From Christmas 2007, Modicasa is the ONLY legal registered English owned estate agency in the South East of Sicily.  It has taken us two years to gain this status, and it is now a legal requirement in Italy and allows us to charge commission, have liability insurance and requires us to be completely independent in our business dealings. IT IS ILLEGAL TO ACT AS AN ESTATE AGENT WITHOUT BEING  QUALIFIED AND REGISTERED.  It is also illegal not to declare the agent in the final act of purchase, and results in a fine of up to 10.000 euros. 

From 1 January 2008, modicasa’s fee will be 3%, which is line with the guidelines of the Camera di Commercio.  This includes  helping every step of the way with your purchase, from obtaining a codice fiscale, bank account and providing you with a local address, to translating the final act of purchase into English.  In fact, modicasa does everything you would like us to do while you are at home.  We have no interest in selling you a mortgage and are not tied to any organisation; instead we can advise you of the best professional services you can find in the area, from banks and notaios, to builders and plumbers.

Modicasa is proud to offer a bespoke service to our clients. We will not waste your time sending you details of houses which will not interest you.  We offer complete transparency with regard to your purchase and any possible problems which might arise.  The requirements of buyers from abroad are very different from those of local people and most estate agents are not in a position to understand or take the time to understand their foreign clients. 

More About Buying Property in Sicily

Why shouldn’t I use any ‘agent’?

Firstly, it’s common sense.  Just because someone may speak the language doesnt mean they will do their best to help you.  Most abusivi, as they are called, are just out to make as much money as possible from the hapless foreigner.  Secondly, it’s illegal.  Just by calling your site a portal, or acting as a buyers’ agent doeasnt make you an expert.  To work in Italy you should be registered at the Chamber of Commerce and have a VAT or IVA number - which by law should be on the front page of the website.  If your agent is neither of these, he’s jsut lining his own pockets at your expense, and you will be asked to break the law to maximise his profits.  Don’t think ‘..when in Rome.. ‘ - the tax office is now much more efficient and they will find out. There are heavy fines for fiscal evasion, and jail sentences for recycling money.  Finally, why do something in Italy that you would never dream of doing at home?  Having someone who is qualified and legal helping you buy your property is the best investment you can make - and should something go wrong at least you have a recourse in law.  Also he won’t be party to the many and various money making ‘schemes’ that are endemic here in Sicily.   Of course, should you use an illegal agent, we will be here to pick up the pieces, but we won’t be able to get your money back! 

Do’s and Don’ts

Dont be rushed or pressured into signing a compromesso or proposta di acquisto.  These are important documents and shouldn’t be taken lightly.  The compromesso is legally binding and once signed you have to complete the purchase or lose your deposit, unless you have clauses inserted to protect your interests.

At the time of the act, your translator should make you aware of the clauses about false declaration.  It is now illegal to not declare if you have used an agent (qualified or unqualified) in the transaction. Not only illegal, but expensive, as the fine is 10.000 euros.  Any decent agent will have no problem being named in the act, if they ask you to declare a private sale they are not acting in your interests and are exposing you to a penal sentence.  On the promise of saving you VAT on their fees they are not only acting illegally but for the foreseeable future can set the Guardia di Finanza on your trail, and that is really not advisable.

It is illegal in Italy for someone who is not registered and qualified to act as an estate agent.  Even the person showing you the house should be registered as an estate agent.  While this may seem nitpicking, its basis is important.  A non registered agent has no right whatsoever to ask you for commission.  It is illegal for them to do so.  Any contract they ask you to sign is worth less than the paper it is written on.  In fact, you are wholly within your rights to refuse to pay a penny to an ‘agent’ who is not registered.  They can do nothing about it, and bear in mind that if the shoe were to be on the other foot, this ‘agent’ would have no problem at all not paying you damages if they sold you a property which was not all it seemed.   Any agent who is not registered with the Chamber of Commerce, or does not display a VAT number, is illegal and you have no protection under the law from malpractise, negligence or incompetence.

A registered agent has the right to ask for his commission at the point of compromesso.  Usually they will ask for half at this point and half at the final act of rogito, but they can ask for 100% at the compromesso as according to the law, ‘the contract has been concluded due to his intervention’ at that point.  A non registered agent has no rights in this respect and if you have chosen to use a non registered agent, it is imperative that you refuse point blank to pay a penny until the final act is signed and you are the legal owner, and furthermore, happy with your purchase.

Any sale of a property in Italy must be passed through the Italian legal system, ie. a notaio.  Property cannot be sold legally in another country even if the vendor and the purchaser are non Italians.   Any sale carried out in such a way does not exist in Italy, and you will not be the new owner of your dream home.

