We have already mentioned the notarial deed in our previous article on How To Buy Property in Italy as a Foreigner; given its crucial role in the purchasing process, let us take a closer look to better understand what it is and the process behind obtaining it.
A notarial deed is the key document for homebuyers that sanctions the actual ownership of the property. Here is how it is stipulated and what figures are involved.
It is a public deed drawn up by a notary public attesting that a contract has been entered into. In particular, the notarial deed of purchase and sale is one of the most common and important notarial acts, as it is the one that sanctions the purchase of a property.
A notarial deed can be drawn up in several locations, but the most common are the notary’s office, which is usually the preferred place, or the bank branch where the loan for the purchase of the property was applied for. In the latter case, we speak of a “notarial deed in the bank,” since the notary goes to the branch to draw up the deed in front of the parties. In this case an official of the institution that granted the loan may be present; the bank mortgage placed as security for the sum lent through the loan is also a deed that must be registered and made public. The choice of location does not affect the validity of the deed, what matters is the presence of the notary. It is up to them to verify the regularity of the contract and ensure its validity by acting as a safeguard for all parties involved.
For the drafting of this deed, the parties need to submit to the notary public all the necessary documentation such as identity documents, documents of the property including the cadastral survey, the floor plan of the property, the title deed, along with the certificate of compliance of the facilities and the certificate related to financing, if required.
Depending on the type of contract, other documents may be required, for example when buying or selling inherited or donated property. In addition, prior to entering into a mortgage, it is typical for the bank to request the Preliminary Notarial Report (or also 20-year notarial report), referred to as a RNP, which photographs the legal status of the property including the changes of ownership over the past 20 years and any prejudicial formalities on it such as foreclosures or mortgages. Once the property is declared by the notary “free on deed,” meaning free of pending situations that would hinder its sale, the deed can be concluded. Upon completion of the latter and once payment is received, the seller hands over the keys to the buyer.
The amount of documentation required and the resulting verification processes make notarization a complex procedure. As a result, the timeframe for completing this phase is quite long, ranging from a few weeks to several months. Equally variable are the costs. The notary is required to receive a fee for drafting the deed, which can vary within a range defined by the national fee schedule. It usually ranges between 1 and 2 percent of the value, also depending on the complexity of the case, the geographic area in which the notary’s office is located, and most importantly, the amount of money that is going to be exchanged. In addition, you must consider related expenses, such as secretarial fees and taxes, which must all be meticulously listed within the document.
The experts at Ravagnan’s are ready to help you through this crucial step, as well as the rest of the purchasing process of your dream property. Get in touch with us to schedule a consultation.
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