taxes. We’ll come back to costs in a moment.
The process of signing takes less than an hour, then the house is yours.
If there’s a mortgage outstanding on the property it has to be settled. A bank representative will be there to collect the payment. The notary will confirm if there’s a mortgage owing.
Do you need a lawyer?
If you want to make it much more complex, slow and expensive then you need a lawyer.
You have the notary and the agent. If you ask a lawyer they’re probably not going to admit that you don’t need a lawyer. If the agent suggests getting a lawyer I would want to know why.
If you want a lawyer, sure you can but the notary is between a lawyer and a judge so will ensure everything is done correctly. It’s a bit like asking the guy who pumps fuel into your car to check on the mechanic.
Maybe if you’re buying a business it might be necessary but then a good accountant is probably better for this. Lawyers are mostly for litigation in Italy so there’s probably no need for one unless you’ve got yourself into trouble.
You then need to get the bills transferred to your name - elec, water, gas, etc. Get help with this and count it in your costs. Don’t let the previous owners cancel the contracts - it's easy for them but difficult for you to set up after.