Tag Archive for: Italian Property Law

Before buying a house in Italy. What should you know?

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What you absolutely must understand before buying a house in Italy

In order to make your purchase as safe and efficient as possible, before buying a house in Italy, you should understand how the process works and who you should involve.

When you visit a country for a holiday, cultural differences are charming and exciting. This changes dramatically when you make an investment or move to that country.

Personal liability

You may have already bought a house in your own country. Maybe you are English and the estate agent passed all relevant information to your solicitor to process the purchase. Perhaps you are American and you used an independent and qualified buying agent.

In both cases, the most risk free and secure method for you, as a buyer has become the assumed. It is probably the only way you would consider purchasing a property. In the UK, USA and other common law countries, we take it for granted that our interests are so well protected that it is very difficult to unwittingly make a mistake.

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Italy is a member of the European Union so you can assume certain rights and similarities. However, when it comes to personal liability, Italy can be very libertarian. In other words, in Italy if you want to protect yourself and your interests, you can. If you don’t want to, that’s fine too.

The consequences, and ultimately the lessons, are yours alone. This mindset, for better or for worse, is practically non-existent in Northern Europe and many English-speaking nations.

Don’t assume anything

Before buying a house in Italy, you shouldn’t make any of the same assumptions that you would in your own country. You should not assume that the typical process is naturally geared to protect your interests. Nor should you assume that everyone respects the law. And, do not assume that rectifying a mistake will be a quick or cost free fix. Above all, just as you wouldn’t at home, believe everything an estate agent or vendor tells you!

Do your homework before buying a property in Italy

As you may know from your own country, you need to conduct certain checks and searches. Legally binding contracts need signing and you will have to pay deposits.

In Italy it is perfectly legal for an estate agent to provide a reservation offer contract  and a preliminary contract on behalf of buyer and seller. Following the signing of these contracts, the buyer makes deposits. The final step is to have an Italian public notary (notaio) sign-off on the sale.

Estate agency contracts are often standard pre-printed forms. Many foreign buyers assume that the notaio, who according to law  must oversee the property transaction, is the equivalent of a lawyer or qualified realtor. People believe that if anything untoward comes up, the notaio will be aware of it and inform the relevant party. This is absolutely not the case. The notaio must remain impartial and only checks the final deed of sale document.

Neither the estate agent nor the notaio are responsible for doing your due diligence – you are!

Therefore, anything omitted or glossed over in any contract will not be apparent. If the person who draws up or checks is not working for you, you are taking a risk signing it and making deposits. On top of this, you should know that the Italian language versions of contracts will prevail in a court. You can of course read and check your own contract. However, understanding depends on your grasp of Italian and/or your trust in the translator you or the estate agent engages.

Don’t take unnecessary risks

Your estate agent will of course advise you that you do not need a lawyer, which is correct. Italian law does not oblige you to engage a lawyer. However, without a lawyer you are purchasing a property entirely without independent representation. Not only that, you are choosing not to protect yourself legally in a country with one of the slowest and most complex legal systems in Europe.

In Italy prevention is always better than cure and, infinitely cheaper! If you aren’t prepared to prevent problems, you need to prepare to deal with problems that may arise later.

It is possible that a property may have debts attached to it which the seller has not disclosed. It is very often the case that the previous owner has made illegal changes to the property or, as is common, the property features an illegal swimming pool. Or, perhaps you are planning to build a pool and the seller tells you that won’t be an issue.

If you don’t have your own lawyer, no one else is going visit the property on your behalf to check plans and the actual situation. This means you could easily end up with an illegal property or a property you can’t alter. At this point, you will need to throw a substantial amount of money at the property and lawyers to try and resolve the problem.

A small amount of due diligence at the beginning of the process with someone who speaks your language will avoid risks before buying a property in Italy.

Finally …

Before buying a house in Italy, engage a local lawyer experienced in property matters. This should be someone you choose, not someone the estate agent or vendor recommends. Choose a lawyer who speaks your own language. That way, you not only get legal advice but also translation. Your lawyer should also be able to recommend a surveyor, builders and all manner of other professional services. In addition, you can appoint your lawyer as your power of attorney in case you are unable to get to Italy or attend completion. Again entrusting this responsibility to anyone with potentially conflicting interests, such as an estate agent, can be extremely risky.

If you would like to understand more about the process of buying and selling property in Italy, please read our free guides. You don’t have to subscribe. Our buying and selling guides are a free resource which we have made available to help you make your Italian property investment as safe as possible.

Before buying a property in Italy, why not talk to us? De Tullio Law Firm can advise and guide you throughout your Italian property purchasing journey. We have over 55 years of experience working with clients on their Italian and cross border property, family and inheritance matters. Get in touch.

