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10 things to know before buying, renovate or selling a property in Italy


10 things to do beforebuying, renovate or sellingyour property in ItalyPaolo BullettiPaoloBullettiEstateProjectsPropertyProfessionalsBuying or selling a home in Italy or to proceed to a renovation can bean activity that engages time and energy especially if performedabroad. Regarding technical aspects, problems of language, mentality andbureaucracy (particularly complex in Italy) become very important,and this is why it is always advisable, to contact an architect orsurveyor to do things well and on short time. But for those who do not want to leave that all to a professional andwish to be a part of the procedures, I prepared a list of 10 things to dobefore you buy, sell or renovate a property in order to save time andavoid late surprises, often when things are made and there are alreadybills to be paid. 10 things to do before buying, renovate or selling your property in Italy - 2010 Paolo Bulletti - www.estateprojects.comBefore buying 1 - Initial verifications 1.1 Tests on the building. Control checklist: - Roof: can be very expensive to make it new. Is there thermal insulation? - Faades: in a condominium it can be obligatory to renew them.When were they made? Or when it is expected? Are therecrackings? - Frames: they greatly affect thermal and acoustic insulation of thebuilding. Do they work properly? Double glazing may benecessary? - Mechanical systems: detect possible anomalies - Humidity: difficult to remove. Check the walls facing North andEast- Condo charges - Renovation works already approved by the condominium 10 things to do before buying, renovate or selling your property in Italy - 2011 Paolo Bulletti - www.estateprojects.comIn country houses - Access road: foreseeing the conditions in the event of heavy rains,are there water drainage units? - Electricity and phone: if dont exist is good to know that it willtake months to get them and you will have to pay the set up of theline on poles or buried.- Drinkable water: make sure that it comes from the publicaqueduct. That of the wells is not safe either from the point of viewof hygiene, nor for the quantity. - Septic tank: does it exist? Is it made according to the rules of law?Otherwise it will necessarily be replaced. 1.2 Verifications on the saleability Not always a building is saleable when they propose it to us. To bepossible it must have a regular liveability license and be proofed thecadastral and urban planning conformity, certified by an architect orsurveyor, contained in the Relazione Tecnica di compravendita a10 things to do before buying, renovate or selling your property in Italy - 2011 Paolo Bulletti - www.estateprojects.comtechnical report necessary for the sale (see paragraph 9). The advice is to never take for granted that those who sell the propertycan really do it. Just a small modification compared to the originaldesign, created without the regular permits, can block the sale. 1.3 Expenses exceeding the cost of the property I always suggest you better have a quote of all the expenses that youshould support before you even start looking for a home. I have hadclients, often youngs, who after buying the apartment did not have anymore money to restore it. In the figure you have available it should be considered, besides thepurchasing price, expenses for: - The commission for the Real estate agency - The taxes that you pay the Notary - The fee of the Notary - The Technical Report of Sale (see p.9) and the Energy Certification (see p.10) - The move- New furnishings 10 things to do before buying, renovate or selling your property in Italy - 2011 Paolo Bulletti - www.estateprojects.com2 - Examine the Zoning Planning To know in advance what will happen in future years, ahead, behindand around the property we want to buy my advice is to review thePiano Strutturale Comunale the Municipal town plan (it shows whatcan be built and where) and the Piano Paesaggistico Regionale theLandscape plan of the Tuscany region (it indicates the constraints andrestrictions for the preservation of the territory). 3 - Examine Constraints and Limitations To examine Regolamento Urbanistico Comunale the town planningrules to find out if the property you want to buy is subject toconstraints. There are areas and buildings in which you can do everything, you cando something or cannot do anything. The main constraints to the realization of your ideas may be: Vincolo archeologico - Archaeological constraint.Vincolo paesaggistico-ambientale - Landscape/environmental constraint.10 things to do before buying, renovate or selling your property in Italy - 2011 Paolo Bulletti - www.estateprojects.comVincolo idrogeologico - Hydrogeological constraint. Aree a rischio idraulico e di frana - Areas with potential hydraulic and landslide risk.Aree boschive - Woodland areas.Before renovating 4 - Characteristics of building worksCheck with the Regolamento Edilizio the municipal buildingregulations if you can do what you have in mind, by which procedureand