Buying a house: here's what to know

Here is a series of answers to some frequently asked questions for those approaching the purchase of a property for easier understanding.

What is meant by deed of sale?
The sale is the contract that allows the transfer of property to others by paying a sum of money. The sale differs from the exchange, as the former involves the exchange of money while the latter does not. The deed of sale is a public deed and is signed before a notary.

What is the preliminary sale agreement and what value does it have?
The preliminary sales contract, also known as a compromise, is a contract with which the parties (seller and buyer) undertake to stipulate a future definitive sales contract. This agreement binds both parties to respect the established terms, such as the price and conditions of sale, until the final contract is signed.
Main features:
- Binding: Binds the parties to conclude the sale.
- Guarantees: Provides legal and financial security for both parties.
- Registration: Must be registered with the Revenue Agency within 20 days of signing.

By signing the preliminary sales contract, the seller and buyer legally undertake to finalize a definitive contract for the sale of a property, where the transfer of ownership takes place.

What is the cadastral income of a property?
The cadastral income is a value attributed to a property by the Land Registry, which represents the potential annual income that the property could generate. This value is determined on the basis of various characteristics of the property, such as the type, intended use, cadastral category and the area in which it is located.
The cadastral income is fundamental for the calculation of various taxes, including:
- IMU (Single Municipal Tax): used to determine the amount of the IMU.
- TASI (Tax on Indivisible Services): contributes to the calculation of the TASI.
- Inheritance and donation taxes: used to calculate the taxes due in the event of inheritance or donation of a property.

What is a mortgage inspection and what is it for?
The mortgage inspection is a search of real estate records to verify the legal situation of a property. This inspection allows you to check for mortgages, foreclosures, restrictions or other encumbrances that could affect the ownership of the property. Here's what a mortgage inspection is for:
- Verification of ownership: Ascertain who the owner of the property is.
- Check for encumbrances: Check if there are mortgages, foreclosures or other liens that could affect the sale or purchase
of the property.
- Security in transactions: Before a sale, the notary carries out a mortgage inspection to guarantee that the property
be free from legal problems.

The inspection can be requested at the provincial offices of the Revenue Agency or online, and can be carried out by anyone interested in knowing the legal situation of a property.

What is meant by property regime?
The property regime is the set of rules that regulate the property relations between spouses. Its purpose is to equalize the position of both and safeguard all the rights and duties that marriage entails.

Starting from 20 September 1975, Law 19/05/75 n.151 provides that, if the spouses do not express a different will, the property regime based on community of property automatically applies.

What is the cadastral survey and what does it contain?
The cadastral survey is an official document issued by the Land Registry which contains all the identifying information of a property, be it land or a building.

The cadastral survey contains:
- Identification Data: Includes information such as the sheet, the parcel and the subordinate of the property.
- Ownership Data: Reports the data of the owner or holders of real rights on the property.
- Cadastral Data: Contains the cadastral income, the cadastral category and the class.

The inspection is used for:
- Tax Calculation: used to determine taxes such as IMU and TASI.
- Notarial practices: necessary for deeds of sale, inheritance and donations.
- Ownership Verification: useful for verifying the ownership and characteristics of the property.

What is a mortgage from a legal point of view and what is its origin?
A mortgage, from a legal point of view, is a contract regulated by article 1813 of the Italian Civil Code. In this contract, one party (the lender) delivers to the other (the borrower) a certain amount of money or other fungible things, with the obligation for the borrower to return as many things of the same kind and quality.

The origin of the mortgage dates back to antiquity, with the first forms of lending documented already in Roman law. The Romans defined the mortgage as a contract in which fungible goods (such as money, grain, wine) were transferred with the obligation to return equivalent goods1. This concept has evolved over time, passing through various historical and legal eras, to become the loan contract we know today.

What is meant by a home mortgage?
A home mortgage is a real security interest that is established on a property to guarantee the payment of a debt, such as a mortgage. In practice, if the debtor is unable to pay the debt, the creditor has the right to expropriate and sell the property to recover the credit.

Here are some key points about home mortgage:
- Guarantee for the creditor: The mortgage offers security to the creditor, which can be a bank or another financial institution, in the event of default by the debtor.
- Types of mortgage: There are three main types of mortgage: voluntary (established voluntarily by the debtor), legal (provided for by law in certain cases) and judicial (resulting from a court sentence).
- Registration procedure: The mortgage is formalized through a notarial deed and registered in the real estate registers.
- Duration and cancellation: The mortgage lasts until the debt is repaid. Once the debt has been paid, the notary proceeds to cancel the mortgage.