Legalities involved in Buying a House in Italy

Frequently Asked Question #43:

Q: Do I need a lawyer to buy a house in Italy?

A: It depends! Contrary to the usual practice in the UK, USA and many other countries, it is usually not necessary to hire your own lawyer when buying a property in Italy. In Italy the Completion (in the US, Closing) is supervised by a Notaio (Notary), a state-appointed lawyer who guarantees the correctness and legality of the process. The Notary acts for both buyer and seller, as well as representing the interest of the Italian state. In practice, native Italians rarely hire their own lawyer to buy or sell property, and only do so when exceptional or complex conditions apply: for example, when the transaction is routed via a trust or a corporate entity. The following routine checks, performed in English-speaking countries by the buyer's lawyer, are all performed in Italy by the Notaio:

that the seller has registered title to the property
that all registered owners and any other legally-interested parties (who the Notaio is legally required to identify) consent to the sale
that any outstanding debts against the property (e.g mortgages, utility bills and taxes) are paid
that any changes previously made to the property have been authorized by the local planning authority

However, before deciding whether or not to employ your own lawyer you should check that the real estate agent selling you the property is licenced to operate in Italy. By law, all real estate agents in Italy must be registered with their local Chamber of Commerce. To obtain a licence to operate, real estate agents must take a lengthy full-time course and then pass a final examination, in which they are required to demonstrate that they have a working knowledge of Italian property law. A registered estate agent will always establish that any potential legal impediments to your purchase can be, and will have been, overcome prior to Completion (Closing) before inviting you to sign a Compromesso (Initial Contract), i.e before you commit to buy. In effect, a registered agent is qualified to ensure in advance that the Completion (Closing) conducted by the Notary can proceed smoothly to a successful conclusion.

Unfortunately, there are many unregistered property agents, both Italian and foreign, working illegally in Italy. Quite apart from the fact that they can be less than thorough in performing the necessary pre-contract legal checks, there are other pitfalls you might encounter with unregistered agents: for example, any contracts they sign can be struck down in an Italian court. If you deal with an unregistered real estate agent, you are strongly advised to employ your own legal representation at an early stage, and certainly before you sign the Compromesso.

If in doubt whether a real estate agent working in Italy is registered or not, ask the agent for his/her registration number and the telephone number of the Chamber of Commerce he/she is registered with: you can then easily confirm the information yourself.

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