Home Purchase Guide
When you decide to buy a house, you consider an important investment and enter a little-known and little-frequented market. There are many pitfalls and it is important to approach the home purchase with awareness and competence. To purchase a safe house, first of all, you need to request the documentation of the property and know how to interpret it correctly. This is not an easy operation; therefore, it is a good rule to rely on a consultant: a notary or a surveyor.
In order for the sale to be regular, the house in question must have the following documents:
- building regularity: the technician checks that the property complies with construction regulations.
- cadastral regularity: check on the plan and on the declared in the cadaster. In this regard, you can buy the documents you need on this other page of the site.
- technical appraisal: includes the inspection of the documents, insurance and cadastral records of the house. It is also supplemented by an inspection in which the structures and compliance with the law and safety regulations will be analyzed. The technical expertise also serves to establish the honesty of the asking price. The price of a property is calculated based on some requirements.
- economic appraisal: the expert evaluates the value of the house and establishes the right economic request.
Table of contents
- The advantages of checking documents before buying a house
- What are the precautions to be taken before buying a house?
- The house purchase proposal
- The Promise of Sale – Preliminary Sales Contact – Compromise
- Deposit – Confirmatory Deposit – Penitential Deposit
- The Public Deed of Sale – House purchase deed
- Taxes on home purchases
The advantages of checking documents before buying a house
For those who buy a house, the inspection of the relative documentation is important for several reasons:
- avoid wasting time and any deposits, starting a sale that cannot be concluded.
- verify the actual compliance of the requested price with the market average.
- know the actual value of the property you are buying.
- examine the terms of regularity and safety of the property.
- lay the foundations for a mortgage application with a high probability of acceptance.
- calculate in advance the costs of any restructuring.
- calculate in advance costs related to taxes and duties on that particular property.
What are the precautions to be taken before buying a house?
The house can be purchased directly from the seller or through a real estate agency duly registered in the appropriate role. In both cases, certain precautions must be followed.
- check that the seller is not a protested or bankrupt party;
- verification that the real estate unit object of the sale has been built in compliance with building regulations and that no illegal works have been carried out or have been condoned;
- knowledge of the percentage due to the agency for the intermediation provided. This percentage varies from city to city, and is between 1.5% and 5%;
- the control of the absence of encumbrances (mortgages, other guarantee bonds, etc.) on the property or the possibility of canceling such encumbrances.
The house purchase proposal
It is one of the moments in the formation of the home purchase agreement. After visiting the house and making the necessary checks, the buyer, in order to block the agreed price, signs an irrevocable purchase proposal, issuing a deposit on the price.
The proposal and the consequent acceptance of the same do not constitute a real contract but precede its completion. In fact, before its conclusion, if the proposer (buyer) or the acceptor (seller) die, are banned, or revoke the offer or acceptance, the contract it does not come into existence. In order for the agreement to be verified, it is necessary that the declaration of the proposer upon acceptance does not contain changes to the conditions indicated in the proposal itself.
The characteristics of the home purchase proposal are:
- the description of the asset that is the subject of the purchase proposal;
- the commitment to purchase by public deed by a fixed date;
- the declaration that the property has been viewed and liked;
- the price and payment methods.
The Promise of Sale – Preliminary Sales Contact – Compromise
If the irrevocable house purchase proposal is accepted by the seller within the time limits set therein, a promise of sale or compromise is reached, which commits both parties to stipulate the public deed of sale by a certain date. The promise of sale is a preliminary contract and is opposed to the final contract. It fulfills the function of engaging the parties for an event that is not immediately realizable.
So for example, I find it convenient for me to buy a property that the owner intends to sell. However, the cadastral data are missing, and I do not own the entire sum, so I have to get it by asking for a mortgage. Meanwhile, both I and the owner of the property, we have an interest in our mutual commitment to take on the character of a legal bond.
The function of creating this bond precisely obeys the contract prior to the sale also called “compromise.”
To make the signed compromise even more demanding, the promising buyer delivers to the promising seller a sum of money as a “confirmatory deposit” as an advance for the execution of the sale contract. Or, the payment can be made as a “penitential deposit”: in this case, if the buyer withdraws from the commitment, he must give up the deposit, if the seller breaks the promise, he must return double the amount. deposit.
The essential elements of the compromise are:
- the price of the property;
- the methods of payment of the price;
- the setting of the date of the stipulation of the public deed (deed);
- the declaration of the absence of mortgages and/or other constraints;
- the description of the property and its appurtenances;
- the indication of the amount paid as a deposit, a confirmatory deposit and/or a penitential deposit;
- the declaration of the regularity of the house with respect to the urban building regulations;
- the declaration that any building abuses have been condoned (building amnesty);
Deposit – Confirmatory Deposit – Penitential Deposit
The down payment constitutes a part of the price paid before the balance or the final stipulation. It must be distinguished from the deposit. The difference is important because the deposit must be returned if the sale is not concluded for any reason.
The deposit falls into the category of guarantees and consists of a sum of money that the buyer delivers to the seller at the time of concluding an agreement. It has a confirmatory function, that is, an advance for the execution of the contract.
The penitential deposit. If you want to use this type, you must explicitly declare it at the time of its payment, with the agreement between the contracting parties. “Penitential” means that the right of withdrawal is connected to it. Given the deposit, the contractors reserve the choice between fulfillment and withdrawal. The withdrawal takes place by unilateral will. If the promising buyer withdraws from his commitment, he must give up the deposit which remains in the hands of the promising seller. If, on the other hand, it is the seller who wishes to withdraw from his commitment, he must return a double deposit to the promising buyer.
The down payment or the deposit, whether confirmatory or penitential, is normally delivered upon signing the promise of sale (compromise).
The Public Deed of Sale – House purchase deed
The sale is the contract that has as its object the transfer of the ownership of the house towards the consideration of a sum of money (price). For these elements of exchange, buying and selling (exchange of thing for money) is distinguished from the exchange (exchange of thing for thing).
The deed of sale is stipulated in front of the notary, presents the seller and the buyer and is drawn up in public form. The deed is the final deed of the sale.
The seller’s main obligations are:
have the ownership of the house purchased at the time of the conclusion of the contract;
deliver the house to the buyer;
guarantee the buyer from eviction: that is, the house must not belong to others and others must not have real rights over it, except for those declared at the time of sale;
guarantee the buyer from defects, that is, that the house is free from defects that make it unsuitable for use or appreciably decrease its value.
Taxes on home purchases
The purchase of the house involves the payment of some taxes, which vary according to the destination of the property and the seller.
If the object of the purchase is the first home and the seller is a private individual, the deed of sale is subject to the following taxes:
- VAT exempt.
- register of 2%.
- fixed mortgage of 50 euros.
- fixed cadastral of 50 euros.
If the object of the purchase is a property for second home residential use, the deed of sale is subject to the following taxes:
when the seller is a private individual, or a “non-construction” company, or a “construction” company (or restructuring) that sells after 5 years from the date of completion of the works without subjecting the operation to VAT