First Home Buying Guide: Mortgage, Taxes and Documents

The purchase of the first home, and in general of a property, represents one of the most important steps in the life of a person or a young family. It is a moment full of emotions, often experienced with great enthusiasm, but not without stress and uncertainty.
With this guide we want to offer you an overview of what you need to know before signing the purchase proposal: documents, first home mortgage, costs, tax benefits and constraints to consider.

Contents

1. State of conservation of the property and/or condominium

It is essential to carefully check some aspects, such as:

la regularity of the systems (electrical, plumbing, heating);
the possible presence of humidity or mold;
the state of fixtures and blinds;
whether, in the case of an apartment, they are foreseen or already decided extraordinary condominium works.

2. Energy Performance Certificate (EPC)

The APE certifies the energy class of the property. It must be in progress validity and coherence with the current state of the building. Otherwise, it is the seller's responsibility to have the document updated by a qualified technician.

3. Property management costs

Find out about all the recurring expenses:

if in a condominium: condominium fees, how much they amount to and what they include (for example, central heating, concierge, cleaning, garden maintenance). It is also important to check that these have been paid by the owner before signing the deed;
if independent property: management costs collected by the previous owner (you can ask the estate agent directly for information).

4. Origin of the property

It is essential to know how the owner acquired the property, and in particular in the case of:

Succession: if less than 20 years have passed, the transcription of the tacit acceptance of the inheritance is necessary;
Donazione: may involve risks of revocation within 10 years. In such cases, a insurance policy for the protection of the seller and the buyer, which will be stipulated by the seller himself and provided to both the bank (in the case of a mortgage) and the notary.

5. Urban planning, building and cadastral compliance

This is one of the more delicate aspects.
Attention: the cadastral compliance (i.e. the correspondence between the cadastral plan and the actual state of the property) it is not equivalent to that urban planning-construction, which instead concerns building permits deposited with the Municipality.
It is always advisable to carry out a access to municipal documents, through the real estate agent or a technician in charge, to verify:

the presence of all the enabling titles, including the certificate of habitability;
the correspondence between the documentation and the current state of the property.

In case any problems are found discrepancy, it will therefore be necessary to proceed with a building amnesty, always at the seller's expense.
If it is not possible to verify compliance before the proposal, it is a good idea to include a purchase proposal suspension clause to protect yourself: in the event of significant discrepancies, you will be able to withdraw the offer without losing the deposit.

The purchase proposal

Before submitting an offer, always check that the property meets the requirements to be considered first home and that you can benefit from it as main residence, avoiding future tax disputes.
Once all these aspects have been verified, you can proceed with the purchase proposal, generally valid among the 7 and 15 days.
This is usually accompanied by a deposit, that:

is scale from the final price if the offer is accepted;
is returned if the seller does not accept the offer;
is lost by the buyer if, after acceptance, he decides not to conclude the deal;
is returned in double measure if the seller changes his mind after acceptance.

The preliminary contract (compromise)

Following acceptance of the proposal, the preliminary agreement (also called compromise), which must be registered within 30 days from the real estate agency. However, registration involves the following costs:

€ 200 of registration tax;
€ 16 every 4 pages or 100 lines for stamp duty;
€ 155 (whether public deed or authenticated private document).

If payments are expected:

0,50% on the confirmation deposit;
3% on the price deposit.

These costs are also common with the first home benefits.

The mortgage request

If a purchase is required mutual, it is always advisable to include a statement in the proposal suspension clause linked to the bank resolution.
Much of the above documentation is often also requested by the bank, such as:

Cadastral plan;
BEE;
Deed of origin;
Views and compliance.

If you are considering a mortgage for the first home, know that many banks offer specific benefits for young people under 36. Some of these include green mortgages for properties in energy class A or B, with more advantageous rates.
Remember that to access the tax breaks for first home it is essential to move the residence in the property within 18 months of the deed.

The notarial deed

Finally, we come to the signing of the notarial deed, final deed of sale.
Here too it is important to know taxes to be paid, which vary depending on the type of seller and whether it is first home.
If the seller is a private individual:

Registration tax: 9% (2% if first home, minimum €1.000);
Mortgage tax: € 50;
Land registry tax: € 50.

If the seller is a company with sales subject to VAT:

VAT: 10% (22% for luxury properties; 4% for first home);
Registration tax: € 200;
Mortgage tax: € 200;
Land registry tax: € 200.

Le first home benefits drastically reduce tax costs, but you must meet the requirements: not own other properties in the same municipality, not have already benefited from the relief on another house and transfer the place of residence within the deadlines.

In conclusion

Buying a first home It is not only an economic issue, but also a complex process that requires attention, verification and awareness. Relying on competent professionals - agents, technicians and notaries - is essential for avoid risks and tackle each phase, from the proposal to the deed, passing through the first home mortgage and concessions, with greater serenity.