HOW TO BUY A PROPERTY IN UMBRIA or even ITALY (Part 1 of 3)
By John Tunstill
Firstly, obviously, you’ve got to find the right property, and equally important you’ve got to find the right area. Italy is really a number of independent states roughly joined together by almost the same language, and just buying into any old area may not be the best thing to do. Have a few days holiday in some of the locations that appeal. Want all-night disco dancing and falling down drunk? Then perhaps Umbria isn’t for you. No, not perhaps, definitely. And what is idyllic for a couple of weeks lazy holiday could become something of a bore when you want your computer repaired and the only way is to ship it out on the back of a mule! Explore the area, how do the locals regard you, what are the shops like, how many iron bars are there on ground floor windows, how many burnt out cars and derelict factories can be seen, is there a motorway for easy access, or escape, where can you fly from, are there buses and trains, and would you worry about your mother being left alone in the town centre after dark when the wheel has fallen off your car?
So, you’ve settled on an area, but can you afford it? Look in the windows of the local estate agents, look at the pages in this magazine, look on the internet, and, unless you can speak Italian, you’ll need to find someone who can explain in your own language what is going on. So, a local agent. How long have they been in business, how many English speaking clients have they got, can you meet some of them, how many houses have they sold, and how many client accounts are they handling, and have handled?
No, I’m really serious, here you are about to commence upon one of the more exciting or frightening things that maybe you’ve ever done in your life, in a foreign language, with foreign law; and, for you stay at home Brits, even foreign money, and you’re about to hand over perhaps a quarter of a million Euros on the strength of a bright smile, and all without investigating the background of this person.
Where will they meet you, do they have an office, and where do they live? Old bright eyes may meet you in the lobby of your hotel because “You’ll get lost in the maze of small streets”. A map perhaps? He/she will meet you at the bar, the motorway exit or the town square, “It’s nearer to the house/s that we’re going to look at”. But if they have no substance what’s to stop them doing a runner with your money? Your cash isn’t paid to a lawyer, but to the agent, and, because you’ll want to save fees, taxes and the like, it’s often paid in cash, which the agent will hopefully pay on to the vendor. And, you’re not paying down a silly £100.00 deposit as a show of goodwill, good faith etc, No you’re paying between 25 and 33% of the purchase cost…………which is a lot of money. Beware.
So, this dream house you’re looking for, be realistic about your budget, there really are very few bargains waiting for you to come along, if it was such a good buy someone else would have already bought it. The agent will often have a queue of people just waiting to press their hard earned cash into his hands, in order to buy this piece of real estate that he has set your heart on, but no, he won’t sell to them, he likes you, so would rather you had it, but you’ll have to hurry! Beware.
Take your time, make a comparative listing of points out of ten for shape and possibilities; size and maybe enlargement; position, whether it is high or low, near or far, and the condition of the roads, and what they’ll be like in winter; and lastly the price, which is often in proportion to the size, and, if it’s too cheap there is bound to be a reason. And, really lastly, the heart factor, why does one fall in love? The feelings, the vibes, the intangibles, these too are important. Take lots of photos and give each house an easy name so that you can remember it later.
So, you’ve selected the property, checked the agent, paid the deposit, signed the Compromesso, the formal Act of Agreement; and now you are really compromised to buy, for if you don’t, you’ll lose your deposit, yes, all of it. If however the seller can’t really sell you the house by the appointed day, more or less, he has to give you all your money back, plus a 100% forfeit. So both sides have to think long and hard before they sign and pay or accept, the money. Oh, by the way, did old bright-eyes give you a written or printed list of all the fees that you will be expected to pay on the day of the sale? He didn’t? How remiss of him, obviously an oversight. You are responsible for the surveyor’s fees, the lawyer’s fees, the VAT or IVA, the Registry Office fees, the agent’s commission, and, unless someone else has already paid, all and any back taxes due on the property, and in a few cases a mortgage could not have been fully cleared, or extinguished. Beware.
