• How does the Italian notary deposit account protect international buyers from financial risks?
• What specific legal protections distinguish segregated notary accounts from standard direct payment methods?
• In what property transaction scenarios is utilizing a dedicated notary escrow account essential?
When buying property in Italy, many international buyers are surprised to learn that, in a standard transaction, the balance is often paid directly at completion without an escrow style hold. Italy does, however, offer a powerful protection mechanism known as the notary deposit account, also referred to as deposit of the price.
This tool can materially reduce buyer risk at the most sensitive moment of the transaction: when funds are transferred but legal formalities are still being completed.
What it is, in plain terms
The notary deposit account is a buyer protection mechanism under art. 1, comma 63, Law 147 of 2013. It allows the buyer to pay the balance into a dedicated bank account held by the notary, rather than paying it immediately to the seller. The notary then releases the funds to the seller only after the deed has been correctly recorded and the relevant checks are completed.
Why this is safer than a direct transfer
The strength of this mechanism is the legal segregation of the funds.
• Segregated and protected funds
Money placed in the notary’s dedicated account is treated as a separate estate. It is not part of the notary’s personal assets, it is excluded from the notary’s succession, and it is protected from enforcement actions against the notary. • Controlled release after the deed is recorded
The notary releases the funds to the seller only after the deed has been registered and the required publicity formalities have been completed, and after verifying the absence of adverse filings that could affect the buyer.
This sequencing helps protect the buyer against unexpected issues that can arise between signing and final recording, such as new liens or enforcement actions that could complicate ownership.
How it works operationally
From a buyer perspective, the flow is straightforward.
• The buyer pays the balance into the notary’s dedicated account by bank transfer or other accepted payment method
• The deed is executed and then recorded in the relevant property registers
• Once the required formalities are completed and checks are satisfied, the notary transfers the funds to the seller
Optional for the buyer, mandatory for the notary if requested
A key point for international buyers is that this tool is typically a choice, not a default.
• The buyer may request it
It is generally a faculty available to one of the parties, most commonly the buyer, to request that the price is deposited with the notary. • The notary must be equipped to handle it
The notary must operate the dedicated account framework when the parties request a deposit in line with the statutory mechanism.
Cost and interest: what to expect
This is usually not a high cost tool, but it should be agreed with the notary in advance.
When it is especially useful
While it can be useful in almost any purchase, it becomes particularly valuable in transactions where timing and risk need tighter control.
• Seller has existing debts or enforcement risk
• A mortgage needs to be repaid at completion
• The transaction is complex or involves multiple steps
• The buyer wants escrow style certainty, especially when purchasing from abroad
Capitalio perspective: making a non standard tool actually work in practice
In Italy, the notary deposit account is not always used by default, and the practical challenge is not the law, it is execution. The parties must understand the sequencing, the seller must be comfortable with the release mechanics, and the notary must structure the flow cleanly within the transaction timetable.
This is where Capitalio adds value without exposing internal methods. We help you:
• Identify when the notary deposit account is the right risk control tool for your purchase
• Position the request professionally so it is understood as a standard safety measure, not a negotiation tactic
• Coordinate expectations and documentation so the process saves time rather than adding friction
• Reduce buyer stress by ensuring the balance payment aligns with registration and verification steps
The outcome is not only stronger protection. It is a smoother transaction, fewer surprises, and less time lost managing uncertainty across borders.
For tailored guidance on residency, structuring and acquisitions, Contact Capitalio
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