Registration of the Preliminary Purchase Agreement: costs and procedures

Definition, costs and methods of execution, Great Estate tells you everything you need to know about managing this important phase in negotiating a property purchase.

The preliminary purchase agreement, commonly known as the compromesso, is a fundamental step in the process of buying or selling a property.

It is a binding agreement that commits the seller and the buyer to enter into the future notarial deed, the deed of sale, already defining the essential conditions, such as price, payment terms and terms of delivery of the property.

Unlike the deed, which transfers ownership, the preliminary agreement creates a legal bond, obliging the parties to respect the agreed terms and conditions.

For full information on the preliminary purchase contract, we recommend reading this article, in which all the steps from the preliminary contract to the deed are explained in detail.

REGISTRATION OF THE PRELIMINARY CONTRACT

In practice, the question often arises as to whether registration of the preliminary contract of sale is mandatory.

To answer this question correctly, a distinction should be made between the tax aspect and the strictly civil law aspect.

From the fiscal point of view, the registration of the preliminary contract is mandatory.

As provided for by Presidential Decree No. 131/1986, Tariff Part 1, Article 10, it represents a specific fulfilment for the parties to the contract, the non-observance of which exposes them to the consequent sanctions, without, however, preventing the contract from producing its mandatory effects.

In fact, unlike what is foreseen for other types of contracts such as leases, the preliminary, if complete with all essential elements, remains valid and effective even if it is not registered, binding the parties to the conclusion of the final contract of sale.

The registration of the preliminary contract is in any case strongly recommended in order to provide the parties with additional protection: with it, the agreement acquires a certain date, which is important for tax purposes and to prevent any legal disputes.

PROCEDURE AND REGISTRATION COSTS

The preliminary contract must be registered with the Revenue Agency within 30 days of signing.
The obligation to register is incumbent:

• on the parties;
• on the Notary, if the preliminary agreement is drawn up in the form of a public deed or a notarised private deed;
• on the real estate broker, if any, who facilitated the conclusion of the agreement between the parties and who in that case remains jointly and severally obliged with them.

The registration costs are as follows

• fixed registration tax: 200 euros 
• stamp duty: 16 euros for every 4 sides of the document and in any case every 100 lines.
• the proportional registration tax is equal to 0.5 of the binding deposit and 3% of the sums provided as a down payment on the sale price if the down payment is not subject to VAT. If, on the other hand, it is subject to VAT, a fixed registration tax applies. These fees will then be deducted from the fee due for the registration of the final sale contract.

ADVANTAGES OF REGISTRATION

The registration of the preliminary contract offers the parties to it some important advantages:

1. Certain date and legal certainty: Registration with the Inland Revenue gives the contract a certain date, which is essential to prove the validity of the agreement.
2. Tax Deductions: The sums paid as registration tax can be deducted from the registration tax that will be due at the time of the deed.

TRANSCRIPTION OF THE PRELIMINARY CONTRACT

In addition to registration, it is possible to transcribe the preliminary contract in the real estate registers. Unlike simple registration, transcription protects the buyer from any prejudicial registrations on the property (such as mortgages or foreclosures) that may be made by the seller after the preliminary contract has been signed. Transcription is particularly recommended when the interval between the compromesso and the deed is long or in the case of properties with complex legal situations.

In conclusion, registration of the preliminary purchase contract is a fundamental step to ensure greater security and protection in a real estate transaction. It is therefore essential to rely on professionals in the sector, to best manage all the phases of a real estate sale.

The Great Estate group is able to offer step-by-step assistance, including drafting and registering the preliminary contract, a service carried out by expert professionals with the support of specialized technicians who are part of the Partner network.

The public content of this website is for informational purposes only and cannot be considered exhaustive, nor provide legal advice or other type of professional advice, nor is it intended for commercial purposes or for customer relations or transactions.