So, the house is bought and paid for, you’ve paid everyone who has asked you and now you want to get cracking rebuilding your house. Sorry, I know it’s a bit late, but did bright-eyes get agreements from adjacent property owners to the effect that they have renounced all claims to your land and garden? Why? Because adjoining contatini, farmers, do have the right to buy any land sold AFTER the Public Act has been completed, and at the price declared on the Public Act, which is often a lot less than the real price that you actually paid. Remember how keen you were to agree to defraud the tax authorities so as to keep your VAT, registration costs, legal and other fees as low as possible?
Sorry about that, but now you really are ready to start, but aspetta, wait, stop, permissions are needed for everything you intend to do in or around your house, garden or land. You have got these of course, haven’t you? Various levels of bureaucrats exist; some even in uniforms, and with guns; who are there to help, or hinder, assist, or confuse, sympathise or penalise, and all of them to cost you money, for permissions or fines. Said money recirculates in order to keep them, the bureaucrats, more than fully employed, and have their wages paid. Here is where your friendly surveyor starts to earn his keep. He/she who, hopefully, can speak English should have discussed the restoration or refurbishment of the property long before it was bought and sold. The applications can’t be lodged until the property is in your name, but, to save some time, can be drawn up well in advance, and can be discussed at local planning level. These documents will seemingly take for ever to arrive, but, once in your hand you can start work, which we’ll do in the next nail-biting, cliff-hanging episode.
The author, John Tunstill has had 25 years building and restoration experience, has sold 240 houses, undertaken 80 restorations, and has 8 sites currently open, all in the Upper Tiber Valley of Umbria, between Umbertide and Cittá di Castello. John offers “ on-site building experience” day tours, 8 hours, five sites, morning coffee, light lunch, afternoon tea, for €250.00 per person.
When not building restoring or selling properties, www.propertiesumbria.com, John helps his wife to organise an 11th century restored monastery in which they live and run as a luxury country house open to paying guests, www.lapreghiera.com.
© John Tunstill 2005, All rights reserved, reproduction etc, allowed provided full credits given.
Firstly, obviously, you’ve got to find the right property, and equally important you’ve got to find the right area. Italy is really a number of independent states roughly joined together by almost the same language, and just buying into any old area may not be the best thing to do. Have a few days holiday in some of the locations that appeal. Want all-night disco dancing and falling down drunk? Then perhaps Umbria isn’t for you. No, not perhaps, definitely. And what is idyllic for a couple of weeks lazy holiday could become something of a bore when you want your computer repaired and the only way is to ship it out on the back of a mule! Explore the area, how do the locals regard you, what are the shops like, how many iron bars are there on ground floor windows, how many burnt out cars and derelict factories can be seen, is there a motorway for easy access, or escape, where can you fly from, are there buses and trains, and would you worry about your mother being left alone in the town centre after dark when the wheel has fallen off your car?
So, you’ve settled on an area, but can you afford it? Look in the windows of the local estate agents, look at the pages in this magazine, look on the internet, and, unless you can speak Italian, you’ll need to find someone who can explain in your own language what is going on. So, a local agent. How long have they been in business, how many English speaking clients have they got, can you meet some of them, how many houses have they sold, and how many client accounts are they handling, and have handled?
No, I’m really serious, here you are about to commence upon one of the more exciting or frightening things that maybe you’ve ever done in your life, in a foreign language, with foreign law; and, for you stay at home Brits, even foreign money, and you’re about to hand over perhaps a quarter of a million Euros on the strength of a bright smile, and all without investigating the background of this person.
Where will they meet you, do they have an office, and where do they live? Old bright eyes may meet you in the lobby of your hotel because “You’ll get lost in the maze of small streets”. A map perhaps? He/she will meet you at the bar, the motorway exit or the town square, “It’s nearer to the house/s that we’re going to look at”. But if they have no substance what’s to stop them doing a runner with your money? Your cash isn’t paid to a lawyer, but to the agent, and, because you’ll want to save fees, taxes and the like, it’s often paid in cash, which the agent will hopefully pay on to the vendor. And, you’re not paying down a silly £100.00 deposit as a show of goodwill, good faith etc, No you’re paying between 25 and 33% of the purchase cost…………which is a lot of money. Beware.
