BUYING PROPERTY AT AN AUCTION IN ITALY
Some may never consider purchasing properties through court auctions. We are here to calm your worries and show you the advantages of doing this.
This way of purchasing property in Italy is actually a safe and appropriate way of purchase. This can often lead to a great deal on real estate.
In recent years, the housing market has become flooded with properties. Thankfully, buying property through auctions has been made more transparent, simpler, and quicker than ever before.
So, while you may have never considered court auctions, it could actually be a great way to buy a property in Italy.
In this article, we will outline the benefits of using a court auction to purchase real estate. In addition, we will give you some advice regarding the process.
BENEFITS OF COURT AUCTIONS
Property Price Savings
First, it’s irrelevant if your property was bought on the private market or through a court auction. Buyers can take advantage of the first home tax benefits even when buying from an auction if this is in fact their first home in Italy.
Intermediate parties involved in the buying process in the private market charge a percentage of the property purchase price for their fees. These fees can be as high as 4% of the property cost.
Fortunately, buying through auctions cuts out the middle man. This allows you to completely avoid that extra fee.
Therefore, you can afford to spend more money into the actual purchase of a home.
While shaving off additional fees is a great perk, you will save the most money through auctions because the house will simply cost less.
Typically properties purchased through these auctions sell for less than they would on the normal real estate market.
Sometimes, if there are no bidders, even the base price of the auctioned property is decreased. Ultimately, you can end up with a property worth well more than what you paid for it.
Many properties bought through auctions also allow for financing options. The courts have made deals with many banks to help auction buyers be approved for financing options.
This takes much of the risk out of the auction purchase, as there is a special relationship between banks and courts in order to help you through the buying process.
Increased Communication Transparency
Encouraging more transparent channels of communication, safeguards have been put into place.
While many say that there is a lack of honesty in the purchase, these court auctions have laws and practices in place to clear up miscommunications.
The Code of Civil Procedure rules are enforced and overseen by a judge throughout the auction process. This ensures transparency on all fronts.
The Court Expert evaluates and describes each property in detail. This expert accompanies the Custodian in establishing the auction’s base price for each property.
Appointed by the court, this Custodian is there throughout the entire process. They ensure a safe and smooth journey for all parties involved in the auction throughout all of the buying process.
This same Custodian personally visits the properties with potential bidders prior to the auctions, and provides whatever information the bidders may need or want.
All information regarding the real estate properties is publicized online at www.astegiudiziarie.it.
Any potential bidder can search online beforehand to see all listed properties and visit the place they are interested in buying before the auction takes place.
In a similar line to this idea of transparency in the buying process, buyers are granted conditional amnesty. This helps make bidders feel secure when purchasing through court auctions.
This amnesty varies by property and can be time-specific. It ensures that the buyer will not be held accountable for work done previously on the property outside of the law or without authorizations.
To be clear about the details of this amnesty agreement and to make sure that the property is properly analyzed it is important for potential buyers to work with the courts.
Our main advice during the buying process
If you are unfamiliar with the process of buying real estate through court auctions, we advise you to hire legal assistance to help you through the process.
While strict rules are in place for the courts, there are also rules and regulations for buyers. It’s best to hire a lawyer to ensure you comply with all of these during this journey.
Your lawyer must have specific experience in court auctions and in real estate law. They can help you make the right decisions when bidding and when going through the finalization of payment in obtaining a property.
SO, HOW DO I START?
As mentioned before, the list of properties on auction is available for everyone at www.astegiudiziarie.it
This portal allows potential bidders to have access to all information and documentation on the properties.
The website also outlines the rules and procedures of court auctions for both the courts and the buyers. A potential buyer does not need to be present during the auction and can commission another party to handle it.
They can hire an attorney to attend the auction and operate on behalf of the actual potential buyer.
Do you want to know the position of the Italian provinces?
Use our interactive map!