Real estate glossary

The “real estate glossary” is a tool for understanding the specific language of the real estate sector. With often technical and abbreviated terms, it can be complex for those who are not familiar with this field. This first list aims to simplify communication between us professionals and our clients, providing
clear and concise definitions of the most common terms used in the industry. So whether you are a buyer or a seller, a good knowledge and mastery of the vocabulary related to the world of real estate will allow you to move more easily in the real estate market. 

HABITABILITY and USABILITY
In the past, habitability and usability were distinct: habitability referred to residential properties, while usability referred to all others. Today, with the Consolidated Law on Construction (Presidential Decree 380/2001) and subsequent updates, the two terms have been unified under the concept of 'usability'.
Therefore habitability indicated the suitability of a residential property to be inhabited, guaranteeing healthiness, hygiene and energy efficiency requirements. The term usability referred to all buildings, including non-residential ones (e.g. industrial warehouses, offices), verifying structural stability and safety.
Unification: The Consolidated Law on Construction has unified the two terms, today both referred to as 'usability' to simplify the bureaucratic process.

BUILDING ABUSE
Building abuse can be defined as a change in the structure or volume of a property not approved by the competent offices or not remedied subsequently. The presence of building violations prohibits the transfer of the property. Although there is no specific law that provides an official definition, this includes a wide range of offenses related to works that present deficiencies or discrepancies compared to the concessions issued by the Municipality or the Land Registry. This crime is characterized by the carrying out of building interventions outside the authorized parameters, putting safety at risk and violating current regulatory provisions. Its varied nature means that any violation, ranging from the lack of building permits to the substantial alteration of authorized projects, can be considered as construction abuse.

REAL ESTATE
Immovable property includes land, springs and waterways, trees, buildings and other constructions, even if attached to the land for temporary purposes, and in general everything that is naturally or artificially incorporated into the land.

DEPOSIT
Sum of money or other fungible asset that one contracting party pays to the other when a contract is stipulated, especially preliminary, to guarantee fulfillment or as a penalty in the event of unjustified withdrawal: confirmatory deposit, penitential. Confirmatory deposit: it is a sum of money or other goods delivered to strengthen the contractual obligation and in the event of non-fulfilment, it acts as compensation or can be withheld. Penitential deposit: it is a consideration for the right of withdrawal, allowing a party to dissolve the contract by paying a predetermined sum.

CADASTRAL ATEGORA
There are five cadastral categories: A (homes), B (buildings for collective use, such as barracks or schools), C (commercial buildings such as garages, shops, sheds), D (industrial properties), E (special properties). In each category there are several distinctions: among the homes there are A1 (luxury), A2 (civil), A3 (economic), A4 (popular), A5 (ultra-popular), A6 (rural houses), A7 (villas), A8 (villas), A9 (historic properties). In the deed it is often indicated in abbreviated form with 'CAT.'.

COMPROMISE
Preliminary real estate purchase and sale contract | agreement between two parties to refer the decision of a dispute to arbitrators.

BUILDING PERMIT
The act with which the Municipality grants the construction of a property provided that the intended use and the volumes created comply with the urban planning instruments. Any deviation from the permit constitutes construction abuse. A home with unremedied abuses can be sold but the seller must declare this in the deed.

BUILDING AMENDMENT
If there are discrepancies between the plan originally deposited in the land registry and the current one, there are two possibilities: either they are simple formal irregularities that can be remedied with a simple report in the land registry or instead they are substantial irregularities, which, violating urban planning laws and regulations, had to be 'remedied' through the building amnesty. You cannot sell an unforgiven home.

REAL ESTATE REGISTRY REGISTRY
The Real Estate Registry, now the Real Estate Advertising Office, is an office of the Revenue Agency that is responsible for preserving and making public the deeds relating to real estate. In practice, it is the register in which all deeds concerning real rights on properties, such as sales, mortgages, inheritances, etc. are transcribed and registered. In summary, the Conservatory is a public archive that guarantees the legal publicity of real estate deeds, providing information on ownership and any implications (such as mortgages or foreclosures) on a property.

REGISTRATION TAX
The registration tax is a tax requested by the State every time an act is registered, to which it is intended to confer legal certainty: its application is regulated by Presidential Decree no. 131/1986 (Consolidated Law on registration tax). The registration of the deed is carried out at the Revenue Agency: from this moment the content and date of the document become unchangeable. For transfers, for first homes it amounts to 2% of the cadastral value, for a second home it is 9% of the cadastral value. For the registration of leases at 2% per year of the rent.

INHERITANCE TAX
Inheritance and gift tax is the tax that applies to transfers of assets and rights by succession due to death, by donation or gratuitously, including transfers deriving from trusts and other restrictions of destination. The payment is due to one of the obligated parties, i.e. those entitled to the inheritance and the legatees, even in the case of opening of the succession by declaration of presumed death, or their legal representatives.

