The real estate deed is an essential step for anyone who wants to buy or sell property. This is a notarial act that regulates the purchase or sale of property, and provides legal certainty and security for the transaction. In this article we will look in detail at what a real estate deed is, when it is done, how much it costs, and what happens afterwards.
What is real estate deed?
A real estate deed, also known as a notarial deed, is a public deed executed by a notary public that regulates the transaction of buying and selling a property between the parties involved. This is a key document that certifies, as we anticipate, the legal security of the operation. During the deed, the notary certifies the parties’ willingness to buy or sell the property, the terms of the transaction, the price, and the terms of payment.
A real estate deed is a public deed, that is, it is executed in the presence of the parties and any witnesses by the notary public, who is responsible for verifying the legality of the transaction and ensuring that the contract complies with applicable regulations.
What is the difference between notarization and deed?
The term ” deed” is often used as a synonym for “notarial deed,” but they are actually two separate concepts. A notarial deed is a public document drawn up by a notary public, whose task is to certify the validity of a transaction or contract, while a real estate deed is a specific type of notarial deed that concerns the purchase and sale of real estate.
The real estate deed, in any case, is one of the most important and challenging types of notarial acts, as it regulates the transaction of buying and selling a valuable asset and has important tax and legal implications.
When is the real estate deed done?
The real estate deed is usually signed after the parties have entered into the compromesso di vendita, i.e., the
preliminary contract of sale
which binds the parties to the purchase or sale of the property. The deed must be signed within the time limit stipulated in the compromise, which is usually three months.
Before signing the deed, the notary verifies that the documents and certifications required to formalize the transfer of ownership of the property are in order. In addition, the notary public requires sellers and buyers to present certain documents-which we will discuss in detail in the next section-that attest to their identity, such as an ID card or passport, and to declare any conflict of interest situations or issues related to the property.
What documents are needed for the house deed?
In order to conclude the real estate deed, it is necessary to submit some specific documents that guarantee the regularity of the purchase and sale. Specifically, the seller must submit documentation related to the property, such as the certificate of ownership and the certificate of compliance, if any, certifying that the property is in compliance with urban planning regulations. If you are planning to put your home up for sale and are in doubt about what is needed to do so, we have an in-depth article on the documents needed to sell your home that is right for you.
In addition, the seller must declare any liens or mortgages on the property that might affect the purchase and sale. He must also submit tax documentation related to the house, such as an inheritance tax return or income tax return, to certify tax compliance.
The buyer, on the other hand, must have a financing statement, if he or she applied for a mortgage to purchase the property, and a statement of source of funds, to provide proof of the legitimacy of the money used to finalize the purchase and sale.
In general, it is important to check with the notary or real estate agent as to what specific documents are required for the completion of the real estate deed, as they may vary depending on the specific situation of the transaction.
How to protect yourself before the real estate deed?
Before signing the real estate deed, it is important to protect yourself from any problems that may arise later. In particular, it is essential to conduct a thorough inspection of the property to ascertain its actual zoning compliance and any critical issues that, with good reason, could affect the purchase and sale.
In addition, it is advisable to request a technical analysis of the house, to become aware in time of structural or maintenance problems that affect the value of the property and its habitability.
Finally, it is important to draw up a preliminary contract of sale, setting out the terms of the transaction, the price, and the terms of payment. This document must be drafted clearly and precisely, including any clauses that protect the parties.
How much does the deed cost?
The cost of the real estate deed depends on the fees set by the notary and varies according to the complexity of the transaction. Typically, it is around 2-3% of the value of the property.
In some cases, the seller and the buyer may agree to split the expenses related to the notarization. In any case, it is important to consider that the cost of the real estate deed is a compulsory expense for entering into the contract for buying and selling the property and ensures the legal security of the transaction.
What happens after the real estate deed?
After signing the real estate deed, the buyer becomes the new owner of the property, and the notary registers the deed with the appropriate Real Estate Registry, which certifies the transfer of ownership.
Always the notary will take care of making the payment of taxes related to the purchase and sale of the property, such asRegistration Tax, Transcription Tax and Land Registry Tax. These taxes are calculated according to the value of the property and the type of transaction.
Once the deed is registered, the buyer can request the cancellation of any mortgages or liens on the property. In addition, it can proceed with the registration of the property with the Land Registry.