In reply to A newbie all over again! by Annec
In reply to A newbie all over again! by Annec
[quote=gardahomes;88109]It is, sort of, but it's not as bad as it seems initially. And it's not quite correct to say that the property reverts to the vendor's estate, it's a bit more complicated than that.
This action is called an "azione revocatoria", and protects creditors from fraudulent acts by a company, i.e. selling off all their assets knowing they are about to go under so creditors can't get their hands on them.
However, since 2005 the law protects buyers against builders going bankrupt including a modification of how the azione revocatoria is put into practice.
[I][SIZE="2"](I have just moved offices and all my books are still packed up so I am going on memory here, so I will check later and correct anything if need be with a PS, or I'm sure someone else can if my memory fails me).[/SIZE][/I]
Essentially, for you to lose a property in this way, the deed of sale would have to be so suspiciously below market value that you would be suspected of colluding in the fraud - i.e. profiting from the vendor's insolvency and getting a bargain, knowing that the vendor is trying to offload his assets. However, if you are a normal buyer paying a normal market value and are clearly in good faith, you should not lose your property. The creditor also has to prove that the vendor knew that his action, in selling the property, would damage the creditor.
In addition, the period has been reduced from two years to one year - after one year you are home and dry.
The same 2005 law also introduced, for people buying from construction companies, two important areas of protection. 1), obligation of the vendor to provide a bank guarantee for all sums paid prior to completion and 2) obligation of the vendor to provide a 10-year insurance policy against defects in the build (this is in addition to the normal liability of the builder, also 10 years).
I think an additional thing you or your lawyer/notary can to do prove your good faith in the transaction (in case of future problems) is carry out searches on the builder as well as the property prior to completion, check for bankrupty proceedings, protesti, legal action, ask for a copy of the last few years financial statements from the chamber of commerce. I don't know whether such diligence would convince a judge of your innocence but I would think it would help, and obviously doing so could flag up any potential bankruptcies before you actually complete.[/quote]
see this thread [url]http://www.italymag.co.uk/forums/legal/9390-required-reading.html[/url] - the pdf covers the subject as regards buying from a company (see pages 12/13 ... its a protected pdf so I can't cut & paste the relevant bit)
ps. I assume this never applied where the vendor was an individual?
In reply to A newbie all over again! by Annec
[quote=pigro;88111]
ps. I assume this never applied where the vendor was an individual?[/quote]
I have been assured this is the case - apparently it refers only to companies going bankrupt.
In reply to A newbie all over again! by Annec
Thanks very much for your answers, that explains in perfectly. Much obliged.
In reply to A newbie all over again! by Annec
for completeness, I've taken this snippet from the same .pdf I referred to above:
[quote]All buyers should be informed that, under Italian law, the Tax Authority is entitled to claim
back any overdue taxes - unpaid by the taxpayer - on Italian properties by seizure on the
taxpayer's assets even when the affected property has been transferred to other "good faith"
owners. Any buyer of Italian properties, therefore, remains exposed - for a certain period of time
- to the risk that such real estate may be subject to future government seizure to pay the tax
debts of former owners. New purchasers/owners have the right to make up against defaulting
previous taxpayer/s (owner/s); however, this process may generally take long time, and often
the chances to ultimately succeed are modest. All purchasers, therefore, need to properly
safeguard themselves in advance by conducting necessary due diligence activity with the
assistance of their attorney.[/quote]
as i read it (and unless it's now out of date) this says that there [B]is[/B] an (unspecified) time period after you buy from a private vendor when their financial position [B][I]could[/I][/B] cause the house to be "repossessed" in order to pay creditors (of whom, you'd be one, but would require court action to pursue ...) ?
In reply to A newbie all over again! by Annec
I don't know about the government's powers to seize property from good faith owners to claim taxes payable by former owners. I'll see if I can find something on that.
I do know that some taxes are attached to the property and not the owner, and therefore any outstanding sums will become payable by the new owner, as well as condominium charges up to 2 years previously (if unpaid) which also follow the property not the owner. The new owner can then sue the previous owner, but yes this is expensive, carries no guarantees and takes a long time.
In reply to A newbie all over again! by Annec
slightly off subject but relevant to the parts regarding debt attached to homes and the perils... even in private sales there is an opinion here to do with the finance act 2008 which is well worth readi8ng i think
i like this site and have mentioned it before ...and it does almost keep up to date... but its hard here... anyway you can visit this specific page and i think if you are buying here its worth going through a lot of the info to go along with Pigros file
[url=http://www.delgiudice.clara.net/ENG/EVASIONEIVA.htm]"Finanziaria 2008" a new pitfall for Italian property buyers[/url]
It is, sort of, but it's not as bad as it seems initially. And it's not quite correct to say that the property reverts to the vendor's estate, it's a bit more complicated than that.
This action is called an "azione revocatoria", and protects creditors from fraudulent acts by a company, i.e. selling off all their assets knowing they are about to go under so creditors can't get their hands on them.
However, since 2005 the law protects buyers against builders going bankrupt including a modification of how the azione revocatoria is put into practice.
[I][SIZE="2"](I have just moved offices and all my books are still packed up so I am going on memory here, so I will check later and correct anything if need be with a PS, or I'm sure someone else can if my memory fails me).[/SIZE][/I]
Essentially, for you to lose a property in this way, the deed of sale would have to be so suspiciously below market value that you would be suspected of colluding in the fraud - i.e. profiting from the vendor's insolvency and getting a bargain, knowing that the vendor is trying to offload his assets. However, if you are a normal buyer paying a normal market value and are clearly in good faith, you should not lose your property. The creditor also has to prove that the vendor knew that his action, in selling the property, would damage the creditor.
In addition, the period has been reduced from two years to one year - after one year you are home and dry.
The same 2005 law also introduced, for people buying from construction companies, two important areas of protection. 1), obligation of the vendor to provide a bank guarantee for all sums paid prior to completion and 2) obligation of the vendor to provide a 10-year insurance policy against defects in the build (this is in addition to the normal liability of the builder, also 10 years).
I think an additional thing you or your lawyer/notary can to do prove your good faith in the transaction (in case of future problems) is carry out searches on the builder as well as the property prior to completion, check for bankrupty proceedings, protesti, legal action, ask for a copy of the last few years financial statements from the chamber of commerce. I don't know whether such diligence would convince a judge of your innocence but I would think it would help, and obviously doing so could flag up any potential bankruptcies before you actually complete.