MORTGAGE INSPECTION
The mortgage inspection is a search carried out in the real estate registers to verify the legal situation of a property, in particular to identify the presence of mortgages, foreclosures or other formalities that could affect the property. In practice, it allows you to ascertain who the owner is and whether there are restrictions on the property.
Here are some details:
Purpose: The mortgage inspection aims to provide detailed information on the ownership of a property and on any real security rights (such as mortgages) or other encumbrances that may affect it.
Where it is carried out: The search is carried out at the 'Real estate advertising services' of the Revenue Agency, which manage the real estate registers.
What is found: Through the mortgage inspection, it is possible to identify transcriptions, registrations and notes relating to the property, such as voluntary mortgages (deriving from financing contracts), legal mortgages (deriving from judicial orders) or foreclosures.
Usefulness: The mortgage inspection is useful for both those who sell and those who buy a property, as it allows you to verify the legal situation of the property and avoid unpleasant surprises. For example, a buyer can ensure that the property is free of mortgages or other encumbrances before proceeding with the purchase.
Mortgage inspection: The mortgage inspection is often also called mortgage inspection or hypocadastral inspection.
In summary, the mortgage inspection is a fundamental tool for anyone interested in a property, both to verify its legal situation and to protect their interests in the event of a sale or other real estate transactions.

RELEVANCE
Independent portion of a building linked to the main building by a service relationship, by will of the owner and for its real destination. It can also be equipped with an independent cadastral income. For example, a garage, a cellar or an attic compared to the apartment located in the same building. Appurtenances for Irpef and transfer tax purposes enjoy the same treatment applied to the main property. So if you buy a garage belonging to a 'first home' you will pay the reduced rate.

CADASTRAL INCOME
it is a value attributed by the Revenue Agency to each property (building or land) and represents its potential ability to produce income. It is fundamental data for the calculation of various property taxes, such as the IMU (Single Municipal Tax) and the IRPEF.
In detail, the cadastral income: is a fiscal value: it is used to determine the tax base of various taxes, including IMU, inheritance taxes, and mortgage and cadastral taxes.
It is attributed by the Revenue Agency: it is determined based on the size of the property (surface area, number of rooms,
etc.) and the unit valuation rate, which varies based on the area and the cadastral category of the property.
It is different for buildings and land:
- for buildings, the cadastral income is linked to the individual real estate unit.
- for land, the cadastral income is divided into Dominical Income (attributed to the owner) and Agricultural Income (attributed to the agricultural activity).
It is used for the calculation of various taxes: such as IMU, IRPEF, inheritance and donation tax, mortgage and land registry taxes.
It is found in the cadastral surveys: it is possible to consult the cadastral income of a property through the cadastral surveys, available online or at the Revenue Agency.
In summary, the cadastral income is a key value for the tax valuation of properties and for the calculation of taxes, so it is important to know and understand it.

TERMINATION OF THE CONTRACT
Dissolution of the contract due to irregularities in its execution. It can occur due to non-compliance by one of the parties, due to the supervening impossibility of its execution, or due to excessive onerousness.

DEED
The deed with which the notary transfers ownership of the property. It can be drawn up in the form of a public deed or private agreement, with a notarized signature.

SERVITude
Limitation of the right of ownership over an asset, for the benefit or necessity of another asset: easement of passage, burden on a land to bear the passage for the uses of the neighboring land, if the latter does not otherwise have the possibility or ease of access to the public road.

TRANSCRIPTION
Filing of a specific note at the Registrar's Office regarding the real rights enjoyed on real estate or registered furniture (for example, cars). The transcription serves to make known, and to enforce against third parties, a right, a constraint or an easement. Transcription can only take place by means of a public deed or private deed authenticated by a notary, or by virtue of a sentence or in any case an assessment in court. In sales transactions it is generally the notary who is required to do it.

LAND REGISTER VISION
The cadastral survey is a document, issued by the Revenue Agency, which provides detailed information on a property, be it land or a building. It includes identification, income and personal details of the owners and, in the case of buildings, also floor plans. It is used to know the cadastral situation of a property and its characteristics.
In detail, the cadastral survey contains:
Identification data: Indicates the location of the property (municipality, section, sheet, parcel, subordinate).
Income data: Cadastral income, which determines the taxable base for the calculation of some taxes.
Personal data: Information on the owners of the property (name, surname, tax code).
Graphic data: Building plans or land maps, if available.
The title search can be requested for a specific property or for a person, allowing you to know the real estate owned by you. It is a useful tool for verifying the correctness of cadastral data, for example before a sale or for other legal obligations.