What rights must generally be implemented for a real estate sale? Right of first refusal? Preferential right? Compulsory administrative document or authorisation?
The law provides for several cases of a right of first refusal or an obligation to sell a property, such as:
- right of first refusal for the state or other public body in respect of the sale of properties with an artistic or historical interest;
- right of first refusal for farmers or neighbouring owners in respect of the sale of properties for agricultural use;
- right of first refusal for tenants in respect of the sale of properties for commercial use;
- limitations on the sale and purchase of housing built with funds from the state or other public bodies;
- possibility of losing certain tax advantages in case of transfer of ownership of a property before a certain period of time has elapsed.
Who fulfils the formalities for the implementation of these rights?
Generally, the notary deals with these. However, the parties, their experts or the real estate agents involved often take care of them directly (even before calling on a notary).
How and at what point does the buyer become the owner of the property?
Ownership of the property is transferred at the signing of the sale agreement, except for certain territories (in Northern Italy) which were part of the Austro-Hungarian Empire. In that region, ownership is transferred at the time of registration in the land register.
At what point is the payment made? By the buyer? To the seller?
The buyer pays the price to the seller when the act is signed in the presence of the notary.
How must I make the payment?
The payment has to be made by bank transfer or by bank cheque. The notary has to specify in the act all the elements that identify the payment method in detail (e.g. the cheque number).
How can I guarantee that the mortgages taken on the property against the seller will disappear?
When mortgages on a property need to be lifted at the sale (e.g. by using the sale price), the notary usually takes care of the whole procedure. The notary ensures that the lender signs a deed of consent to the deletion of the mortgages when the sale agreement is signed.
What taxes are usually payable on a real estate sale?
Are the rates available on an official website?In Italy, many and very different taxes are due on the transfer of a property ranging from a rate of 1% (one per cent) for the purchase of agricultural property acquired by a farmer or an agricultural entrepreneur, to 22% (twenty-two per cent) in case of transfers subject to VAT. Information on the most common cases of real estate sales are published in English on the Internet page of the Italian Council of Notaries at http://www.notariato.it/en/casa/fiscal-implications.
How and by whom are the taxes calculated?
The notary calculates the taxes, except when VAT is applicable, in which case it is calculated by the selling company. Apart from VAT, the notary is responsible towards the state for payment of all taxes relating to the sale agreement (even if the parties involved have not paid these taxes to the notary).
When and where is the tax payment due?
The taxes are due for payment at the signature of the sale agreement when the amounts are paid to the notary (the parties cannot make the payment themselves), except in the case of payment of a deposit on the price at the time of the preliminary contract. In that case, the taxes are payable immediately.
At what point can the new owner take possession of the property (handing over of keys)?
Generally, the new owner takes possession of the property when the notarial sale agreement is signed. This may be delayed (e.g. if the previous owner has to remove his/her furniture). Sometimes possession is taken earlier, such as when the buyer wants to refurbish the property before owning it.
What is the procedure for publication of the sale agreement?
The notary sends a copy of the sale agreement (nowadays almost always electronically and no longer on paper) to the land registry “at the earliest opportunity” (article 2671 of the Civil Code). A copy of the sale agreement is also sent to the cadastre for updating their register. This has to go hand in hand with payment of the taxes on the sale agreement for which the notary is responsible (except if VAT is applicable). In the territories in Northern Italy, which were part of the Austro-Hungarian Empire, the sale agreement is published by sending a copy to the office of the judge of the land register.
Who conducts the formalities of publication of the new ownership?
The new ownership is published in the land register (or, in the territories that were part of the Austro-Hungarian Empire, in the local land register), but always upon request and on presentation of such request by the notary.
What are the consequences of this?
As regards the land register, the consequence of publication is that the new ownership is enforceable against third parties. However, in those geographical areas subject to their own system of land register (territories that were part of the Austro-Hungarian Empire), the consequence of publication is that ownership is transferred.
-----------------------
Visit ETERIA, our division dedicated to foreign clients and discover all the services provided to individuals and companies