Protection for buyers of off-plan property in Italy

Purchasing a property under construction (so-called immobili da costruire) in Italy comes with many benefits, but also with risks. To protect buyers’ interests, the Italian legislator has introduced strict regulations safeguarding purchasers.

Mandatory safeguards for the buyer

A key element of protection is the obligation imposed on the developer to provide the purchaser with a special guarantee (fideiussione). It must be issued by a bank, an insurance company, or an authorised financial institution.

What does the bank guarantee cover?

• It secures all amounts paid by the purchaser before the conclusion of the final deed of transfer of ownership.
• It guarantees the refund of advance payments in the event of the developer’s crisis (e.g. a declaration of bankruptcy).
• It remains in force until a property right to use the real estate is established.

The “Postuma Decennale” insurance policy

In addition to the financial guarantee, the developer is obliged to provide a ten-year insurance policy covering construction damage. It protects the purchaser against structural defects that may come to light after the building is put into use.