Deposit: how much to pay, how to pay it and when it is returned
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What the deposit is in plain wordsHow much you must payHow to pay itWhen the deposit is returnedIf you win: the deposit becomes a down paymentIf you win and do not pay the balanceWhat to check before you bidIn practiceFrequently asked questionsSourcesThe deposit (cauzione) is the sum you pay before the auction as a guarantee that you are serious. If you do not pay it, your offer does not count; if you do pay it, it is either returned to you or becomes part of the price, depending on how the auction goes.
By law the deposit must be at least 10% of the price you offer, not of the base price (prezzo base). The sale notice may ask for a higher percentage: in that case, that percentage applies.
What the deposit is in plain words
The deposit (cauzione) is a sum of money. You pay it into the procedure's account before the deadline for submitting offers, and it shows that you have real funds and serious intentions. It is neither a tax nor a fee: it is an amount that stays tied to your offer.
You will find it in the sale notice (avviso di vendita), the document that governs the auction. Look for the words «cauzione» and «offerta minima» (minimum offer): they are usually close together.
How much you must pay
The basic rule is this: the deposit is calculated on the offer you make, not on the base price (prezzo base). The legal minimum is 10% of that offer, and the notice may set a higher figure.
Let us take an invented case.
- Example. Base price: €100,000.
- Minimum offer (the notice allows a 25% reduction): €75,000.
- You decide to offer €80,000.
- Legal minimum deposit (10% of €80,000): €8,000.
- If the notice asks for 15%, the deposit rises to €12,000.
So you redo the calculation every time, on the price you want to propose. If you offer more, the deposit rises with the offer.
Beware of a common mistake: those who calculate the deposit on the base price end up with the wrong sum, either higher or lower than the one required. If it is lower, your offer is not valid.
How to pay it
The deposit is paid in the way indicated in the notice, by the deadline for offers. In online auctions the bank transfer must be made before you submit your offer online, and the receipt must be attached to your application. In in-person or mixed auctions the procedure may differ, so read the instructions carefully.
Check three things before you pay:
- the exact amount, calculated on your offer;
- the account and the account holder named in the notice;
- the deadline: arriving even one minute late means losing your offer. You will find the dates in the chapter on deadlines for offers.
A warning about the price: the offer you submit is irrevocable. You cannot withdraw it at will, except in the cases provided for by law. Paying a deposit you cannot afford is therefore a real risk, not a minor detail.
When the deposit is returned
If you do not win the auction, your deposit is returned to you. You will find the timing in the notice, because the judge or the sale delegate (delegato alla vendita) may set precise methods for the refund. In online auctions the refund usually takes place by bank transfer to the account you have indicated.
Do not count on a gain: you get back the sum you paid, according to the methods indicated in the sale notice.
If the bidding closes with another higher bidder, your deposit is returned. If you are the only bidder and the offer is accepted, you are the successful bidder (aggiudicatario) and the story changes.
If you win: the deposit becomes a down payment
If you are awarded the property, the deposit is not returned. It becomes a down payment on the price. Let us go back to the example: you offered €80,000 and paid €8,000. If you win at €80,000, you still have to pay €72,000, plus the sums for taxes and costs that the sale delegate will indicate to you.
The balance must be paid within the deadline set by the notice. The law provides a maximum limit of 120 days from the award, and that deadline cannot be extended. If you prefer to pay sooner, you can state it in your offer: in competitive bidding this may give you an advantage, but check the rules of the notice.
To understand how the balance is calculated and what happens if you do not pay it on time, read the chapter on paying the balance.
If you win and do not pay the balance
This is the most serious risk. If the successful bidder does not pay the balance within the deadline, the law provides that they lose the award and forfeit the deposit, which remains with the procedure as a penalty. If the property is resold at a lower price, you may be required to pay the difference.
The rule is simple, but the consequences are serious: before bidding, check that you will be able to pay the balance on time, even if your mortgage takes longer than expected.
What to check before you bid
Before submitting your offer, prepare a short list:
- the base price (prezzo base) and the minimum offer (offerta minima), as written in the notice;
- the deposit percentage required by the notice;
- the exact amount to pay on your offer;
- the deadline for the bank transfer and the one for the offer;
- the refund times foreseen for those who do not win.
To read the notice line by line, there is a dedicated guide: how to read a sale notice. To understand the difference between base price and minimum offer, go to base price and minimum offer.
To see what a real listing looks like, open the page of auctions in progress and choose one: you will find the base price, deadlines and sale method in one place.
In practice
- Calculate the deposit on the offer you want to make, not on the base price.
- Look in the notice for the percentage required: if there is one, that applies, even if it is higher than 10%.
- Make the bank transfer by the deadline and keep the receipt.
- Before bidding, check that you can pay the balance on time, because a lost deposit cannot be recovered.
Frequently asked questions
If I lose the auction, is the deposit returned?
Yes. If another bidder is awarded the property, your deposit is returned to you. The timing and methods are written in the notice, so read them before you pay.
Can I pay a deposit higher than the minimum?
The law sets a minimum, so paying more is possible. Bear in mind, however, that the sum stays blocked until it is returned, and that if you win it becomes a down payment on the price. Do not pay more than necessary without a reason.
How long does it take to get the deposit back?
It depends on the procedure and the methods indicated in the notice. There is no single timeframe valid for all auctions: the precise figure is in the sale notice, which is the document everything starts from.
Sources
In the same chapter
- Vacant, occupied or leased: the property status in the noticeVacant, occupied or leased: what changes for getting in, who you may need to have leave and what stays on your shoulders. Read the sale notice and the appraisal report before bidding.
- Auction with no bids (asta deserta): how much the price drops at the next roundAuction with no bids (asta deserta): the price can fall by up to a quarter at the next attempt, and by up to half after the fourth. Example with numbers and what to check.
- Base price (prezzo base) and minimum offer (offerta minima): the difference explained with an exampleThe base price (prezzo base) is the starting point of the auction, the minimum offer (offerta minima) is the threshold below which you cannot bid. Here is the difference with an example using round numbers.
- Minimum bid increment: how much and when you bidThe minimum bid increment (rilancio minimo) is the smallest amount by which each offer must rise during the auction: it is set by the sale notice, and you will find it in the line dedicated to the auction.
- Sale without judicial auction, synchronous, asynchronous and mixed: what it meansSynchronous: online bidding at a fixed time. Asynchronous: online bidding over several days. Mixed: online or in the room, together. The sale notice says which one applies.
General information, not legal or tax advice: the law and the notice of sale prevail.
