Among the deeds for which the Notary Public is institutionally responsible, the sale and purchase agreement is particularly important. Among the sale and purchase agreements, the agreement for the purchase of a house stands out.

The main aspects to which the prospective purchaser must pay particular attention are the following: – The negotiation phase

1) In the event you contact a real estate agency, it is advisable to:

1. a) once you have visited the property and found it to your liking, ask to be informed of the condition of the property, both in terms of its ownership title at the Land Registry Office or Property Registry Office (origin by sale and purchase agreement or donation, etc.) and in terms of its cadastral situation and compliance with administrative authorisations (regularisations, permits, etc.), and also ask to see the relevant maps and cadastral documents.
2. b) when the real estate agent asks you to sign the offer to purchase real estate, you should bear in mind that: – this offer is already an actual preliminary agreement, containing all the elements of the agreement and the terms of payment; – there is no subsequent possibility for the purchaser to negotiate or reconsider; – it only binds the purchaser irrevocably in relation to both the seller and the agency; – the amount of the so-called “reservation” must be paid by cheque made out directly to the owner of the property and not to the agent with whom negotiations are taking place; – the offer to purchase form must be checked to ensure that it does not contain any unfair or particularly onerous clauses for the purchaser; in this respect, it is a sign of the seriousness of the real estate agent to hand over the form before signing it so that it can be checked.

2) In the event of direct negotiations, it is advisable to consult an expert (Notary Public or consumer association) to carry out the necessary checks before signing the preliminary agreement. This advice also and especially applies to the seller who, in good faith, may disregard certain commitments or special rules that must be observed before committing to a sale. – The preliminary agreement. Once the necessary checks have been carried out and the contractual terms have been agreed with the seller, the preliminary agreement is stipulated and, in accordance with the law, it can be recorded with the relevant Land Registry Office or Property Registry Office. The registration makes the preliminary agreement public and thus protects the purchaser from the harmful consequences of any adverse entries on the property (attachment or seizure of property, etc.) that may occur between the signing of the preliminary agreement and that of the final agreement, or as a result of the seller’s bankruptcy. In the latter case, the purchaser has priority over other creditors in the recovery of sums paid and expenses incurred. However, recording of the preliminary agreement is advisable and particularly appropriate in the following cases:

1. a) if the seller is an entrepreneur;
2. b) if between the signing of the preliminary agreement and the signing of the final agreement there are renovations to be carried out or permits, authorisations, regularisations, financing, etc. to be obtained;
3. c) if there is a long period of time between the preliminary agreement and the final agreement;
4. d) when a large deposit is paid. The recording of the preliminary agreement entails additional costs which are only partly recoverable. In any case, the cost of a preliminary agreement with subsequent recording is much less than the damage that can result from omitting to record it.

– The agreement signed before the Notary Public (the so-called “notarial deed”) is the culmination of a complex and very delicate activity carried out by the Notary Public, assisted by the staff of the Notary Office and possibly by external specialists (cadastral surveyors, chartered surveyors, etc.), in order to provide the parties with the desired result.

In order to guarantee this result, the Notary Public must: – reconstruct the exact land registry and cadastral situation of the property to be sold and purchased: to this end, the Notary Public will consult the public registries (Cadastre, Land Registry and Property Registries) (including by electronic means, as modern technology now allows); – check that the property is free from adverse entries and registrations (mortgages, attachment, liens, servient easements, etc); verify, if necessary, the compliance of the property with town planning regulations (within the limits and in accordance with the provisions of the basic Law No. 47 of 28 February 1985 and subsequent amendments); – identify any tax provisions that may allow the purchaser to benefit from favourable tax rules.

As from 1 January 2006, it is possible to indicate the actual price agreed and, at the same time, to pay the taxes relating to the deed only on the value of the property determined by the mechanisms of revaluation of the cadastral income (so-called automatic assessment).

