Advantages and disadvantages of a (buying) agent when purchasing property in Italy
In Italy, unlike many other countries, the profession of real estate agent (agente immobiliare) is strictly regulated. To legally work as a recognized real estate agent, one must:
In Italy, a real estate agent may mediate between both parties in the transaction. The Italian Civil Code (Codice Civile), particularly articles 1754 to 1758, allows recognized agents to collaborate and share commissions.
Article 1754: Mediation can be carried out by multiple agents. Each agent who contributes to the completion of the transaction is entitled to a share of the commission.
Article 1756: If multiple intermediaries have contributed to closing the deal, the commission is divided among them in proportion to the work each has performed. In the absence of agreement, the court decides on the distribution.
Agents can therefore collaborate (e.g., a local agent and a recognized buying agent). The commission distribution can be contractually agreed upon (e.g., 50/50 or based on effort). If no agreement is made, an Italian judge will decide on the fair distribution based on the actual contribution of each agent.
The conditions for this are:
What can you expect from a real estate agent or from Italy House Hunting as a buying agent, and what does the agent's involvement cost?
- have completed specialized real estate agent training in Italy,
- have passed both a written and oral exam,
- be registered in the professional register (Ruolo degli Agenti di Affari in Mediazione) with the local Chamber of Commerce (Camera di Commercio). Check your agent's REA number.
Unrecognized real estate agents are not allowed to mediate in real estate transactions. If they do so, they act in violation of Italian law (Art. 1754 and following of the Italian Civil Code) and have no right to any fee or compensation. Parties who nevertheless use an unrecognized agent, do so at their own risk and are not obligated to pay any compensation.
In Italy, a real estate agent may mediate between both parties in the transaction. The Italian Civil Code (Codice Civile), particularly articles 1754 to 1758, allows recognized agents to collaborate and share commissions.
Article 1754: Mediation can be carried out by multiple agents. Each agent who contributes to the completion of the transaction is entitled to a share of the commission.
Article 1756: If multiple intermediaries have contributed to closing the deal, the commission is divided among them in proportion to the work each has performed. In the absence of agreement, the court decides on the distribution.
Agents can therefore collaborate (e.g., a local agent and a recognized buying agent). The commission distribution can be contractually agreed upon (e.g., 50/50 or based on effort). If no agreement is made, an Italian judge will decide on the fair distribution based on the actual contribution of each agent.
The conditions for this are:
- All involved agents must be recognized (registered in the Ruolo degli Agenti di Affari in Mediazione).
- The transaction must be completed (only then is commission due).
- The distribution must be transparent and comply with the deontological code of the profession.
What can you expect from a real estate agent or from Italy House Hunting as a buying agent, and what does the agent's involvement cost?
| buying property in Italy | directly from owner | with seller's agent | with Italy House Hunting (IHH) | ||||
|---|---|---|---|---|---|---|---|
| possible costs | options/ extras | buyer doesn't speak Italian | buyer speaks Italian | buyer doesn't speak Italian | buyer speaks Italian | buyer doesn't speak Italian | buyer speaks Italian |
| commission % | 0% | 0% | 3-5% +VAT | 3-5% +VAT | 3-4% +VAT | 3-4% +VAT | |
| property viewing | buyer | buyer | buyer with agent | buyer with agent | buyer with IHH | buyer with IHH | |
| extra advice during/after viewing | Google Translate/ AI | free | unnecessary | free | unnecessary | unnecessary | unnecessary |
| with a translator/interpreter (optional) | (€250) | unnecessary | (€250) / included with bilingual agent | unnecessary | included | included | |
| legal/technical advice (AI) | free | free | free | free | unnecessary | unnecessary | |
| professional legal advice (optional) | (€500) | (€500) | (€500) / included with bilingual agent | included | included | included | |
| professional technical advice (optional) | (€500) | (€500) | (€500) / included with bilingual agent | included | included | included | |
| document check in advance | buyer | buyer | included | included | included | included | |
| fiscal code application | buyer | buyer | buyer / agent | buyer / agent | included | included | |
| negotiations | buyer | buyer | buyer / agent | buyer / agent | buyer / IHH | buyer / IHH | |
