The price deposit: frequently asked questions

1. Introduction
2. Can the Revenue Agency carry out verifications due to the use of the price deposit?
3. How do I know if the purchaser actually paid the money?
4. If the Notary gets into debts, can creditors also attack the money I have deposited in the dedicated account?
5. Does the use of the dedicated account have a cost?
6. How can I credit the price to dedicated account to the notary?
7. Will the interest produced by the deposited sum be of the notary?
8. Can I make a single bank transfer to the same account that includes both the notary’s fee, taxes and the deposit of the price?
9. How long before the deed do I have to arrange the money transfer to the notary’s dedicated account?
10. Should I (purchaser) do something on the day of the deed?
11. I don’t want to be present in the flash and I don’t have a bank account in Italy, why do I have to use the price deposit instead of transferring the money directly to the seller’s account a few days before the sale?

Introduction

Very often accompanying customers, even residents abroad in the sale or purchase of their real estate, and in other transactions for a fee, I came across several questions and doubts about the use of the price deposit (here the link to the article aboiu it https://antonellolawfirm.com/2024/03/15/the-price-deposit-frequently-asked-questions/) below is a list of some of the most frequent.

Can the Revenue Agency carry out verifications due to the use of the price deposit?

The price deposit is optional and absolutely legal in Italy, therefore even if the Revenue Agency were to carry out checks or verifications on the translation deed, there would be no problem resulting from the use of the price deposit according to the terms of the law.

It’s a perfectly understandable question if we think especially of those who are not practical with our civil law system. In many Jurisdictions, the Notary does not play a central role as in ours, indeed.

However it should be remembered that in Italy the Notary is a public official, as well as being, of course, a professional subject to the law and to a precise code of ethics.

There is therefore no reason to fear that the notary may withhold the sums paid, otherwise the same would incur serious violations that could lead to significant civil, criminal and ethical penalties and liability.

How do I know if the purchaser actually paid the money?

This question is often asked by the seller, who rightly cares to make sure to collect the price of what is sold.

The notary, before the deed, checks that the price for the purchase is deposited in its own dedicated account, and only if so proceeds to the deed.

This is also a strong guarantee for the seller.

If the Notary gets into debts, can creditors also attack the money I have deposited in the dedicated account?

No. The price deposited in the notary’s dedicated account is part of a separate estate, therefore no creditor can attack the sum.

In addition, the sum may not be claimed by any other person entitled by the notary (for example, heirs or spouse).

Does the use of the dedicated account have a cost?

Yes, the use of the notary’s dedicated account for the price deposit has a variable cost, also based on the amount to be deposited.

How can I credit the price to dedicated account to the notary?

This question is often asked by those who, thinking that it is a complex procedure, believe that is necessary proceed with peculiar modalities.

In fact the price deposit is generally made through ordinary bank transfer.

Will the interest produced by the deposited sum be of the notary?

No, with the interests produced, the Italian State creates or feeds funds to finance small and medium-sized enterprises.

Can I make a single bank transfer to the same account that includes both the notary’s fee, taxes and the deposit of the price?

No, it will be necessary to provide for two separate bank transfers on two separate current accounts.

How long before the deed do I have to arrange the money transfer to the notary’s dedicated account?

Before the deed, the sum, must be correctly credited to the dedicated account in the name of the notary.

It is therefore necessary to evaluate from time to time, depending on several factors, including the origin of customers, how long before to arrange the credit. 

Should I (purchaser) do something on the day of the deed?

No, if the purchase price is present on the notary’s dedicated account, the purchaser will not have to do anything, it will be the notary who will transfer to the seller what has been deposited, once the deed has been transcribed.

Generally, not even the seller will have to do anything, except give the notary the IBAN for the credit of the price.

I don’t want to be present in the flash and I don’t have a bank account in Italy, why do I have to use the price deposit instead of transferring the money directly to the seller’s account a few days before the sale?

This question is asked very often, especially by those who would prefer not to incur in additional transfer fees, other than the notary’s fee and the necessary taxes.

It’s true the dedicated account has a cost to bear for its use, which in practice is borne by the purchaser.

However it would be very dangerous, to transfer the money directly to the seller a few days before the deed, which, for various reasons, may not be concluded, with all the risks that follow, including those of a potentially difficult money recovery.