Price Deposit: The balance remains with the notary until the transcript of the deed of sale
Price Deposit: The balance remains with the notary until the transcript of the deed of sale
In this article I will deal with the contents of paragraphs 63 and following of Article 1 of the Competition Act, namely Law no. 124 of 04/08/2017.
You can find the full text (in Italian) by downloading the law in pdf format that I prepared for you at the following link Legge n. 124 del 4 agosto 2017 comma 63 e seguenti
In the case of a request from at least one of the parties, the notary must keep in storage on a specific current account the balance of the real estate purchase price as well as the sums destined for the cancellation of mortgages on the property or for the payment of other expenses due from the seller and not yet paid, until the notary has transcribed the act and verified the absence of further damages or formalities other than those resulting from the act date and highlighted in the act.
With the price deposit from the notary, the seller can not risk not to cash out the amount of the sale. The money on the notary’s account can not be touched and the notary can only use them for the seller’s payment. The seller risks not receiving the money only because of injurious events that the seller is causing: mortgage, seizure, foreclosure.
The claim to hold the sums deposited can be made by each of the parts of the sale, ie both from the seller and from the buyer.
Normally it is the buyer who has an interest in the price being deposited with the notary.
Even the seller may, however, ask that the price be deposited on the notary’s dedicated account. This way, for example, can protect against the possibility of payment being made with falsified circular checks.
If one party requests that the balance of the price be withheld by the notary, the counterpart can not oppose it, as this right is provided by a rule of law.
There is certainly the possibility that somebody may consider this law to be derogatory when negotiating.
With regard to this, I believe that this rule is indisputable by law because it protects the weak contractor.
In this respect, the Sun 24 Hours, an Italian newspaper, believes that if the buyer could legitimately renounce this protection, the new law would serve no purpose. Indeed, the price deposit could also be made before Law 124, but it was never done because no seller would have allowed it; now the legislator wanted a more correct and more civilized scenario.
Lastly, it is good to note that the price deposit to the notary has a transaction cost of several hundred euros, which must correspond to the requesting party directly to the notary notary.
For any information about the process of buying a house in Italy, write to info@ortalloggi.com, I will be happy to answer your questions.
Alice – www.ortalloggi.com
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