“Italian property purchases. What’s the legal position when it comes to defects and noncompliances?”

Over the years, De Tullio Law Firm has helped clients deal with all sorts of defects and noncompliances relating to Italian property purchases.

Take for example, a couple who arrived in Tuscany for their first holiday at their recently purchased dream property. They found the previous owner’s brother and family in residence. It transpired that the brother had inherited co-ownership of the property. He had no idea the property had been ‘sold’ from under his feet.

Then there was the American family whose entire kitchen ceiling collapsed one morning at breakfast. It happened a couple of days after they moved into their villa in Taormina. Fortunately, no one was badly hurt. They ended up having to take the previous owner to court. The collapse had been caused by a water leak that the vendor had hidden. After the fact, a surveyor determined the had been going on for some time.

There are many other cases where buyers end up in trouble. This is generally because the vendor has failed to disclose, or misrepresented crucial information pertaining to a property. Issues range from ownership, divorce and inheritance to planning irregularities and zoning restrictions. Then there are matters of outstanding mortgages, adverse possession, rights of way – the list is long.

DIY conveyancing in Italy is risky

Many buyers, Italian and non-Italian, want to save money by taking a DIY approach to their conveyancing.

For most people buying an Italian property is a major investment and it entails risk.

Buyers should make sure they do their homework thoroughly. Some buyers, however, look to shave costs and cut corners here and there. Generally, this involves sacrificing professional advice such as engaging a surveyor or a lawyer.

Instead, many people rely on what the vendor or the real estate agent tells them. Both parties have a vested interest in selling the property. If buyers are lucky everything goes fine. If not, buyers end up with a property that later needs a lot of costly fixes and may even be unsaleable.

Always seek professional advice to ensure protection against defects and noncompliances

Contractual terms and conditions serve to protect buyers against defects and noncompliances. Where defects and noncompliances come to light during due diligence, the promissory buyer could terminate the contract for cause.

In the Toarmina case, if the family had known about the failure to disclose a known water leak, they could have terminated the contract. Or, if they had anyway wanted to proceed with the purchase, they could have either made the purchase conditional on the owner repairing the leak. Alternatively, they could have requested an adjustment in the purchase price to take into account the cost of remedying the defect themselves. The latter two options ensure a continuation of anticipated economic exchange between the contracting parties. In addition, they also represent a general means of protection for promissory buyers.

As a final point, article 1482 of the Italian Civil Code contains provision to protect a promissory buyer who, having signed a reservation offer or preliminary contract discovers, during due diligence, undisclosed financial charges on the property in question. For example, a mortgage, a lien, a court repossession order. In this case, a promissory buyer can request suspension of purchase payment until the property becomes unencumbered.

Finally …

For over 55 years, De Tullio Law Firm has been providing international clients with independent legal advice throughout Italy. We are specialists in cross border property, inheritance and family law.

We can guide you through the whole purchasing process or organise the whole process, including an Italian property survey, on your behalf. Get in touch with us.

If you would like further information about buying an Italian property, you may find our buying in Italy guide useful.

Always seek knowledge about the risks entailed in property investment. If you are a promissory buyer in need of support, guidance or advice, please get in touch.

Check the legalities before you start viewing Italian properties

You’ve seen a number of Italian properties online that you really like. You want to book flights to Italy, organise a rental car and accommodation to see the properties for yourself. But, how do you know if the properties you’ve set your heart on seeing are legally safe? Use our Italian property services. We can check the legalities before you decide whether it’s worth viewing.

Pre-purchase Italian property services

We can provide an independent and professional pre-purchase property background check. It’s simple. You give us the list of properties you want to view, we check all the legal details.

That way, you can save time and money as well as avoid problems such as properties with shared title deeds, other legal and financial complications, adverse possession or planning permission issues.

Knowing exactly where you stand before you view properties, you increase your chance of finding the right property first time. This prevents wasted trips and the expense of repeat visits and false starts.

Pre-sales Italian property services

We can also provide a pre-sales background check service for owners preparing to put their Italian property on the real estate market. Ensuring you have all the legal details in place as part of your property sales package offers vendors a competitive advantage when they market their property.

Finally …

For over 55 years, De Tullio Law Firm has been providing international clients with independent legal advice. We offer services in all the major fields of Italian law with particular expertise in real estate, residency, family law and inheritance matters. If you would like to talk to us about out Italian property services, please get in touch with us.

You may also find our Guide to Buying Italian. Guide to Selling Italian Property and Property Buying Checklist useful. We also have a number of info videos which aim to help you avoid pitfalls when buying and selling Italian property.

At what stage of the Italian property buying process should you contact a lawyer?

The Italian property buying process is quite complex. At the very least, it differs from what buyers may have experienced at home. The question about contacting a lawyer is one overseas buyers frequently ask us.

On the one hand, people worry that contacting a lawyer too soon, may be a waste of time or costly. The concern is that they might not actually proceed with a property purchase immediately or ever.

On the other hand, people fear that if they don’t contact a lawyer soon enough, they may find themselves in trouble. Perhaps with a request to pay broker’s fees or a deposit on a property. They worry about committing themselves and their money, without appropriate, independent legal advice.

We would recommend getting in touch with a lawyer before you view any property in Italy

Most experienced property lawyers in Italy appreciate that you will not necessarily find your ideal property during your first trip. They will also understand that you don’t need their help immediately. A reputable lawyer will recognise that it is helpful to have some initial guidance and their details at hand just in case you do. Many Italian law firms, including ourselves, offer a free consultation for this purpose.

If you contact an Italian property lawyer before your trip, they can outline the Italian buying process and provide details of legal fees. There is no obligation to appoint them just because you have sought some advice about your particular situation.

The lawyer will also be able to confirm other costs associated with a property purchase. That way, you can factor these additional costs into your budget before you negotiate a purchase price with the vendor or estate agent.

Getting in touch with a lawyer early also gives you the opportunity to speak to them on the phone or even to meet during your trip to Italy. This will allow you to  decide whether they are the right lawyer for you.

Once you have had contact with a lawyer you should feel more confident about moving forward with your property purchase. You will know that you have someone at hand who can assist you with all aspects of your property purchase in Italy.

Finally …

Having a home in Italy is a dream for many. It is also a major investment. There are many aspects that need careful consideration before taking the plunge. For example, the Italian buying process, buying structures, tax and inheritance to name but a few.

If you are considering buying a property in Italy, think long-term. Make sure it’s for the right reasons and that you have done your research absolutely thoroughly.

De Tullio Law Firm has been guiding overseas buyers with their Italian property investments for over 55 years. If you need any advice, an independent second opinion or, if you would just like to discuss your options with a specialist we are here to help.

For more information on buying property in Italy, you may like to read our comprehensive guide on the subject. You may also find our info videos useful.