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PROPERTY

‘We’re Covid-free’: Remote Italian village aims to tempt buyers with one-euro homes offer

The latest in a long list of depopulated Italian towns offering houses for sale for a just a euro also claims that new residents won't need to worry about infection.

Published: 12 June 2020 10:41 CEST
'We're Covid-free': Remote Italian village aims to tempt buyers with one-euro homes offer
The town of Cinquefrondi in southern Calabria has had no Covid-19 cases, the town's mayor says. Photo: Comune di Cinquefrondi

As tourism gradually restarts in Italy, many of the country's depopulated towns are once again looking to sell off their dilapidated houses to foreigners for the price of an espresso.

With most of these towns being in remote areas, they have often also escaped the worst of the coronavirus pandemic – and the mayor of one small town in Calabria says that's exactly why people should choose to buy a house there.

A well as the scenery and local history, Michele Conia, mayor of Cinquefrondi in Calabria, pointed to the area's lack of confirmed Covid-19 cases as a reason for buyers to consider his one-euro house scheme.

READ ALSO: These are all the Italian towns offering houses for one euro

The rural southern region of Calabria as a whole was one of the regions least affected by the coronavirus outbreak in Italy, with a relatively low count of 1,177 confirmed cases. 

Far from the tourist trail, Cinquefrondi is in a mountainous area between Catanzaro and Reggio Calabria in the very south of the country, on the toe of Italy's boot.

Screenshot: Google Maps

Like the many other towns making such an offer, Cinquefrondi has suffered from depopulation as younger generations have left in search of work. Italy currently has 5,800 villages with fewer than 5,000 inhabitants each, all at risk of becoming ghost towns.

As well as bringing new life to the town, mayor Conio hopes investors will beautify the currently crumbling parts of the historic town.

Photo: Comune di Cinquefrondi

Of course, the real cost of buying such houses is far higher than the symbolic one euro sale price.
 
While other towns selling one-euro homes require a deposit of up to €5,000 ($5,635) – which the buyer forfeits if they fail to renovate the house within three years – Cinquefrondi authorities instead request an annual €250 policy insurance fee until works are completed.
 
However, new owners are liable to be fined €20,000 if they do not complete the work within three years. 
 
“We're just asking for some kind of certainty once a new buyer commits to the project. The fee is very low and the cost of a restyle here is within €10,000 to €20,000, given the dwellings are cozy [and] tiny,” Conia told CNN.
 
The available houses are around 40-50 square metres in size.
 
READ ALSO: 
There are around a dozen old houses currently on the market for one euro, which once belonged to farmers and shepherds. Conia says up to fifty could be made available if demand is high enough.
 
“If we receive a huge demand, I can expropriate all other buildings which have been empty for decades and the old owners are nowhere to be found.”
 
And he claims that the town has already been inundated with enquiries from far and wide.
 
“We believed in it from the beginning, and soon our abandoned houses will be inhabited by many tourists,” Conia wrote on the town's Facebook page on Thursday. “Just today, hundreds of requests have arrived from those who see Cinquefrondi as a strategic place to live.”
 
Anyone interested in the offer can find out more on the town's official website or send an email to: [email protected]
 

 

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PROPERTY

Five expensive mistakes to avoid when buying a house in Italy

Italy may be known for property bargains, but the purchase process itself isn't cheap - and certain mistakes can make it far more costly for buyers.

Published: 27 June 2024 11:05 CEST
Five expensive mistakes to avoid when buying a house in Italy

There’s always a lot to keep in mind when buying property, but the Italian purchase process may be quite different to what you’re used to in your home country.

As well as involving high taxes and fees, it’s likely to be more complex and formal in some ways – and this can lead to potentially costly pitfalls.

The Local spoke to three Italian property law experts at legal firm Mazzeschi to find out what foreign buyers should be aware of before they sign anything. 

1) Check your estate agent’s contract

If you use a real estate agency in your Italian home search, normally you’ll need to sign a contract with them. That contract should stipulate their fees, their duties, and their tax information.

