Newsletter - A landmark decision of the Italian Supreme Court of Cassation on the valid transferability of Italian buildings
On 22 March 2019, the Italian Supreme Court of Cassation issued the decision no. 8230 which addresses the validity at law of the transfer of a building not fully compliant with the relevant building permits.
From a commercial standpoint this is a landmark decision which confirms the validity of the transfer even if the building is materially non-compliant with the building permit, so long as a building permit has actually been issued and such building permit has been mentioned in the deed of transfer.
This will significantly simplify due diligence activities (at least where the scope of the due diligence is limited to the validity of the transfer) and will allow greater reliance on the validity of transfer agreements.
See an analysis on the topic by our Real Estate Business Unit