Balance payment: when to pay and what happens if you don't

What the balance price means in simple terms

The balance price (saldo prezzo) is the part of the price that remains to be paid after the award, that is, after your offer has been found to be the best. You have already paid the deposit (cauzione), meaning the sum you lodged before the auction as a guarantee.

The balance is calculated as follows: award price minus deposit (cauzione) already paid, plus the expenses fund (fondo spese) set by the sale delegate (delegato alla vendita) for taxes and transfer costs. You will find the exact details in the notice of sale and in the record of award (verbale di aggiudicazione).

To understand the full process you can read cosa succede dopo l'aggiudicazione: tutti i passaggi.

By when you must pay

The law sets a maximum limit of 120 days from the award to pay the balance (art. 585 c.p.c.). The deadline cannot be extended (art. 585 c.p.c.). The notice may set a shorter deadline, and in a competitive bidding a shorter deadline may be a factor of preference.

For this reason, when you take part, check two things in the notice: the balance due date and the account into which you must pay. They are written there, not in a general rule.

Example. Award price: €100,000. Deposit (cauzione) already paid: €10,000. Expenses fund set by the sale delegate: €5,000 (example amount). Balance to pay: €100,000 minus €10,000 = €90,000, plus €5,000 expenses fund = €95,000. The deadline for payment remains that of the notice, not more than 120 days.

How to pay the balance

Payment is made using the methods indicated in the notice of sale, usually a bank transfer to the account indicated by the sale delegate or by the proceedings. Use exactly the reference for the proceedings that is communicated to you, so that the payment is linked to your case.

If you want to pay with a mortgage, the mechanism is different. The mortgage can finance the balance, with the bank paying the sum directly and with the mortgage lien (ipoteca) registered together with the decree. However, the bank's timings must fit within the 120 days, so the application must be started before the auction, not after.

If the proceedings ask you to also pay the transfer taxes, the sale delegate will notify you with a separate calculation. They are not automatically included in the award price.

What happens if you do not pay within the deadline

If you do not pay the balance within the deadline, you forfeit the award. You lose the deposit (cauzione), which the proceedings keep as a penalty (art. 587 c.p.c.). The property becomes available for a new sale.

If the new sale yields less than the price you had offered, you may be called to answer for the difference. This risk is written into law and must be taken seriously before you bid.

To understand whether and how much can be recovered, read mancato versamento del saldo: si perde la cauzione?.

What to check before bidding

Before submitting your offer, verify these points.

• The deadline for the balance written in the notice of sale, which cannot exceed 120 days.
• The proceedings' bank account and the reference to be entered in the bank transfer.
• The amount of the deposit (cauzione) required by the notice, to be calculated on the offer you make.
• If you need a mortgage, how long the bank needs to disburse, and whether you have already started the application.
• If there are unpaid condominium charges (spese condominiali arretrate), which may also concern the successful bidder (aggiudicatario).

If you have doubts about your specific case, speak with the professional who assists you.

The balance and the transfer decree

After payment of the balance, the judge issues the transfer decree (decreto di trasferimento). This is the document that makes you the owner, and it takes the place of the notarial deed (rogito notarile). The decree also contains the order to cancel mortgages and seizures (art. 586 c.p.c.).

The date of the decree matters for other deadlines, for example for taxes and for the IMU. To understand what it contains and when it arrives, read decreto di trasferimento: cos'è, quando arriva, cosa contiene.

In practice

• Check in the notice of sale the date by which the balance must be paid, and do not rely on vague dates.
• Calculate the balance by subtracting the deposit (cauzione) from the award price and adding the expenses fund.
• If you need a mortgage, start the application with the bank before the auction.
• Keep the receipt of every bank transfer: it is proof of payment.
• If the deadline is approaching and you cannot pay, speak immediately with the professional handling the proceedings: the deadline cannot be extended.

Frequently asked questions

Can I ask for more time to pay the balance?

No: the maximum deadline of 120 days from the award cannot be extended (art. 585 c.p.c.). The notice may set a shorter deadline, not a longer one. For details read proroga del saldo prezzo: quando si ottiene.

If I pay one day late, do I lose everything?

The deadline is generally peremptory and the law provides for forfeiture. Do not assume any tolerance: if the deadline expires, the proceedings may start a new sale. Always check with the professional.

Does the balance include transfer costs?

Not always. The award price and the taxes are separate items. The sale delegate indicates the expenses fund to be paid for taxes and transfer costs: ask for the exact calculation before paying.

Can I pay the balance with a mortgage?

Yes, with a mortgage secured by a lien (ipoteca) on the property. The bank pays the sum directly to the proceedings, but the timings must fall within the 120 days. For this reason the application should be started early.

Sources

• Codice di procedura civile, art. 585 (versamento del prezzo e mutuo)
• C.p.c., art. 587 (inadempienza dell'aggiudicatario)
• Portale delle Vendite Pubbliche