If you buy a property in accordance with Italian law, you first sign a 'compromesso' with a person who is authorised to sell. This is an 'undertaking to buy/sell' that is legally binding on both vendor and purchaser. For properties for which we have a 'procura di vendita' we will sign the 'compromesso' after signing the agency agreement with the client. There is one exception: ecclesiastical buildings that we have been instructed to sell but over the sale of which we are not entitled to negotiate because this is the prerogative of the monsignor responsible. 
In this area 50 percent of the agreed purchase price is paid when the 'compromesso' is signed. This sum is a sort of penalty: if the purchaser withdraws from the purchase, he loses this advance payment; if the vendor withdraws from the sale, he must pay the purchaser twice this amount.
Make sure that the words 'caparra confirmatoria' are used in the 'compromesso' to describe the advance payment because otherwise the penalty does not apply. The purchaser also has an immediate right to intervene in the event of breach of contract and can immediately foreclose on the property. This provides additional security. In the interests of our clients, we ensure that the 'caparra' is not too low. Fifty percent of the sale price ensures an optimal degree of safety.
A 'compromesso' is often used like a security. In other words, you can resell your right to purchase that is guaranteed by the 'compromesso'. This affords further protection of your advance payment. You must be careful that the following words are included in the 'compromesso': 'per se or per persona or persone da nominare al atto notarile'. This means that you are buying for yourself or for a third party who will be named when the final contract is signed. If this addition is missing, you may not sell to third parties. In the 'compromesso', which we sign in front of a notary as a matter of principle, although this is not a legal requirement, the final purchase price that must actually be paid is established. This contract also guarantees that the property is unencumbered and guarantees the rights and duties of vendor and purchaser.
The most important factor is that this undertaking to buy and sell is legally binding on both parties. If a purchase is concluded within a calendar year, it can be interpreted as a 'purchase with ready money'. In other words, you can invest the outstanding amount or leave it on deposit where it earns interest that can help compensate for currency fluctuations. We recommend that you invest the money in Italy because you will have to pay in euro and Italian current accounts pay interest, unlike most British ones.
The time between the 'compromesso' and conveyancing by the notary (atto notarile) is used by the vendor and his Italian partner (our office in this case) to procure the necessary documents and certificates, e.g. certificates of inheritance and land registry documents, comply with legal regulations and requirements and settle rights of way, rights of use, and boundary questions and, if necessary, reclassify the category and status of the house. A local surveyor will also normally survey again and redivide (frazionamento) the property for the new owner and this will be entered in the land register. Such tasks normally take two to three months. As we have already said, the notary is legally bound to check the accuracy and completeness of all documents. He then officially approves the purchase and takes full personal responsibility.
Conveyancing, the 'atto notarile', can now take place in front of the notary.
An 'official' purchase price can now be agreed with the help of the notary. Italian law allows the official purchase price to be established on the basis of the assumed value of the property. Apart from very few exceptions, this official purchase price is considerably lower than the actual price that is paid. And as the land and purchase taxes are based on this lower price, the tax liability is correspondingly less. A good notary will do all he can to help although he is by law obliged not only to immediately calculate the tax payable but also to collect it. That's Italy for you.
But in your jubilation, you must still remember to check that any neighbours who are full time farmers do not have equal cause to be jubilant over this lower price. For a year, they have the right to buy the property at this lower price unless they have expressly forgone this right beforehand. It is of course part of the service that we offer to obtain these written waivers before the contract is signed. It is realistic to assume that between a half and a third of the actually paid price will be liable to taxation. The rest of the purchase price and the land purchase tax are now paid and this is part of the conveyancing. The purchaser must also now pay the notary’s fee.
And as we said before, your new house in Le Marche belongs to you just as surely as a house that you buy in Britain. One good way of checking that all will proceed smoothly and professionally is to contact our satisfied clients who, with our help, have overcome all these hurdles and are now happy homeowners. That is why we have a list of references that we can supply on request to future clients.