Buying a house directly from the builder can be an advantageous choice, especially if you want to have a new, customized property built to the latest standards.

However, it is essential to know the legal aspects and costs to be incurred, this also in order to avoid unpleasant surprises and ensure a safe purchase.

The Law Office of Attorney Benedetta De Paola, over the years, has assisted numerous clients in buying and selling homes directly from the builder. Therefore, we know how important it is to be well informed and protected from day one. In this article, we will explore what there is to know for a safe and informed purchase, analyzing, not only the advantages, but also the possible pitfalls associated with this particular type of buying and selling.

In this article, we will explore:

1. the possible risks;
2. the legal instruments to protect the buyer;
3. the coststobe incurred;
4. practical tips for risk-free buying and selling.
   

1) The risks of buying a house on paper or under construction

When choosing to buy a house under construction, the main danger is that of advancing sums of money to theconstruction company, without having the certainty that theproperty will be completed and delivered. This happens, for example, should the builder get into financial difficulties. The law, on this point, has provided measures to protect buyers.

The figure of the Notary Public in charge of buying and selling, on the other hand, oversees compliance with the relevant regulations.

When the project is only on paper, generally builders have already incurred substantial costs, such as purchasing the land or starting work, which can be financed with debts secured by mortgages on the land. At this point it is in the builder 's interest to sell as many housing units as possible, even at the preliminary stage, through contracts that establish the purchase price, construction progress stages, and related payments.

Should the company face an economic crisis, it may be subject to bankruptcy proceedings (better known as "bankruptcy" or "business crisis"). In such a case, lenders enforce the guarantees and the project could be auctioned off. In this scenario, the buyer risks losing the sums paid up to that point, including down payments and progress payments.

2) Legal protections for home buyers from the builder

To protect yourself from the scenarios previously described, it is essential to be protected against any defaults by the seller. Here are the main guarantees provided by law:

A) Preliminary contract and guarantees

• Preliminary with penalty clauses: it is essential that the contract includes definite terms for the delivery of the property and penalties in case of delay.
  
• Ten-year warranty: the builder is liable for 10 years for structural defects (Art. 1669 Civil Code).
  
• Two-year warranty: covers conformity defects (Legislative Decree 122/2005, transposing E.U. directive).

B) Verification of building permit and zoning compliance.

Before signing, make sure that the builder has all necessary permits and that the project complies with current regulations.

C) Bank or insurance surety.

If a down payment is made, by law the builder must provide a guarantee (surety bond) to protect the buyer in case of bankruptcy or default.

3) Costs to consider when buying from a builder

In addition to the sales price, there are several additional expenses:

• Registration tax:
  • 2% (first home) or 9% (second home) on the cadastral value (if the property is already registered).
  • VAT at 4% (first home) or 10% (other cases) if the property is sold "by plan."
• Agency (if buying through a real estate brokerage): usually between 1% and 3%.
• Notary: for deed and mortgage.
• Land registry and mortgage: approximately Euro 200/500.
• Any costs of customizing the property: if changes to the original design are required.
  

Tax deductions and benefits

According to the legislation in force at the time of writing this article, there are several tax breaks that can ease the economic burden ofbuying a house from the builder. Below are the most relevant ones.

• Sisma Bonus Purchase: If you buy a newly constructed property after demolishing a building with a lower seismic class, you are entitled to a tax credit of up to 105,600.00 euros, usable over 5 years. This credit can be transferred to banks.
  
• Ecobonus: In case of demolition and reconstruction with a building permit, it is possible to take advantage of a tax credit similar to the Sisma Bonus, also transferable to banks.
  
• 50% Tax Deduction: It is possible to deduct 50% of the construction cost over 10 years, although this credit is not transferable.
  

These deductions offer significant benefits for those who decide to purchase a new home, especially in reconstruction and upgrading contexts.

I remind you that to verify the applicability to your specific case, it is always necessary to make a comparison with the competent professional.

4) Practical tips for a safe purchase

1. Check the reputation of the builder: check reviews, previous work, and any legal disputes involving the builder.
   
2. Have a lawyer review the contract: avoid vexatious or unclear clauses.
   
3. Require a graduated payment plan: linked to theprogress of the work.
   
4. Technical visit before the deed: make sure the property conforms to what is only visoned on paper.
   

Conclusion

Buying a house from the builder can be a convenient choice, but it requires attention to legal and financial aspects. Relying on a professional who specializes in real estate law can avoid future problems and ensure a safe investment.

The Law Office of Attorney Benedetta De Paola, with its 20 years of experience in the field, offers comprehensive legal assistance to anyone wishing to purchase a property from a builder. We are here to guide you through every stage of the purchase, guaranteeing effective and safe legal protection so that the process is carried out in full compliance with the law.

If you have any doubts or need assistance in buying or selling, contact me for a personalized consultation.