 

Defects And Noncompliances in Italian Property Purchases

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“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.

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Our PDF guide covers every aspect of the buying process so you're ready to purchase with confidence

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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.

Italian Conveyancing Lawyers

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Italian conveyancing is the legal transfer of property ownership from vendor to buyer

Italian conveyancing starts when the vendor accepts your formal reservation offer. It finishes after you have signed the deed of sale.

How long the Italian property purchasing process takes depends on all sorts of things. How many buyers and vendors are involved? Often Italian properties are owned by several heirs. It may take time for all the co-heirs to agree to sell. Legal issues may also impact the the timing of the conveyancing process. For example, concerns about the location, planning, zoning, whether the property is off-plan or partially built. Basically, the whole process can take weeks or months.

Although it is not a legal requirement in Italy to engage a lawyer when purchasing a property, an experienced property lawyer can guide you through the complexities of Italian conveyancing and related paperwork as well as help resolve any legal issues that come up along the way. While instructing a lawyer may seem like an additional cost, prevention is always a less frustrating and expensive solution than remedying legal issues once you own an Italian property.

Get Your FREE Guide to Buying Property in Italy

Our PDF guide covers every aspect of the buying process so you're ready to purchase with confidence

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How can a lawyer help with Italian conveyancing?


EXPLANATIONS

Your lawyer will clarify the Italian property purchasing process for you. A lawyer can help identify what would be the best option in terms of purchasing structure, tax and any other issues relevant to your particular situation. Your lawyer will guide you through the process and provide legal support and advice throughout.

SEARCHES

There are things you may not know about the property just from viewing it with an estate agent or the vendor. These include structural and legal problems, which a lawyer can play a crucial role in identifying before you purchase.

For example, in a worst case scenario a failure to identify planning permission issues before you buy could generate consequences under criminal law. Once you have purchased an Italian property, it may be hard to rectify illegal work or planning discrepancies. In all likelihood it will be difficult to prove that the vendor was in fact the originator of the work. Legalising such problems can often be very costly and is sometimes impossible. Illegal work, when discovered, can lead to seizure of the property and a criminal court case. Seeking compensation from the vendors generally implies a litigation in court. This might take years and sometimes could turn out to be pointless if the vendors are unable to pay compensation. You may end up with a property that is unsaleable in the future.

Your lawyer will do a set of legal checks and searches for you and, where applicable your mortgage lender. Searches should include land registry titles and local authority planning and zoning compliance.

Environmental factors could be important too. For instance, some regions of Italy are particularly susceptible to ground stability issues, such as landslides and earthquakes. Your lawyer can help you arrange geological and structural surveys. If the survey finds anything out of the ordinary, your lawyer will be able to advise you what action you can take.

CONTRACTS

Throughout the Italian conveyancing process, your lawyer will check all documents and paperwork before you enter in to any legally-binding contracts. There are three contracts involved in Italian conveyancing. First, a Proposta. Second, the Compromesso and finally, the Atto di Vendita. Each contract involves handing over a deposit or payment. It is therefore crucial that you understand everything and resolve any property-related legal issues before you sign anything. Your lawyer will also make sure that completion dates are agreed and arranged.

COMPLETION

By law, a notary public – an official representative of the Italian State – must oversee the sale. Your lawyer will be able to advise you on choosing a notary and take all steps to help you complete the purchase safely. This would include where necessary, sworn translations of the atto di vendita,  help with transferring funds, collecting the new title deeds.

Italian law requires that all parties to a property transaction attend completion to sign the atto di vendita . Your lawyer will accompany you in case there are any ladt minute legal issues that need resolving. If you are not fluent in Italian but have an English-speaking lawyer, your lawyer will be able to translate for you. If for some reason you are unable to attend completion in person, your lawyer can complete on your behalf through a power of attorney.

Finally…

With over 55 years of experience as specialist property lawyers throughout Italy, we strongly recommend that you seek independent legal advice before purchasing any property in Italy. If you would like to discuss your situation, please get in touch. We are here to help.

For more comprehensive information on Italian conveyancing process, you might like to read our Property Buying Guide or look at our Property Buying Checklist. You may also like to watch our info videos on the subject of Italian property law.

Buying Italian Real Estate: Hidden Defects

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Hidden defects. Buyer beware!

Where exactly do you stand if you discover hidden defects with your Italian real estate following completion?

You move into your dream Italian home to find a nightmare situation.

This is exactly what happened to the Wright family in Lazio. The day after moving in, they discovered there was serious water penetration in several rooms in the house, notably the kitchen and living room.

