The Notarial Contract

Despite the legally binding preliminary contract, a formal deed of sale must still be concluded in order to complete the purchase of a property in Italy. Without this deed, ownership cannot legally pass to the buyer.

It is important to note that in Italy, ownership of a property is transferred to the buyer immediately upon signing the notarial deed of sale (rogito notarile). No further entry in the land register is required for the transfer of ownership to take effect.

The signing appointment usually takes place at the notary’s office, as the notary’s presence is mandatory to authenticate the signatures and to ensure the legal validity of the contract (see also The Notary). Both parties are generally present during the reading and signing of the deed, although each party may also be represented by a person holding a valid power of attorney. This power of attorney can be drawn up by an Italian lawyer or notary, or by a lawyer or notary abroad. In the latter case, however, it must subsequently be verified by the Italian embassy in the respective country.

If the buyer does not speak Italian, a sworn interpreter must be present during the signing, or the buyer may authorise their lawyer to sign on their behalf.

For the notarial signing of a property purchase or sale, the following documents are required:

• Copies of identification documents of all persons named in the contract

• Notarised power of attorney, if a representative is acting on behalf of one of the parties

• Proof of marital status for private individuals

• Certified extract from the commercial register for companies

• Shareholder resolution authorising the transaction (for Italian companies)

• Italian tax numbers (codice fiscale) of all parties

• Current cadastral extract (visura)

• Official floor plan and site plan (planimetria catastale)

• Purchase deed or inheritance certificate of the current owner

• Documentation of any existing mortgages and confirmation of their cancellation upon payment

• Declaration that the seller has no outstanding property-related or personal tax debts

• For buildings: building permit (concessione edilizia), certificate of habitability (abitabilità), possible retrospective authorisation for unauthorised works (sanatoria) including proof of fine payment, and energy performance certificate (certificazione energetica)

• For land: lease or rental contracts if applicable

• For building plots: certificate of land use designation (certificato di destinazione urbanistica)

• For agricultural land: waiver of pre-emption rights by tenants and/or neighbouring landowners

In addition, both parties must declare the agreed purchase price and disclose any real estate agents involved in the transaction.

In Italy, the property itself remains liable for any unpaid taxes that have not yet expired under the statute of limitations, even if they relate to previous owners. To protect the buyer from this often underestimated risk, Italian real estate law requires the seller to provide a written declaration confirming that the property has been correctly declared in their most recent tax return; otherwise, the seller remains liable to the buyer.

Before the final signing, the notary verifies that all conditions stated in the preliminary contract have been fulfilled. The notarial deed essentially confirms the contents of the preliminary agreement while specifying any details still outstanding. After the signing, the notary arranges for the official registration of the change of ownership in the Italian property register.

Payment

The purchase price is paid immediately after the signing of the deed in the presence of the notary. The payment process must be formally declared within the contract (dichiarazione giurata). Cash payments are not permitted; the amount must be paid either by bank transfer or by certified banker’s draft (assegno circolare). Notary fees are also due upon signing, as well as the property transfer taxes, which the notary pays on the buyer’s behalf to the cadastral office (see also The Notaryand Taxes & Fees).

Since 2006, for private sales, transfer tax has been calculated only on the cadastral value of the property rather than the actual sale price, which is usually higher. Therefore, it is neither necessary nor advisable to understate the price in the contract. The declared amount must at least match the cadastral value; otherwise, the Italian tax authorities may investigate, and the buyer could face significant fines. In addition, declaring an incorrect price can disadvantage you later if you decide to resell the property.

“Sold as Seen”

In Italy, properties are sold under the legal principle of “sold as seen” (visto e piaciuto). This means that the buyer purchases the property in the condition it is in at the time of signing.

For this reason, it is advisable to carry out a final inspection shortly before signing the notarial deed to ensure that no changes have been made since the preliminary agreement. It is recommended to review the property carefully and take an inventory. Check whether any new damage has occurred or whether furniture or valuable items included in the sale have been replaced with inferior ones.

 If you notice any defects or discrepancies, inform the notary immediately and request that these be rectified. The notary may, in such cases, retain a portion of the sale price from the seller to cover necessary repairs.

If the preliminary contract was not registered, your legal advisor should once again verify the entries in the land register before signing, to ensure that no new mortgages or encumbrances have been registered against the property in the meantime.

The notarial deed of sale must be registered with the land registry within 30 days of signing. This task is carried out by the notary.