Unlike the UK where the practise was banned some years ago, estate agents in Italy can be tied to one particular mortgage company.  In the UK the independent financial advisor has put an end to the practise of forcing a client to take a mortgage with a specific company.  In Italy it is still rife.  Bear in mind that any agent who recommends a specific mortgage company is earning money every time a client takes out a mortgage, and this figure is usually more than the commission the agent earns on the house sale.  It is much more advisable to seek independent advice or choose an agent who does not offer ‘inhouse’ mortgages.  They will be acting in your interests.

Only a registered legal agent can be a member of a professional body.  In Italy the main two associations are FIAIP and FIMAA.  Any agent displaying the logo and who is a member has professional insurance cover.  It is there to protect you, the client, in case of any claim of negligence or malpractise.  The agent pays for this accreditation and his liability insurance, and it is not to be underestimated

Unlike the UK, a registered agent in Italy must be independent.  He acts for both the buyer and seller, taking commission from both.  He cannot represent either party, and cannot be in league with one or the other.   If he is found to be so, he has to pay a heavy fine, and can lose his licence. An unregistered agent has none of these restrictions and, as is often the case, acts wholly in the interests of the seller.

The rate of agents commission is advised by the local Chamber of Commerce.  In Sicily it varies between 2 and, now more commonly, 3%.  An agent who asks for more than this is simply being greedy and you should refuse to pay. Unregistered agents tend to ask between 4 and 6%.  You are under no obligation to pay a penny to unregistered agents.  If anything, you should negotiate to below the standard rate as an unregistered agent is not paying either tax or VAT on their earnings.

In Sicily there are very few English translators. Translators provided by your estate agency should be registered at the Chamber of Commerce.  It is not unheard of for a friend of the agent to translate only certain parts of the act or compromesso for the client in order to protect  the others interests.  By law, if you are not fluent in Italian, you must have a translator at the act of purchase. 

While many English language books urge you to use an English lawyer in the buying process, in an uncomplicated sale, it is not necessary.  A notaio is independent by law, and does all the necessary checks on a property.  A good notaio working on your behalf means that the English lawyers do nothing apart from translate his report.  As some lawyers charge upwards of 10.000 pounds for this service it is well to be forewarned.

There are some qualified agents whose approach leaves a lot to be desired.  The practise of ‘flipping’ a property is not illegal in Italy. However, if the flipping is done by a friend or relative of the agent, it is more than likely that the agent is party to it and is earning on the deal.  This is illegal.   It works like this:  The agent finds a house on sale for 50.000, a bargain!  His friend signs a compromesso with the owner for that price, and says he will sign the act within 6 months.  The property is immediately put back on the market with the agent for 75.000.  Somebody buys the house and pays 25.000 deposit which goes straight into the pocket of the person who signed the compromesso.  At the date of the act, the buyer meets the owner for the first time and pays the 50.000 direct to the owner.   Free market capitalism at work! But if the agent is party to the deal he is collaborating with one of the parties, taking a back hander, and should be reported.

The mortgage trap.  The house buying system in Italy has yet to catch up with the mortgage market. In Sicily it results in huge problems at the point of compromesso.  An buyer needing a mortgage rightly wants to insert a clause saying that the sale will only go ahead if the mortgage is granted.  For the seller, this is a problem.  A bank doesn’t have to give a reason for not giving a mortgage.  It only requires the buyer to call the owner and pass on the bad news.  This basically means that the deposit given to the owner cannot be used until the mortgage offer is made, as it could be that it will have to be returned in full.  The compromesso, therefore, is only binding on the seller, and the sale can founder at this point in a sellers market.

The mortgage trap – part 2.  At the signing of the final act of completion, the mortgage company is represented.  It is at this point that the bankers cheques are handed over.  But not always…. Some banks refuse to give the money until the act has been registered.  This creates a legal dilemma as the money has to change hands in order for the act to be signed, but the act has to be signed and registered in order for the money to change hands… Here you are reliant solely on the goodwill of the sellers, and hope that having reached the point of act they are prepared to wait another couple of days.

Should you be unhappy with your agents conduct, bear in mind that it is rarely too late to act in Italy. Modicasa* is the only English owned, legal estate agency in the south east of Sicily.  We are registered in Sicily, and operate wholly within Italian law.  If you have problems with an illegal agent, contact us.  It is in our interest to stamp out this ‘abusivismo’ as it reflects badly on the registered, qualified agents.

*Modicasa, Barocco Property, and Barocco Immobiliare, are all part of the Barocco Group and have a single owner, registered as an agente immobiliare at the Camera di Commercio di Ragusa,

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More About Buying Property in Sicily

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