PROPERTY ABC 

Do you have questions regarding real estate terminology? Then feel free to consult our glossary! Here you will find all the most important property vocabulary clearly listed alphabetically. 


A - Z

Cadastral value

This is the tax value of a property, which is used to calculate taxes and duties.

Cadastre / Land Registry

The cadastre is a register kept by the public authority, in which all properties in Italy are listed, sorted according to municipalities, with the corresponding leaflets, property number and building units, as well as the other information necessary for the calculation of the unit value (cadastral value). The unit value serves as the basis for calculating the taxes. This register has a purely tax function and has no proof of ownership, even if the names of the owners are noted. If you want to check the ownership of a property, you have to see the real estate register or the land register.

Certificato di abitabilità

Permission to use the completed premises. This is issued by the local authority responsible for checking the legality of the works.

Commission

The brokerage is the fee, or the commission, of the broker. In South Tyrol it is usually 3% of the selling price plus the statutory value added tax. With a rent the fee lies with 2-3 cold rent plus the legally valid value added tax.

Community building regulations

These are the regulations governing the construction activity in the individual communities. It contains provisions on spatial planning, landscape protection and environmental protection.

Community fees

Community costs arise if a property consists of several residential units. In this case, the costs, which can not be attributed to one owner alone, are shared among all. Their assignment is usually based on the square footage of the apartment in relation to the total area. This means that an owner with a higher share of the total area also contributes a higher share of the community costs. Community costs may include, for example, electricity costs for outdoor lighting, maintenance costs for the facility or insurances for the building.

Concessions/convention

The term "convention" means that the apartment can only be occupied by provincial or working people. The purchase of such a property is available to everyone.

Contribution to the rent

This is a public contribution for private tenants resident in South Tyrol, who fulfill all general requirements for housing promotion. For one person the contribution is granted up to a net living space of 50 m². This is increased by 15 m² for each additional person. Another requirement is that the lease is to the applicant and the apartment is not luxury apartments.

Conventional surface

It is the living space which is legally recognized by the housing promotion.

Debt

This is the debt of the owner to banks and other creditors.

Deposit

È una somma di denaro che il promissario acquirente a conclusione del preliminare di vendita versa al promittente venditore per confermare la seria intenzione di acquistare. Se si giunge alla conclusione del rogito la caparra confirmatoria viene detratta dal prezzo complessivo dell’immobile.

Development

Development refers to the production of development facilities (such as electricity, water, gas, sewage, roads, paths, etc.) that are prerequisites for the development of land.

Due Dilligence

Due diligence is the careful examination and examination of an object in order to obtain a basis for decision-making.

Easement

A easement must be entered in the land register. It serves as a means of securing a right to a property ("serving land") that is due to the respective owner of another property ("prevailing property").

Equity

Equity is existing cash and bank balances, land already or partially paid, or other own funds, e.g. Amounts from donations from relatives.

Estate agent

A agent/broker is one who associates two or more parties with each other for the purpose of a business deal without being bound to one of them by a relationship of cooperation, dependency or representation. (Article 1754 of the Civil Code) Article 1755 of the Civil Code stipulates that the agent/broker is entitled to the commission of each of the parties, if the transaction has come about through his intervention. Article 6 of Law 39/1989 states in this regard that the commission is only due to brokers listed in the register of agents/brokers.

Exclusive contract

An exclusive contract, also known as a "qualified standalone order", is a sell order between the agent and the seller. With an exclusive contract, the agent excludes that the property is offered for sale by third parties.

Exposé

In an exposé, the agent describes the property and thus transmits to the customer the data relevant for the sale.

First Home

By this one understands the flat or house, in the selected residential community, which is primarily used for living. The acquisition of the first home is subject to various tax concessions.

Guarantee

The guarantee is the act whereby the bank, the insurance company or the financial intermediary authorized to do so guarantees that the seller / developer or building society repays to the buyer the down payments made by him until the conclusion of the transfer of ownership agreement in case the seller Property developer or the construction cooperative should be in a crisis situation.

Heat transfer coefficient (U-value)

The heat transfer coefficient, also U-value (formerly k-value), indicates how much energy can escape through a component. Well-insulated components have small U-values, poorly insulated components have large U-values.

Housing subsidies

This is a public subsidy for the construction and purchase of apartments. This refers to apartments that are not luxury apartments and may have a maximum net living space of 110 m².

