THE PRELIMINARY CONTRACT OF SALE

On many occasions, a step that precedes the deed is that of the preliminary contract (the so-called 'compromesso'). This is essentially an agreement between the seller and the buyer whereby they mutually obligate each other to enter into a subsequent, final purchase contract.
The transfer of title to the real estate will only occur with the signature of the latter.
As a rule, a preliminary contract is concluded when immediate sale is not possible: why?
for example, the buyer is seeking financing (a mortgage) or the seller is waiting for a new house to be delivered. The reason for concluding the preliminary contract is precisely to legally bind the parties during the time it takes to resolve these issues. The preliminary contract of sale must be registered within twenty days of signing.
Registration is due:
registration tax of EUR 200, irrespective of the purchase price stamp duty of EUR 16 for every 4 sides and in any case for every 100 lines.

TAX AND HOME: BUYING AND SELLING
If the preliminary agreement is concluded by notarial deed, the registration is performed by the notary within
thirty days.
When the contract provides for a payment, the proportional registration tax is due: 0.50% on the sums provided for by way of deposit, 3% of the sums provided for by way of down payment on the sale price. In these cases, the tax due for the registration of the final contract will then be
deducted from the amount paid on the preliminary agreement. If there is no express qualification for the sums paid on the conclusion of the preliminary contract, or if the intention of the parties as to their nature is doubtful, the sums are to be regarded as down payments.

CONTRACT SUBJECT TO VAT
Even when the transfer is subject to VAT, the tax treatment of the preliminary will be
different depending on whether it provides for the payment of a sum as a down payment or as a deposit
confirmatory payment. The payment of an advance, representing the anticipation of the agreed consideration, shall be
invoiced with tax charged. In this case, registration tax will be due in the amount of
fixed (200 euro).
The down payment, even if provided for in a specific contractual clause, does not
constitutes the consideration for the provision of services or the supply of goods.
The same is not, therefore, subject to VAT and proportional registration tax will have to be paid.

TRANSCRIPTION OF THE PRELIMINARY CONTRACT
As mentioned above, the conclusion of the preliminary only creates a legal obligation between the seller and
purchaser, without resulting in the transfer of ownership.
Therefore, it could happen that, despite the 'compromise', the seller still sells
property to another person, constitutes rights in rem of enjoyment over it (
e.g. a usufruct) or register a mortgage.
In such cases, the buyer may only ask the court for damages, not also
the cancellation of the sale or registration of the mortgage.
To avoid such a situation, the law provides the instrument
of the transcription of the preliminary in the land registers.
Thus, any sales of the same property or the establishment of other rights in favour of
third persons shall not prejudice the rights of the buyer.
The transcription of the preliminary agreement requires the intervention of a notary public. In this case,
to the registration tax and stamp duty is added the payment of tax
mortgage of EUR 200 and mortgage taxes.

DEEPENING:

THE DOWN PAYMENT