In this regard, please refer to the “Price-Value” guide produced by the National Council of Notaries Public and the main consumer associations, available at www.notariato.it. In this context, the tax rules applicable to the purchase of a first home are particularly relevant, as they allow the following (more favourable) tax rates to be applied:

100. a) in the case of purchase from a private individual, registration tax at the rate of 2% (instead of 9%) of the cadastral value (if lower than the agreed price) and mortgage and cadastral taxes at a fixed rate (Euro 100.00 in total);
101. b) in the case of purchase from the construction/renovation company within four years of completion of the works, VAT at the rate of 4% (instead of 10%) of the agreed price, plus registration, mortgage and cadastral taxes at a fixed rate. In order to benefit from the tax incentives granted for the purchase of the so-called “first home”, the purchaser must: – be resident in the municipality where the property is located or undertake to transfer his/her residence to that municipality within 18 months of the purchase (notarial deed);– not hold, solely or jointly with his/her spouse, other houses in that municipality, – not own other property, not even a property share, purchased throughout the country availing of the tax incentives granted for the purchase of the so-called “first home”; – purchase a house that does not fall within the contractual categories A1, A8 and A9. The Notary Public will then have to inform the purchaser, who is claiming the so-called “first home incentives” that in the event of a subsequent transfer (sale or gift) of the house purchased with the first home incentives before 5 years have elapsed since the purchase, he/she will be liable to tax at the standard rate indicated above, with surcharges and interest, unless he/she purchases another property to be used as his/her main residence within one year of selling the property.

In this case, he/she will also benefit from a tax credit on the new purchase. This tax credit is available in any case of sale (even after five years from the original purchase) of the house bought with the tax incentives and subsequent repurchase, WITHIN ONE YEAR, of another dwelling.

• DEDUCTIBILITY OF INTEREST PAYABLE
  If the purchaser has taken out a mortgage loan for the purchase of his/her own or a family member’s main residence, he/she may deduct from his/her income tax return for the year in which he/she paid the loan instalments 19% of the interest and additional charges paid in relation to the loan, up to a maximum of Euro 4,000.20, to be shared among all the borrowers of the loan. If the mortgage loan is in the name of both spouses and one spouse is a tax dependent of the other, the deduction is granted to the latter for both interest shares. The deduction is allowed provided that: 1) the property was used as the main residence of all property owners within one year of the purchase; 2) the purchase took place in the year before or after the date on which the loan was taken out. Deductible charges include the substitute tax, mortgage registration tax, the fees of preliminary investigation, the valuation and the Notary Public’s fees relating to the stipulation of the mortgage loan agreement. In the case of the purchase of a property unit that is the subject of renovation works for which a building permit or equivalent authorisation has been issued, the deduction is due from the date on which the property is used as a habitual residence, and in any case within two years of the purchase.
• MUNICIPAL SOLID WASTE TAX
  The purchaser of a property must go to the Tax Office of the Municipality to provide the information needed to calculate the municipal solid waste tax. For this purpose, it is necessary to provide your personal details, tax code, the date of occupation and the floor area of the property (excluding internal and external walls), excluding terraces, but including cellars and garages. For non-domestic uses, the total floor area of the buildings used for the business must be taken into account, i.e. including back rooms, cellars and the like. This information must be provided by 20 January of the year following the date of commencement of use.
• CONNECTION OF MAIN UTILITIES Electricity

  You can apply for an electricity connection by telephone. In the case of a new building, you will need to provide the new owner’s personal details and tax code, as well as the number on the electricity meter label, the power required and the address for receiving the bill. If, instead, you are taking over the use of an existing electricity meter, you will need to provide the name of the previous owner and the meter reading, as well as the personal details and tax code of the new user. Fee reductions are available for domestic use by residents. To qualify, you must send a certificate of residence to the provider, also by post, within five months of starting to use the service. Gas and water: You must contact the utility company in the Municipality where you live to obtain the necessary information, as procedures are set at local level. Telephone: To request a new telephone line or the relocation of an existing one, simply dial 187.

• CONDOMINIUM MANAGEMENT

  The transfer of the property must be notified by the seller to the condominium manager so that he/she can proceed with the correct charging of the condominium management expenses and the settlement of accounts. In the absence of such notification, the seller and purchaser will remain jointly liable for the payment of such expenses.