what times. One of my American customers was very ill when he discovered that inthe house bought in the Sienas countryside he could not demolish awall to create floor-to-ceiling windows like in California. The Regolamento Edilizio is the set of rules governing the buildingactivities within a municipality, in relation to what establish in theZoning plan. 10 things to do before buying, renovate or selling your property in Italy - 2011 Paolo Bulletti - www.estateprojects.com5 - Facilities if you are resident in Italy 5.1 Tax deductionThe Government grants fiscal deductions, that must be requestedbefore the beginning of the works, for the amount of: - 36% for maintenance, renovation and restoration of the building(see our text here on the AngloInfo website athttp://tuscany.angloinfo.com/countries/italy/buildingtax.asp) - 20% for the purchasing of furniture, computers, televisions andhousehold appliances high energy-efficient if the house is underrenovation - 55% for works improving the energy efficiency of the building,including roof and window frames, and replacement of heatingsystems. It is important to remember that VAT on renovation work is 10%. 10 things to do before buying, renovate or selling your property in Italy - 2011 Paolo Bulletti - www.estateprojects.com5.2 Extension of residential buildingsThe Government has arranged a law of limited duration, called thePiano Casa House Plan that allows increases in volume. Extensions: interventions are allowed to extend up to the 20%detached and semidetached residential buildings not exceeding 350square feet for a maximum of 70 square meters. Demolition and reconstruction: allowed the extension up to 35% of thearea in cases of demolition and reconstruction of structures. ? Non residential buildings: excluded. 6 - Consider all costs Some of my clients thought that, in addition to my fee as an architectfor the project, they were to pay only the construction works for therenovation of their property. Not so. In order to create a realistic budjet is good to know that in Italy youhave to pay, as appropriate and to varying degrees: 10 things to do before buying, renovate or selling your property in Italy - 2011 Paolo Bulletti - www.estateprojects.comCharges to the Municipality - Primary and Secondary Urbanization- Construction costs Other professional costs (in addition to architectural design) - Survey of the building. Architect or surveyor - Structural design. Engineer - Plumbing, heating, electrical systems projects, required by law.Qualified technicians - Geological Survey. Geologist - Cadastre. Updating of DOCFA document after completion of thework. Surveyor 10 things to do before buying, renovate or selling your property in Italy - 2011 Paolo Bulletti - www.estateprojects.comBefore Selling 7 To increase the value of the property and sell it more easily All customers give more value to an object that they like to purchasewhen this looks good. By analogy, lets think about how cars areshowed, even if used, when we go into a car showroom. Equally ourapartment for sale will be enhanced if: - Environments will smell good, just light on a perfumed candle- The walls will have been painted recently - The arrangement of furniture will suit well and there will be freshflowers in a vase and oranges in pots- The natural and artificial light will highlight the features of spaces - The floors will be polished - Bathrooms and kitchen will give a sense of cleanliness - The garden, or the terrace, will be kept well maintained and theplants, the trees and the hedges will not give a feeling ofabandonment 10 things to do before buying, renovate or selling your property in Italy - 2011 Paolo Bulletti - www.estateprojects.com- Have some relaxing/classical music at low volume during theclients visitAn advice, make a list of strength and weak points of your propertyand invest in some renovation work to increase its commercial value. 8 - Have an appraisalI suggest you to make an assessment of your property by antechnician, architect or surveyor, and have a written appraisal reportto compare with other estimates made by real estate agents in order tohave a real market value. This can shorten the time of sale and to protect yourselves from loss ofmoney. The buyer will appreciate your seriousness about ascerting thereal value of the property. 10 things to do before buying, renovate or selling your property in Italy - 2011 Paolo Bulletti - www.estateprojects.com9 - The Relazione Tecnica di compravenditaTechnical Report of SaleThrough this document, prepared by an architect or surveyor, theseller guarantees the cadastral and urban planning conformity of theproperty and therefore its marketability. The technician asseses, under its direct responsibility, that theconditions of the site are consistent with what represented both in theLand Registry and Urban Planning deposited documents. Withoutthese assessments, the Notary cannot do the deed of sale so it could behimself to ask for it to you or instruct a technician to do it.My suggestion is to have the Technical Report before putting yourproperty on sale, it happened to a couple of my clients to discover thattheir property could be sold if the situation was not rectified. 