Italian Property: Cadastral and Zoning Compliance

Italian Property: The Importance of Cadastral (Land Registry) and Zoning ComplianceItalian Property: Cadastral and Zoning Compliance

A great deal of Italian property is either completely or partially illegal.

Even slight discrepancies in plans, such as distribution of internal spaces can expose you to civil or criminal repercussions. The minimum penalty for the seemingly most trivial of matters is at least Euro 1,000. This financial penalty is over and above professional costs to remedy the discrepancy.

Planning discrepancies  impact the future marketability of your Italian property

When you purchase an Italian property, due diligence checks regarding Cadastral and Zoning compliance are of the utmost importance. Ensuring your property complies with the law will save you time, money and stress in the long run.

Making sure your Italian property complies with the law isn’t just applicable to sales and purchases. It is also relevant for other cases such as, obtaining a mortgage, planning renovations, accessing tax benefits and subsidies and organising inheritance and asset division.

Cadastral Compliance (legittimità catastale)

This term refers to the compliance between a property’s current condition and its registration in the Italian Cadastre. As such it does not have a zoning relevance.

Italian tax authorities manage cadastral services. Entries in the Cadastre neither prove ownership nor property compliance with zoning legislation.

Zoning Compliance (legittimità urbanistica)

This term refers to the compliance between the property’s current condition and past planning permission. Many property entries in Cadastre do not match with zoning compliance.

It is crucial to verify this element before purchasing or selling an Italian property or if you are considering renovation work on a property.

Checking zoning compliance may reveal the presence of illegal work to the property. This could jeopardise being able to legally market the property. A lack of zoning compliance can generate legal disputes during the conveyancing process.

Zoning and Cadastral Compliance in Notarial Deeds of Sale

Since July 2010 it has been compulsory to prove in notarial deeds of sale, that a property complies with zoning and cadastral legislation.

It is therefore compulsory to list in the deed of sale the various building permits used in order to build, extend or renovate a property.

If the property was built prior to 1st September, 1967, exemptions may apply to omitting the property’s zoning history. After this date however, any renovation work must be listed.

Finally …

At De Tullio Law Firm we are specialists in Italian property and inheritance matters. Before signing any property-related paperwork, please get in touch with us. We are here to help.

 

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Does The COVID Pandemic Impact The Italian Property Market?

COVID pandemic impact on the Italian property market

If you own property in Italy or you are planning to buy one, you may be wondering how the COVID-19 pandemic has impacted the real estate market in Italy.

Unfortunately, many people have lost their jobs or have had to halt professional activities during the pandemic. You might think that this will force property prices down so it would be a good time to invest in real estate in Italy.

Is that true?

Will the COVID pandemic negatively impact the Italian real estate market?

Coronavirus Impact on Italian Property Market

This is not an easy question to answer. Because Italian real estate agencies have only recently restarted their activities, it is too early to evaluate price fluctuations.

Generally speaking, no matter the cause of a crisis, properties sell at lower prices if owners need cash in the short term. However, if owners don’t need of cash, it is unlikely that they will sell at lower prices to achieve a quick sale.

How will COVID effect Italian house prices?

In order to understand the impact of COVID on Italian house prices, there is an important cultural aspect to consider. For Italians, investing in the property market and has always been seen as a secure investment. In any period of crisis, property safe havens become even more relevant.

In light of the above, it is hard to say how the pandemic will actually impact Italian property prices. It is difficult to predict whether property prices in Italy will drop or remain substantially the same.

What about pre-pandemic property contracts?

The scenario might be slightly different for property purchase negotiations started prior to the pandemic.

If you signed a contract to purchase an Italian property but the pandemic caused a delay in completion, it is unlikely that your situation has changed. Once it is possible, your transaction will complete according to the terms and conditions of your contract.

In other cases, you may be able to claim a force majeure applies due to the pandemic. It depends on the specific circumstances. For example, the exact fulfilment of the contract, payment timing, breach of contract claims, etc.

Finally …

If you would like more information about how to price an offer for an Italian property or, if you need advice on the impact of the pandemic on a property contract, please get in touch.