Your Italian Real Estate Glossary

Why it matters: Required by law for all property transactions. Affects property value and gives you insight into heating/cooling costs. Older buildings often have lower ratings (D-G).

Why it matters: Usually 10-20% of the purchase price. Shows serious intent and locks in the agreed price. Protected by contract terms if the deal falls through.

Why it matters: Commission is typically 3% + VAT (22%), paid by the buyer. Unlike in the US, both buyer and seller often pay separate agent commissions. Ensure your agent is properly licensed ("mediatore abilitato").

Why it matters: This is the culmination of your purchase. Once signed and registered, you officially own the property. Also called "rogito notarile."

Why it matters: Provides strong legal protection for both parties. Always include mortgage contingency clauses ("clausola sospensiva") to protect your deposit if financing falls through.

Why it matters: All property transactions must match catasto records. Discrepancies between actual property and catasto records can delay or derail sales. Your geometra will verify compliance.

Why it matters: Essential for residential properties. For newer buildings, it's called "certificato di agibilità." Older properties may have "abitabilità storica" (historical habitability). No certificate = no legal residency.

Why it matters: Absolutely essential. Required to purchase property, open bank accounts, sign contracts, and pay taxes. Obtain it free from any Italian consulate or in Italy-it takes minutes. You'll use it constantly.

Why it matters: This is Italy's unique two-step buying process. The compromesso gives you 60-120 days to secure financing while locking in the price. Must include mortgage contingency clauses. Can be registered to prevent the seller from selling to someone else.

Why it matters: Non-compliant properties can't legally be sold. Unpermitted additions, renovations, or changes must be regularized (declared and fined) or removed. Your geometra verifies this before purchase. Missing permits can cost €20,000-€50,000+ to fix.

Why it matters: Hiring a geometra before buying (€300-€800) prevents expensive surprises. They verify that physical property matches catasto records, all permits are in order, and no illegal modifications exist. Essential due diligence step.

Why it matters: Rates vary by municipality and property type. Primary residences (prima casa) are exempt in many cases; second homes pay 0.4-1.06%. Typically much lower than US property taxes-often €500-€2,000/year for vacation properties.

Why it matters: The ipoteca gives the bank legal right to the property until the mortgage is paid off. Your notaio verifies all existing ipoteche are cleared before you buy. The bank registers a new ipoteca when you get your mortgage.

Why it matters: Italian mortgages currently offer rates starting at 3%-dramatically lower than US rates (6.5-7.5%). Typical LTV is 80% (20% down payment). Terms from 10-30 years. No prepayment penalties since 2007.

Why it matters: The notaio is central to Italian real estate. They're personally liable for any title defects for 30 years, creating strong incentives for thorough verification. Fee is 1-2.5% of purchase price. You cannot close without a notaio. Their verification is stronger than US title insurance.

Why it matters: The bank's perito independently values the property (typically 3-6 weeks after compromesso). Banks lend based on the lower of purchase price or appraised value. Cost: €300-€600, usually paid by buyer.

Why it matters: The actual property MUST match the registered planimetria. Any discrepancies (removed walls, added bathrooms, changed layouts) must be regularized before sale. Your geometra verifies compliance.

Why it matters: Saves thousands! On a €400,000 property: 9% = €36,000 vs. 2% = €8,000. Requirements: establish residency within 18 months, property in municipality where you live/work, don't own another prima casa property. Worth planning for.

Why it matters: The first formal step in buying. Specifies price, terms, conditions, and timeline. If accepted, both parties proceed to compromesso. The small deposit shows you're serious and is applied toward your eventual down payment.

Why it matters: Significantly lower than market value (often 30-50% of actual value). Used to calculate IMU, registration taxes, and other fees. Keeps property taxes much lower than in the US.

Why it matters: This is the moment you become the legal owner. All parties sign before the notaio, final payment is made, keys are exchanged, and the deed is registered. Usually occurs 60-120 days after the compromesso.

Why it matters: You can refinance to capture lower rates without prepayment penalties. The new bank covers most costs. Generally worth it for rate reductions of 1% or more. Requires notaio fees but provides flexibility.

Why it matters: Separate from IMU property tax. Calculated based on property size and occupancy. Typically €150-€500/year for residential properties. Paid directly to your municipality.

Why it matters: Current fixed rates start at 3%; variable rates at 2.5-3.5%. Fixed provides payment certainty; variable offers initial savings but carries rate risk. Most Americans prefer tasso fisso for predictability.

Why it matters: The foundational document for all property due diligence. Your notaio obtains this to verify clean title. Shows any existing mortgages (ipoteche), liens, or claims that must be cleared before purchase. Public record available for €10-20.