10 things to do before buying, renovate or selling your property in Italy - 2011 Paolo Bulletti - www.estateprojects.com10 - Energy Certification The Attestato di Certificazione Energetica (ACE), EnergyPerformance Certificate is a document prepared by a qualifiedtechnician that, under its responsibility, certify the energyperformance of the building and attributes an energy class (A to G)according to the consumption of energy for heating it . A law establishes the obligation to attach the Certificate at theProperty conveyance document and is a burden of the seller to provideit. Unless a different agreement, of course. The Notary may accept, in the only case of a building in class G, thelowest, a self-certification of the seller. I advise you then to ask the Energy Certificate to the same techniciancharged with drafting the Technical Report of Sale to optimize thecosts and have all the documentation in order.10 things to do before buying, renovate or selling your property in Italy - 2011 Paolo Bulletti - www.estateprojects.comThe Property Professional is a new role in Italy based on a professional figure thatexists in England and the USA, who offers a series of services in the real estate sectordesigned to match the needs of investors with market offers.Paolo Bulletti Estate Projects is an independent expert, with competencies inarchitecture, real estate, surveying and construction, who provides individuals andorganizations, including developers, institutions, property companies, funds, banks and consultancies, with advice, guidance and support in buying, selling and renovatingproperties, and looks after the interests of investors in the deals with agencies, contractors and suppliers.AdvisoryEvaluate properties in order to highlight consistency, potentialities and weaknesses. Property condition assessments (PCA): building and mechanical systems, necessary repairs Due diligence review prerequisites: local planning authorities, land registry, cadastre Appraisal and building evaluation report Real estate development Feasibility studies Increasing the value of Real EstateEvaluate and verify the liabilities of real estate assets. Adjustments to current standards (laws and regulations) Certification of mechanical and electric systems Energy certificate (ACE)10 things to do before buying, renovate or selling your property in Italy - 2011 Paolo Bulletti - www.estateprojects.comPaoloBullettiEstateProjectsPropertyProfessionalsReal Estate BusinessOperate through his professional and business network to search for opportunities topurchase or sell private and commercial properties. Assistance pre and post transactionand purchase deed. Make sure that the client is given quality work and value for money. Search properties to purchase Search of investors for properties on sale Support during the transaction procedures Identification and regularization of building "non-conformity" Acquisition of technical materials in the public administration Assessments on the best purchase/sale price Space planning: consultancy on rooms and furnishings layout Assisting to law firms and notariesDesign Architectural design and contracting for restructuring building works Building retrofitting for energy improvement design Commercial and private green spaces design Research of building contractors and suppliers Inspection on building site checking that the work complies the requirements Visits to construction sites for inspection in the progress of worksProperty ManagementIntervene to maintain the performance of a building avoiding the degradation and the resulting devaluation. Organizing technical teams for the maintenance of buildings and green areas Support in restructuring procedures Provision of building permits and documents by local authorities Surveys, maps and drafting10 things to do before buying, renovate or selling your property in Italy - 2011 Paolo Bulletti - www.estateprojects.comPaoloBullettiEstateProjectsPropertyProfessionalsContactVia Cinque Giornate 1550129 Firenze, ItalyTel .+39 055 474981, w w w . e s t a t e p r o j e c t s . c o mi n f o @ e s t a t e p r o j e c t s . c o mSkype: bullettipPaolo Bulletti mob. +39 335 660 2552, +44 789 632 1611ProfilePaolo Bulletti Estate Projects is a Florence (Italy) based consultancy firm with morethan ten years experience in the central Italian property market, established to providea point of reference for foreign investors.Paolo Bulletti, a licensed architect with an in-depth knowledge of real estate scenariosand local policies, practices & laws, decided to create a professional propertyconsultancy aimed at providing quality services with integrity.He is a member of the RIBA Royal Institute of British Architects and professor at theUniversity of Florence and at Texas A&M University.10 things to do before buying, renovate or selling your property in Italy - 2011 Paolo Bulletti - www.estateprojects.comPaoloBullettiEstateProjectsPropertyProfessionals