More and more Swiss citizens are purchasing property in Italy, attracted by its geographic proximity, its interest in the Italian real estate market, and its investment opportunities, or simply to spend time in the beautiful country.

However, precisely because of linguistic differences and the rules of reciprocity that govern real estate purchases by foreign citizens, it is not uncommon for misunderstandings to arise regarding the true scope of the signed documents.

One of the most common errors concerns the preliminary sales contract, also commonly known as the “compromise.” Many buyers believe that signing the preliminary contract implies the transfer of ownership of the property. In reality, this is not the case. The preliminary contract actually serves to commit the parties to subsequently conclude the final contract, establishing the key terms of the agreement, such as the price, payment methods, and the timing of the commercial transaction. This misunderstanding is particularly evident when inheritance proceedings are opened. Very often, the heirs of Swiss citizens discover that their deceased father had only signed a preliminary contract, without ever completing the notarial deed. In such cases, the property does not automatically become part of the estate as an asset owned by the deceased, since the transfer of ownership was never finalized. Ultimately, it is essential to distinguish between the obligation to buy or sell, which arises with the preliminary contract, and the transfer of ownership, which occurs with the notarial deed.

Proper legal assistance from the early stages of the transaction is the best way to prevent misunderstandings and ensure that the real estate investment is fully compliant with Italian law.

Avv. Doris Reichel