Long distance home buying in Italy can be one step forward, two steps back

As we find ourselves right in the middle of the home purchase process, there's much I've learned about the complexities of buying property in Italy. Despite a wealth of information available, there are things I’ve had to learn along the way that I wasn’t prepared for. In this post, I'll share insights gained from my own experiences so far.

I'm going to address this from a more DIY standpoint -- meaning that you aren't currently working with someone who specializes in foreign buyers. If you are not fluent enough in Italian (or the home buying process), or are not working with an Italian agent who is fluent in your language (or working with foreign buyers), then this information may be helpful.

Language matters

When we found our ideal property, it was listed on a UK-based website. Surprisingly, we were directed to an independent local agent when we inquired about viewing the property. This unexpected shift highlights a key warning: don't assume that listings on foreign-language websites guarantee seamless communication with agents who understand your language and needs. In our case, communication with the initial website quickly ended after introducing us to the local agent, who has limited English proficiency.

I possess a basic working knowledge of Italian, but the intricacies of the home buying process has presented challenges. While tools like Google Translate help bridge some gaps, I have encountered difficulties grasping procedural and technical details. Lesson one: language matters. If you aren't fluent in Italian, ensure your agent is proficient in your native language and knowledgeable about the unique issues foreign buyers face, or consider adding someone who can assist you to the process. In my journey, I found occasional assistance from resources like Italian Property Partners. This can be a valuable option to consider for additional support.

Codice fiscale, banking, and money, oh my

In preparation for making an offer, having your codice fiscale ready is essential, especially if you are making offers on properties of high interest. Ultimately, my agent was amazing in facilitating the process for me, but I don’t know if they all will. Lesson two: if possible, secure your codice fiscale in advance to streamline the home buying process. I would suggest you do your research and attempt it via various recommended avenues.

Opening a bank account in Italy emerged as an unforeseen challenge, and our first significant roadblock. This can only be done in person, a requirement that caught us off guard. Lesson three: plan how to open a bank account after obtaining your codice fiscale, as it may impact various aspects of your purchase, including escrow and utility payments. I know I've seen plenty of people post that they have never had, and didn't need, a bank account to complete their home purchase. But let this be a message of forewarned is forearmed. If you haven't lined these things up, it is entirely possible that you could lose out on making an offer on a house if you find out that you do need one.

Incidentally, one of the ways to initially bypass this need (perhaps in addition to suggestions by others) is to place the full amount with a notary, which they would then distribute as needed. But I learned that the notary charges you to do this. And it isn't an insignificant charge. We selected to something rather scary (from an American standpoint), which was to place the deposit directly with the seller. Lesson four: if you want to avoid this notary charge, revert back to the advice on getting a bank account set up if you can.

Home buying in Italy steps

I felt like I understood the home buying process in Italy a little based on my research. However, it has perhaps been more complex than I thought (or than necessary) partially because of the language barrier as noted above. But in addition to several smaller lessons learned, one thing has ended up becoming our second major roadblock.

Let me start by framing my very simplistic understanding of the process before all this started: a) make an offer either with or without the services of a geometra, b) have a notary complete the formal and legal documents, c) pay the sellers and sign the deed. The addition of legal assistance is also an option to this process. And, in this simplistic understanding, I don't think I was too far off. But as we all know, the devil is in the details.

Sidebar: Who is in your arsenal? We are not through this process yet, but much like the lessons of getting your codice fiscale and bank accounts in order in advance, I think finding a notary and a geometra in advance (especially if you know the area you are looking is pretty firm) would have been very helpful. And the lesson on top of that lesson would be to use the expat community (found through sites like Facebook) to do this research. I still have high hopes that our story will proceed positively -- maybe with lots of road bumps, but hopefully no treacherous road conditions. I'm also going to do a separate blog on these roles as I think some of my observations might be of help to you.

Our initial offer (the compromesso) was done by the agent and emailed to us. Small lesson here...you don't need a notary to make the compromesso, but there may be scenarios where it would be advised to do so. Our agent never suggested that one was needed, so she just emailed it to us, we printed it out and signed it and returned it via carrier.

I knew something wasn't right when she kept asking me when I was coming out to sign the "first" deed. I was prepared to be ready to fly back out to Italy to sign the final deed, but I certainly wasn't prepared to travel twice and did not understand why I needed to. What I think I have come to understand is that because our property is a historic property, overseen under regulations of the Belle Arti, the notary must first conduct the appropriate process to ensure that the house may be sold. That is the first deed, and yes, this is also why the notary charge will be higher for a historic property than for one which is not.

Now that we've learned that there are two signings, we are now faced with how to manage this. Travel twice? I guess if you are in close proximity, you could. I guess it could also be an option for someone to just stay in the country for the process, but for both cost reasons or Schengen Area regulations, neither of these may be options. Lesson five: understand that if you're dealing with a historic property, there may be two deed signings, increasing notary fees and impacting your travel plans. And since neither of these are good options for us we are considering granting power of attorney for someone to sign the first deed.

The Challenge of Remote Property Purchases and Power of Attorney

This has become our second major roadblock...how to proceed remotely by utilizing a power of attorney process. This has also somewhat confounded our notary and, once again, the language barrier has been difficult when trying to understand the intricacies of this process. As we are in this stage of the process right now, this will have to be a future blog. But I think the lesson learned of requiring a power of attorney (and with who) is worth thinking about now. Clearly, this is not something to take lightly, and yet it is a consideration that many of us have to figure out in order to accomplish the purchase of a property remotely.

Streets of Volterra

Scary but worth it

Ask me when it is all over...I know this is just the beginning of the adventure. Assuming we survive this with minimal damage, we still then have to negotiate the process around renovation in Italy. However, as scary as this all is, I am excited as I can be over the prospect of realizing my Italian home dream!

I am so grateful for the people I have met along this journey. Those who have experienced their own dream realization and want to pave an easier (or sometimes better) path for those who are on their way. I hope this will be my role years from now.

Does any of this resonate for you? How did you handle some of these challenges? Or is there anything I can help with based on my experience to date? Leave a like and a comment!