From preliminary contract to deed: closing a sale in South Tyrol
Between the handshake and the change of ownership there are four documents and several weeks. Here is what they are and what to watch in each.
The purchase offer
It is the first written step: the buyer commits, the seller does not, until they accept. From acceptance, though, the offer becomes a contract in full, and what is written in it binds both sides.
Things to read before signing the acceptance: the deadline for completion, the way payment will be made, any condition tied to the buyer's mortgage — with the date by which the bank must decide — and the list of what stays in the property.
Confirmatory or penitential deposit
Two similar names, two very different effects. The confirmatory deposit is the rule: if the buyer defaults the seller keeps it, if the seller defaults they must return double, and either side can still sue for performance. The penitential deposit is instead the price of a lawful withdrawal: whoever walks away pays that sum and the other side can claim nothing more.
In property transactions the confirmatory deposit is the most common form. The type belongs expressly in the text: a preliminary contract that says only “deposit” leaves the interpretation open the moment one party fails to perform.
The preliminary contract and its protection
The preliminary contract fixes what the deed will carry out: price, deadlines, the state of the property, the documents the seller will hand over, the allocation of costs. It can be a private agreement or made before a notary; in the second form it can be made known to third parties through the land register, with protective effect for the buyer when months pass between the two stages.
The Bolzano Chamber of Commerce publishes a model preliminary contract, setting out the clauses the contract must contain.
Deed, handover, registration
At completion you sign before the notary, the balance is paid, the keys change hands and the documents are attached — the energy certificate among them. The notary then files the land registry application and the judge issues the decree of entry: that is what transfers ownership.
Two practical points for a seller: time the handover of keys consistently with the balance, and remember the utility transfers and the notice to the condominium — nobody does those for you.
In short
- An accepted offer is already a contract
- Write down which kind of deposit: confirmatory or penitential
- A mortgage condition, with a date
- List what stays in the property
- The energy certificate is attached to the deed
- Ownership passes on registration, not on signature
Frequently asked questions
Can I accept an offer and keep showing the house?
No. On acceptance the deal is concluded and you are bound: continuing to negotiate with others exposes you to liability. If you want to keep an alternative open, it is arranged beforehand in the offer, not after signing it.
The buyer's mortgage falls through: do I keep the deposit?
It depends how the condition is drafted. If the contract provides that failure to obtain finance by a given date unwinds the agreement, the deposit is returned. If there is no such condition, or it has lapsed, the position is different. The clause should therefore be read before acceptance.
Official sources
Note
This guide is general information written by an estate agency. It does not replace advice from a notary, an accountant or the surveyor handling the property. The rules cited are those in force at the date of publication.
Read next
The land register: what changes when you sell here
It is the most significant difference between selling in the province of Bolzano and selling in the rest of Italy, and it is worth knowing before you sign anything.
The selling mandate: what you are signing
It is a short contract with substantial effects. We set out what it has to contain and which questions to ask before signing it, including of us.
The costs the seller bears
The heaviest part — registration tax and the notary's fee for the deed — falls to the buyer. Some items nonetheless fall to the seller, and they are worth knowing in advance.
Would you like to know what your property is worth?
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