Investing in Tuscan bricks with Novecento.

A complete guide for buyers of property in Italy.

CHOOSE THE RIGHT HOUSE WITH THE RIGHT PERSON

The first step towards purchasing a Tuscan house, probably the most important, is the determination of your budget, thinking also at the possibility of asking for a mortgage in Italy (why not?).

Once you have decided what sum you are ready to spend, you have to calculate that this sum will be burden by the taxes to be paid at the time of the final contract, the notary and geometra fees, the commission rates of the agency without of course including the restoration works: so we can say that the purchase price will be increased of a 10-12%.

THE AGENT

The second step will be the focusing on the features you want in an ideal home.bearing in mind that the perfect one does not exist and that everything is always a compromise! The easiest way to find the right property is to find a reliable Real Estate Agent that you think you'll be comfortable working closely with. To ascertain the expertise and competence of the agent then following list is a good starting point:

1. Are they a member of the Italian Registry of Italia Real Estate Agents (Albo degli Agenti Immobiliari)? Keep clear of unregistered agents, if they are NOT on the list, they are probably trading illegally!
2. Are they insured against professional risk?
3. Are they part of one of the two main organizations of real Estate Agencies: the FIMAA, (Federazione Italiana dei Mediatori e Agenti in Affari) and the FIAIP (Federazione Italiana degli Agenti Immobiliari Professionali)?

<<< Novecento belongs to the FIMAA, is registered and Insured. >>>

Last but not least, in Italy the agent has a loyalty to both the buyer and seller and acts for both, that is why he charges a commission from both parties.

DOCUMENTS AND ACTS

Now, after your House-Hunting experience, let's assume that you find the right property: the next step will be starting the process to buy. The Real Estate Agent will prepare a 'Proposal to Buy' in your name, indicating the purchase price that you propose for that property. The 'Proposal to Buy' will have a validity of one week and within that period the Vendor will have the power of accepting, refusing or discussing the price with you again. When he accepts, the price won't be discussed anymore. At this point, you will be asked to leave a deposit to the Agency, normally with a cheque in the name of the Vendor, that will be given to the Vendor only in case he accepts the price, signing your proposal.

Please Note that if the affair does not go ahead at this stage, for any reason, the sum will be given back to you without any penalty.

When the vendor has accepted and signed the proposal, whereas in the UK and US you would instruct a lawyer at this stage, in Italy the professional person selected is generally a Geometra, to make all the structural and legal checks of the property at the Land and Building Registry office (the Catasto).

We can advise you on which Geometra to use, most agents work closely with local geometras building up a relationship that can make all the difference when it comes to the crucial stages! He/she will write a preliminary contract, otherwise called Promise to buy (in Italian: Compromesso), which is a private act (in the sense that it is normally not registered unless something goes wrong) between Vendor and Buyer.

This contract normally includes:

• The agreed price of the property.
• Times and methods of payments.
• The date for completion.
• If the property that is being sold is burden by liens or similar.
• Includes the Vendor guarantee that he owns what he sells and that the property is regularly sellable.
• The description of the property.
• The indication of the boundaries of the property.

At this point the Buyer pays 30% of the purchase price to the Vendor, equivalent to a statutory deposit.

PLEASE READ, VERY IMPORTANT INFORMATION.

In the event that the process does not go ahead because the Buyer (YOU) withdraws through no fault of the Vendor (THE SELLER), the 30% deposit given is lost. While if the Vendor (THE SELLER) cannot meet the terms of the Compromesso - or simply withdraws - then DOUBLE the deposit must be returned to the purchaser (YOU).

FEES

Estate agency fees are payable by Vendor and Buyer at the Compromesso stage.

FINAL STAGE

Last step of the purchase process is the signing of the final contract, called rogito. That act will be completed by the geometra and submitted to the Public Notary, who witnesses the transfer of ownership from one party to another and collects the taxes due on the transaction. He/she will check that the taxes and dues have been paid and if the property is burden by mortgages or debts etc. Afterwards the Notary will register the new title within 21 days. If you have taken out a mortgage he/she will register this too.

THE PRIMA CASA FACILITIES AND THE PURCHASE TAXES

What is given here is just to inform you which taxes one normally has to pay at the moment of the purchase completion. The calculation of taxes is something quite complicated which only a notary can do, knowing exactly how much you need to pay at the completion date, the sum that will be given by the notary to the Registry Office within 20 days.

If the house you are buying is your first house in Italy and you decide to be a full time resident (you have 18 months time to become a resident in Italy) the taxes that need to be paid are:

• 3% registration tax based on the statutory value of the house, which is normally half of the market value (50% less).
• A fee for the imposta ipotecaria
• A fee for the imposta catastale. (These fees are currently in the region of 160 euro each)

If you are buying as non resident, you will pay 10% of the statutory value. If you are buying from a Building company you will have to also pay the VAT (4% as resident and 10% as non resident). To see a fully laid out example of a house purchase and the related costs please click here.

If you decide to live in Italy permanently, there are advantages when you buy your first house. This is what you need to know:

• It has to be the only house you own in that Comune (equivalent to a Local council in the UK)
• You have to be a resident in the Comune where you want to buy, and you have 18 months to organize this: you must go to the Questura (Local Police Headquarters) complete a form, give them 3 photos, a copy of your Title Deeds and a letter from your Bank declaring that you have enough funds to live here and after 2-3 months, you will be a Resident.
• It does not have to be a luxurious house.
• It is enough to declare the intention of becoming resident when you go to the notary to complete the purchase. False declarations are punished by the italian law.
• You also cannot sell your house for at least 5 years, unless you buy another first house for permanent living, or pay the tax difference.

COMUNE TAX IN ITALY

There are two local property taxes in Italy which are both based on the property's rental value according to the local land registry: the ICI (imposta comunale ugli Immobili) which is paid by all the people in June and December, that own a house in Italy and is calculated on the value of the house itself, and the rubbish collection, normally quite cheap.

HAPPY HOUSE HUNTING!

Don't forget that we are here to help you all the way, All staff at Novecento can assist you with finding the right house initially and will allways be there at anytime through the process of buying a property. Lorraine speaks fluent English and will be there to take you through the process of purchasing the property that you find.

If you are wondering where to stay when you arrive in Italy to view properties, look no further! We can arrange hotel or self catering apartments offering reduced rates to customers of Novecento.

Agenzia Immobiliare di Federighi Laura, Via Fillungo n.128 55100 Lucca LU Tel: +39 0583 491585 Fax: +39 0583 492895 Cel: +39 335 6493678 www.agenzia900.com info@agenzia900.com