The Buying Process
Compromesso (Preliminary Agreement) Once a suitable property has been identified, a Preliminary agreement (similar to the local convenium) is entered into by both parties. The agreement binds both parties to proceed with the sale pending satisfactory outcome of any conditions, such as subject to building permits, subject to structural survey and /or subject to mortgage. The compromesso states; 
- Who the buyer is, where they are from and their status.
- Who the seller is, where they are from and their status
- The description of the property, its location.
- The agreed selling price for the property.
- When the sale is to be completed by.
- Any conditions of the sale.
- The date the seller has to agree to this agreement.
It must be reinforced that if the buyer signs this document they are legally bound to buy the property or they will forfeit their deposit. The validity of this agreement is normally three (3) months.
The Deposit
Following the signing of the compromesso, the caparra (main deposit) is paid. This goes directly to the seller and if they do not finalise the agreement within the time period, then they will have to return the deposit in full.
The amount of caparra that is required at this point can vary depending on the value of the property and the seller’s wishes, but it is normally 10-30%.
If the seller agrees to this contract and later withdraws, then the buyer is legally entitled to the deposit and the same amount again from the seller as compensation. If the buyer withdraws from the sale without good reason then they will forfeit the deposit.
Procura (Power of attorney)
If the buyer cannot or does not wish to be present for this part of the process, then a representative can sign the agreement on their behalf. This could also be used where the buyer is unable to fully understand and would normally use the services of a translator, but could appoint someone else to sign on their behalf. At this point the following will be done by the agency:
- Ensuring the compromesso is registered. This means the seller will not be able to accept any further offers on that property.
- Assist in obtaining the Codice Fiscale (Tax code). This is not an application for residenza (residence).
- Opening an Italian Bank account for the buyer and establishing how the buyer can access the funds when needed to complete the sale.
- Dealing with any issues arising when making the preliminary searches such as breaches of regulations that need rectifying.
- Following up on building permits and recommending reputable architects, craftsmen and builders.
Such service (provided by an associate Sicilian company) attracts a 4% administration fee.
Atto (Deed of Sale)
This is the formal signing over document. This has to be drawn up by a Notaio and signed with both buyer and seller present.
If the Notaio believes the buyer cannot fully understand what he is saying (i.e. they are not fluent in Italian) then the buyer will have to have a translator present.
The Atto itself can be an anti-climax with lots of people waiting and listening to the information being repeated to make sure everything is settled. The previously famous tales of property values being wildly under-declared and then brown envelopes being exchanged whilst the Notaio went to ‘fetch’ something are now history, as a law passed in January 2006 means the taxes paid are on the low castadal (land registry) value of the property not the market value, thus removing the ‘need’ to under-declare the value.
All monies due are expected at the Atto, so notice must be given to local Banks in good time to ensure the large sums involved can be withdrawn without any problems. Sellers might expect a Banker’s draft; this will be confirmed by us beforehand. Apart from cash one could pay by bank draft.
The notaio should immediately notify the Catasto (Land Registry) of the sale and they will then send the deeds directly to the buyers. The notaio and Frank Salt Real Estate would then receive monies owed, and we would then contact utility companies to change/setup services.
The buyer can then enjoy their properties in Sicily!
Notaio (Notary)
Similarly to Malta, these are effectively public officials and act neither for the buyer nor for the seller. They are personally responsible for taxes due, so they are very thorough. The buyer has the right to choose the Notaio; we can recommend one if the buyer does not know of any.
The Notaio drafts the Atto, he can also draft mortgage applications and Italian wills. The Notaio carries out searches to ensure clear title.
The Notaio normally charges a percentage fee on the property value. Some do charge a fixed fee, which can be hard for us to establish beforehand; it will depend on the amount of work they deem necessary to ensure everything is in order.
Legal Costs
Legal costs depend on what is being bought, example:
- 1 to 2 hectares of land only: notary and stamp duty cost approximately €2,000 to €3,000;
- House: Stamp Duty up to 4 - 11%, depending on where the property is purchased and the type of property.
- Agricultural store: the same as when a piece of land is purchased.
Ownership Costs
There are two taxes to be paid annually on property;
- Imposta Comunale Immobili: ICI (Council Tax) calculated from the zone the property is in and the type of property. It is normally much lower than other countries. The actual figure varies between communes (councils), it is normally between 0.4% - 0.6% of the property value. It also depends whether the property is the buyer’s only home.
- Rifiuti Solidi Urbani: (Refuse Tax) This is calculated on the surface area of the property. This is a very small amount per year.
- Television Tax: in theory every property should pay for this, it is approximately €100 a year.
Utilities
General consumption is less in Italy, 80% of houses only have 3kw supply and they tend to use gas for cooking and water heating. It is not a problem to get higher power supplies, but the cost per unit consumed is more.
- Gas - If the house is urban it may be connected to metano (mains gas) otherwise either butane or propane cylinders or tanks are used.
- Water Costs are low here, supplies are normally reliable. Occasionally the explosion in population with the arrival of northern Italians in July and August and the peak summer weather can cause problems. Rural properties tend to have storage tanks for such eventualities
- Telephone - Sicilians love to talk, so telephones and telefonini (mobile phones) are everywhere. The standard of service from the effective monopoly of Telecom Italia can leave a lot to be desired.
- ADSL (broadband) internet is becoming widespread.