Law No. 124/2017 provides important protections for those wishing to buy homes in Italy in the context of real estate purchases and sales. Let’s find out the most important ones.
Law No. 124/2017, commonly known as the “Annual Law on Competition,” represents a crucial step in the modernisation and transparency of the Italian real estate market. Entered into force to strengthen the protection of buyers, this legislation dictates a number of measures aimed at ensuring greater security in real estate transactions, reducing the risks associated with any financial, administrative or legal issues for homebuyers in Italy.
OBLIGATION TO DEPOSIT THE FUNDS WITH THE NOTARY
One of the most relevant rules introduced by Article 1, Paragraph 63 of the law concerns the payment of the remaining balance due to the seller at the time of the deed.
At the request of at least one of the parties, usually the buyer, this amount may be deposited in a dedicated escrow account of the notary until the transcription of the deed of sale at the competent Land Registry.
Transcription is the moment when the sale can be considered finalised, eliminating the risk of problems such as encumbrances on the property (e.g., seizures, judicial mortgages, foreclosures, or other pending claims).
Until that time, the Notary Public is required to guard and keep on deposit the balance of the amount owed by the buyer to the seller.
In addition to the sums earmarked for the balance of the sale price, it is possible to require the deposit of other amounts, such as those needed to pay taxes related to the purchase or to discharge any liabilities owed by the seller. For example, in the case of the sale of a property purchased with a mortgage that is still being repaid, the Notary Public can guard the sums necessary to pay off the outstanding debt.
ADVANTAGES
This system makes it possible to ensure that payment is made only after the buyer has become the owner of the property and, at the same time, reduces the risk of third-party claims or insolvency situations.
In fact, should problems occur before the final transfer of ownership, the deposit in the Notary’s dedicated account ensures that the sums can be recovered at any time.
This legislation has a retroactive effect and also applies to preliminaries concluded before the Competition Law came into force on August 29, 2017.
Law No. 124/2017 represents a significant step forward in regulating the Italian real estate market, putting the buyer at the centre of protection and helping to make real estate purchases and sales safer and more reliable.
If you wish to buy a property, our advice is to rely on experienced professionals who are up-to-date on the regulations, so that you can approach the transaction with serenity and security.
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