PaoloBullettiEstate Projects Property Professionals
10 things to do before
buying, renovate or selling your property in Italy Paolo Bulletti
10 things to do before buying, renovate or selling your property in Italy Buying or selling a home in Italy or to proceed to a renovation can be an activity that engages time and energy especially if performed abroad. Regarding technical aspects, problems of language, mentality and bureaucracy (particularly complex in Italy) become very important, and this is why it is always advisable, to contact an architect or surveyor to do things well and on short time. But for those who do not want to leave that all to a professional and wish to be a part of the procedures, I prepared a list of 10 things to do before you buy, sell or renovate a property in order to save time and avoid late surprises, often when things are made and there are already bills to be paid.
Š - 2010 Paolo Bulletti - www.estateprojects.com
10 things to do before buying, renovate or selling your property in Italy
Before buying 1 - Initial verifications 1.1 Tests on the building. Control checklist: - Roof: can be very expensive to make it new. Is there thermal insulation? - Façades: in a condominium it can be obligatory to renew them. When were they made? Or when it is expected? Are there crackings? - Frames: they greatly affect thermal and acoustic insulation of the building. Do they work properly? Double glazing may be necessary? - Mechanical systems: detect possible anomalies - Humidity: difficult to remove. Check the walls facing North and East - Condo charges - Renovation works already approved by the condominium Š - 2011 Paolo Bulletti - www.estateprojects.com
10 things to do before buying, renovate or selling your property in Italy In country houses - Access road: foreseeing the conditions in the event of heavy rains, are there water drainage units? - Electricity and phone: if don’t exist is good to know that it will take months to get them and you will have to pay the set up of the line on poles or buried. - Drinkable water: make sure that it comes from the public aqueduct. That of the wells is not safe either from the point of view of hygiene, nor for the quantity. - Septic tank: does it exist? Is it made according to the rules of law? Otherwise it will necessarily be replaced. 1.2 Verifications on the saleability Not always a building is saleable when they propose it to us. To be possible it must have a regular liveability license and be proofed the cadastral and urban planning conformity, certified by an architect or surveyor, contained in the “Relazione Tecnica di compravendita” a © - 2011 Paolo Bulletti - www.estateprojects.com
10 things to do before buying, renovate or selling your property in Italy technical report necessary for the sale (see paragraph 9). The advice is to never take for granted that those who sell the property can really do it. Just a small modification compared to the original design, created without the regular permits, can block the sale. 1.3 Expenses exceeding the cost of the property I always suggest you better have a quote of all the expenses that you should support before you even start looking for a home. I have had clients, often youngs, who after buying the apartment did not have any more money to restore it. In the figure you have available it should be considered, besides the purchasing price, expenses for: - The commission for the Real estate agency - The taxes that you pay the Notary - The fee of the Notary - The Technical Report of Sale (see p.9) and the Energy Certification (see p.10) - The move - New furnishings Š - 2011 Paolo Bulletti - www.estateprojects.com
10 things to do before buying, renovate or selling your property in Italy
2 - Examine the Zoning Planning To know in advance what will happen in future years, ahead, behind and around the property we want to buy my advice is to review the “Piano Strutturale Comunale “ the Municipal town plan (it shows what can be built and where) and the “Piano Paesaggistico Regionale“ the Landscape plan of the Tuscany region (it indicates the constraints and restrictions for the preservation of the territory).
3 - Examine Constraints and Limitations To examine “Regolamento Urbanistico Comunale“ the town planning rules to find out if the property you want to buy is subject to constraints. There are areas and buildings in which you can do everything, you can do something or cannot do anything. The main constraints to the realization of your ideas may be: “Vincolo archeologico” - Archaeological constraint. “Vincolo paesaggistico-ambientale” - Landscape/environmental constraint. © - 2011 Paolo Bulletti - www.estateprojects.com
10 things to do before buying, renovate or selling your property in Italy “Vincolo idrogeologico” - Hydrogeological constraint. “Aree a rischio idraulico e di frana” - Areas with potential hydraulic and landslide risk. “Aree boschive” - Woodland areas.
