Great Levels in the Property Handling

The purchase of a house under construction is in fact a purchase on paper: in these cases, a promise is purchased which could present risks that should not be underestimated. With the Legislative Decree, protections and guarantees have been placed for the buyer of the houses under construction even if this is not a rule that ensures total protection from scams. The protections provided for by this decree are of various types:

Surety guarantee

The manufacturer is obliged to provide a guarantee on the sums paid on account by the buyer until the transfer of ownership. Without the guarantee, the contract is considered void. Thanks to it, the manufacturer must return all sums collected to the buyer. With a visit to this makes the whole thing perfect.

The surety must provide for the waiver of the benefit of the prior enforcement of the principal debtor. The buyer can immediately contact the bank or insurance company without having to first attempt to recover the credit from the manufacturer.

The Guarantee from the Authority

The manufacturing company can decide not to release the guarantee and this is a possibility provided for by the Decree by officially declaring it, but in any case, the buyer can assert the nullity of the contract, to be refunded the amount paid and also ask for damages if the construction fails.

The guarantee has become mandatory for construction companies only for properties whose building permit was requested after 2005. It is absolutely necessary to inquire about when the building permit was requested or when the Declaration of Start of Business was delivered.

In fact, many manufacturing companies prefer to risk that the buyer requests the nullity of the contract if they fail, rather than granting the surety.

In any case, protection only applies to individual citizens who turn to a builder i.e. a company or an individual who carries out the construction activity, and to the members of cooperatives. It does not apply to associations or businesses.

Money Reimbursement

The reimbursement of the money advanced and guaranteed by the surety occurs, however, only in the event of a crisis, certified by a formal act: bankruptcy, foreclosure, arrangement with creditors, and state of insolvency, compulsory administrative liquidation and extraordinary administration. If there is no formal certification of the state of crisis, we must wait for the builder to recover and continue the construction of the house, or for the crisis to be definitive. The bankruptcy of the builder does not affect the property if the buyer or his relative within the third degree transfers the residence to it within 12 months from the date of purchase or completion.

Otherwise, the bankruptcy trustee can decide to honor the contracts entered into by the builder and assign ownership of the property to the buyer or decide to cancel the contracts entered into with the buyer and sell the properties to pay the creditors. The proceeds from the sale are intended above all for the so-called privileged creditors, that is, those who are holding a mortgage, a pledge or another privilege. The simple creditor is repaid with what remains after the payment of the privileged creditors.

In order to be a privileged creditor, the compromise must be transcribed by the notary at the Office of the Conservatory of Real Estate Records.

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