So, this dream house you’re looking for, be realistic about your budget, there really are very few bargains waiting for you to come along, if it was such a good buy someone else would have already bought it. The agent will often have a queue of people just waiting to press their hard earned cash into his hands, in order to buy this piece of real estate that he has set your heart on, but no, he won’t sell to them, he likes you, so would rather you had it, but you’ll have to hurry! Beware.
Take your time, make a comparative listing of points out of ten for shape and possibilities; size and maybe enlargement; position, whether it is high or low, near or far, and the condition of the roads, and what they’ll be like in winter; and lastly the price, which is often in proportion to the size, and, if it’s too cheap there is bound to be a reason. And, really lastly, the heart factor, why does one fall in love? The feelings, the vibes, the intangibles, these too are important. Take lots of photos and give each house an easy name so that you can remember it later.
So, you’ve selected the property, checked the agent, paid the deposit, signed the Compromesso, the formal Act of Agreement; and now you are really compromised to buy, for if you don’t, you’ll lose your deposit, yes, all of it. If however the seller can’t really sell you the house by the appointed day, more or less, he has to give you all your money back, plus a 100% forfeit. So both sides have to think long and hard before they sign and pay or accept, the money. Oh, by the way, did old bright-eyes give you a written or printed list of all the fees that you will be expected to pay on the day of the sale? He didn’t? How remiss of him, obviously an oversight. You are responsible for the surveyor’s fees, the lawyer’s fees, the VAT or IVA, the Registry Office fees, the agent’s commission, and, unless someone else has already paid, all and any back taxes due on the property, and in a few cases a mortgage could not have been fully cleared, or extinguished. Beware.
So, the house is bought and paid for, you’ve paid everyone who has asked you and now you want to get cracking rebuilding your house. Sorry, I know it’s a bit late, but did bright-eyes get agreements from adjacent property owners to the effect that they have renounced all claims to your land and garden? Why? Because adjoining contatini, farmers, do have the right to buy any land sold AFTER the Public Act has been completed, and at the price declared on the Public Act, which is often a lot less than the real price that you actually paid. Remember how keen you were to agree to defraud the tax authorities so as to keep your VAT, registration costs, legal and other fees as low as possible?
Sorry about that, but now you really are ready to start, but aspetta, wait, stop, permissions are needed for everything you intend to do in or around your house, garden or land. You have got these of course, haven’t you? Various levels of bureaucrats exist; some even in uniforms, and with guns; who are there to help, or hinder, assist, or confuse, sympathise or penalise, and all of them to cost you money, for permissions or fines. Said money recirculates in order to keep them, the bureaucrats, more than fully employed, and have their wages paid. Here is where your friendly surveyor starts to earn his keep. He/she who, hopefully, can speak English should have discussed the restoration or refurbishment of the property long before it was bought and sold. The applications can’t be lodged until the property is in your name, but, to save some time, can be drawn up well in advance, and can be discussed at local planning level. These documents will seemingly take for ever to arrive, but, once in your hand you can start work, which we’ll do in the next nail-biting, cliff-hanging episode.
The author, John Tunstill has had 25 years building and restoration experience, has sold 240 houses, undertaken 80 restorations, and has 8 sites currently open, all in the Upper Tiber Valley of Umbria, between Umbertide and Cittá di Castello. John offers “ on-site building experience” day tours, 8 hours, five sites, morning coffee, light lunch, afternoon tea, for €250.00 per person.
When not building restoring or selling properties, www.propertiesumbria.com, John helps his wife to organise an 11th century restored monastery in which they live and run as a luxury country house open to paying guests, www.lapreghiera.com.
© John Tunstill 2005, All rights reserved, reproduction etc, allowed provided full credits given.
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