{"id":7469,"date":"2018-10-10T09:28:28","date_gmt":"2018-10-10T09:28:28","guid":{"rendered":"https:\/\/www.italiafideiussioni.it\/sureties-for-businesses-and-professionals\/construction-and-real-estate\/surety-bonds-for-real-estate-exchanges\/"},"modified":"2018-10-10T09:28:28","modified_gmt":"2018-10-10T09:28:28","slug":"surety-bonds-for-real-estate-exchanges","status":"publish","type":"page","link":"https:\/\/www.italiafideiussioni.it\/en\/sureties-for-businesses-and-professionals\/construction-and-real-estate\/surety-bonds-for-real-estate-exchanges\/","title":{"rendered":"Surety Bonds for Real Estate Exchanges"},"content":{"rendered":"<p><i><span style=\"font-weight: 400;\">Do you have buildable land and want to profit from it? You might want to sell it to a construction company. It might happen that the company does not have the necessary funds to pay you.<\/span><\/i><\/p>\n<p><span style=\"font-weight: 400;\">What can you do in this case?<\/span><b> <\/b><\/p>\n<p><b>To settle the amount owed to you, the construction company proposes owning some real estate units<\/b><span style=\"font-weight: 400;\">, with a value equivalent to that of the land. This is what is called a real estate exchange.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Like other types of exchanges, a real estate exchange can involve swapping items of different value. For example, when a construction company needs to build buildings in a designated buildable area, it must purchase the land from the owner. <\/span><b> If the builder is temporarily unable to pay in cash for the entire plot, the two parties can enter into a real estate exchange agreement. In this case, it involves the seller selling the land in exchange for one or more units on paper, <\/b> <span style=\"font-weight: 400;\">which the buyer will deliver to the seller upon completion of construction.<\/span><\/p>\n<p><strong>Looking for a surety policy?<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">You can also write via <img decoding=\"async\" src=\"https:\/\/www.italiafideiussioni.it\/wp-content\/uploads\/2015\/04\/WhatsApp_Logo_6.png\" alt=\"\" width=\"33\" height=\"32\"><strong>WhatsApp: +39 339.71.50.157<\/strong> send a message we will respond during office hours, <strong>within 5 minutes<\/strong><\/span><\/p>\n<p>Contact us directly online for an <strong>immediate response<\/strong>, or <a href=\"https:\/\/www.italiafideiussioni.it\/sedi\/\">call one of our nearest offices<\/a>. <strong>Tel. +39 055 28.53.13 \u2013Tel. +39 02 667.124.17<\/strong><\/p>\n<p><strong>Email : <a>info@italiafideiussioni.it<\/a><\/strong><\/p>\n<h2><span style=\"font-weight: 400;\">How is the land seller protected?<\/span><\/h2>\n<p><b>The land seller, to further ensure the agreement&#8217;s respect and the delivery of the finished property by the builder, requires the builder to provide an insurance surety bond <\/b><span style=\"font-weight: 400;\">as additional security for the value of the exchange. This ensures that should the builder be unable to meet the contractual agreements, the company authorized to issue the insurance surety bond under the law will guarantee on behalf of the builder and compensate in his place.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You can also write via <img decoding=\"async\" src=\"https:\/\/www.italiafideiussioni.it\/wp-content\/uploads\/2015\/04\/WhatsApp_Logo_6.png\" alt=\"\" width=\"33\" height=\"32\"> <strong>WhatsApp: +39 339.71.50.157<\/strong> send a message we will respond during office hours, <strong>within 5 minutes<\/strong><\/span><\/p>\n<p>Contact us directly online for an <strong>immediate response<\/strong>, or <a href=\"https:\/\/www.italiafideiussioni.it\/sedi\/\">call one of our nearest offices<\/a>. <strong>Tel. +39 055 28.53.13 \u2013Tel. +39 02 667.124.17<\/strong><\/p>\n<p><strong>Email : <a>info@italiafideiussioni.it<\/a><\/strong><\/p>\n<p><strong>Insurance Surety <\/strong> in Real Estate Exchange:<\/p>\n<p><strong>Protection and Security <\/strong><\/p>\n<p>The surety in the real estate exchange offers protection to the owner of the transferred land, ensuring the realization and delivery of the properties as stipulated in the contract.<\/p>\n<p>It serves as a safeguard for the property to be constructed and delivered by the builder to the land seller. This tool <strong>guarantees the integrity and proper realization<\/strong> of the real estate units, protecting the interests of the seller of the buildable lot.<\/p>\n<p><strong>The insurance surety<\/strong> provides an additional level of security to the landowner. It is up to the latter to decide whether to use the <strong>insurance surety<\/strong>. <\/p>\n<p>In most cases, it is an insurance company that provides such a guarantee, intervening in case of non-realization by the construction firm and compensating the landowner if necessary.<\/p>\n<p><strong>How to protect yourself when buying a house under construction, even if it involves an exchange?<\/strong><\/p>\n<p><strong>Here are 7 tips from italiafideiussioni.it<\/strong><\/p>\n<p>Buying a house under construction can involve some risks. Here are the essential steps suggested by italiafideiussioni.it to ensure a secure transaction:<\/p>\n<ol>\n<li><strong>Verify the reliability of the builder<\/strong>: Analyze the history and financial stability of the construction company.<\/li>\n<li><strong>Demand the surety<\/strong>: Essential to protect the buyer, it must be provided by a recognized bank or insurance company. The surety, mandatory by law, must follow the ministerial format. In case of problems, all the amounts paid will be returned to you. Without a surety, the contract loses validity.