11 Pitfalls to Avoid When Buying Property in Italy [read carefully]

If you're reading this article, it's probably because you're about to buy a house and wondering what potential mistakes you should avoid. That makes you a cautious type.

On the other hand, if you're reading this after signing an irrevocable offer and now having doubts... well, you weren't cautious enough! Or you're just an emotional buyer, much like me.

Having been in the real estate game for 15 years, I've witnessed plenty of pitfalls. The most common one? Rushing to sign before thoroughly checking the details.

Now, the most financially damaging mistake? I’ll reveal that towards the end of the article. (Spoiler: it’s a topic rarely discussed online, but it's crucial for your financial security).

As I go through this, I’ll sprinkle in a bit of irony. Meanwhile, pour yourself a glass of red wine.

You can definitely summarize the pitfalls in three main categories. Here's a concise breakdown:

1] Mentality Pitfalls

• A fraudulent real estate agent: Yes, in Italy, it’s still possible for someone to sell you a house while pretending to be a real estate agent. The simple fix? Check if they have a license (here’s how). Did you know that unlicensed agents aren’t even entitled to receive commission?
• Advice from the unqualified: Italians are generous and eager to help, sometimes too much! It’s not uncommon to get advice from people who aren’t technically qualified. While abroad, you can be sued for giving bad advice; in Italy… not at all!
• No negotiation: Accepting the listed price without any negotiation is rare and only happens when there’s low property supply. Before agreeing, check the market conditions and how long the property has been listed (Days on Market).
• Verbal agreements: I get it. Reading through contracts can be dull, but what about verbal agreements in the land of artists in 2024? “No grazie”.
• Underestimating urban planning rules: Especially in historical centers, things like building new pools, adding windows or balconies, or raising roofs are often off-limits. If you plan to make modifications, check the rules before signing. Understanding these rules will make you a savvy buyer.

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2] Technical Pitfalls: Skipping Due Diligence

And I emphasize "villa," not just "property." Why? The risk of non-compliance is far higher for a villa than for an apartment. Let’s face it, adding an extra 50 sqm of living space is a lot easier in a villa than in an apartment (unless it has a large terrace!).

The cost of due diligence typically is about 1% of the property value (starting at around €5,000), depending on various factors. But what exactly does this process involve?

The checks cover both legal and urban planning compliance, as well as land registry issues:

• Who really owns the property (sometimes it’s not as obvious as you think).
• Debts, mortgages, liens, easements, or third-party rights.
• Urban and building compliance with permits, planning permissions, and certificates of habitability issued by the local municipality.
• Rental agreements with potential purchase or first refusal options.
• Environmental, historical, or landscape restrictions and possible right-of-way issues.
• Structural inspections (remember, Italy is a seismically active country).
• Checks on electrical, plumbing, heating, and air conditioning systems.
• Identification of hazardous materials like asbestos, lead, or mold and the associated removal costs.

3] Procedural Pitfalls

Now we get to the exciting part—and trust me, the last point will shock you.

• LOI vs Offer: In Italy, a non-binding letter of intent (LOI) is often considered a waste of time and isn’t usually used for smaller deals (I only use it for properties worth millions). On the other hand, an offer is irrevocable, binding, and requires an upfront deposit. Signing an offer, paying the deposit, and then checking the documents is like asking for a bad adventure. Once you’ve signed the offer, the price can’t be changed unless both parties agree. Which is rare. Conclusion: the offer is a binding contract—do all your checks before signing.
• The cart before the horse: Starting to view properties without having a clear idea of what you want, why you’re buying, and where is a surefire way to waste a lot of time—and maybe miss the right opportunity for you.
• Buying a pig in a poke: I’ll admit it—even I sold properties during COVID through video calls without physical visits. Honestly, I’m not a fan. Sure, there are rare situations where you might buy without visiting, like if you know the location inside out, trust your agent completely, and can’t travel to Italy. But in most cases, I strongly recommend against it. Properties have a soul, an energy you can’t experience through the best video call.

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• Missing the mark: I get it; the property’s price is your main concern. But don’t forget to add the notary fees and purchase taxes (typically 5-6%), the agency fee (3-5% + VAT), and the due diligence (1% + VAT). Other potential costs? Translations, power of attorney, mortgage, renovation, furnishings, etc. As a general rule, plan for at least an extra 10-15% beyond the purchase price. This will give you a more accurate budget.
• The Second Deposit: Finally, we’ve reached the part no one talks about. Let me explain with an example. Did you know that a dishonest seller, after taking your deposit, could sell the property to someone else and take a second deposit? Or that they could rent out the home you’re about to buy? To avoid this, I recommend signing a preliminary contract with a notary. Only a notary can register the contract with the Public Registers Office (“Conservatoria”), preventing any fraudulent moves by the seller (If you have doubts, contact me).

Now, armed with this insider knowledge, you’re ready to conquer the Italian real estate market—go get ‘em!

Elena Manzhos: Mother of two beautiful children, wife, and real estate agent for over 15 years. More than 20 years ago,  I moved to Italy from Eastern Europe. I have always had a deep-seated passion for houses; as a child for the Barbie house, and now as a real estate professional, my love for luxurious properties is unwavering.
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