The buying process in Sicily

Compromesso (Preliminary Agreement)
This is very similar to the Maltese promise of sale agreement ("konvenju"). By signing this document one is agreeing to the sale going ahead, pending the satisfactory outcome of any conditional clauses, such as subject to structural survey, subject to bank loan application, subject to issue of building permit, etc. 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 and its location, including the land registration area reference.
• The agreed selling price for the property.
• When the sale is to be completed by.
• Any conditions of the sale.
• The completion date.
• The price.

The Buyer should be clear that by signing a Compromesso, he is legally binding himself to buy the property or, at the Seller's choice, the Buyer will lose his deposit. Similarly, the Seller is legally binding himself to sell the property or, at the Buyer's choice, to pay back the deposit together with an equivalent sum should he refrain from selling the property.

The validity of this agreement is normally six (6) months.

The Deposit
Following the signing of the compromesso, the caparra confirmatoria (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 between 10% and 30%.

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. He can however appoint someone else to sign on his behalf.
At this point the following will be done by Go Sicily Properties:

• Ensure 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).
• Open an Italian Bank account for the buyer and establish how the buyer can access the funds when needed in order to complete the sale.
• Deal 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.
  These services are provided by us directly and attract a 4% administration fee.

Atto or Rogito (Deed of Sale)
This is the formal public deed of purchase. 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 in order. 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 catastal (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 that the sums involved can be withdrawn without any problem. Sellers might expect a Banker’s draft (or "assegno circolare bancario"): this will be confirmed by us before the contract. Apart from cash one could pay by banker's 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 Go Sicily Properties would then receive monies owed and we would then contact the utility companies to change or set up the relative services.
The buyer can then look forward to enjoy their property 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. It is advisable that one ensures to have an Italian will covering his property in Italy. 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: as in Malta, this will depend on the amount of work they deem necessary to ensure everything is in order.

Legal Costs
Legal costs consist of Notary fees and Stamp Duty at the following indicative rates:

• Land only: approximately between 2% and 3%;
• Land and House: approximately between 4% and 6%;
• House only: approximately between 6% and 8%.
• Agricultural store: approximately between 2% and 3%.

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 tax which amounts to 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 and 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, wells (cisterna) or water boreholes (pozzo trivellato) for such eventualities.
• Telephone lSicilians generally love to talk, so telephones and telefonini (mobile phones) are everywhere.
• ADSL (broadband) internet is becoming widespread.
• Mobile phone costs are similar to those found in mainland Europe.

Cost of living
Where the market has not embraced less regulated practices, for example car insurance, then it tends to be more expensive. Electrical goods tend to be the same price. Food and drink tend to be significantly less and of significantly better quality!

Year on year market deregulation is bringing lower cost solutions, such as in the mortgage market.

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