What you can and can't do according to the experts
Gtres
Gtres

Is it possible to buy a house, with or without a mortgage, right now? The answer is: it depends. Let's see according to some experts what is possible for those who have to buy a house during the coronavirus crisis in Italy.

The security provisions generated by the need to contain the contagion have obviously led to limitations on the operation of all those parties involved in real estate transactions. How does this affect those who are about to conclude a contract or wish to start a purchase process?

"Unfortunately there is not just one answer to this situation," answers Roberto Anedda, vice-president of MutuoOnline, "because there are various players involved in this process: buyer and seller, bank, brokers, notaries but also public offices interested in the passage of documents and mortgage registrations. So, if in some cases it is possible to carry out the process online, this is not always true. In Milan, for example, the main problem is the fact that the registrars, where notaries must have access to register documents, are closed. However, the decrees vary from day to day and the implemented measures often don't come with clarity, so where there are no clear rules the affected parties are left in limbo not knowing how to act".

What are the obligatory steps for those who must purchase a house?

"The key figure is the public notary, whether it's just a real estate purchase or a mortgage purchase," replies Anedda, "and it is he who must be consulted in order to understand how likely it is to be concluded. The operation must in fact pass obligatorily through this professional figure, who then has the competence and knowledge of the territory to establish what is actually feasible in a given circumstance and in a given area, and with what possible delays".

What happens next with the notary?

"You firstly need to find a notary who is willing", answers Simone Monesi, a partner at Osborne Clarke. "It tends to be assessed on a case-by-case basis with the client as to whether the deeds are really unpossessable. The stipulation must in any case be made in person while using personal protective equipment and those who take part in the deed must fully take responsibility, in case of checks, for the existence of the state of need to deviate from the ban on leaving the house".

As for the rules to be observed when going to the notary for the stipulation of a sale in times of coronavirus, the National Council of Notaries has published a short manual. In cases where it is necessary to proceed with the stipulation of the notarial deed, it reads, it is imperative to take into account the indications provided by the DPCM (Ministerial Decree) relating to "the size and characteristics of the location, such as to ensure that visitors can respect the distance between them of at least one metre", therefore:

  • the place of stipulation should normally be the notary's office with a structure organised in such a way as to meet the hygienic safety requirements imposed by the Government;
  • citizens must go to the notary's office by appointment only and without unnecessary company, respecting timetables, without advance payments, respecting safety distances and complying with the safety regulations adopted by the office;
  • in the case of citizens affected by the virus or in quarantine, the notaries will lend them their services in compliance with the Prime Minister's Decree if the health and public safety authorities - ensuring suitable protective equipment in the judgment of the medical staff - allow access to the notary and any other parties, in the places where the infected or quarantined is located.

Is it therefore possible to proceed with the transaction smoothly?

Sometimes it is possible," replies Roberto Anedda, "thanks to the spirit of initiative of the individual studies or the possibility in the specific territory, other times there is a deferment of terms. It appears, however, that at least 30% of acts are delayed, in the long- or short-term.  This is because, for example, some notaries or some offices have closed for safety, of their own volition, perhaps because they are in areas particularly affected by the health emergency. Others, on the other hand, choose to stay open in order to keep their clients, but they still have to organise themselves in order to avoid congestion of appointments, which expands the time accordingly, even in view of the reduced staff to avoid concentration of people in the office. The choice of the cases to be carried out is also based on the "urgency" of the act, ascertained by self-certification. In any case, when you are faced with a closed office, as in the case of the Milanese registrars, the stop is inevitable".

What are the main obstacles to the conclusion of sales?

"What is allowed to be done online depends on the level of computerisation of the offices in a given area", according to Anedda. "Technically, it is not possible to compile documents electronically, but in some contexts it is possible, in others it is not. The purchase of a house cannot be separated from a visit to the apartment, even though it is often visible even virtually; and the visit at the moment is not possible or in any case it is complicated to carry it out safely and is therefore postponed.  For the financial part, however, in the case of the mortgage linked to the purchase or even a simple subrogation, the transaction can likely be completed completely online with the support of the bank. A delay, however, is also inevitable in this case because the final signature must be made in person." Anedda adds that, "further instability is given by the fact that various hypotheses are made on the content of future decrees but what is needed is certainty on the economic support instruments that will really be put in place".

So what can anyone who wants to sell or buy a house at this time do?

"Definitely start having a look at properties on online platforms", - responds Dario Castiglia, the CEO and founder of ReMax Italia. "You can activate alerts based on search parameters. In the meantime, the most technological real estate networks, currently operating from home according to regulations, will be able to update their portfolio, enriching content and descriptions and networking to increase the offer and shorten distances. It is necessary to approach a situation like the one we are living with a long-term vision: the crisis will not last forever, but in the short term, life will not be like before. We must perceive this situation as a phase of change to which we are called to redesign our social and economic organisational model". Online portals such as idealista are still running at 100% and offer great opportunities to view properties from the comfort of your own home, inlcuding photos, videos and virtual tours

How will the procedures for buying a house change?

"It is well known that every crisis changes paradigms, especially in terms of the behaviors to adopt," answers Castiglia. "And this is what will certainly happen also in the real estate market, where those who will have to or want to sell and buy will have at their disposal new technological tools to limit physical contact between people, inevitably changing the relationship between real estate agents and consumers. Certainly the web will be the first step where users will privilege listings with detailed and professional photos. After a first skimming, you will be able to rely on real estate agents who will increasingly acquire the role of "property finder". They will visit the houses with the necessary equipment, in order to be able to present buyers with a targeted selection. The real estate market, therefore, will be increasingly oriented towards digital transformation with the use of technologies such as virtual tours and immersive systems such as augmented reality. Among the new modes, users can already use tools such as online editable forms and remote signature, very useful also for those who, for example, need to a close a deal from a distance".