Before renovating 4 - Characteristics of building works Check with the “Regolamento Edilizio“ the municipal building regulations if you can do what you have in mind, by which procedure and what times. One of my American customers was very ill when he discovered that in the house bought in the Siena’s countryside he could not demolish a wall to create floor-to-ceiling windows like in California. The “Regolamento Edilizio“ is the set of rules governing the building activities within a municipality, in relation to what establish in the Zoning plan. © - 2011 Paolo Bulletti - www.estateprojects.com
10 things to do before buying, renovate or selling your property in Italy
5 - Facilities if you are resident in Italy 5.1 Tax deduction The Government grants fiscal deductions, that must be requested before the beginning of the works, for the amount of: - 36% for maintenance, renovation and restoration of the building (see our text here on the AngloInfo website at http://tuscany.angloinfo.com/countries/italy/buildingtax.asp) - 20% for the purchasing of furniture, computers, televisions and household appliances high energy-efficient if the house is under renovation - 55% for works improving the energy efficiency of the building, including roof and window frames, and replacement of heating systems. It is important to remember that VAT on renovation work is 10%.
Š - 2011 Paolo Bulletti - www.estateprojects.com
10 things to do before buying, renovate or selling your property in Italy 5.2 Extension of residential buildings The Government has arranged a law of limited duration, called the “Piano Casa” House Plan that allows increases in volume. Extensions: interventions are allowed to extend up to the 20% detached and semidetached residential buildings not exceeding 350 square feet for a maximum of 70 square meters. Demolition and reconstruction: allowed the extension up to 35% of the area in cases of demolition and reconstruction of structures. ? Non residential buildings: excluded.
6 - Consider all costs Some of my clients thought that, in addition to my fee as an architect for the project, they were to pay only the construction works for the renovation of their property. Not so. In order to create a realistic budjet is good to know that in Italy you have to pay, as appropriate and to varying degrees: © - 2011 Paolo Bulletti - www.estateprojects.com
10 things to do before buying, renovate or selling your property in Italy Charges to the Municipality - Primary and Secondary Urbanization - Construction costs Other professional costs (in addition to architectural design) - Survey of the building. Architect or surveyor - Structural design. Engineer - Plumbing, heating, electrical systems projects, required by law. Qualified technicians - Geological Survey. Geologist - Cadastre. Updating of DOCFA document after completion of the work. Surveyor
Š - 2011 Paolo Bulletti - www.estateprojects.com
10 things to do before buying, renovate or selling your property in Italy
Before Selling 7 – To increase the value of the property and sell it more easily All customers give more value to an object that they like to purchase when this looks good. By analogy, let’s think about how cars are showed, even if used, when we go into a car showroom. Equally our apartment for sale will be enhanced if: - Environments will smell good, just light on a perfumed candle - The walls will have been painted recently - The arrangement of furniture will suit well and there will be fresh flowers in a vase and oranges in pots - The natural and artificial light will highlight the features of spaces - The floors will be polished - Bathrooms and kitchen will give a sense of cleanliness - The garden, or the terrace, will be kept well maintained and the plants, the trees and the hedges will not give a feeling of abandonment © - 2011 Paolo Bulletti - www.estateprojects.com
10 things to do before buying, renovate or selling your property in Italy - Have some relaxing/classical music at low volume during the client’s visit An advice, make a list of strength and weak points of your property and invest in some renovation work to increase its commercial value.
8 - Have an appraisal I suggest you to make an assessment of your property by an technician, architect or surveyor, and have a written appraisal report to compare with other estimates made by real estate agents in order to have a real market value. This can shorten the time of sale and to protect yourselves from loss of money. The buyer will appreciate your seriousness about ascerting the real value of the property.
Š - 2011 Paolo Bulletti - www.estateprojects.com
10 things to do before buying, renovate or selling your property in Italy
9 - The “Relazione Tecnica di compravendita“ Technical Report of Sale Through this document, prepared by an architect or surveyor, the seller guarantees the cadastral and urban planning conformity of the property and therefore its marketability. The technician asseses, under its direct responsibility, that the conditions of the site are consistent with what represented both in the Land Registry and Urban Planning deposited documents. Without these assessments, the Notary cannot do the deed of sale so it could be himself to ask for it to you or instruct a technician to do it. My suggestion is to have the Technical Report before putting your property on sale, it happened to a couple of my clients to discover that their property could be sold if the situation was not rectified.
