Guide for sellers

The residents' restriction: what it means for a seller

Two identical flats in the same building can be worth different sums depending on the restriction attached to them. We set out how to recognise it and what it means for a sale.

What it is and why it exists

The residents' restriction pursues an aim stated by the provincial legislature: to reserve part of the housing stock for people with a settled tie to the area, where building land is scarce and demand comes in part from tourism.

The rule in force is article 39 of provincial law no. 9 of 10 July 2018, 'Land and landscape', which replaced the convenzionamento of the earlier planning act. In everyday speech people still say 'convenzionato'.

Who may occupy a restricted dwelling

One of these conditions: having been resident for at least five years in a South Tyrolean municipality; or working in a municipality of the province for as long as the dwelling is occupied; or having been resident in the province for at least ten consecutive years before moving away. Within a household, one member meeting the condition is enough.

The law also sets deadlines for occupation: within a year of habitability for a new dwelling, within six months if it stands empty, with administrative penalties and intervention by the municipality otherwise. They concern the buyer, but they bear on the seller's negotiation.

Where the restriction appears

In the land register. The restriction is entered against the property, and both its entry and its removal go through the municipality, which certifies the grounds. On the extract it appears in section C, alongside the other burdens.

Asking for the extract is therefore the direct way to establish whether a dwelling is restricted. What the developer said many years ago is not a check.

What changes for the price and for the sale

The audience changes, and with it the price. A restricted dwelling is closed to anyone looking for a second home or a tourist use and addresses a narrower pool: resident households, often with a mortgage, who will live in the property.

Marketing follows accordingly. Stating the restriction in the listing is not a flaw to hide: it is the filter that avoids fruitless viewings and selects buyers who meet the requirements. Leaving it out produces negotiations that break off during checks, as soon as the bank or the notary reads the extract.

In short

  • Basis: article 39 of provincial law 9/2018
  • Requirements: five years' residence, work in the province, or ten years in the past
  • Within a household, one member meeting them is enough
  • The restriction is entered in the land register, section C
  • Entry and removal both go through the municipality
  • State the restriction in the listing from publication onwards

Frequently asked questions

How do I know whether my home is restricted?

By asking for the land register extract and reading section C. In case of doubt, the relevant municipal office confirms whether the entry is there and on what terms. The check takes a few days and comes before the price is set.

Can the restriction be removed?

The law provides for specific cases — among them placing the restriction on another suitable dwelling of the same owner in the same municipality, with exclusions for price-controlled housing and for dwellings on subsidised land. It does not depend on the owner's choice but on a municipal procedure: it has to be checked case by case before being held out to a buyer.

Is a restricted dwelling worth less?

It is worth what the pool of people allowed to buy it will pay, and that pool is narrower: in practice the price comes out below that of a comparable unrestricted property. The difference cannot be put as a general percentage: it depends on the municipality, on local demand and on the type of property, and a valuation measures it against comparable sales.

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.

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