A pre-contract in Italy is not just a piece of paper, but a legally binding document that can cost you money if you don’t get it right.

When you buy a property in Italy, there is an intermediate stage between the offer to buy and the final notarial deed – the so-called compromesso. It is a mutual obligation: neither the seller nor the buyer can simply back off without consequences. When signing, you pay a deposit – usually 10-20% of the price. But here's the thing: there are two types of deposit. If this is a “penal deposit”, then if the seller refuses, he will return you double the amount, and if you refuse, you will lose the entire deposit. If it is just an advance payment, it will return in full, but there is less protection.

The contract must include: full data of both parties, an accurate description of the property with cadastral numbers, price, payment schedule, the deadline for signing the final act and a declaration of no encumbrances. Foreigners often add terms (such as getting a mortgage), but caution is needed here - the condition should not depend only on your will, otherwise it is invalid.

Registration of a preliminary contract with the tax office is not mandatory, but for foreigners it is insurance: your rights are protected while the registration is underway. Tip: ask that the money in the final transaction is kept by a notary, and not transferred immediately to the seller. This will save you from hidden property debts.

Credit: Italian Lawyer Real Estate