1068 FAQ on real estate purchase - part 2

Warning: the following are just general informations, do not expect to find specific or analytical explanations on all the matters and problems related to a real estate purchase.
So, with this limitation, here's the

[CENTER]FAQ on real estate purchases - part 2[/CENTER]

[B]1 - What is an atto pubblico ?[/B]

An atto pubblico is a contract drafted by a notary, with a peculiar and preferential legal strength.
It is a full evidence of all the declarations and events that the notary testifies as happened before him, so that they don't need to be proved in a lawsuit.
With an atto pubblico the property of a real estate can be transferred from the vendor to the buyer and the contract can be registered in the land register (Conservatoria) and in this way everybody has legal knowledge of the new property and must respect it.

[B]2 - Can I become owner with a scrittura privata (private contract)[/B] ?

Yes, but in this case the contract of purchase is fully valid only between the vendor and the buyer, while third parties have no legal knowledge of it.
It is possible to authenticate the scrittura privata (scrittura privata autenticata), that is that the notary authenticates the signatures of the parties and in this way the contract can be registered in the land register (see above)

[B]3 - So a scrittura privata autenticata is cheaper than an atto pubblico ?[/B]

Not necessarily.
You have to consider that when a notary authenticates the signatures of a purchase contract, he's not a mere "certifier" of the signatures (sorry for the English), but he'll do all the legal activities he normally do with an atto pubblico (see below) so you'd risk to pay twice: the lawyer (or the expert) who drafts the scrittura privata and the notary who authenticates it.
Statistically 95% of all purchases are drafted by notaries.

[B]4 - But, what do a notaio do ?[/B]

Reading questions and comments on the forum, it is evident that most of you has no idea of what a notaio is, considering him as a sort of tax collector.
That's because public notaries in UK and other common law countries have poor significance and essentially their job is just to certify the signature, with no more responsibilities
A Notaio in civil law countries, like Italy, France, Spain, Germany, Austria, Holland etc. is totally different.
A notary is a public officer AND a professional lawyer, with a university degree in law (5 years), highly competent in civil and commercial affairs, appointed notary after a very selective examination.
He is absolutely impartial, there can't be a notary of the vendor or a notary of the buyer, he must take care of both parties of the contract and guarantee the regularity and validity of the contract.
In a real estate purchase he, among the others duties:
- MUST verify that the one who claims to be the owner of the good that's going to be sold, is really the sole owner;
- MUST verify that the good has no mortgages or similar "surprises"
- MUST verify if there are problems with building permissions
- MUST verify cadastrial data
- MUST suggest the rightest and cheapest taxation possible
- MUST draft the contract according to the wills of the parties and the law
- MUST read and explain the contract (it could seem silly, but it's important, because you have the right to understand what you are going to sign)
- MUST look after the registration of the contract in the public land register
- MUST collect taxes for the contract and pay them
Of all those activities he's personally liable for and if something goes wrong (i.e. hidden mortgages, mistaken in cadastrial identification etc.) you have the right to take legal action against him.
As I said, the contract drafted by a notary is a full evidence - doesn't need to be proved in a court - of the declarations made by the parties before him (i.e receipt) and of the other facts he certifies as happened before him

[B]5 - I don't understand italian, so how can I understand the contract drafted by the notary ?[/B]

If one of the parties doesn't understand italian, the notary must draft it in both languages: italian and the foreign language (english in our case), it is necessary the presence of two witnesses and one of them must understand the foreign language.
If the notary knows the foreign language, there's no necessity of a translator, if the notary doesn't understand the language, a translator is necessary: he'll translate the contract and sign it with the parties, the witnesses and the notary.
To avoid all those formalities, foreign people follow the normal procedure to sign a power of attorney drafted in Italian (ie using a public notary in UK).

[B]6 - What about taxes ?[/B]
When you buy a real estate there are two main costs: taxes and notary's fee

The main taxes are Tassa di Registro and IVA (VAT), but there are others too.

Here is an example af the cost of a standard purchase of an house declaring a price of €. 100.000,00, when the vendor is a common citizen:
Tassa Registro: €. 7.000,00 (7%)
Tassa Ipotecaria €. 2.000,00 (2%)
Tassa catastale €. 1.000,00 (1%)
Bolli €. 240,00
diritti per trascrizione €. 40,00
certificati €. 40,00
visure about €. 50,00
Consider that while Tassa Registro, ipotecaria and catastale are a percentage of the price, the others (bolli, certificati etc) are a fixed cost: you pay them at the same level whether the price is €. 1 or €. 1.000.000.000
Also tassa registro, ipotecaria and catastale have a minimum level:
if the tax you're going to pay is below the amount of €. 168,00, you pay automatically €. 168,00.
Here is an example
purchase with a price of €. 1000,00 pays:
Tassa Registro €. 168,00 (instead of €. 70,00 - 7% of €. 1.000)
Tassa Ipotecaria €. 168,00 (instead of €. 20) and so on....

If you're buying from an entrepreneur, you pay VAT to the vendor - usually 10% or 4% if prima casa (see below)
To the notary you pay tassa registro, ipotecaria and catastale in their minimum of €. 168 each, plus the other costs above mentioned.

If you're buying an agricultural land, tassa registro rises at 15% while the others taxes remain the same above described.

If the land is buildable, tassa registro is 8%, plus the others.

[B]7 - but aren't there facilities ?[/B]

Yes.
The main reduction in "prima casa", that is when you buy an house in the town where you are - or you are going to be within 18 mounths - permanent resident, or where you work at the condition that you don't own any other houses in that town.
In this case tassa registro is reduced to 3%, and tassa ipotecaria and catastale are paid in their minimum of €. 168,00 each, plus, of course, the appendix of bolli, certificati etc.

[B]8 - Is Prima casa the only facility ?[/B]
No there are many, even if rarer. Here are some examples:

Historical buildings.
If the house you're going to buy is considered historical, for artistic or architectural reasons (ie an ancient villa, an historical palace, a castle, a tower etc.), tassa registro is 4%, and other taxes are like prima casa.

Centro storico
Some comuni (towns) have urban planning for the recovery of their historical town centre. If you buy an house that is part of the planning list, you pay tassa registro, ipotecaria and catastale in their minimum of €. 168 each, plus the other costs above mentioned and your only duty is to renovate the house

Agricultural lands
there are a lot of tax concessions related to agricultural, mainly if you personally cultivate the land. They are quite complicated and need more specific explanations.

[B]9 - Can I have prima casa if my house is under construction ? [/B]
Yes

[B]10 - How much do I pay for the notary ?[/B]

Well of course you pay the notary for his job.
Notary's fee is related to the price and the value of the contract
For example, for a declared price of €. 100.000,00 the fee, here in Macerata is about €. 950/1250 according to the complexity of the contract.
You have to remember that the fee doesn't double if doubles the price
Example:
price €. 200.000,00 fee €. 1.100,00/1.450,00
price €. 400.000,00 fee €. 1.300,00/1.800,00
price €. 700.000,00 fee €. 1.400,00/2.000,00

There is a national tariff or, better, there is a law that indicted the minimum fee and the criterions that must be followed to apply the tariff to the concrete case. Each notary district (there're several) decides the district tariff considering the economic reality of the zone.
So the fee in Milan or Rome is higher than in Macerata, Urbino, Perugia Brindisi or other small districts in south or central Italy, but we're talking of a difference of max €. 500/600.

11 - What is a a "declared price"

there is a thread on the forum about this specific matter, you just have to search it