Get Your FREE Guide to Buying Property in Italy

Our PDF guide covers every aspect of the buying process so you're ready to purchase with confidence

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Disclosure of hidden defects in Italy

Following their discovery, the Wrights raised the matter with the estate agent and the previous owners. They denied there was a serious problem. The notary who had overseen the sale said the Wrights had signed a legally binding preliminary contract declaring that they were purchasing the property ‘in condition as seen’. As such, there was nothing the notary could do.

Well possibly, but Italian law on this issue is not quite so clear cut. In general, the principle of, ‘caveat emptor’ – buyer beware, applies as much in Italian law as it does elsewhere. The onus is therefore on the buyer to conduct thorough due diligence relating to a property before buying it.

In Italy the seller has an obligation to disclose to the buyer all ‘important information’ concerning the property. However, there is nothing in Italian law that specifically defines these disclosures to the buyer. The law states that important information must be of a profound nature. Something which the seller was aware of at the time of the sale. An issue that if the buyer had known about it, would have halted the purchase, or they would have offered a lower price for the property.

Litigation

A vendor is obliged to disclose any ‘hidden defects’ (“vizi occulti“) in the property. If the vendor fails to disclose hidden defects, then it is possible for a court of law to annul the sale, or at least reduce the price of the property.

The Wrights ended up in litigation in order to obtain compensation. However, if the Wrights had sought advice from a lawyer before signing the preliminary contract, they could have avoided a lot of heartache not to mention a costly and time-consuming court case.

A strong preliminary contract is your best protection against hidden defects

Real estate agents generally offer a standard, one size fits all preliminary contract form. The form contains a legally binding, standard exclusion clause pertaining to ‘sight as seen condition’.

If you are in the process of buying a property in Italy before you sign a standard preliminary contract, check to see if it contains a sight as seen clause. The wording may vary but would be something like this: “L’acquirente dichiara di aver preso visione dello stato di fatto in cui attualmente si trova quanto promesso in vendita, di averne valutato le caratteristiche e le qualità (anche ai fini della determinazione del prezzo di vendita) e di accettarle integralmente”.

In practice whether a court of law upholds this clause depends on the circumstances of the case. If the court considers that the vendor has deliberately misled the buyer, then the judge may annul the clause.

Our advice to buyers is that you should always seek legal advice before signing any legally binding document. You may request removal of the sight as seen clause from a preliminary contract. The vendor may well refuse to do this. If so, you should question why.

Finally …

Buying Italian real estate is a major investment for most people. The preliminary contract in Italian property purchases is key to buying safely. As Italian property law specialists, we recommend that you seek legal advice. Unless you understand exactly what you are buying and the commitment you are making, you should be cautious about signing anything.

If you are looking at a real estate investment in Italy, why not talk to us? De Tullio Law Firm can advise and guide you throughout your Italian property purchasing journey. We have over 55 years of experience working with clients on property, family and inheritance matters. Get in touch.

 

For more comprehensive information on Italian conveyancing process, you might like to read our Property Buying Guide or look at our Property Buying Checklist.

Reverse Mortgage. Italian Equity Release Scheme

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Reverse mortgages provide an alternative to selling an Italian property

In December 2015 the Italian Ministry of Economic Development introduced a reverse mortgage scheme. This is a form of equity release financing.

The reverse mortgage allows home owners over the age of 60 to convert part of the value of their property into cash. The property acts as security for the loan. The owner remains the legitimate owner and retains the right to live in the property.

A reverse mortgage therefore represents an alternative to selling the property. As with any other loan, when a home owner takes a reverse mortgage, it includes a repayment plan.

Another feature of the reverse mortgage regards interests, which can be refunded either at the time the loan expires or at fixed deadlines. If a borrower chooses the refund upon expiry formula, no sum is due to the bank during the term of the loan. A refund of interest payments and any related costs occur when the borrower dies.

The amount a borrower can release as equity depends on a borrower’s age. The older the borrower, the higher the percentage of equity release. In addition, the lender takes the value of the property to secure the loan into account.

Heirs inherit reverse mortgages

Should the property owner die before repaying the loan, the decedent’s heirs inherit the debt. In terms of repayment, heirs have three options.

1. Repay the debt to the bank to clear the reverse mortgage.

2. Sell the property.

3. Allow the lender to sell the property at market value.

If the property is sold at market value, the heirs have the right to recoup any difference between the sale price and the outstanding reverse mortgage. The  lender cannot ask heirs to repay the debt, if the property fails to sell.

Finally …

If you are need help with equity release in Italy, why not talk to us? De Tullio Law We have over 55 years of experience working with clients on their Italian and cross border property, family and inheritance matters. Get in touch.

