More protections for properties

The new law for the protection of buyers of properties to be built is about to find its place in our legal system, introducing into it the principle of the dutiful protection of buyers of properties to be built. This is a principle of civility shared by the builders' associations (Ance) and those of the buyers (Assocond/Conafi) and unanimously translated into a principle of law with the consent of all the political forces represented in Parliament, both the majority (the drafting of the implementing decree was coordinated by the undersecretary Michele Vietti) and the opposition (the first signatory of the law was Lino Duilio).
The law (which a conference on 23 June in Rome, in via Rieti 13, at 2pm, will allow us to delve into further) has also seen some criticisms, all of a technical nature, some of which do not appear to be acceptable. One of the notes concerns its probable poor application due to the significant phenomenon of tax evasion: essentially all 'under the table' payments would be without protection. The obligation to provide a guarantee applies to any payment made by the buyer and the regulatory provisions make no room for the distinction between regular payments and 'under the table' payments. But the latter are certainly a phenomenon of bad customs. Stating that the law in question is deficient because tax evasion exists in our country is paradoxical to say the least.
As for the criticism of protection limited to "only cases of bankruptcy" of the manufacturer, it seems to forget that precisely in these cases the families involved from 1993 to today have been over 200 thousand. Before the entry into force of the new regulations, the credit claimed by the buyer for the advances paid to the builder, in the event of bankruptcy, was devoid of any real prospect of recovery. The law, therefore, simply wanted to strengthen the buyer's position, guaranteeing that, in the event of bankruptcy of the builder, the amounts paid in advance were immediately available, following enforcement of the guarantee.
Another critical note that cannot be shared is that relating to the dubious reliability of the financial intermediaries authorized to issue the guarantee, in addition to banks and insurance companies. In fact, the release of the guarantee can also be carried out by financial intermediaries. The law, however, did nothing other than reflect what was provided for in the 'Merloni law' on the subject of public works to guarantee public administration credits. In fact, the supervisory and control regime by the Bank of Italy, which is provided for by article 107, with particular reference to capital adequacy, risk containment and the administrative and accounting organization of the intermediaries registered in the special list in question, allows these operators to be assimilated to entities carrying out banking or insurance activities, thus adequately fulfilling the function of covering the risks assumed by the buyer.
Finally, it is true that the new law has not expressly provided for the first request guarantee formula, but this omission does not introduce the guarantor's right to refuse payment and postpone it at will. In fact, the law clearly shows the intention of the legislator to allow the buyer a quick procedure for recovering the amounts paid in advance to the builder. The guarantor will not be able to oppose to the buyer the benefit of preventive enforcement of the principal debtor, nor will he be able to oppose the non-payment of the commission or premium by the builder and will be required to pay the amount due within thirty days. A system of guarantees, which, by protecting the weaker party, allows a rapid recovery of the sums advanced.
The mechanism for feeding the Solidarity Fund is also criticized, which is fed by the levy of 4 per thousand on the sums subject to the surety guarantee (and not on the entire value of the property). It is an insignificant cost compared to the dispersion of wealth of 200 thousand families involved in real estate bankruptcies and it is a price that the community has an obligation to pay towards them.
FRANCO CASARANO
President of Assocond

source: Real Estate Observatory