What it costs to sell a home: the expenses to budget for

Anyone selling a home thinks mainly about the price. Between the price and what is left in hand, however, there are some expenses: some almost always, others only in certain cases. The costs of the deed, on the other hand, are as a rule paid by the buyer: the costs of the sale contract and related expenses are borne by the buyer unless otherwise agreed (Civil Code, article 1475).

The agency fee

The agency is entitled to a fee from each party if the deal is concluded as a result of its work (Civil Code, article 1755). The amount is not set by law: it is agreed and written in the mandate, together with when it is due. VAT is added to the fee.

The energy certificate

The seller must have an energy performance certificate: it must be made available to anyone interested from the start of negotiations and handed over at the deed, and the energy class must appear in listings. Without a certificate the owner faces a fine of 3,000 to 18,000 euros; for a listing without energy data, whoever publishes it faces 500 to 3,000 euros (Legislative Decree 192/2005, article 15, paragraphs 8 and 10). It is drawn up by a qualified technician, at a freely set price.

Paperwork in order

At the deed the seller declares that the cadastral data and the floor plan match the actual state of the home: without this declaration the deed is void. For buildings started after 17 March 1985 the details of the building permit are also required. If differences emerge they must be put right before the deed, with a surveyor: updating the floor plan is a short procedure, regularising a discrepancy may take the municipality's time. We cover this in our articles on floor plans and on construction tolerances.

Condominium and mortgage

The buyer is jointly liable with the seller for condominium charges for the current year and the previous one; the seller remains liable for charges accrued until the building manager receives a certified copy of the deed (implementing provisions of the Civil Code, article 63). That is why arrears are clarified beforehand and usually settled at the deed.

If a mortgage is still outstanding, the remaining debt is usually paid off at the deed with part of the price. The mortgage charge is extinguished automatically with the debt: the bank issues a receipt and notifies the land registry within thirty days, at no cost to the borrower (Consolidated Banking Act, article 40-bis).

Capital gains

If you sell for more than you paid, the difference may be taxed. This happens only if you sell within five years of buying or building the home. It does not apply if you inherited the home, or if for most of that period it was the main residence of you or your family (Consolidated Income Tax Act, article 67). For a home received as a gift, the five years run from when the donor bought it.

When the tax is due, at the deed you can ask the notary to apply a 26% substitute tax on the gain, which the notary pays on your behalf; otherwise the gain goes in your income tax return. The gain is the difference between the sale price and the purchase price, increased by the other costs of the home.

For homes with Superbonus works the rules are different: the gain may be taxed if you sell within ten years of the end of the works, with the same exceptions for inherited homes and the main residence, and with a special calculation. In that case the numbers should be worked out with the notary or an accountant.

Before putting the home on the market

Doing the sums beforehand avoids surprises at the deed: ask the building manager for the state of the charges, the bank for the remaining debt, and a technician for the energy certificate and a check of the paperwork.