When purchasing real estate in Italy, performing the appropriate due diligence is both a right and a responsibility. The development, modification, and maintenance of a property are highly regulated by Italian law. When undertaking a transfer of ownership, a buyer should make sure that all actions undertaken by previous owners followed the proper legal procedures and correspond to blueprints submitted to local authorities. If anything was not built up to code, or if the floor plan does not match official blueprints, the property will have to undergo remedial action. Remedial action may require significant time and money. Catching any such deficiencies during due diligence can either
- save you from investing in a property that might turn out to be a money pit;
- help you to ensure all legal/structural deficiencies are remedied by the seller.
Most of the official due diligence process should be undertaken by an experienced surveyor (a geometra, architect or engineer) who is familiar with the purchase process and up to speed with the latest building codes, which are subject to frequent updates at a national level.
The surveyor will (i) inspect the property and (ii) visit various local and national repositories to verify the property’s legal history and official blueprints. The goal is to confirm the legal and urbanistic conformity of the property and to provide the buyer with the certainty of purchasing a ‘clean’ asset that will not result in future legal obligations.
Among the various documents and certifications that are produced during the due diligence process, are the following:
- Atto di Provenienza: most recent deed providing evidence of title.
- Certificato di Stato Civile: legal status of the title holder.
- Visura Catastale: property use and tax classification.
- Visura Ipotecaria: records of structural history and title history of the property.
- Planimetria Catastale: conformity to public records in terms of size, use and structure.
- Conformità Urbanistica: zoning certificate.
- APE: certificate of energy performance and relative costs of heating/cooling.
- Regolamento Condominiale & Dichiarazione dell’Amministratore di Condominio: (in case of purchase of a condo) a copy of the condo association rules and a statement from the condo president that there are no standing delinquencies on the part of the seller and there are no legal issues with the condo unit being purchased.
- Certificato di Agibilità: Italian equivalent of the Certificate of Occupancy.
