What is the preliminary contract for the sale of a property?
The preliminary contract is a crucial step in the property purchase process in Italy. It binds both parties, with the seller committing to sell and the buyer committing to buy. This contract sets the stage for the eventual conclusion of the definitive deed at a later date.
What exactly does the preliminary contract consist of?
Typically, the preliminary contract can be a simple private agreement without requiring notarization, unless specified by law. However, it must be registered, emphasizing its legal significance. When a real estate agency is involved, the responsibility for registration lies with the broker.
What taxes are involved in the preliminary contract for the sale of a property?
The preliminary contract commonly involves the payment of a deposit, serving as a guarantee for both parties. This deposit is taxed at a rate of 0.50%. Additionally, any intermediate payments between signing the preliminary agreement and the final purchasing agreement can be classified as either an addition to the deposit or a down payment, at the discretion of the parties. For more information about property taxes for your purchase, you can read here.
Must the preliminary contract be signed at the notary’s?
Article 2645 bis of the Italian Civil Code allows for the preliminary contract to be concluded with the intervention of a notary, either through a notarized private deed or a public deed. Notarization adds an extra layer of protection, requiring transcription to prevent the property from being sold twice and safeguarding the buyer from potential financial risks.
Is it important to make the preliminary agreement?
Formalizing the agreement is essential, providing clarity and legal protection for both parties involved. While informal agreements may occur in rare cases, it’s generally indispensable to formalize the arrangement with a preliminary contract, ensuring clarity and security throughout the transaction process.
You can read more here about the preliminary contract or contratto preliminare.