<\/li>\n<li><strong>Sign the contract at a notary<\/strong>: Ensure that the preliminary contract is drafted with the help of a notary and that it is transcribed according to recent regulations.<\/li>\n<li><strong>Request the decennial post-completion insurance<\/strong>: This tool covers any construction defects for a decade, thus protecting the buyer.<\/li>\n<li><strong>Know your rights in case of bankruptcy<\/strong>: Current laws protect the buyer, preventing the auction sale of a house under construction without considering the buyer.<\/li>\n<li><strong>Consider the Solidarity Fund<\/strong>: In case of problems, you can turn to the Ministry of Economy&#8217;s Solidarity Fund, designed to support those who have suffered real estate bankruptcies.<\/li>\n<li><strong>Rely on industry professionals<\/strong>: Always consult experts and intermediaries who, updated on the latest regulations, will offer you valuable advice to avoid scams and pitfalls.<\/li>\n<\/ol>\n<h3><\/h3>\n<h3>What is a Real Estate Exchange?<\/h3>\n<p>Based on Article 1552 of the Civil Code, a real estate exchange can be described as &#8220;the contract in which there is a mutual transfer of property between two parties.&#8221; In essence, it is a real estate barter where no money is exchanged.<\/p>\n<h3>Types of Exchanges and Involved Parties:<\/h3>\n<ol>\n<li><strong>Pure Exchange<\/strong>: In this case, both properties have the same value, and no money is exchanged.<\/li>\n<li><strong>Exchange with Adjustment<\/strong>: If the properties have different values, the party offering the less valuable property should add a sum to balance.<\/li>\n<li><strong>Direct Exchange<\/strong>: A transaction between private individuals.<\/li>\n<li><strong>Exchange with a Builder<\/strong>: Purchase of a property under construction in exchange for giving another property to the builder.<\/li>\n<\/ol>\n<h3>Benefits of Real Estate Exchange:<\/h3>\n<p>Compared to classic buying and selling, real estate exchange can offer <strong>significant savings.<\/strong> These advantages include:<\/p>\n<ul>\n<li>Payment of only one registration tax.<\/li>\n<li>Single notarial act, reducing costs.<\/li>\n<li>In pure exchanges, there is no exchange of money nor the need for a mortgage.<\/li>\n<\/ul>\n<h3>Costs and Taxes in Real Estate Exchange:<\/h3>\n<p>The taxes in an exchange are similar to those of a sale. The registration tax varies between 2% and 10% depending on the circumstances. Other taxes, such as the land registry and mortgage taxes, are fixed, while some taxes are zeroed out if the transaction occurs between private individuals.<\/p>\n<div class=\"flex-shrink-0 flex flex-col relative items-end\">\n<div class=\"text-xs flex items-center justify-center gap-1 absolute left-0 top-2 -ml-4 -translate-x-full gizmo:top-1 gizmo:-ml-6 invisible\"><\/div>\n<\/div>\n<div class=\"relative flex w-[calc(100%-50px)] flex-col gizmo:w-full lg:w-[calc(100%-115px)] agent-turn\">\n<div class=\"flex-col gap-1 md:gap-3\">\n<div class=\"flex flex-grow flex-col gap-3 max-w-full\">\n<div class=\"min-h-[20px] flex flex-col items-start gap-3 whitespace-pre-wrap break-words overflow-x-auto\">\n<div class=\"markdown prose w-full break-words dark:prose-invert dark\">\n<p><strong>Real estate exchange with a builder: is it worth it?<\/strong><\/p>\n<p>The benefit here is that you can give up an old apartment and receive a new one. However, the builder might value your old apartment slightly less than its market value because they might not be able to sell it immediately. One downside is that more taxes are paid than in a private exchange. Some taxes include:<\/p>\n<ul>\n<li>Mortgage and land registry fees (400 euros);<\/li>\n<li>Stamp duty;<\/li>\n<li>Other mortgage-related taxes;<\/li>\n<li>Special cadastral taxes;<\/li>\n<li>Cadastral control for both properties;<\/li>\n<\/ul>\n<p>If we are talking about primary residences, the registration tax is 2% on the more expensive house. If one or both properties are second homes, it&#8217;s 10%.<\/p>\n<p>&nbsp;<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Do you have buildable land and want to profit from it? You might want to sell it to a construction company. It might happen that the company does not have the necessary funds to pay you. What can you do in this case? To settle the amount owed to you, the construction company proposes owning [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":6645,"parent":7445,"menu_order":3,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"_yoast_wpseo_focuskw":"","_yoast_wpseo_title":"Real estate exchange with builder | Italy Sureties | Italia Fideiussioni","_yoast_wpseo_metadesc":"Italia Fideiussioni issues surety policies to guarantee the builder's real estate exchange to protect the land seller - Estimate in 2 hours","_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_canonical":"","_yoast_wpseo_opengraph-title":"","_yoast_wpseo_opengraph-description":"","_yoast_wpseo_opengraph-image":"","_yoast_wpseo_opengraph-image-id":"","_yoast_wpseo_twitter-title":"","_yoast_wpseo_twitter-description":"","_yoast_wpseo_twitter-image":"","footnotes":""},"class_list":["post-7469","page","type-page","status-publish","has-post-thumbnail","hentry"],"acf":{"blocco_testimonianze":"2"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - 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