The buying process

In Italy there are three steps of negotiation:

OFFER (Offerta)
A document is presented to the vendor, offering an amount for the property. This is accompanied by a small deposit (usually around €5,000-10,000) in the form of a cheque. The offer is normally valid for only a few days.

PRELIMINARY CONTRACT (Compromesso)
A private agreement between the vendor and the buyer, normally but not necessarily drawn up by a Geometra (Surveyor) and undertaken by a Notaio (Notary Public). The compromesso contains all the terms and conditions of the sale, including the date of the final contract – this can be at any time agreed by both parties but the norm is 2-3 months later. At this point, the main deposit (caparra) is paid (minus the small sum already given at the time of the offer), usually around 20% of the purchase price.
NB: If the buyer later withdraws, he will lose the entire deposit. If the vendor withdraws, he is bound to repay the deposit and a penalty of the same value.

FINAL CONTRACT, NOTARY DEED (Atto or Rogito)
The completion of the sale must be executed by the Notaio. The document will be signed by both parties and the purchaser will pay the balance. The notaio is responsible for registering the property with the Land Registry Office (Ufficio Catastale).

COSTS

Agency fee: 3% of the purchase price, normally due at time of the Compromesso.

Notaio, Geometra and Translator (if used): Based on specific professional tariffs.

Purchase Tax: There are many variants of tax due, ranging from 3%-17% (depending on whether it is your main home, second home, rural property, luxury property, etc.) Since 2006 the percentages are based on the value documented at the Land Registry Office (a considerably lower figure!) and not the actual purchase price.