Italian Real Estate: How to Avoiding Pitfalls when buying
Buying Italian Real Estate should be exciting but, it can also be a complex process
The best way to protect your investment when buying Italian real estate is to engage an English-speaking Italian lawyer. Instructing an independent, English-speaking Italian lawyer could save you money and stress in the long run.
Choosing the right Italian lawyer is a very important decision. Make sure you instruct an independent English-speaking lawyer, who has experience advising international clients in relation to property purchases in Italy.
Your Italian property lawyer should:
Be independent. Make sure the lawyer is not connected in any way to the estate agent, developer or seller. An independent lawyer will exclusively look after your interests and not the interests of the estate agent or developer. You should find your own lawyer rather than taking recommendations from an estate agent or using a developer’s in-house lawyer.
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Speak English. Unless you are a fluent Italian speaker, your lawyer should be English-speaking. You need to know that when you ask a question, your lawyer can fully understand and answer in a way you fully understand. There is no point in paying for advice that you don’t understand.
Have Professional Indemnity Insurance. You should check that your lawyer has adequate insurance. Should any problems arise as a result of advice you receive, you can be certain you are covered.
Why should you instruct a lawyer if you are buying Italian real estate?
It is impossible to evaluate a property just from viewing it. By instructing a lawyer you will have a better understanding of the property and the Italian purchase process.
Your lawyer can:
Guide you through the Italian buying process and the obligations of each party.
Check the property title, carry out checks and searches on the property before you sign any paperwork, which may well have binding financial and legal implications.
Arrange structural and geological surveys.
Review the purchase contracts to ensure that everything is as it should be and that your position is protected.
Advise about any inheritance and tax issues that may affect you. This is particularly important in Italy which has rules of ‘forced heirship’.
Help you make a Will to cover your Italian property, which is advisable in planning the succession of your assets.
Assist with matters such as Italian residency, tax codes, setting up a bank account or utility contracts for a property following purchase.
What is the role of the notary who buying Italian real estate?
An Italian notary (Notaio) is a legal representation of the Italian Government. Whilst they are part of the legal profession, it is important to ensure that you do not confuse the role of your lawyer with that of a Notaio.
The role of the Notaio in Italy is to oversee the property transaction, to collect the appropriate tax on behalf of the Italian State and to register the property in the Italian Land Registry. Legally a Notaio must remain impartial in the property purchase. A Notaio cannot, therefore, act on behalf of the buyer or the seller. You should instruct your own independent Lawyer to advise you specifically in relation to your property purchase and related issues.
Do I need to give my Italian lawyer Power of Attorney?
If you are not going to be in Italy during the purchasing process, it is a good idea to provide your lawyer with a Procura Speciale – a Limited Power of Attorney. This is a legal document that gives another person authority to act on your behalf, for example, to sign a property purchase contract.
Conferring a Power of Attorney to another person gives significant power to act on your behalf. You should therefore be comfortable that you fully understand what you are agreeing to, that you are happy with the wording of the document and that your agent is competent and trustworthy.
Buying Italian real estate is a complex matter. With our extensive knowledge and experience of Italian and international law, we provide expert conveyancing services throughout Italy. If you are purchasing an Italian property, get in touch with us for a free consultation.