IMU

The IMU replaces since 2012 the municipal real estate tax ICI. The council tax on real estate is owed by owners or by the owner of real estate on real estate for the possession of buildings, building land and agricultural land. It is paid to the municipality in which the property is located. The basis for their calculation is the cadastral value. Since 2015, the levies for garbage collection and the income tax have been included, hence the word "unica" in the name.

Incidental sales costs

Incidental sales costs are those costs that are incurred in addition to the sales price of the property upon their acquisition. If the selling party is a private individual, the register, mortgage and cadastral fee must be paid in addition to the purchase price. When buying a property from a contractor or from a company that has its main activity in the real estate sector, the VAT is due.

KlimaHaus

The KlimaHaus certificate guarantees the customer that the building corresponds to a specific heat protection class. A "B" climate house, for example, consumes less than 50 kWh of heating energy per m² per year. A climate house "A", however, less than 30 kWh, always based on the location Bolzano. Considering that in Italy the average consumption is currently about 20 liters of heating oil per square meter of heated area and year, one realizes the importance of a climate house.

Land register or real estate register

The land register is an official-public register of real estate in which ownership is recorded by the registration of the relevant contracts (purchase / sale, donation, barter, etc.) and any rights connected with the real estate and encumbrances (easements , Mortgages, seizures, garnishments, etc.). Anyone can freely enter these registers.

Land registry tax

When buying a first or second home in Italy, a fixed fee, the so-called land registryl tax, of EUR 50.00 is due in addition to the usual registration fees. In the case of purchases from sellers subject to VAT, on the other hand, this amounts to EUR 200.00.

Money down

The penalty is the sum of money paid by the party who has the right to withdraw from the contract; it is the consideration for the resignation.

Mortgage

The mortgage is one of the most important remedies to secure larger and longer-term monetary claims. It is a claim secured by a lien on a land registered in the land register.

Net living area

This is also referred to as pure living space and is the walk-in area of a house or apartment.

Notarial purchase agreement

A notarised contract of sale is the purchase contract certified by the notary, which creates the conditions for the rewriting in the land register.

Penalty

This is the service (usually a cash payment) to which one of the contracting parties has committed in the event of non-performance or late performance. In addition, the penalty causes the limitation of damages to this lump sum (unless the parties have agreed that the additional damage must also be replaced).

Promise to purchase

It is generally 1% of the purchase price. When buying a first home directly from the contractor or the company, which has its main activity in the real estate sector, a lump sum of 168 euros instead of 1% to pay. This also applies to the purchase of the first home from a private individual.

Purchase contract

Contract that follows the preliminary contract and with which the promising seller transfers the property of the property to the promising buyer in fulfillment of the mutual obligations under the preliminary contract.

purchase pre-contract

A preliminary contract is the agreement between the buyer and the seller with which the contracting parties commit themselves to a purchase transaction and agree on the fundamental terms and agreements.

Refurbishment

Refurbishment is a maintenance or modernization of buildings or areas that restore healthy living, working conditions and / or safety.

Registration tax

This is a levy that is payable on the purchase and sale of real estate on the basis of the cadastral value. For first homes the register tax is 2%, for a secondary residence it is 9%. In certain cases, a fixed amount of 200 euros is also applied.

Sold living space

the the gross living area plus max. 50% of the area of the balconies / terraces and 25% of the basement. Conservatories with a net area of 1.5 square meters or more will be fully occupied, garages and parking spaces will be charged separately (as agreed by the Association of Realtors and the College of Property Developers).

Total living area

This is the walk-in net living space plus the walls (total wall thickness for external walls and half for apartment dividing walls).

Turnkey

Planned final state of a new building. When buying a "turnkey house", the builder or buyer need not worry about the completion. From planning to handing over the keys, he has only one developer or general contractor as contact person. As a rule developers build turnkey houses and demand a fixed price.

Urban volume

Urban volume is the volume of the building except ground, which is calculated on the basis of the external dimensions.

VAT

This is the tax that the buyer has to pay on the sale price when acquiring an apartment or house if the selling party is a builder or a company that has its main activity in the real estate sector. It amounts to 4% for the purchase of a first home, 10% for second homes and 22% for commercial real estate and for apartments classified as luxury goods.