This document is intended to help you understand and deal with the risks involved in a real estate transaction in Italy. Although the Italian legislation can be very effective in protecting real estate investments, a large number of investors experience recurrent frauds such as the following ones: • Buyers losing deposits because the builders become insolvent. • Buyers who bought unaware of outstanding mortgages, tax liabilities or other charges against the subject property. • Buyers finding themselves with unauthorized buildings
In my professional experience I noticed very often that clients are facing problems that could have been very easily prevented taking independent legal advice before the point where there is a legally binding agreement such as a “Reservation offer” or a “Preliminary contract”. The property that you are considering to buy might have legal and structural problems which are not always evident unless you are a professional of the field. The consequence might be you not being able to sell your property for a long time and maybe facing major legal problems. The various non independent parties involved in your transaction might not have an interest in telling you all the truth because they have a financial interest in the sale. Your independent legal adviser might be the only independent person who will assist you throughout the transaction. In Italy the “preliminary contract” is not necessarily a formal document written by lawyers or notaries. Often buyers find themselves bind by the signature of a document that they don’t even perceive as a legally binding contract. You should always be aware of the fact that signing legal documents can have far ranging consequences. This only one of the reasons suggesting to require independent legal advice before the signature of any document, even when it looks absolutely innocent. The definition “independent legal advice” essentially means two things: 1. The advice must be unbiased and given by a professional in this area of law. 2. Your adviser must have no connection or profit sharing arrangement with the seller and/or the real estate agent.
A conflict of interest arises, for example, when an estate agent proposes in house legal support as part of his services. As a general rule Italian notaries are public officials who should be in a position of impartiality between the buyer and the seller. Said that, real estate agents can represent for some notaries an important source of business; this is the reason why according to the law, the choice of the notary belongs to the buyer. A notary suggested by the estate agent might be biased due to this business relationship. Finally there are only very few notaries who are fluent in English and they normally advise clients only in oral form. In the event of a dispute you might have limited or no protection if you cannot prove what was actually said. The cost of an independent legal adviser is extremely limited if you consider what you are putting a stake in a high value transaction like a real estate conveyance.
De Tullio Law Firm Avv. Giandomenico De Tullio (Partner http://www.detulliolawfirm.com http://www.trullo-bello.com
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