Certificate of Legitimate Status

Certificate of Legitimate Status

Italy’s real estate landscape has seen significant changes with the implementation of Law 120/2020, known as the Simplification Decree. This decree aims to streamline and simplify building procedures for public administration and reduce complexities for citizens and businesses. One notable aspect is the introduction of the Certificate of Legitimate Status, a crucial document impacting property transactions.

Understanding Tolerances in Building Regulations

The Simplification Decree integrates into the Unified Building Text DPR 380/01, specifically article 34/bis c.3. This section introduces executive tolerances, deviations from building regulations not exceeding 2%, as declared by qualified technicians. These tolerances, highlighted in paragraphs 1 and 2, aim to certify the legitimate state of properties during new applications, communications, and building notifications.

Real-life Example

To illustrate these tolerances, consider a common scenario during real estate due diligence check-ups. Parties involved, such as sellers or real estate agencies, may misinterpret the provision. For instance, an authorised 100-square-metre apartment may be measured on-site as 102 square metres due to construction adjustments. For example the  balcony may have been enclosed. While a 2% excess is permissible, intentional extensions without authorization fall outside this tolerance, necessitating restoration to original measurements.

The legislator’s intent behind these tolerances is to alleviate the workload on public administrations and reduce burdens on property owners for posthumous regularisation of minor building abuses. The criteria for non-conformity include meeting specified cases, absence of protection constraints, and no violation of urban planning or building regulations, ensuring the habitability of the property.

In cases where no building non-conformity exists, and authorization projects are unnecessary, the legislator introduces the “Certificate of Legitimate Status.” This document holds formal value, applicable for regulating real estate transactions, where a seller’s declaration of urban regularity is required.

The Role of the Certificate of Legitimate Status

To guarantee compliance and facilitate the signing of sales contracts, compliance with the land registry and urban regularity by the selling party must be declared. Alternatively, a qualified technician can swear both statements after ensuring compliance with urban and cadastral documentation.

While the Certificate of Legitimate Status is not essential for signing, it acts as an optional but crucial document. Often, sellers lack sufficient training in urban planning, making the document valuable for ensuring a balanced agreement between parties.

Challenges in Property Transactions

Many property transactions still rely on ambiguous urban declarations made by the selling party “before 67.” This legislative loophole, allowing marketability without full urban regularity guarantees, can lead to economic and legal repercussions even after signing.

The dissemination of the Certificate of Legitimate Status as a technical document is a positive step, providing an absolute guarantee and expediting real estate negotiations. Buyers are increasingly considering it essential for a smoother transition to the notarial deed.

For enhanced certainty, buyers can engage a technician to draft a conformity report. This report provides a guarantee and reassurance regarding the property purchase, further securing the deal.

Certificate of Legitimate Status: Verification by Qualified Technicians

The legitimate status of a property is determined by the enabling title that legitimised its construction and the last building intervention affecting the entire property. For older properties without a mandatory building permit, cadastral information or other probative documents determine legitimate status.

The affidavit, sworn by the appointed technician, serves as a legally certain basis for accessing tax deductions such as the 110% Superbonus or the Furniture Bonus. However, these deductions are not applicable to wholly or partially abusive properties.

Finally …

The Simplification Decree and the introduction of the Certificate of Legitimate Status have reshaped Italy’s property regulations. Buyers and sellers must navigate these changes with caution to ensure secure and transparent real estate transactions. For those seeking support in understanding and complying with these regulations, the team at De Tullio Law Firm, specialized in Italian property and inheritance matters, is happy to support you. Get in touch with us.

Get All Our FREE Guides for Foreigners Planning to Buy, Sell or Live in Italy

Our PDF guides give you all the knowledge you need to move your Italian dream forward with confidence

Download now