Last-Minute Closing Hazards to Avoid During Italian Real-Estate Transactions

One of the most delicate aspects in real estate financing transactions is the security connected to the loan. The main problems faced by businesspeople and advisors not familiar with the Italian real estate market are related to the procedures and timing requested for the enforcement of the security. Such enforcement has to precede the drawdown of the loan in 90 percent of all cases.

The most important security requested in real estate financing transactions is, of course, the mortgage over the real estate property. This is the core of real estate financing transactions. Depending on the complexity of the transactions, further security can be requested. This includes a pledge on the shares or quotas of the company owner of the property and, as the case may be, a pledge on the share or quotas of the controlling company. Security can also be requested to pledge on the bank account balance or, alternatively, assignment of the bank account’s credits, assignment of the insurance