Selling a home: how long it takes
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What are the stages of the sale?How long does it take to find a buyer?What happens when the purchase proposal arrives?The preliminary contract: the signature that ties up the homeThe deposit: what you risk if the sale falls throughThe buyer's mortgage: the time you do not controlWhat makes the notarial deed slower?Condominium charges: what the notary checksTax: when the sale becomes incomeAfter the notarial deed: what happens to the homeIn practiceFrequently asked questionsSourcesThere is no number of days that is the same for everyone. The time between the advert and the signing at the notary depends on three things: how well the market absorbs your home, how long the buyer needs to obtain a mortgage, and how well your documents are in order. Some deadlines, however, are set by law, and you can know them before you start.
What are the stages of the sale?
A home sale almost always goes through these stages, in this order:
- the advert and viewings, that is the period in which you look for a buyer;
- the purchase proposal (proposta d'acquisto), that is the written offer the buyer presents to you;
- the preliminary contract (compromesso), that is the preliminary sale agreement, by which the parties commit to sign the notarial deed (rogito);
- the registration of the preliminary contract with the Italian Revenue Agency (Agenzia delle Entrate);
- the notarial deed (rogito), that is the final deed before the notary, with payment of the price.
The first stage is the least predictable. The others have more precise deadlines, and from them you can make a realistic estimate of how long the whole process will take.
How long does it take to find a buyer?
The law sets no time for finding a buyer. I cannot give you a reliable average, because I do not have up-to-date market data to show you.
What affects it most is the price. A price that is out of line with the area lengthens the time, because buyers compare adverts and make their own assessments. To get an idea, you can look at the OMI property values (quotazioni OMI) of the Italian Revenue Agency (Agenzia delle Entrate), which indicate a range of values by zone and property type. They are indicative values, not a market price, so use them only as a reference.
If an agent assists you, their fee is due when the contract is concluded as a result of their work. Ask in writing how it will be calculated before you give them the assignment.
What happens when the purchase proposal arrives?
When the buyer presents you with a written proposal, the offer is often irrevocable for a certain period. This means they cannot withdraw it at will within that time.
You also have to reply in time. If you accept, the proposal becomes a contract at the moment your acceptance reaches the person who made it. Read the text carefully before signing, in particular the deadline and the sum paid with the proposal. To understand what you are risking, read the article on the purchase proposal, what you sign and what you risk.
The preliminary contract: the signature that ties up the home
The preliminary contract (compromesso), or preliminary agreement, is the contract by which you and the buyer commit to execute the notarial deed (rogito) by a set date. It must have the same form as the notarial deed, so it must be in writing. From that moment the property is effectively tied up for the buyer, and you cannot sell it to anyone else without consequences.
If the preliminary contract is registered in the property records (trascritto), that is, made public in the property registers, the buyer is protected against any later sales or mortgages. However, the registration has a limited duration: the effect ceases one year after the date set for the notarial deed and in any case after three years from the registration. The preliminary contract is therefore not a step to postpone indefinitely.
After signing, the preliminary contract must be registered. The deadline is 30 days. You will find who takes care of this and how much it costs in the article on how to register the preliminary contract, costs and timing.
The deposit: what you risk if the sale falls through
The preliminary contract often provides for a deposit (caparra). If the person who paid it does not comply with the contract, the other party may keep it. If, instead, the person who received it does not comply with the contract, they must return double the amount.
Example: a deposit of €10,000. If the buyer withdraws without a reason provided for in the contract, you keep the €10,000. If you withdraw, you return €20,000.
The differences between types of deposit are important, and you will find them explained in the article on confirmatory deposit and penalty deposit. If, however, the buyer pays only a down payment (acconto), the rule is different: the down payment must be returned if the contract falls through, unless there are damages.
The buyer's mortgage: the time you do not control
Most buyers buy with a mortgage. A mortgage secured by a lien on the home (mutuo fondiario) generally covers up to 80% of the value of the property. The bank assesses the property with its own appraisal report (perizia), and often this step is what delays things, because the bank has to examine the application, carry out the appraisal and prepare the contract.
The Bank of Italy publishes a guide to mortgages that explains the stages of the application, useful to read together with the buyer.
The practical advice is this: ask the buyer when they started the process with the bank, before you sign the preliminary contract. If the bank has not yet given its decision, the notarial deed could be delayed. In that case you can state a realistic date in the contract.
What makes the notarial deed slower?
The notarial deed gets held up when something is not in order. In most cases delays come from three checks.
