| Making
an Offer and Signing Contracts. Once you have found your
ideal property you should not feel shy about
asking whether the asking price is negotiable,
and offering less than the asking price, unless
the agent has categorically said
"non-negotiable". 10 percent lower may
be a reasonable figure to try as a first bid.
However, it is
important to work through an agent whom you
trust. Working through an English agency, who
should only deal with reputable and
well-established local agents, will help at this
stage ensure find the right negotiating position,
as Italian vendors are more erratic than English,
and it is not unknown for an asking price to rise
when an offer is received.
If an offer is
accepted in principle this is the time when you
will be in most doubt as to how to proceed, and
it is important to get things right at this
stage.
The theory goes
something like this -
The usual formal
and legally-binding contract between the vendor
and purchaser is called a compromesso.
This commits both parties to going ahead with the
transaction at the stated price by a certain
date. It involves the purchaser paying a deposit
(normally at least 10% of the purchase price),
which is non-refundable unless the vendor reneges
on the deal, in which case he or she must pay
twice the deposit amount back to the proposed
purchaser.
In theory you
should be confdent at this stage - amongst other
things - that the property is properly registered
and accurately described in the land registry,
the vendor has valid title, that it is in a
structural condition that matches your
expectations, and isn't in breach of any local
planning or building regulations, that there are
no mortgages or other third party rights on the
property you are unaware of and which have not
been covered in the contract, and of course that
the contract contains any conditional claues that
are necessary for your protection. If you do not
want to come to Italy specifically to sign the
compromesso it is possible by pre-arrangement to
assign a proxy.
Sometimes you will
find an agent suggests a different route other
than working towards a compromesso, and requests
an early signing of an offer and commitment, a
Proposal to Purchase (Proposta di Acquisito) or
similar document giving you the option to buy.
Although this does not have the same legal weight
as a compromesso this may still involve you in
penalties and a loss of deposit, if you pull out
of the deal, whilst not giving in theory the same
protection to you from the vendor's actions. In
practice this may be a quick and easy way of
acquiring a small property.
It is even
possible to go straight to completion if both
vendor and purchaser are agreeable, but in any
event the final procedure will be the signing of
the deed of sale with a notaio.
In practice you
may lose the property by acting too slowly before
signing a proposal to purchase. In Italy there is
no real "gentleman's agreement" under
offer period between an offer and ensuring the
purchase. Unless a contract is drawn up, signed
and accompanied by a deposit the vendor may feel
free to go to another potential purchaser who is
willing to sign straight away. It is wise not to
allow time for a vendor to become anxious about
whether your signing of contract will indeed take
place.
The preliminary
contract is normally a straightforward document,
it is important check that the sale is for full
ownership of the property - in some areas of
Puglia it can be found that a rural property is
effectively leasehold.
The contract
should allow adequate time for the remaining
procedures, collecting and preparing documents
and making arrangements for fund transfers etc,
to be carried out before completion. The
completion will be carried out by, and normally
in the offices of, a notaio. This is a public
notary who is acting neither for the vendor nor
purchaser (although the fees are generally paid
by the purchaser), and who checks and legalises
the final transaction.
You may read
advice that says employing a lawyer (an avvocato)
is essential at this stage, to take care of legal
issues and ensure the contract is drawn up
correctly for your protection. It's our view that
if you want to employ a lawyer it is better to
employ a local one, rather than an international
lawyer sitting in London (or another part of
Italy) who may not be fully conversant with local
conditions. (London lawyers may, however be able
to advise you about mortgages, tax and other
UK-based considerations.)
In practice it may
be a case of doing as the Italians do, and an
avvocato is not usually required unless there are
complications. The agent has a duty to work with
the notary to ensure a valid sale, and the notary
cjhecks correct registration etc of the property
and searches ofr any outstanding mortgages etc.
Complications are perhaps less likely in rural
areas than for urban properties, but increase if
there is any question of a mortgage outstanding
on a property, or if the purchaser requires a
mortgage, in which case this must be secured
before signing of compromesso. A reputable agent
will work with the public notary to identify
problems, has a legal responsibility to do so,
and in most cases this may render the use of
another lawyer redundant.
Another person who
could be employed on your behalf is a geometra,
especially in private sales. There is no exact
equivalent in the UK, but in Italy this is the
professional who is qualified in property
matters, acting as surveyor,as building project
manager, and also bridging the gap between
property lawyer and architect. And even help you
in property tax matters that you might expect to
be the province of an accountant. A geometra will
perform a survey if you require one (and
contracts subject to survey are very unusual in
Italy), but can also perform all the duties
necessary regarding validation of property
registry entry, vendor title etc, particularly if
you are buying from a private vendor rather than
through an estate agent, when it is essential to
have your own professional advisers.
A particular point
to be taken of in Italy if buying a rural
property with land is a possible right of
neighbours registered as agriculturally employed
to purchase adjacent agricultural property, even
retrospectively for some time after the
completion of a sale to a new purchaser, and you
should ensure that either they have no rights, or
that they are served notices of the intended sale
by the agent and that they have renounced this
right.
You will note it
is required at contract stage to have funds
available for the deposit. You might arrange for
funds to be transferred electronically from the
UK, or you might decide to open an account in a
local bank, which will be useful later for
completion and your eventual living in Puglia.
To open a bank
account you will need a fiscal code (codice
ficale - a tax number). This is easily organised
by a visit to the local tax office. The tax code
will in any event be required before completion,
and for several other lesser purposes, eg buying
a mobile phone account, so it is a good idea to
arrange this as soon as you are definite about
buying a property in Italy.
The Next Stage - Completion.
For any enquiry on
buying property in Puglia, please contact us.
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