Seaview Residence on the Costa Smeralda
A client from mainland Italy — let’s call him Alessandro for privacy reasons — had found his dream holiday home: a residential unit in a stylish seaside residence on Sardinia’s eastern coast, known as Costa Smeralda, with sea views and several shared amenities.
Everything seemed straightforward: the price aligned with market value, the seller was cooperative, and the property was in good condition.
What Alessandro didn’t know was that beneath the surface lay a financial time bomb that could have cost him over €30,000.
The Discovery During Due Diligence
As part of our standard protocol, we contacted the building’s property manager to request formal information about outstanding condo fees.
We never rely on the seller’s word alone — we request official documents that confirm the absence of unpaid or pre-approved expenses, including an up-to-date financial report.
The response was revealing: the seller had accumulated over €30,000 in unpaid condo dues — not just minor arrears, but a significant sum that included unpaid ordinary fees, pre-approved special maintenance charges, and late-payment interest.
The Legal Trap Most Buyers Ignore
Here’s the critical detail that costs many buyers dearly:
Condominium debts automatically transfer with the property.
It doesn’t matter if the seller fails to disclose them — once you become the new owner, those debts become yours. In this case, the seller obviously had every interest in keeping this hidden. Sell at full price, offload the problem to the buyer — a ruthless but unfortunately common strategy. Legally, under Article 63 of the Implementing Provisions of the Italian Civil Code, buyers are liable for the condo debts relating to the current and previous fiscal year — but even that can mean tens of thousands of euros in some cases.
Our Intervention Strategy
Once we uncovered the issue, we immediately informed Alessandro and laid out a clear negotiation strategy. We had two viable options:
Option A: Negotiate a price reduction equal to the full amount of the condo debt (€30,000)
Option B: Require the seller to fully pay off the debt before closing, providing proof of payment
Resistance and Negotiation
At first, the seller tried to downplay the situation, calling it “minor” and claiming the condo association “would never take legal action” — even though several formal payment requests had already been issued.
He then attempted to reassure Alessandro with vague promises to “work it out later” through informal agreements.
When we presented the official documentation and explained the legal consequences, the tone changed quickly. No seller wants to risk a collapsed deal or legal complications at closing.
Final Outcome
After firm negotiations, we secured:
- Payment of the majority of the outstanding condo debts by the seller
- A price reduction to offset the remaining debt
- Written confirmation that no other debts were pending
Alessandro closed the deal saving over €30,000 — and more importantly, with no lingering legal or financial liabilities.
What Would Have Happened Without Us
If Alessandro had proceeded alone — or with a typical agency that doesn’t perform full checks — the outcome could’ve been disastrous:
- At closing: The notary would’ve read standard clauses about condo debts without knowing about this specific debt
- A few months later: The condo association would’ve sent Alessandro a demand to pay the full amount
- Legal action: Alessandro would’ve had to sue the seller, with uncertain results, legal fees, and years of stress
- Additional costs: Legal bills, wasted time, and no guarantee of full reimbursement
The Numbers Behind the Rescue
Hidden debt avoided: ~€30,000
Additional price reduction: Several thousand euros
Cost of our service:
- Included in the commission if the purchase is through our partner agency
- Otherwise, approx. 1.5% of the sale price (plus VAT), with a minimum fee.
Net savings for the client:
Over €30,000, zero lawsuits, no stress, and a fully cleared property ready for use or resale
Why This Approach Works
The coordinated system between Govoni Law and our Sardinian Real Estate Agency is effective because:
- Prevention: We identify problems before they become liabilities
- Coordination: A single team manages the legal and commercial aspects
- Expertise: We understand Sardinia’s market dynamics and legal pitfalls
- Protection: Clients are safeguarded from start to finish
Lessons from This Case
For buyers: Never rely solely on what the seller says about condo fees — formal checks are crucial
For the market: Hidden condo debts are more common than you think, especially in high-end properties with high maintenance costs
For everyone: Pre-purchase due diligence is not a luxury — it’s the line between a smart deal and a financial disaster.
The Value of Preventive Coordination
This case clearly shows why we begin our checks immediately, not after the preliminary contract.
Our pre-contract due diligence saved Alessandro from a costly mistake — not a cost, but an investment that paid off tenfold.
Final Thought
If you’re considering buying property in Sardinia, the real question isn’t if there are hidden issues — but when you’ll find out.
With our system, you discover them before it’s too late.
With others, you may discover them after, when all you can do is pay — and hope.
Get in Touch for a Preventive Consultation
- Govoni Law: contact@govonilaw.com
- Real Estate Agency, Agenzia Immobiliare Sarda: +39 3925536069
A simple check today could save you a fortune tomorrow.
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