- Cadastral compliance. In notarial deeds, the cadastral data and the reference to the floor plan must match the actual state of the property. If the declaration of compliance is missing, the deed may be void (Law 52/1985, art. 29). Check the land registry extract and the floor plan in advance.
- Energy performance certificate (APE). It must be attached to the sale contract and its class must be stated in the adverts. The APE is valid for 10 years: if it has expired, it must be redone.
- Building regularity. If there are discrepancies with the building permits, they must be clarified before the notarial deed and not after. A technician can tell you which works require a regularisation (sanatoria) or an updating procedure.
All the documents to prepare are in the article on documents for selling a home, the complete list.
Condominium charges: what the notary checks
If the home is in a condominium (condominio), unpaid charges are a sensitive point. The condominium may ask the new owner for the charges for the current year and the previous one. For this reason the notary usually asks for a certificate from the building administrator stating which charges have been paid.
Request it yourself from the administrator in advance. This will spare you a surprise a few days before the notarial deed and keep your position in order.
Tax: when the sale becomes income
The notarial deed is not the only thing that counts. If you sell a property that you bought or built less than five years ago, the difference between the sale price and the cost you incurred can become income, and therefore be taxed. There are important exceptions: the rule does not apply to properties received by inheritance, nor to those that have been your main residence or that of your family for most of the time.
If the rule applies to you, you can ask the notary to apply a 26% substitute tax on the capital gain (plusvalenza), instead of ordinary IRPEF. The request must be made in the notarial deed.
Example: you bought for €150,000 plus €10,000 in costs. After three years you sell for €170,000. The capital gain is €170,000 − €160,000 = €10,000. With the 26% substitute tax you pay €2,600.
The calculation becomes more complex if there are subsidised works or other costs to document. In that case, have it redone with an accountant or with the notary, using the actual figures.
After the notarial deed: what happens to the home
The notarial deed does not close everything at once. The notary presents the deed for registration in the property registers, and from that moment ownership passes to the buyer with effect against third parties. Payment of the price, handover of the keys and handover of the property are usually set for the same day, but it is worth writing them down clearly in the contract.
In practice
- Prepare the documents before you publish the advert: check the land registry extract, the floor plan and the APE, so you do not lose time at the notarial deed.
- Compare the price with the OMI property values (quotazioni OMI) for your area, as a reference and not as a market price.
- Ask the buyer where the mortgage stands before you sign the preliminary contract.
- Note the deadline for registering the preliminary contract: it is 30 days from signing.
- If you bought less than five years ago, ask for a calculation of the capital gain before setting the price.
Frequently asked questions
How long does it take on average to sell a home?
I cannot give you a reliable average, because I do not have up-to-date market data. The time depends on the price, the area and the buyer's mortgage. The legal deadlines, however, are precise and you can plan around them.
Can I withdraw my purchase proposal?
It depends on what you wrote. The proposal is often irrevocable for a period, that is, it cannot be withdrawn before the deadline. Always read the text before signing, and ask a professional if you have doubts.
If the sale falls through, what happens to the deposit?
It depends on the type of deposit and on who caused the notarial deed not to take place. With a confirmatory deposit, whoever fails to comply with the contract loses the deposit or returns it doubled, depending on who is in breach. The contract may provide different rules, so check it.
Sources
In the same chapter
- Confirmatory deposit (caparra confirmatoria) and penitential deposit (caparra penitenziale): the differencesWith a confirmatory deposit, if you back out you lose the deposit; if the person who received it backs out, they return it doubled. Here are the differences, with examples.
- Who chooses the notary, who pays for themAs a rule, the buyer chooses and pays the notary, that is, the fee and the taxes: how to read the quote.
- Buying a home: every step from search to the notarial deed (rogito)From the viewing to signing at the notary: the six steps to buy a home, with documents, sums to pay and checks before you sign.
- Preliminary contract (compromesso): what it is and what it must containThe preliminary contract (compromesso) is the agreement through which you commit to buying a home. I explain what it is, what it must contain and how much you risk if the sale falls through.
- Right of habitation (diritto di abitazione): what it isThe right of habitation lets you live in someone else's home only with your family: it cannot be sold or rented out. Here is how it works.
- Pre-emption right: when it exists and how it worksPre-emption (prelazione) is the priority that gives you the right to buy first, at the same price and conditions: when it exists and how it works.
General information, not legal or tax advice: the law and the notice of sale prevail.
