Buying a house in Italy? Why not Sardinia!
Buying a house in Italy? Why not Sardinia!
Buying a house in Italy can look difficult, what are the rules and regulations. Common mistakes etc. Do not worry though; seeking the support of a good real estate agent means above all relying on a professional who understands the cultural difficulties, someone that master the laws that differentiate the Italian system than those is use in other countries. The Demuro estate agency, which also operates under the name of its subsidiary "Live In Sardinia", is duly registered since 2004 and thanks to its international dimension, gained in the course of several years and successful transactions, can support with confidence and professionalism foreign clients that wish to purchase a property in beautiful Sardinia. Whilst carrying out our activities we can leverage on a consolidated organisation made of well-established and respected professionals such as notary firms, surveyors / architects, construction companies and qualified accountants.
The sales process for buying a house in Italy can be summarized in following points
- Finding the (most suitable) property
- Offer to purchase - Preliminary contract
It is good to remember that usually real estate agent (except where otherwise advised) does not receive any compensation for arranging and leading the inspection to a property, thus its availability is totally free, so even if the search has not produced the desired results nothing is due by way of commission for his/her time and information provided. Once you have found the property of your dreams, the practice has it that the buyer initiates a formal purchase proposal, an unilateral agreement, that will be valid for the next 7/15 days within which the seller will decide or not to go ahead with it. The buyer can also opt to sign directly a preliminary contract ("Compromesso") that implies a "binding promise" to enter into a definitive agreement(Deed), therefore the preliminary contract contains the essential elements to be found in the final contract (Consent, Form, Consideration and Object).
To strengthen the nascent commitment implied by signing such preliminary contract, a penalty might be imposed upon a unilateral termination from one of the parties. Often the buyer pays the seller a sum of money under the form of a deposit: although every negotiation can be formalised in different ways the amount of the deposit usually range from 10% to 30% of the final purchase price. The signing of a proposed purchase and / or preliminary contract by both sides triggers the obligation to pay a commission to the agent; such fee generally ranges from 2% to 5% (+ VAT) against the agreed purchasing price, or rather a fixed amount based during the negotiations of the deal.
The Demuro Immobiliare in order to avoid unpleasant misunderstandings will establish with their customers before the signature of any contract the amount of the commission as well the timing and method of payment. Once the offer is accepted and or the preliminary contract signed the estate agent performs, in addition to the delivery of the cadastral documentation - from the planning and legal point of view, a number of procedures required for the conclusion of the Deed. The agent therefore will arrange the tax- payer code ("Codice fiscale") the registration of the preliminary contract, will request an official quote to notary's firm for the Deed or "Rogito" stipulation, inclusive of the notary 'fee.
He/She will also make sure the relatives purchases taxes are worked out and disclosed to the clients, such levies vary depending on whether the seller is private or is a registered company, or that the purchase involves the sale of primary residence or second home (holiday home). Finally, once the ownership of the property is finally transferred, the new owner must fulfil the payment of various taxes and fees such as the so-called "IMU" - "TASI" (property tax) as well as the "TARI" for the garbage disposal and the fees for the supply of electricity and water. Taxes like the IMU - TASI -TARI depend on the cadastral value of the property and the municipality the property falls in as well as the actual consumption.
Buyers must be aware of a Capital Gain tax: in case of a sale within the next five years from the purchase (by private) they will be liable for a profit 'tax of 20%; this is determined by the difference between the amount received via the new sales and the cost of acquisition plus any related deductible expenses, which must be documented. For further details on buying a house in italy please refer to our website page buying a house in Sardinia process page