Italian law on mediation and commissions
The norms of law that govern the exercise of the real estate agent profession are:
Italian Civil Code (norms on mediation and norms on mandate);
Italian Penal code (norms on the illicit exercise of the professions);
special laws (n° the 39 of 3 February 1989, that replaces law n° 253 of 21 March 1958 on the discipline of the broker profession);
Presidential decree n° 1926 of 6 November 1960, that it is the regulations of performance of cited law n° 253/58 (for the norms that can be still considered enforced);
enforcement regulations of cited law n° 39;
Ministerial decree 21 February 1990 n. 300;
Minister of the industry, commerce and handicraft decree n° 452 of 21 December 1990;
Ministerial decree 7 October 1993 n. 589;
5 March 2001 n. 57 Law - amendment of the 27/02/01 to the 39/89 law regarding art.18 norm of the law on the relative provisions to the regulation of the market.
Italian Civil Code articles relating to the argument:
art. 1754 Mediator - Mediator is which relates two or more parts for the conclusion of a transaction, without being legacy to some of they from representation or dependancy, collaboration relationships.
art. 1755 Commission - Mediator has straight to the commission from each of parts (art.2950), if the transaction is concluded for effect of its participation.
The measure of the commission and the proportion in which this it must weigh on each of the parts,
in lack of pact, of professional rates or uses, they are determined from the judge accordling to equity.
art. 1756 Expenses reimbursement- Pacts excepted orcontrary uses, the mediator has straight to the reimbursement of the expenses regarding the person for assignment of which they are executed, even if the transaction is not concluded.
art. 1757 Commission in the conditionals contracts or invalids - If the contract is submitted adjournement to condition, the right to the commission rises when condition is verified.
If the contrct is submitted to resolutive condition, the right to the commission does not fail with
to happen of the condition (art.1353 and following).
The dispositions of the preceding paragraph are also applied when the contract is voidable (art.1425 and following) or rescindibile (art.1447 and following), if the mediator did not know the invalidity cause.
art. 1758 Plurality of mediators - If the transaction is concluded for the participation of more than one mediator, everyone have straight to a commission quota.
art. 1759 Responsibilities of the mediator - The mediator must communicate to the parts the circumstances he knows, relating to the appraisal and safety of the transaction, that can influence on the conclusion of it.
The mediator answers for the authenticity of the subscription of the writings and the last turn of the titles transmitted for his medium (2008).
art. 1760 Obligation of the professional mediatoer - The professional mediator in transactions on goods or titles must: 1) to conserve the sold champions of the goods over champion (art.1522), until sussista the controversy possibility on the identity of the goods; 2) to release to the buyer a signed list of the negotiated titles, with the indication of the series and the number; 3) to annotate on appropriate book (art.2214 and following) essential contract terms that stipulates with its participation and to release to the parts from him undersigned copy of every annotation.
art. 1761 Representation of the mediator - The mediator can be charged from one of the parts to represent it (art.1388) in the relative actions to the execution of the contract concluded with its participation.
art. 1762 Not named contractor - The mediator whodo not manifest to a contractor the name of the other answers of the execution of contract (art.1415) and, when it has executed it, he takes over the rights towards the not named contractor (art.1203 and following).
If after the conclusion of the contract the not named contractor manifesthimself to the other part or he is named by the mediator, everyone of the contractors can act directly against the other, remaining the mediator responsibility.
art. 1763 Guarantee of the mediator - The mediator can lend guarantee for one of the parts (art.936 and following ones).
art. 1764 Endorsements - The mediator who do not carry out to obligations set up from art. 1760 is punished with the fine from £.10,000 (euros 5,16) to £. l.000.000 (euros 516,46). In the more serious cases the suspension from the profession until six months can be in addition. At the same pains is subject the mediator who lend its activity in the interest of a well-known insolvent person or of which it knows the state of inability.
art. 1765 special Laws - Special laws dispositions are safe.
art. 2083 Small businessmen - Are small businessmen the small farmer (art.1647, art.2139 ), the craftsmen, the small traders and those who exercise a professional activity mostly organized with their own job and the one of their family members (art.2202, art.2214, art.2221).
art. 2195 Entrepreneurs subject to registration - Are subject to the obligation of the registration in the registry of the enterprises the entrepreneurs that exercise: 1) an industrial activity directed to the production of assets or services; 2) an intermediary activity in the circulation of the assets; 3) an activity of transport for earth, or water or air; 4) a bank or insurance activity; 5) otheractivity auxiliaries of the previous ones (art.1754).
The law dispositions that make reference to the activities and to the business firms they apply, if it does not otherwise result, to all the activities indicated in this article and to the enterprises that exercise them.
art. 2950 Prescription of the metiators rights. The mediator right to the payment of commission (art.1755) prescribes in a year.
Commissions of mediators and the real estate agencies
The measure of the commission, according to law n° 39/1989 article 6 that regulates real estate mediations, “is established between the parts or, in lack of pacts, reference is made to the uses of the local Chambers of Commerce”.
Do not exist rates established for law, therefore the measure of the commission is freely treatable between the parts, what to make at the moment of the bestowal of the lease or sale assignment.
The negotiation must make reference, case by chance, to the difficulty own of the conclusions of the transaction, to the services that are offered and to those that are required and to the series of advantages that agree to obtain from the mediation.
The measures found from the Genoa Chamber of Commerce, for medium values real estate sold, currently mediation goes from a minim of 3% for selling part, to a minim of 3% for buying part + VAT.
Obviously contract notarial expenses and the accessory ones, taxes and similar, are always excluded by the commissions of the mediator and remain at the expense of the buyer.
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