Š - 2011 Paolo Bulletti - www.estateprojects.com
10 things to do before buying, renovate or selling your property in Italy
10 - Energy Certification The “Attestato di Certificazione Energetica� (ACE), Energy Performance Certificate is a document prepared by a qualified technician that, under its responsibility, certify the energy performance of the building and attributes an energy class (A to G) according to the consumption of energy for heating it . A law establishes the obligation to attach the Certificate at the Property conveyance document and is a burden of the seller to provide it. Unless a different agreement, of course. The Notary may accept, in the only case of a building in class G, the lowest, a self-certification of the seller. I advise you then to ask the Energy Certificate to the same technician charged with drafting the Technical Report of Sale to optimize the costs and have all the documentation in order.
Š - 2011 Paolo Bulletti - www.estateprojects.com
10 things to do before buying, renovate or selling your property in Italy
PaoloBullettiEstate Projects Property Professionals
The Property Professional is a new role in Italy based on a professional figure that exists in England and the USA, who offers a series of services in the real estate sector designed to match the needs of investors with market offers. Paolo Bulletti Estate Projects is an independent expert, with competencies in architecture, real estate, surveying and construction, who provides individuals and organizations, including developers, institutions, property companies, funds, banks and consultancies, with advice, guidance and support in buying, selling and renovating properties, and looks after the interests of investors in the deals with agencies, contractors and suppliers.
Advisory
Evaluate properties in order to highlight consistency, potentialities and weaknesses.
• Property condition assessments (PCA): building and mechanical systems, necessary repairs • Due diligence review prerequisites: local planning authorities, land registry, cadastre • Appraisal and building evaluation report • Real estate development • Feasibility studies • Increasing the value of Real Estate
Evaluate and verify the liabilities of real estate assets. • Adjustments to current standards (laws and regulations) • Certification of mechanical and electric systems • Energy certificate (ACE)
© - 2011 Paolo Bulletti - www.estateprojects.com
10 things to do before buying, renovate or selling your property in Italy
PaoloBullettiEstate Projects Property Professionals
Real Estate Business
Operate through his professional and business network to search for opportunities to purchase or sell private and commercial properties. Assistance pre and post transaction and purchase deed. Make sure that the client is given quality work and value for money.
• Search properties to purchase • Search of investors for properties on sale • Support during the transaction procedures • Identification and regularization of building "non-conformity" • Acquisition of technical materials in the public administration • Assessments on the best purchase/sale price • Space planning: consultancy on rooms and furnishings layout • Assisting to law firms and notaries Design • Architectural design and contracting for restructuring building works • Building retrofitting for energy improvement design • Commercial and private green spaces design • Research of building contractors and suppliers • Inspection on building site checking that the work complies the requirements • Visits to construction sites for inspection in the progress of works
Property Management
Intervene to maintain the performance of a building avoiding the degradation and the resulting devaluation.
• Organizing technical teams for the maintenance of buildings and green areas • Support in restructuring procedures • Provision of building permits and documents by local authorities • Surveys, maps and drafting © - 2011 Paolo Bulletti - www.estateprojects.com
10 things to do before buying, renovate or selling your property in Italy
PaoloBullettiEstate Projects Property Professionals
Contact Via Cinque Giornate 15 50129 Firenze, Italy Tel .+39 055 474981, www.estateprojects.com info@estateprojects.com Skype: bullettip Paolo Bulletti mob. +39 335 660 2552, +44 789 632 1611
Profile Paolo Bulletti Estate Projects is a Florence (Italy) based consultancy firm with more than ten years experience in the central Italian property market, established to provide a point of reference for foreign investors. Paolo Bulletti, a licensed architect with an in-depth knowledge of real estate scenarios and local policies, practices & laws, decided to create a professional property consultancy aimed at providing quality services with integrity. He is a member of the RIBA Royal Institute of British Architects and professor at the University of Florence and at Texas A&M University.
Š - 2011 Paolo Bulletti - www.estateprojects.com