Legal Due Diligence and Preliminary Contract Drafting
This service includes the Real Estate Legal Due Diligence, the Condominium Check, the Tax & Fiscal Consulting and the Live Assistance of our Lawyers in the Notary Closing with real-time Juridical Translation. We will also take care of the Italian Notary Correspondence on your behalf and organize the Closing Deed and be there with you for any clarification and juridical assistance. Before that step, the Firm draws up the Preliminary Contract with the necessary clauses for the protection of the client. In fact, this contract, known as “Contratto Preliminare” is the agreement with which the parties mutually oblige themselves to sign a final Notary Deed otherwise we will recover the sums deposited by the buyer plus compensation for damage.
Preliminarily, on your behalf:
- We obtain the Italian Fiscal Code “Codice Fiscale”, necessary for the purchase of a house in Italy;
- We provide to open your Italian Bank Account, for the deposits of sums and future payments of bills and taxes upon the Italian property. In the case of foreign bank mortgage, for a more transparent and safe transaction, we provide an escrow account service, from our Notary Partner.
If our Legal Due Diligence gives us a positive output we can go on in the further steps.
1) Proposal Offer drafting (in Italian, Proposta d’Acquisto), where the potential Property Buyer pays a Fiduciary Deposit to guarantee the proposal held by Govoni law firm. This sum is usually around 10% of the property price.
In the offer we will write the economic terms of the purchase;
2) If the Seller accepts the offer and the terms, we draft the Preliminary Contract with all the clauses for the terms and guarantees as per buyer proposal and it will need a payment that will be added to the previous sum to reach the 10% for the “Caparra”;
3) Conveyancing: Notary Deed (Closing) “Rogito Notarile” will complete the purchase with the final balance.
The Preliminary Contract (commonly known as “Contratto Preliminare”)
This is the first contract that the seller and the buyer must sign. Sometimes, however, the preliminary contract is preceded by a purchase proposal (“Proposta d’Acquisto”). With the preliminary contract, the party agrees to sell/buy; the total price of the property is set, as well as the terms of payment, the actual timing of the sale and the amount of the advance payment (down payment/deposit) that is paid at that moment to the vendor.
This preliminary agreement (even if it is concluded privately) gives rise to commitments that are legally enforceable. They pose constraints for both the seller and the buyer: if after payment of the deposit the buyer decides not to buy the property, the seller may retain the deposit; but if the seller decides not to sell, the buyer is entitled to receive back an amount equal to double the deposit paid.
It should also be pointed out that if the preliminary contract is made with a notarial deed, the contract can be “transcribed” into the registries: in this way the buyer is protected from any problem that may arise during the period of time between preliminary contract and completion of the Notary Deed, such as mortgages, foreclosures or bankruptcy of the seller.
In case of insolvency of the seller, for example, registration of the preliminary contract allows for recovery of all or part of the amounts paid. This suggested approach offers the best protection for the buyer.”
Don’t fall in the most common mistakes that buyers keep doing again and again. Buy Safe!