WE ARE AT YOUR SIDE IN ALL THE STAGES OF THE BUYING PROCESS, PUTTING OUR EXPERTISE AT THE SERVICE OF YOUR NEEDS
PIEMONTE HOUSES personnel is there to help you in all phases of the buying process.
Here below the main stages of a typical property purchase:
Once you have found among our listings a property which satisfies your needs and fulfils your expectations, you will want to place a bid with the Seller of the property specifying the offered price, the payment terms and the final purchase date, as well as the bid’s validity. To be considered effective, a purchase proposal needs to be backed by a guarantee amounting to approx. 5% of the offered price which can be given either as a cheque or be deposited in the bank account of the Agency, both in favour of the Seller. In case the Seller accepts the bid, the cheque or deposit are transferred to him and are henceforth considered as downpayment on the final purchase. If the Seller chooses to reject the bid, the cheque or deposited amount are returned to the Buyer and the Buyer is relieved of any obligation towards either the Seller or the Agency. When submitting your Purchase bid, you will be asked by the Agency to confirm in writing the agreed Agency fee which will be due in case your bid is accepted.
Once agreement has been reached concerning the purchase of the property, the Agency will prepare a Preliminary Sales Contract which will spell out in detail the contract terms: the identity of the contracting parties, the identification of the property according to its cadaster data, the agreed sales price of the property and the terms of payment, the date of the final notary deed and all mutual commitments entered into by the parties. At the signing of the preliminary contract, the Buyer will be required to make a further downpayment of about 20-25% of the agreed sales price which will add to the guarantee paid at the time of the proposal. As required by law, the real estate Agent will register the Preliminary Contract with the competent authorities and, in the case of a rural property, will notify all neighbours about the impending sale, allowing them to exercise their statutory pre-emption rights. The agreed Agency fee will be paid at the signature of the Preliminary Contract.
The task of a broker or agent (putting two parties, to neither of which he has any relation in business or other terms, in a position to conclude a contract) is to use the means at his disposal (advertising and sales efforts of different kinds like posters, web mailings etc) in order to find a buyer for any given property. The agent is entitled to a commission at the moment when the deal is made.
The real estate Agent Piemonte Houses will collect all documents concerning the contracting parties and the properties and necessary for the conclusion of the sale (cadaster and mortgage information, maps and floor plans, acts of purchase, building permits and other certificates) and will transmit them to the Notary who, after effecting further checks on his own behalf (absence of mortgages, claims, covenants etc), will establish a deed by which the title to the property is officially transferred from one party to another. At the signing of the deed the Buyer pays the balance of the agreed purchase price to the Seller; the Buyer also pays, directly to the Notary, the Notary’s fees and all taxes and duties. In the Italian legal system, a real property can be legally sold and bought in two ways only:
- Notary Deed;
- A Private Authenticated Contract.
A Notary Deed is a public contract established by a Notary who thus takes responsibility for its contents. A Notary will let the contracting parties sign the contract only after having read it aloud in their presence and made sure that all parties concerned have fully understood it. Should one or both paries experience any problems understanding the Italian text, they may request that the deed be translated into a languague of their choice by a sworn tanslator registered with an Italian court. The additional cost is borne by the party which has requested the translation.
Some non-resident buyers who do not speak Italian and who prefer to avoid the additional cost of a sworn translation, resort to the Private Authenticated Contract as a form of transferring title to real property. In this type of contract the role performed by a Notary is theoretically limited to ascertaining the identity of the contracting parties and authenticating their signatures, whilst it is left to the contracting parties’ will to freely agree on and to take full resposnibility for the contents of the contract. In practice it is usually still the Notary who drafts the contract and who performs all necessary factual checks, applying the same procedure that is followed when preparing a public deed. Notaries with whom our Agency cooperates will supply a draft of a Private Contract which can then be translated by one or both contrating parties by their own means.
Real Estate Taxes
All tax obligations arising from a real estate transaction are on the Buyer’s account. Based on current legislation, the tax burden on real property transactions varies according to the legal status of the contracting parties and the applicability of tax reductions.
- Residential Property Transfer between Inidividuals (Natural Persons)
- if the tax reduction for “First Home” owners applies: a registry tax of 2% of the cadaster value of the property with a minimum tax of 1000 euros (which in most cases is considerably lower than the agreed sales price) + € 100 of fixed duties (50 euros of mortgage duty and 50 euros of cadastral duty);
- if the tax reduction for “First Home” owners does not apply: a registry tax of 9% of the cadaster value of the property (with a minimum tax of 1000 euros, as above) and fixed duties of 100 euros (50 euros mortgage duty and 50 euros cadastral duty);
- Residential Property Purchase from a Corporation (Legal Entity)
- if the tax reduction for “First Home” owners applies: VAT amounting to 4% of the agreed sales price of the property plus registry tax, mortgage duty and cadastral duty of 200 euros each, 600 euros in total.
- if the tax reduction for “First Home” owners does not apply: 9% of the agreed sales price of the property (22% VAT on properties belonging to the A/1, A/8 and A/9 caadastral categgories, so called “luxury properties” like villas, castles etc). And additional fixed amounts of 200 euros for registry, mortgage and cadatsral duties, 600 euros in total;
For the purchase of agricultural land holdings:
- buyers who do not qualify as farmers or professional agricultural entrepreneur pay a 15% registry tax on the value of the holding, plus fixed amounts of 50 euros for transcription and cadastral duties, for a total of 100 euros. Stamp duty does not apply.
- Buyers who are farmers enrolled in the farmer social security scheme or professional agricultural entrepreneurs pay a regsitry tax of 200 euros, a transcritpion duty of 200 euros and 1% of cadastral duty, Stamp duty does not apply.
- collecting and sending the deed to an indicated mailing address
- announcing the property transfer to the Public Security Authorities;
- assisting buyers with utility supply contracts (water, power, gas, telephone), communal Property Tax declaration (ICI), waste collection tax declaration;
- if requested, we assist buyers in finding qualified professionals (architects, contractors, craftsmen) for limited or comprehensive renovation and restructuring
Being aware of the difficulties which a non-resident buyer may face when purchasing property abroad, we offer our help and asssitance after the completion of the sale. In some cases we assisted our clients in enrolling children in school or in looking for a job