| drafting purchase proposal | by the parties/ AI | free | free | ||||
| by the seller's agent | included | included | |||||
| by the buyer's agent | included | included | |||||
| professional (lawyer, etc.) | (€1,000) | (€1,000) | (€1,000) | (€1,000) | unnecessary | unnecessary | |
| translation of purchase proposal | translation computer/ AI | free | unnecessary | free | unnecessary | unnecessary | unnecessary |
| translator/ interpreter | (€500) | unnecessary | (€500) | unnecessary | included | unnecessary | |
| legal advice buyer (optional) | AI | free | free | unnecessary | unnecessary | unnecessary | unnecessary |
| professional | extra | extra | included | included | included | included | |
| drafting preliminary contract | by the parties/ AI | free | free | ||||
| by the seller's agent | agent / notary | agent / notary | |||||
| by the buyer's agent | included | included | |||||
| professional (lawyer, etc.) | (€1,000) | (€1,000) | unnecessary | unnecessary | unnecessary | unnecessary | |
| by the notary | (€1,800) | (€1,800) | (€1,800) | (€1,800) | unnecessary | unnecessary | |
| translation of preliminary contract | translation computer / AI | 0 | unnecessary | 0 | unnecessary | unnecessary | unnecessary |
| translator / interpreter | (€500) | unnecessary | (€500) | unnecessary | included | included | |
| property transfer (notary) | notary costs | notary costs | notary costs | notary costs | notary costs | notary costs | |
| professional urban planning/legal/technical advice | (€800) | (€800) | (€800) | (€800) | included | included | |
| contract translation | translation computer / AI | not allowed | unnecessary | not allowed | unnecessary | not allowed | unnecessary |
| translator / interpreter | (€800) | unnecessary | (€800) | unnecessary | (€800) | unnecessary | |
| or power of attorney (for 2 people) | €600 | unnecessary | €600 | unnecessary | €600 | unnecessary | |
| min. extra costs (excl. notary costs) | €600 | €0 | €600 | €0 | €600 | €0 | |
| max. extra costs (excl. notary costs) | €6,350 | €5,200 | €6,350 | €4,550 | €800 | €0 | |
As you can see, legal/technical advice is included in your agent's or buying agent's commission.
If you buy directly from the owner or through an agent, ask yourself if you sufficiently understand what the following different terms mean, and whether they apply to the specific case of the property you want to buy, or if you think your agent can explain them in detail. If it turns out that there are quite a few of these matters that you do not understand, or your agent cannot sufficiently clarify whether these matters apply to your case and what they exactly mean, then we advise you to engage Italy House Hunting or a buying agent.
If you buy directly from the owner or through an agent, ask yourself if you sufficiently understand what the following different terms mean, and whether they apply to the specific case of the property you want to buy, or if you think your agent can explain them in detail. If it turns out that there are quite a few of these matters that you do not understand, or your agent cannot sufficiently clarify whether these matters apply to your case and what they exactly mean, then we advise you to engage Italy House Hunting or a buying agent.
- legitimate state of the property
- cadastral compliance
- urban planning compliance
- deposit guarantee
- system compliance
- drainage permit
- habitability certificate
- agricultural property and deruralization
- right of first refusal on agricultural land
- property in category D/10 (agriturismo) for sale
- verification of property origin and heir risk
- reduction of transfer tax on purchase of adjacent agricultural land
- requirements to obtain CIR and CIN for tourist rental
Finally, a few words about the biggest pitfalls that come with buying a property. Have you bought a property, or are you about to buy one? Then check these most common cases.
In case of doubt, contact Kris at Italy House Hunting (tel +39-392-2580259).
- your property is an agricultural property and has never been deruralized to this day
- the height of the rooms in your property does not match the heights indicated on the cadastral plan
- not all bathrooms are indicated as such on your cadastral plan
- some windows or doors are not on your cadastral plan, or are drawn elsewhere or larger or smaller than in reality
- your purchase contract explicitly states that there is no habitability certificate
- on your cadastral extract, your property is listed as a category starting with the letter C and not with an A
- on all agricultural land you bought with your vacation home, you pay transfer tax at 15% of the market value
- on your waste tax (TARI) bill, the same surfaces are listed for your property as on your cadastral extract