Loans are available up to 80% of the mortgage valuation. Italian banks lend only on the basis of a mortgage valuation, this is carried out by a valuer on behalf of the lender, which you pay for and costs around €300. Once the buyer has found a property he wishes to purchase, he must sign the reservation agreement. The preliminary agreement is a binding legal document obliging both parties to complete the purchase at a future specified date in the offices of a local Notary Public.At this stage you have to put down a 10-30% deposit, which you forfeit if you pull out of the purchase. If the vendor pulls out, then they must pay you twice the sum they received as a deposit. If the transaction reaches completion, the deposit will be taken as a down payment.
The buyer should stipulate that the purchase is conditional on obtaining a mortgage, a satisfactory survey, and that the property is free from all charges and complies with building regulations.
Completion must be formalized by a local Notary Public who draws up the sale deed, registers it with the land registry and pays all taxes and duties on your behalf. Once the buyer receives his offer of mortgage in writing he must sign and return the papers to the lender dated the day he receives them. He will normally, then are able to complete on the purchase after a cooling-off period of around 10 days.
If the buyer does not plan on being in Italy for the completion, he must ensure that he has had a viable Power of Attorney in place, within good time.
