Contracts and Purchasing a Property in Italy

Italian Mortgages

It is very rare for Italian mortgage providers to offer mortgages of more than 80 percent of the property value. In fact, the average is normally around 60 percent of the market value.

Contracts and Purchasing

Get a Free Quote Contracts and Purchasing a Property in Italy

Introduction to Property Contracts in Italy
Italy is highly bureaucratic and the property purchasing process is no exception. Preparing yourself for this encumbrance, even before you go to Italy, is vital if you are not to become entangled by red tape.

Preparation
It is worth bearing in mind that in Italy there are far fewer properties for sale. Therefore, if you find a property that you are really keen on, be prepared to place a holding deposit, immediately. This is particularly true in areas that are popular with overseas buyers, so anticipate this eventuality when you leave the UK and make sure that the necessary financing is in place.

One thing that it is worth considering is that parting with a cheque to the owner may reduce the level of possible comeback, should there be a future problem with the property. A way of dealing with this is to use a lawyer as a go-between who can hold the funds on account. This type of reservation is not a deposit and is normally at around the 5,000 mark. By contrast, the deposit which is payable later is valued at 10 percent of the purchase price.

Entering Into a Contract
The full preliminary contract, as it is referred to, is the equivalent of a deposit. The amount of the deposit is normally around the 10 percent mark, but can be as high as 30 percent, depending on the circumstances.

Once the contract has been signed, the buyer is committed to continue with the purchase or they lose the deposit. If the seller pulls out, the deposit will be due back to the purchaser, although enforcing this can be difficult.

A Notary (or Notaio)
All property contracts, including the deposit contract, must be signed in front of a Notary Public. This does not mean that the contracts have been checked to see that they are fair or structured correctly; it is simply evidence of the fact that the contracts have been duly signed.

Therefore, it is vital that the contract is checked by your own local lawyer to ensure that your rights are protected. Make sure that all documents are reviewed by your lawyer, whether they are based in Italy or not, before you sign anything, even a reservation contract.

Summary
Bullet Point As the property market operates very much in favour of the seller, in Italy, it is common for a reservation contract to be entered into in advance of a deposit being paid;
Bullet Point resist the temptation to sign immediately, always make sure that the documents are checked by a lawyer;
Bullet Point any property contract must be signed in front of a public notary. The notary does not offer any legal advice, so an independent lawyer remains vital.

Online Mortgage Enquiry and Quote

Online Enquiry...

If you would like to receive a quote for a mortgage from a broker please
Click here...

Mortgage Calculator

Calculate

Typical Interest Payments

First Time Buyers

2.89%

Purchased Fixed

2.89%

Discounted Rate

2.99%

Buy To Let

2.99%

Commercial

3%

 

 

Affordability Calculator

Calculate
Get a Mortgage Quote

Mortgage News Feed Mortgage News Feed

Questions & Answers

Read about general questions asked by brokers and lenders and the best ways to answer...

Mortgage Glossary

Search for terms beginning with the letter:

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z