You may also like our Guide To Selling Property in Italy. You may also like to watch our info videos about Italian property law.

Rent-Free Property Agreement: an Overview

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A rent-free agreement is not for financial gain

Italian law defines a rent-free property agreement as a party lending an item they own to a borrower. The borrower may use the item for a given period of time or for a specific reason. The borrower then has the obligation to return the item to the lender. As the name implies, a rent-free agreement is not for financial gain.

Italian law does not restrict a rent-free agreements to property. Third parties might borrow all sorts of items.

For example, if you loan your a car or some gardening equipment to someone, this constitutes a rent-free property agreement. In general, it is not necessary for the agreement between the parties to be in writing. An oral agreement is legally valid.

Validity of rent-free property agreements

One of the most common examples of a rent-free property agreement pertains to a parent allowing a child to live for free in a property. And, as far as homes or properties are concerned, this type of agreement must be registered with the Italian tax authorities.

With respect to registered agreements, the 2016 Law of Stability has introduced a tax benefit. This takes the form of a 50% discount on IMU. However, the agreement is subject to three conditions. Firstly, the property must be the main residence of the occupier benefitting from the rent-free agreement. Secondly, there must be first degree kinship relationship between the parties of the contract (typically parents and children). Thirdly, the property owner can own only one additional property. The rent-free property and the other property must be in the same comune.

Other types of property rent agreements in Italy

A word about two other types of property rental agreements in Italy.

A free market agreement (contratto a libero mercato) allows the tenant and landlord to agree financial terms and conditions between themselves. This kind of rent agreement is valid for four years and renewable for an additional four-year period.

Then there is a convention agreement (contratto convenzionato). This is valid for three-year contract and has a two-year renewal option. However, the initial period can be increased to five years without a renewal option.

Finally …

We recognise that letting a property in Italy can be confusing and there are legal risks of allowing somebody into your property without an agreement. If you are planning to let an Italian property, you should always seek legal advice beforehand. we can draft a bi-lingual rental agreement for you. Likewise, if you are planning to have your land managed, you need to protect your rights.

De Tullio Law Firm has over 55 years experience of cross border and Italian property law.  We can negotiate appropriate rental agreements to meet your needs. We can also liaise between property owners and tenants. If you would like further clarifications regarding property rental, or want to discuss your situation, please contact us for a free consultation. We are here to help. 


You may also like to read about buy to rent in Italy.

Unclaimed Italian Property

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What is unclaimed Italian property?

Between 1861 and 1985 over 29 million Italians emigrated to other countries. About 18 million Italians permanently settled abroad. Today several tens of millions people living abroad have Italian heritage. When Italian emigrants went abroad, they often left property and land in Italy. This is now unclaimed Italian property.

Many people think that the Italian State confiscated unclaimed property. This is a myth. The reality is that the property is still here in Italy and the original owners are still on the title deeds.

There are many thousands of unclaimed properties and parcels of land  throughout Italy. In many cases, the descendants of emigrants living outside Italy could still claim these properties.

Beware!

Over the years, descendants of Italian emigrants have contacted us for help and advice. They are trying to find their ancestors’ property in Italy. Sadly, in some cases, people have spent considerable time and substantial amounts of money before contacting us.

We have heard about people receiving letters from organisations asking for an upfront fee and promising help with locating and retrieving an unclaimed Italian property.

Needless to say, many people never hear anything once they have paid the fee. So, if you get a letter like this, be cautious. Look up the company and check credentials before you part with any money.

Seek qualified help with unclaimed Italian property

In the first instance, legitimate researchers will seek unclaimed Italian property through sources made available under freedom of information laws. For example, since 2014, the Italian Tax Authority has made it possible for the public to search online for land registry records and titles. You will need to register an account, then supply information such as:

– Name of presumed owner, even if deceased (maiden name, if female).

– Exact town of birth in Italy.

– Name of father of the presumed owner.

– Date of Birth (year) of the presumed owner (records only available post 1880).

Some people try to take a DIY approach. However interpreting search results can however make this difficult. In addition, land registry results may not always be accurate. They could, for example, be out of date or show the name of a previous owner.

If you know, or believe that your family has unclaimed property in Italy and you need help, make sure you engage the services of reputable and experienced professionals.

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 discuss your situation, we are here to help. Please get in touch with us.

Italian Property Services. Background Checks

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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.

First Property Purchases in Italy. Fiscal Benefits And Rules

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Tax benefits for first property purchases are contingent on transferring residence

Property buyers in Italy often decide to take advantage of tax reductions available for first property purchases. These consist of a reduced registration tax of 2%, a
fixed cadastral tax of €50 and a fixed mortgage tax of €50.

