PURCHASE CONTRACT DOCUMENTS

Once the property for purchase is identified, a binding written proposal (PROPOSTA DI ACQUISTO) is executed. For a specific period of time (usually 5 days to 15 days), the buyer commits to purchase the property at a particular price. If the offer is accepted by the seller, a 10% non-refundable deposit (CAPARRA) is paid.

The second step in the process involves signing a preliminary contract (COMPROMESSO DI VENDITA) which is prepared by either the agent or a notary. This document contains the essential terms of the sale, including full details of the property, the seller and buyer, the purchase price, financing terms, the closing date, and any other conditions that must be fulfilled prior to contract completion. An additional deposit of 10% to 30% is paid at this point.

The contract is completed (ATTO) by signing the Final Deed (ROGITO) which is drawn up by a notary. Legal ownership of the property is then transferred upon payment of the balance of the purchase price plus any other payments that are due at that time, such as the notary's fees, taxes and commissions.

METHODS OF PAYMENTS
All payments must be paid by either banker's draft (ASSEGNO CIRCOLARE) or bank transfer.

AGENTS' COMMISSIONS
Commissions vary (usually between 3% or 4%) and are paid by both the seller and buyer. Oftentimes, agents' fees are payable when the preliminary contract of sale (COMPROMESSO) is signed.

REGISTRATION TAX (IMPOSTA DI REGISTRO)
Taxes on the transfer of real property are levied at a rate of 3% for primary residences and 10% for second homes. These rates are applied to the minimum declared value (RENDITA CATASTALE) recorded at the local land registry office (CATASTO). VAT (IVA) does not apply to property transfers between individuals, but will be due if the property is purchased from a company.