Possibly one of the greatest concerns buyers have when purchasing abroad is the risk of being conned, or at least finding themselves at the raw end of a deal.  Recent scams in Italy bear out the point that it can be a potential danger, maybe more so in times of economic difficulty.

At the end of last year an entrepreneur, convinced he had found a bargain, advanced a large part of the purchase price, euro 4.5 million, in cash, for a villa before discovering the 'seller' was in fact a tenant with no rights to sell.  Another example occurred on Lake Garda, where about a hundred foreign buyers parted with deposits totalling millions for apartments that were not really available.  The vendors, using falsified documents, promptly disappeared.  Another ruse is to sell the same property twice.  The standard procedure is followed - proposta (written proposal), compromesso (preliminary sale contract) and the rogito (deed of sale), with one difference; one buyer is asked to appear before the notary in the morning, the other in the afternoon.  Italian law states that it is the first act registered that has legal ownership, and the other...

How can these risks be minimized?  Before parting with money, due diligence is essential.  For example, with the written proposal the potential buyer offers a small deposit, with the compromesso a deposit of up to 30% is handed over, amounts you don't want to lose.  Commonly, buyers simply trust the documentation supplied by the vendor or through their estate agent.  It would be much wiser to do independent checks to ascertain whether the property is mortgaged, if the vendor has the right to sell or is ownership divided and do all parties want to sell?  Other initial checks would include rights of access and what the property can or can't be used for.

The standard proposta is usually supplied by the estate agent and not written exclusively in the interests of the buyer, it is, after all, supplied by the agent acting for the seller.  A sensible idea would be to retain a property lawyer, and there are many well-qualified ones in Italy, to draw up the contracts in your interests.  They may recommend, for example, using a letter of intent instead of a proposta and its accompanying deposit as a safer route for you, the buyer.

One service a buying agent gives is to represent the buyer's interests during this due diligence, recommending and working with the necessary professionals, making sure your risks are minimized.

The Property Finders will be running workshops in English, free of charge, for foreign buyers wishing to know more about the property market in Italy and how to buy at the EXPO Real Estate & Tourism property show being held at the Bergamo Fiera Nuova, Bergamo, Milan running from 13th to 15th March 2009.

The nearest airport is Milan-Bergamo.

To know more about the event contact Alessandro Pagnoni, alessandro.pagnoni@promoberg.it or call +39 035 3230904.

To make an appointment and/or attend one of the workshops for foreign buyers, contact Paul Hudson, italy@thepropertyfinders.com