Due Diligence in Italy: What to Check Before You Sign Anything

Why Due Diligence Is Essential

Italian property law follows "caveat emptor" (buyer beware). Once you buy, the problems become your problems. Unlike in some countries, the seller is not obligated to disclose issues you did not specifically ask about. The agent is not responsible for verifying accuracy. The notary checks legality of the transaction, not the quality of what you are buying.

This means:

• If the cadastral plan does not match reality, that is your problem after purchase
• If unpermitted work was done, regularising it (or demolishing it) is your responsibility
• If there are outstanding debts or liens, some can transfer to you
• If there are multiple owners who did not all agree to sell, the sale could be challenged

Legal Checks

Ownership Verification

Before anything else, confirm who actually owns the property and whether they can legally sell it.

• Check the land registry (conservatoria): Who is registered as the owner?
• Multiple owners: Italian properties are often inherited and split among family members. All owners must agree to sell. One reluctant cousin can block the entire transaction.
• Inheritance issues: Has the property been properly transferred through succession? Unresolved inheritances are common and can take years to sort out.
• Marriage and separation: If the seller is married or recently divorced, there may be spousal claims on the property.
• Legal capacity: Is the seller legally entitled to sell? Watch for issues involving elderly sellers or properties held in trusts.

Encumbrances and Debts

Check what claims exist against the property:

• Mortgages: Must be cleared at or before sale, with proceeds going to the lender first
• Legal claims or pending litigation: Is anyone suing over the property?
• Unpaid taxes: Outstanding IMU or other property taxes. These should be cleared by the seller but verify.
• Utility debts: Some unpaid utility bills can follow the property, not the person
• Condominium arrears: If buying an apartment, unpaid condominium fees from the previous owner can become your responsibility
• Rights of way and easements: Does anyone have legal right to cross the property? Are there utility easements?

How to Check

A visura ipotecaria (mortgage/encumbrance search) from the Conservatoria dei Registri Immobiliari reveals registered debts and claims. Your lawyer can order this and interpret the results. Cost is typically 50 to 100 euros for the search itself, plus professional fees.

Technical Checks

Cadastral Verification

The catasto (land registry) should accurately reflect what exists on the ground. In practice, it often does not, especially for older rural properties.

• Does the cadastral plan match the actual property? Walk the property with the plan in hand.
• Are all buildings recorded? That charming outbuilding might not officially exist.
• Are extensions recorded? The extra room added in the 1980s might never have been registered.
• Are boundaries accurate? Fences and walls do not always match legal boundaries.
• Is the classification correct? Agricultural land versus residential has major implications for what you can do with it.

Why it matters: You cannot legally sell a property if the cadastral records do not match reality. Discrepancies must be corrected before sale, or you inherit the problem.

Structural Assessment

Particularly important in Abruzzo, where seismic risk is real and many properties are old:

• Roof condition: Water ingress is common in older properties and causes cascading damage
• Structural integrity: Cracks in walls, settling foundations, structural movement
• Seismic assessment: Has the property been assessed for earthquake risk? Has any required remediation been completed?
• Damp and water damage: Rising damp, penetrating damp, condensation issues
• Electrical system: Old wiring may not meet current safety standards
• Plumbing: Condition of pipes, water pressure, sewage connection
• Heating: Age and condition of boiler, type of heating system, fuel supply

Seismic Risk: The Hard Truth

Abruzzo sits on active fault lines running through the central Apennines. This is not a theoretical risk. The 2009 L'Aquila earthquake killed 309 people, injured over 1,500, and displaced more than 65,000. Reconstruction is still ongoing sixteen years later. Smaller earthquakes occur regularly across the region.

Italy classifies seismic risk into four zones, with Zone 1 being the highest risk. Much of inland Abruzzo, including L'Aquila province and parts of the Majella area, falls into Zone 1 or Zone 2. Coastal areas generally sit in Zone 3 (lower risk, but not zero). You can check the specific classification of any municipality through the Italian Civil Protection Department (Protezione Civile) seismic classification maps.