Delaying transfer of residence other than for force majeure means losing first property purchase benefits

To benefit from fiscal reductions, buyers must transfer their residence to the municipality where the property is located. This transfer must take place within 18 months of signing the deed of sale. Missing the residence transfer deadline entails the loss of tax benefits.

Delays in transferring  residence may also involve a hefty fine unless there is an extraordinary event or circumstance that constitutes a force majeure. Examples of a force majeure event might be an earthquake, seaquake, flood, landslide. In general, an event beyond anyone’s control, which renders the property uninhabitable.

Get Your FREE Guide to Buying Property in Italy

Our PDF guide covers every aspect of the buying process so you're ready to purchase with confidence

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Buyers must prove force majeure to retain benefits of first time property purchases

In judgement n. 864, dated 19th January 2016, the Italian Supreme Court ruled that the purchaser should not lose the fiscal benefits granted to first time property purchases.

However, this is only applicable where a purchaser is able to prove that failure to comply with the 18-month residence transfer deadline is with cause. In other words, the delay is justifiable because of an unavoidable and unpredictable event.

Summing up then. In order to maintain fiscal benefits related to first-time property purchases, a delay in transfer of residence must be due to an event or circumstance beyond the control of the buyer. As such, the buyer must prove that the delay is unavoidable and unpredictable. If transfer is due to a general impediment, the purchaser loses fiscal benefits.

Finally …

Property buying in Italy is a serious investment for most people and, often the fulfilment of a dream. Navigating Italian real estate laws and local customs can be complex. For more comprehensive information about the Italian property purchasing process, you might like to read our Guide to Buying Property in Italy. If you would like to discuss your situation or, if we can be of assistance, please get in touch.

De Tullio Law Firm provides specialist legal advice in all areas of Italian law. Our particular expertise is in cross-border property transactions and inheritance matters in Italy.

 

We also have a number of info videos on the subject of how to buy Italian property safely.

No Certificate of Habitability for An Italian Property?

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Buyers can back out of a sale if there is no certificate of habitability

A certificate of habitability or certificato di abitabilità in Italian, attests that a property is legally habitable. The Italian Supreme Court of Cassation ruled that buyers can refuse to sign the final deed of sale if a residential property has no certificate of habitability. (Court of Cassation., section II, 26th November 2015-8th February 2016, n. 2438).

Property owners obtain a certificato di abitabilità from their local municipality. Local municipalities should check that a property and its systems comply with health, safety and building regulations. In other words that the property is up to code. In addition, municipal authorities should check that the property complies with planning permission.

A certificate of habitability is also useful for obtaining utility connections and municipal services such as refuse collection.

The Italian Supreme Court of Cassation has ruled that buyers can back out of a purchase if a municipality refuses to issue a certificate of habitability.

Get Your FREE Guide to Buying Property in Italy

Our PDF guide covers every aspect of the buying process so you're ready to purchase with confidence

Download now

The responsibility to provide a certificate of habitability lies with the vendor of an Italian property

This is pursuant to article 1477,  paragraph 3, of the Italian Civil Code. Where there is a delay or a failure to supply the certificato di abitabilità, there is a clear case of non-execution of a contractual obligation (breach of contract). In order to remedy this, the purchaser may request a reduction in the sales price, or request a refund of deposits. A purchaser may also decide to back out of the transaction.

Where there is no certificate of habitability, a buyer can still buy the property. However, the buyer must expressly consent to the lack of certification. In addition, the lack of certification must be included in the notarial deed of sale.

Due Diligence

While the vendor is responsible for supplying a certificato di abitabilità, the onus is on the buyer to verify its existence. Buyers should receive the certificate before completion. It should form part of the buyer’s legal due diligence.

It is also vital to check that the certificate pertains to the entire property, not just part of it. While the issuing municipality will check land registry plans, if the owner has undertaken any unauthorised work on the property, this may not appear in plans.

Not having a certificate of habitability can have long term repercussions

A vendor’s failure to provide a certificate of habitability represents a liability for buyers. Purchasers will need to obtain a certificate following the purchase. However, this is not always possible. Properties with no certificate of habitability have a lower market value. Purchasers should therefore be aware that not having a certificate will have repercussions on the resale price and saleability.

Finally …

If you are looking at a real estate investment in Italy, why not talk to us? De Tullio Law Firm can advise and guide you throughout your Italian property purchasing journey. We have over 55 years of experience working with clients on their Italian and cross border property, family and inheritance matters. Get in touch.

You may like to read about the preliminary contract or you may like to watch our info videos about Italian property law.