How to Read an Auction Appraisal Report (perizia), Section by Section

The appraisal report is the document on which the base price (prezzo base) is based. Before making any offer you must read it in full, not just the page with the price.

What the Appraisal Report Is and Who Writes It

The valuation expert, also known as the appraiser (perito), is the technician whom the judge appoints to visit the property and describe it. By law the appraisal report contains some mandatory parts: cadastral identification, description, occupancy status, encumbrances and burdens, building and planning compliance, condominium situation and estimated value (art. 173-bis disp. att. c.p.c.).

The appraisal report is not a contract and guarantees you nothing. However, it is the only official snapshot of the property you will have before bidding. For this reason it must be read carefully, with the sale notice alongside it.

Where to Start: Which Property Does It Refer To?

The first part of the appraisal report identifies the property: address, land registry data, sheet, parcel and subordinate number. Compare them with the sale notice. If they do not match, stop and ask the sale delegate (delegato alla vendita) for clarification before going any further.

Then check that the description matches the lot. A flat with a cellar is not a flat without a cellar. A garage sold as a separate lot has a different regime from a garage that is an annex of a home.

Occupancy Status: Occupied or Vacant?

The appraisal report must state whether the property is vacant or occupied, and on what basis. If it is occupied by the debtor with the family, the debtor may stay until the transfer decree (decreto di trasferimento), provided they keep the property in good condition and cooperate with viewings. After the transfer decree, the court-appointed custodian (custode) carries out the vacate order (ordine di liberazione).

If the property is occupied by third parties without any right, the judge may order its release even before the transfer decree. If there is a lease, look for a certified date (data certa) and registration. A lease with a certified date prior to the attachment (pignoramento) may remain binding on the successful bidder (art. 2923 c.c.). Actual timescales depend on the court: the appraisal report does not give them, and nor do I.

Also read carefully the sections on rent. If the rent is lower by a third than the fair price, or than that of previous leases, the contract is not binding.

Encumbrances and Burdens: What Stays and What Is Cancelled

Not all defects and burdens you read about in the appraisal report stay with you. The transfer decree orders the cancellation of mortgages (ipoteche) and attachments (pignoramenti) (art. 586 c.p.c.). What remains, however, are easements (servitù), planning constraints and rights of third parties that are binding, such as a usufruct (usufrutto) registered before the attachment.

In a forced sale there is no warranty against defects in the goods (art. 2922 c.c.). This means you cannot ask for a price reduction or rescission because you find a defect that the appraisal report did not point out. For this reason, every defect you read about in the appraisal report is a factor you must already build into the price you offer.

Building and Land Registry Compliance

The appraisal report must verify planning and building compliance and state the cost of any regularisation (sanatoria). Here it is worth taking your time.

If the appraisal report flags regularisable unauthorised building works (abuso edilizio), the successful bidder submits the regularisation application within 120 days of notification of the transfer decree (art. 46, comma 5, DPR 380/2001). If the unauthorised works cannot be regularised, they must be removed at the successful bidder's expense. The cost must be read from the appraisal report, not imagined.

Also check land registry compliance: the attached floor plan must match the actual condition. Compare rooms, windows and surfaces. Any differences you notice should be raised with the technician or the sale delegate.

Condominium Situation

The appraisal report must describe the situation of the condominium (condominio, building owners' association). The most delicate point is unpaid arrears. Whoever takes over the rights of a condominium owner is jointly liable with the former owner for the expenses of the current year and the previous year (art. 63 disp. att. c.c.).

Example. The transfer decree arrives in March 2026 and the debtor has left unpaid expenses from 2023 to 2026. The condominium may ask the new owner for the expenses of 2025 and 2026. The older ones remain the responsibility of the former owner. Ask the administrator for an updated list and also check for any extraordinary works that have been approved.

Estimated Value and Base Price

The estimated value is the value the appraiser attributes to the property. The base price is set by the judge starting from this value. The appraisal report may also indicate a reduction in value for occupancy status or for discrepancies.

The rule for taking part is then based on the base price. The minimum offer (offerta minima) is generally three quarters of the base price: an offer lower by more than a quarter is ineffective (art. 571 c.p.c.). The deposit (cauzione) is at least one tenth of the offer, unless a higher percentage is indicated in the sale notice.

Example with round numbers. Base price €100,000. Minimum offer €75,000. If you offer €80,000, the minimum deposit is €8,000 (10% of the offer, not of the base price). If the appraisal report indicates €5,000 of regularisation costs, that figure should be mentally deducted from the value you are willing to pay.

In Practice

• Compare the land registry data in the appraisal report with those in the sale notice.
• Read the section on occupancy status and look for a lease with a certified date.
• Add up the regularisation and removal costs stated in the appraisal report before deciding your maximum price.
• Ask the building administrator for the amount of arrears and extraordinary works.
• Check that the floor plan matches the actual condition, room by room.

Frequently Asked Questions

Can I read the appraisal report before registering for the auction?

Yes. The appraisal report can be consulted in the procedure file. You will find the details for accessing it in the sale notice, which is published on the Public Sales Portal (Portale delle Vendite Pubbliche, PVP).

If the appraisal report says the property is unauthorised, can I decline to buy it?

Yes, you may decide not to take part. If you do decide to, include in your price the regularisation or removal costs that the appraisal report indicates. The point is not to discover these costs after the award (aggiudicazione).

Is the estimated value the market price?

Not necessarily. The estimated value is what the appraiser attributes to the property within the procedure. The base price may differ from the estimated value, because the judge may consider other factors. To compare the area you can use the OMI property values (quotazioni OMI) of the Italian Revenue Agency (Agenzia delle Entrate), which are indicative values and not market prices.

Sources

• Code of Civil Procedure, art. 571 (minimum offer and deposit)
• Implementing Provisions of the Code of Civil Procedure, art. 173-bis (content of the appraisal report)
• Portale delle Vendite Pubbliche
• Ministry of Justice

Further Reading

To understand the individual sections, read the appraisal report sections you should never skip. If the floor plan does not match the actual condition, start from land registry compliance in the appraisal report: what to check. For unauthorised works, see unauthorised building works in a home at auction: what can be regularised. For the cost calculations, read condominium expenses in the appraisal report: arrears and extraordinary works. You can also look at the auctions in progress and take a real lot to read together with this guide.