Notarial auction from the Rete Aste Notarili: how it works
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What a notarial auction is, in simple termsHow it works step by stepHow much you pay beyond the priceHow it differs from a judicial auctionWhat to check in the notice before biddingIn practiceFrequently asked questionsSourcesA notarial auction (asta notarile) is a property sale organised by notaries, not by a judge. If you win, you do not receive a transfer decree (decreto di trasferimento): you sign an ordinary deed of sale before the notary, just as when you buy a home from a private seller.
What a notarial auction is, in simple terms
The Rete Aste Notarili is the system through which the notarial profession, that is the organisation of notaries, publishes these sales. It is not based on a foreclosure (pignoramento). No judge has blocked the property because the owner does not pay debts: the owner chooses to sell.
Each lot has its own sale notice (avviso di vendita), the document that sets out the rules of the sale. In the notice you will find the base price (prezzo base), that is the starting price, and the minimum offer (offerta minima), that is the lowest price at which you can take part. You will also find the deposit (cauzione), that is the sum you pay as a guarantee, and the bid increments (rilanci), that is the later offers in case of a competitive bidding round.
The rules are those of the notice for the lot you are interested in. There is no single set of rules valid for all notarial auctions: they can differ from one lot to another. Always read the text of the individual lot, and do not rely on what you read for a different auction.
How it works step by step
The sequence is simple, but it must be followed in order. The main steps are these:
- choose a lot and read the whole sale notice, including the property description and the appraisal report (perizia), if attached;
- check the base price, the minimum offer, the deposit required and the deadline for submitting the offer;
- prepare your offer and pay the deposit in the ways stated in the notice;
- if there are several offers, take part in the bidding respecting the minimum bid increment (rilancio minimo) set in the notice;
- if you win, sign the deed of sale before the notary within the times written in the notice;
- at the notarial deed (rogito) you pay the price, the taxes and the costs, and the notary registers and transcribes the deed.
Invented example. Base price: €100,000. Minimum offer, if the notice allows a maximum reduction of 25%: €75,000. If the notice requires a deposit of 10% of the offer, for an offer of €80,000 the deposit is €8,000.
The base price is the reference, but you calculate the deposit on the amount you offer. The actual dates, amounts and percentages are those in the notice for the lot. If you want to understand the differences between types of sale better, read the comparison between judicial, notarial and bankruptcy auctions.
How much you pay beyond the price
The sale price does not include everything you spend. Taxes and transfer costs are added. In a notarial auction the rules of an ordinary sale apply, not those of a judicial auction.
If the seller is a private individual and the sale is not subject to VAT, the main taxes are these:
- registration tax (imposta di registro) at 9%, or at 2% if it is your first home (prima casa) and you meet the requirements;
- a minimum registration tax of €1,000;
- fixed mortgage and cadastral taxes, of €50 each.
Example. Price €100,000, second home, private seller: registration tax €9,000, plus €50 mortgage tax and €50 cadastral tax. Total taxes: €9,100. With the first home relief the registration tax falls to €2,000.
If the seller is a company, VAT can change the picture. Check in the notice whether the sale is subject to VAT.
The notary receives a fee that does not follow a mandatory tariff. As a rule, the buyer pays it. Ask for an estimate before you bid, so you can include it in your calculations.
How it differs from a judicial auction
The most important difference concerns what happens afterwards. In a judicial auction the judge issues a transfer decree (decreto di trasferimento), which transfers ownership and orders the cancellation of mortgages and foreclosure attachments. In a notarial auction this decree does not exist, because there is no foreclosure.
With a notarial auction you sign a deed of sale. The guarantees of an ordinary sale therefore apply. If you discover a hidden defect in the home, you generally must report it to the seller within 8 days of discovering it and bring a claim within one year of delivery.
The guarantee is not an excuse for buying without reading. The notary checks the documents and prepares the deed, but you must know what you are buying. For this reason the notice and every attached document should be read carefully before you bid.
What to check in the notice before bidding
Before making an offer, check these points:
- the base price and the minimum offer;
- the deposit: how much it is, how it is paid and by when;
- the minimum bid increment (rilancio minimo), that is the minimum increase of each new offer;
- the deadline for submitting the offer and the rules of the bidding;
- the property description and any building or cadastral irregularities;
- who pays the taxes and costs, and how much they are;
- the deadlines for signing the notarial deed.
If anything is unclear, do not make an offer. You can have the notice explained by a professional you trust, who reads the text with you before you decide.
If you want to see a real example, you can look at auctions in progress and compare a notice with what you have read here. To understand the general process you can read how a property auction works, from the notice to the keys.
In practice
- Read the lot notice from start to finish, because the rules of the bidding are written there.
- Calculate the deposit on the offer you want to make, not on the base price, and check the percentage in the notice.
- Add taxes and costs to the offer: the sale price is not all you will pay.
- Look in the documentation for any building or cadastral irregularities and ask how they are handled.
- Note the date of the notarial deed and prepare the sums to be paid by that day.
Frequently asked questions
Do you need a lawyer for a notarial auction?
To take part you are not obliged to have a lawyer. However, if you have never bought a home, it is useful to get help reading the notice before you bid.
If I lose the auction, is the deposit returned?
The deposit of those who are not awarded the property is returned. Timing and methods are written in the lot notice, so check them before you pay it.
Can I offer less than the minimum offer?
No. The minimum offer is the limit below which your offer is not valid. The exact figure is written in the notice.
Who signs the contract if I win?
You sign, together with the seller, before the notary. The notary prepares the deed, checks the documents, registers it and transcribes it.
Sources
In the same chapter
- Judicial, notarial and bankruptcy auctions: the differencesJudicial, notarial and bankruptcy auctions are not the same thing: they differ in who sells, the notary involved and the type of deed. Here is how to tell them apart before you bid.
- How a property auction works, from the notice to the keysA property auction runs from the sale notice to the keys: minimum offer (offerta minima), deposit (cauzione), bidding, payment of the balance within 120 days and the transfer decree. Here are the steps.
General information, not legal or tax advice: the law and the notice of sale prevail.
