How much does it cost to buy a house?
Once the property to be purchased has been identified and the preliminary purchase and sale agreement has been concluded, the next step is the notarial deed.
But what are the costs involved from signing the proposal to obtaining the keys?
Registration of the preliminary contract
One of the obligations that arise when entering into a preliminary contract of sale and purchase is to register it with the relevant office of the Internal Revenue Service.
All parties to the contract, including the agency, are jointly and severally liable for registration.
The registration of the contract is mandatory. It is not, therefore, allowed to choose whether to execute it or not. The Internal Revenue Service sets a deadline of 30 days from the signing of the preliminary contract to perform the registration.
What happens if the registration is not carried out?
Failure to register the preliminary purchase and sale agreement involves minortax evasion that will result in a possible tax assessment.
What are the costs for registration?
For the registration of the preliminary contract of sale and purchase, it is necessary to make the payment (with F24 form) of theregistration tax
- for a fixed amount of 200 euros;
- a stamp duty of 16 euros to be applied every four pages or every 100 lines of the contract;
- for the giving of sums by way of “confirmation deposit” there is the application of proportional registration tax at the rate of 0.50%;
- for sums due as “down payment on the price,” relating to transactions not subject to VAT, registration tax at the rate of 3% is applicable.
Usually, the division of expenses is 50% between the buyer and the seller regarding the fixed tax and stamp duty. As for the confirmatory deposit or down payment on the price, the amount is borne solely by the buyer as it is deductible at the time of the notarial deed.
Mediation.
The compensation for the real estate agency is one of the additional costs of the sale.
According to Article 1755 of the Civil Code, the mediator is entitled to the commission from each party if the deal is concluded as a result of his intervention.
The measure of the commission and the proportion in which it should fall on each of the parties, in the absence of agreements, professional tariffs, or customs, are determined by the judge according to equity.
The real estate agent’s right to commission is realized when the following conditions are met:
- the agent must be registered with the business registry or REA;
- the parties must have been brought into contact by the real estate agent, regardless of whether this was by virtue of a written contract, a verbal agreement or as a result of a de facto activity, i.e., carried out without any prior understanding.
The important thing is that the contracting parties have indicated their willingness (including by concluding behavior) to use the mediator’s assistance;
For convenience, we can therefore say that the broker is entitled to commission when not only the final contract (the so-called deed) but also the preliminary contract (the so-called compromesso) is concluded.
On the other hand, he is not entitled to be paid merely because the buyer deposits with the agency the proposal of purchase and sale if it is then not accepted by the seller.
There is no fee schedule to adhere to but we can say that to date at least in the province that concerns us that is Lucca on average agencies range from 3 to 4 percent.
Taxes payable at the Notarial Deed
After the preliminary purchase agreement, obtaining a potential mortgage, and inspections by a trusted technician regarding the property documentation, you reach the notarial deed or “Rogito.”
In fact, the deed of sale is the precise moment when, in front of the Notary, the buyer pays the entire purchase amount, minus the confirmatory deposit or any advances already paid. The seller will hand over the keys to the property.
But what costs are incurred on the day of the deed?
At the notarial deed, the buyer will pay:
- The notary’s fee for drafting the deed of sale and purchase and in the case of a mortgage loan for drafting the mortgage deed.
- Theregistration tax, for a purchase and sale between two individuals (non-businesses) equal to 2% if it qualifies for thefirst home benefit, or 9% if the purchase is made without the use of thebenefit.
- Thevat on the purchase, if the purchase is made with a company ,amounting to 4% if the buyer is entitled to the first home relief, or 10% if the purchase is made without the use of the relief.