There is one other thing in the contract which potential buyers must look out for: an exclusivity clause, meaning the potential buyer may use only that estate agent in their property search for a set period of time.

“Usually in Italy estate agents like using this exclusivity clause. It is normally the same for sellers as it is for buyers. It means you cannot have another estate agent and usually contracts say this, “says Caterina De Carolis, Lawyer at Mazzeschi.

READ ALSO: How to avoid hidden traps when buying old property in Italy

“If the time frame is not yet up, and the potential buyer uses another agency, they may still be liable to pay the agency fee for the initial estate agent they entered their contract with,” she adds.

Some contracts might not have an exclusivity clause. It’s always worth double-checking.

“If you use another agency to find a house, you’ll be liable to pay the agency with the exclusivity clause in the contract around 2-5 percent of the house’s sale price,” says De Carolis.

“The exact percentage is always in the contract.”

2) Make sure to agree on a price beforehand

This rule is universal, and may sound obvious. But there are costly consequences in Italy if the price is not formally agreed and written down.

Lawyers at consultancy firm Mazzeschi urge their clients to make sure the full price of the property is declared in the transfer deed (l’atto di trasferimento).

This is because if you resell at a market price higher than your purchase price, you are subject to pay a capital gains tax called plusvalenza. Plusvalenza is the difference between purchase and sale price.

Checking the price of the property beforehand will save you in the long run. Photo by Kirill KUDRYAVTSEV / AFP.

3) Don’t change your mind – it will cost you

If the potential buyer has signed a binding proposal (proposta vincolante) – the process before a preliminary contract is drawn up – it becomes less straightforward to withdraw from the purchase.

“This is because the binding proposal in Italy is a lot more formal,” says Mario Mazzeschi, Head of and Attorney at Law of Mazzeschi Consultancy. 

The binding proposal works similarly to an offer. When the potential buyer puts forth their offer, the potential seller decides whether or not to accept. The period of time for this part depends on the proposal drawn up.

READ MORE: Five things non-residents need to know about buying property in Italy

If, before the time is up, the potential buyer decides to withdraw their offer for any reason, they will likely lose their deposit.

“This deposit is usually around 5-10 percent in most cases, so the buyer will have to pay that,” says De Carolis.

“If the buyer decides to withdraw, they are usually liable to pay the seller twice the amount of the deposit.”

If the proposal is not accepted by the potential seller, the potential buyer pays nothing.

4) Don’t pay anything before the preliminary contract is signed

With the exception of the above, buyers are advised not to pay anything until the preliminary contract is signed. The preliminary contract allows both parties to set out clear guidelines.

“The buyer should check with a lawyer before signing the preliminary contract as it will save them in the long run,” says Mazzeschi.

A notary should be present at this signing, adds Giuditta De Ricco, Lawyer at Mazzeschi Consultancy.

“Notaries are public functionaries. They are never on the side of the buyer or the seller, but for sure a notary is needed.”

“They are completely neutral and often it is wiser and safer for the potential buyer to put their deposit into the notary’s escrow account so the notary can transfer the money to the potential buyer.” 

5) Have the property checked beforehand

While the notary will normally check the paperwork before the sale goes through, you’ll need a different professional to check the property itself.

It may then be in the buyer’s best interest to hire a contractor themselves (this will normally be a qualified geometra, or surveyor) to get the structure of the building checked out and detail any faults or repair work needed.

This should be done before the negotiation stage, as unless there is something specific in the preliminary contract you may lose anything you have paid by pulling out of the purchase at this stage.

“The only way out of this after signing a contract is if you can prove the seller acted maliciously,” says Mazzeschi.

Key vocabulary

Transfer deed – l’atto di trasferimento

Binding proposal – proposta vincolante

Notary – notaio

Preliminary contract – contratto preliminare di vendita

Final contract – atto di vendita or rogito notarile

Deposit – caparra

Surveyor – geometra

Estate agent – agente immobiliare 

Please note that The Local cannot advise on individual cases. For more information about how you can buy property in Italy, contact a qualified professional. 

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