Legal Advice
The following are guidelines and information based on our own experiences and cannot be taken as being legal advice. However, we hope you find the information useful in successfully purchasing your property in Puglia.
Codice Fiscale
This is an Italian Tax Code Number made up of a combination of sixteen letters and numbers. It is required to enable the Notary (see later note) to deal with all the post-completion formalities, and to comply with the various requirements of Italian tax law. It's other uses include opening a bank account in Italy; arranging public utilities contracts, insurances and purchasing a car. It is advisable to obtain this before viewing any properties as this will be required when placing a deposit on any property. This can be easily obtained from your local Italian Consulate legal department. You are required to complete a form, send photocopies of your passports and proof of residency in the UK. It usually takes three to four weeks to obtain your number by fax or post and then in the following weeks you are issued with a plastic card (credit card size).
Reservation Agreement
Once you have decided on a property. You make an offer through our Agent, stating the price you are prepared to pay, the payment conditions and the deposit amount. You will get the deposit back if completion does not take place at this stage. This is your intent to buy and is not legally binding. Please do not confuse this with the 'Compromesso' or Preliminary Agreement.
Preliminary Agreement (Compromesso)
This is normally a legally binding document that obliges the parties involved to complete the purchase at some future specified date in the offices a local Notary. Examples of what the Compromesso will contain are listed below:
- Identification of the parties;
- Indication of the location of your chosen property;
- Identification in the national register of lands (NCT) or urban areas (NCEU);
- Verification of the seller's title to the property;
- Verification of whether any limitations exist to the title;
- The sales price, including deposit;
- The date for the completion of the sale.
At this stage you pay a deposit (approx 5-10% of the sale price). If you pull out of the sale at this stage you forfeit your deposit. However if the vendor defaults then they are obliged to pay you twice the sum received as a deposit. On completion of the sale the deposit would be reduced from the purchase price.
The buyer may also stipulate that any decision to purchase is conditional on obtaining a mortgage, that the survey is satisfactory and that the property is free from all charges and complies with building regulations. This will of course depend on the type of property you are purchasing.
Power of Attorney (Procura)
If you are not fluent in Italian and do not understand Italian legalise, then you have to use a Procura or Power of Attorney to sign the contract on your behalf. We can provide more information on this part of the process if required.
The Deed of Purchase (Rogito)
Before the final signing of the contract all funds must be cleared and ready to hand over to the vendor. These include the Notary's fees, taxes, balance of purchase price of property. The final exchange of contracts takes place before a public Notary. A copy of the Purchase Deed is normally available for collection from the Notary's office within two to three months from the date of the completion of the sale. However, the property is yours when the contract is signed at the Notary's office.
Public Notary (Notaio)
This is the only professional entitled to transfer legal title to properties in Italy (apart from Court Judgments). He is an independent public officer charged with the drafting of the Purchase Deed finalising the sale, ensuring that title passes legally between the parties and registration in the Local Land Register. A notary is under a specific duty to ensure proper payment of all Italian taxes payable on a sale/purchase of property.
In addition to the above he does a second property search that should also match the searches conducted by the Agents.