The Italian Property Purchase Process: A Plain-English Guide

Process Overview

The Italian system uses three distinct stages, each with its own contract, deposit, and level of commitment. Not every purchase uses all three stages. Sometimes the proposta and compromesso are combined. Sometimes the timeline compresses or extends. But understanding the standard structure helps you navigate variations.

The key difference from UK or US systems: in Italy, you become legally committed earlier in the process. The proposta is not just an opening gambit. When the seller accepts it, a contract exists.

Stage 1: The Proposta d'Acquisto

The proposta d'acquisto (purchase proposal) is your formal offer to buy. It specifies the price you are willing to pay, the deposit you are offering, and a validity period during which the seller can accept.

What It Contains

• Your details and the seller's details
• Full property description and cadastral references
• The price you are offering
• Amount of deposit (caparra confirmatoria) you are providing
• Validity period for the offer (typically 7 to 14 days)
• Proposed timeline for compromesso and rogito
• Any conditions (clausole sospensive) you want to include

When You Become Bound

During the validity period, you cannot withdraw your offer without consequences. When the seller countersigns the proposta, a binding agreement exists. At this point:

• You are committed to buying at the agreed price and terms
• If you withdraw, you lose your deposit
• If the seller withdraws, they must pay you double the deposit
• The agent may claim their commission is now due

The Deposit

The proposta deposit is typically 5,000 to 10,000 euros, though it can vary based on property value. This deposit is usually held by the estate agent until the compromesso is signed, at which point it transfers to the seller (or is absorbed into the larger compromesso deposit).

Stage 2: The Compromesso (Contratto Preliminare)

The compromesso (also called contratto preliminare di vendita) is the detailed preliminary contract. It expands on the proposta with full terms and conditions, and typically involves a larger deposit.

What It Contains

• Complete property description with all cadastral and land registry references
• Final agreed price and payment schedule
• Deposit amount and payment terms
• Date for the final deed (rogito)
• Warranties and declarations by the seller
• Any conditions that must be satisfied before completion
• What happens if either party defaults

The Deposit (Caparra Confirmatoria)

The compromesso deposit is typically 10 to 30 percent of the purchase price. This is paid directly to the seller and serves as both security and penalty mechanism:

• If buyer defaults: Seller keeps the entire deposit
• If seller defaults: Seller must return double the deposit to buyer
• On completion: Deposit is deducted from the final balance due

Registration

The compromesso should be registered with the Agenzia delle Entrate within 20 days of signing. Registration costs approximately 200 euros plus 0.5% of the deposit. While not mandatory, registration provides important protection: it creates a public record of your agreement and prevents the seller from selling to someone else.

Notarised vs Private Compromesso

The compromesso can be signed privately (scrittura privata) or before a notary (atto pubblico). A notarised compromesso provides stronger legal protection and can be registered with the Conservatoria (land registry) to create a formal claim on the property. This costs more but is advisable for high-value transactions or where there are any concerns about the seller's reliability.

Stage 3: The Rogito (Atto di Compravendita)

The rogito is the final deed of sale, signed before a notary. This is when ownership officially transfers. It is the only stage that must be done before a notary.

What Happens

1. Both parties (or their representatives with power of attorney) attend the notary's office
2. The notary reads the deed aloud in Italian
3. If you do not speak Italian, a sworn interpreter must be present
4. The notary verifies identities, confirms the property details, and ensures all taxes are paid
5. You pay the balance of the purchase price (usually by banker's draft)
6. Both parties sign the deed
7. The notary registers the transfer with the land registry
8. Keys are handed over

The Notary's Role

The notary is a public official, not your lawyer. Their job is to ensure the transaction is legal and properly documented. They verify the seller can sell, that there are no outstanding mortgages or liens (or that they will be cleared at completion), and that the cadastral records are accurate.

Important: The notary's duty is to the state, not to you specifically. They ensure legality but do not advise you on whether this is a good purchase. That is why having your own lawyer is valuable.

Costs at Rogito

At the rogito, you pay:

• Balance of purchase price (less deposits already paid)
• Notary fees (1 to 2.5% of declared value, plus VAT)
• Registration tax (2% prima casa or 9% second home, on cadastral value)
• Cadastral and mortgage taxes (50 euros each for prima casa, or percentage for second home)
• Agent commission if not already paid

Typical Timeline

A straightforward purchase typically takes 2 to 4 months from proposta to rogito. More complex transactions can take longer.

What Can Extend the Timeline

• Mortgage application and approval (add 4 to 8 weeks)
• Complex ownership situations (multiple heirs, inheritance issues)
• Cadastral discrepancies that need correction
• Unpermitted building work that needs regularisation
• Outstanding debts or liens on the property
• Delays in obtaining required documents

Understanding Deposits

Italian law distinguishes between different types of deposit, and the terminology matters because it affects what happens if someone defaults.

Caparra Confirmatoria

This is the standard deposit type used in property transactions. It functions as both security and pre-agreed damages:

• Buyer defaults: seller keeps deposit
• Seller defaults: seller pays buyer double the deposit
• The non-defaulting party can alternatively seek specific performance (forcing completion) or claim actual damages if higher than the deposit mechanism

Caparra Penitenziale

Less common. This type explicitly allows either party to withdraw by forfeiting (buyer) or returning double (seller) the deposit. It essentially creates a paid exit option. If the contract uses this type, make sure you understand the implications.

Acconto

A simple advance payment on the price, with no penalty function. If either party defaults, the acconto is simply returned (not doubled). This provides less protection than caparra confirmatoria. Ensure your contracts use caparra confirmatoria, not acconto.

Protecting Yourself

Before Signing the Proposta

• Complete at least basic due diligence (geometra survey, preliminary legal checks)
• Have a lawyer review the proposta before you sign
• Include conditions (clausole sospensive) that protect you
• Negotiate a longer validity period if you need time for checks
• Understand that once the seller accepts, you are committed

Common Conditions to Include

• Subject to satisfactory technical survey
• Subject to satisfactory legal due diligence
• Subject to mortgage approval (if you need financing)
• Subject to verification of planning permits and cadastral accuracy

At the Compromesso Stage

• Ensure all due diligence is complete before signing
• Have your lawyer draft or review the contract
• Register the compromesso for protection
• Verify all property details match reality
• Confirm the seller's declarations about the property's status

At Rogito

• Bring identification and codice fiscale
• Arrange a sworn interpreter if you do not speak Italian
• Have funds ready (usually banker's draft)
• Final walkthrough the property before the appointment
• Verify all conditions from compromesso have been met

Related Guides

• The Proposta Trap - why timing your offer wrong costs thousands
• Due Diligence in Italy - what to check before you commit
• The True Cost of Buying - full breakdown of what you will actually spend
• Italian Estate Agents - how they work and protecting yourself