What This Means for Property Buyers

• Building codes changed after 2009: Properties built or renovated after the earthquake must meet stricter seismic standards (Norme Tecniche per le Costruzioni, NTC 2018). Older properties are not required to retroactively comply, but that does not make them safe.
• Seismic assessment is not standard: Unlike a structural survey, a specific seismic assessment evaluates how a building would perform during an earthquake. For older stone houses in Zone 1 or 2, this is worth commissioning separately from a regular geometra survey.
• Seismic retrofitting exists but costs money: Strengthening an existing building with techniques like tie rods, reinforced joints, or fibre-reinforced polymer wrapping is possible. Budget EUR15,000-EUR50,000 or more depending on the building. Italy offers the Sismabonus tax deduction for qualifying seismic improvement works, which can offset 50-85% of costs over several years.
• Insurance is available but not automatic: Italian home insurance does not automatically cover earthquake damage. You need a specific polizza terremoto, and premiums are higher in Zone 1 and 2 areas. Get quotes before buying, not after.

Planning and Permits

This is where problems most often hide. Italian properties frequently have issues that only emerge when you dig into the paperwork.

Common Problems

• Unpermitted extensions: Built without planning permission, never regularised. The 1970s and 1980s were particularly prolific for informal building.
• Change of use issues: Agricultural building being used as residence. Barn converted to living space without proper permits.
• Building regulation violations: Work that does not meet current building codes, particularly seismic requirements introduced after the 2009 L'Aquila earthquake.
• Condono applications: Italy has had several building amnesties (condoni) allowing owners to regularise unpermitted work. Many applications were submitted but never finalised. The paperwork exists but the process was never completed.
• Habitability certificate (certificato di agibilita): Confirms the property is fit for habitation. Many older properties lack this, which can affect insurance and future sale.

What To Request

• Original building permits for the main structure
• Permits for any extensions, modifications, or renovations
• Habitability certificate
• Energy performance certificate (APE)
• Any condono applications and their status
• Documentation of any structural work, especially seismic improvements

Who Does the Work

When to Do It

The ideal sequence:

1. Before viewing seriously: Basic research on the area, property type, and obvious red flags
2. After serious interest, before proposta: Commission geometra survey and initial legal checks. This is the critical window.
3. Before signing proposta: Review findings. Understand what you are committing to.
4. Between proposta and compromesso: Complete detailed checks if you could not do them earlier (but remember, you are already committed by this point)

Red Flags to Watch

Warning signs that require extra scrutiny:

• Seller reluctant to provide documents: Legitimate sellers have nothing to hide
• Pressure to move fast: "Another buyer is interested" may be true, or may be pushing you past due diligence
• Property has been on market for years: There may be issues other buyers discovered
• Price significantly below market: Bargains exist, but extreme discounts often mean problems
• Multiple owners or inheritance complications: Not necessarily a dealbreaker, but increases complexity and risk
• Visible discrepancies: Extensions that do not appear on plans, fences that do not match boundaries
• Agent dismisses concerns: "Everyone does it" or "It is not a problem" are not adequate answers
• No habitability certificate: Common for older properties but understand the implications
• Pending condono applications: Submitted but never completed means the issue is not resolved

What It Costs

Budget for proper due diligence:

This is money spent without guarantee you will buy the property. If you decide not to proceed, or someone else buys it first, you do not get a refund. But compare this to losing a 5,000 to 10,000 euro deposit, or buying a property with 50,000 euros of hidden problems. Due diligence is cheap insurance.

Related Guides

• The Proposta Trap - why timing matters and how to protect yourself
• The Purchase Process Explained - understanding each stage
• Red Flags in Property Listings - what to watch for before you even view
• Renovation in Abruzzo - why budgets double and timelines triple