ILN: BUYING AND SELLING REAL ESTATE - AN INTERNATIONAL GUIDE

[BUYING AND SELLING REAL ESTATE IN ITALY] 148

called

“ successione

testamentaria ”

and

number of elements, such as taxation issues, estate planning, costs. The most common structures of ownership are single ownership, co-ownership, companies, trust. It is also possible to buy an interest in a property by buying shares or units in the ownership structure. Single ownership Single ownership is the simplest and less expensive option in which the owner has the sole control of the real estate. The main disadvantage with individual ownership is that it does not offer any asset protection, as the individual’s creditors will have the right to claim against the personal assets of the owner, including the real estate. Co-ownership Co-ownership may be of different type: i) joint ownership by two or more persons holding undivided quota over the real estate such as ownership by spouses, ii) co-ownership by two or more persons holding specific quota of the

“ successione legittima”). The phases that mark the succession are three: i)the first coincides with the opening of the succession, which is the first phase immediately following the death of the person. The succession opens at the time of death, in the place of the last domicile of the deceased. ii) the second consists in the so-called denunciation of the inheritance, i.e., determining who owns the assets and to what extent, and whether on the basis of a will or according to law. iii) the third consists in the acceptance of the inheritance and the consequent attribution of assets to the heir/heirs. Usucaption The usucaption is an original way of acquiring the ownership of real estates through the continuous, uninterrupted, and uncontested possession for a certain period of time. The ordinary term of usucaption requires 20 years to elapse, while the abbreviated one requires 10 years to elapse and occurs when possession of the real estate was purchased in good faith "by virtue of a title that is suitable for transferring ownership and that it has been duly transcribed". For the small rural property, the abbreviated term of usucaption is further reduced to 5 years from the date of the transcription of the title. The purchase by usucaption of the property requires a judicial assessment, having the purchaser to provide rigorous proof of continuous, uninterrupted and unobjected possession for the period required by law. V. FORMS OF OWNERSHIP The forms of ownership vary according to the needs of the interested person depending by a

real estate. Companies

The real estate may be acquired thought a company structure. The most used legal forms are limited liability companies. Residential property is typically owned by individuals, while owners of commercial property are most frequently legal entities

under either private or public law. Trust property ( negozio fiduciario)

Trust is a “ sui generis” hypothesis of ownership, in which the beneficiary (that can be individuals, trusts or companies) transfers to the trustee the ownership of the real estate that shall be managed in the interest of the beneficiary and under the indications of the latter.

ILN Real Estate Group – Buying and Selling Real Estate Series

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