Buying a home in Italy: the steps, and where buyers get caught

The steps of a purchase

A typical purchase goes through three documents: a written purchase offer (proposta d'acquisto), a preliminary contract (contratto preliminare, often called compromesso), and the final deed (rogito) signed before a notary. Before any of this you will need an Italian tax code (codice fiscale); an Italian bank account is often useful, since the deed must state in detail how the price was paid.

The offer becomes binding once accepted

An offer signed at the agency is not a formality. As soon as you learn that the seller has accepted, a contract is formed and you are bound by its terms. At that point the agent's commission may also become due, because the law links it to the conclusion of the deal through the agent's work, not to the final deed.

This is why conditions that protect the buyer, such as obtaining a mortgage, the results of technical checks or the absence of charges on the property, must be written into the offer itself, not added later.

The deposit (caparra confirmatoria)

With the offer or the preliminary contract the buyer usually pays a deposit as caparra confirmatoria. If the buyer then fails to complete, the seller can withdraw and keep the deposit; if the seller fails to complete, the buyer can withdraw and claim double the amount paid. The parties can also choose to ask the court to enforce the contract or to terminate it and claim damages.

The amount and the wording of the deposit clause matter: they decide what you risk if something goes wrong.

The preliminary contract

The preliminary contract must be in writing and sets the price, the payment schedule, the date of the deed and the condition in which the property will be handed over. When signed before a notary, or with signatures authenticated by one, it is entered in the land registry (the public property records): for a limited period, this protects the buyer against mortgages, charges or sales by the seller registered after it.

Before signing, the property should be checked: title and previous transfers, mortgages and other charges, compliance of the building with planning and cadastral records, any unpaid condominium (building) fees, and the energy performance certificate. Problems found after the preliminary are much harder to resolve.

The notary is not your lawyer

In Italy the notary (notaio) is a public official with legal training, very different from a notary public in the United States. The notary drafts and authenticates the deed, carries out the registry searches, collects certain taxes and registers the transfer. But the notary acts impartially for both sides: negotiating the terms, assessing the risks of the offer and the preliminary, and protecting your interests in a dispute is the role of your own lawyer.

Buying from abroad

You do not need to be in Italy for every step. You can give a power of attorney to someone you trust, signed before an Italian consulate or a local notary, with the formalities required for use in Italy. If you attend the signing and do not understand Italian, the law requires the deed to be translated for you, usually by an interpreter.

Frequently asked questions