Transfer decree: timescales, costs and what happens after the award

By the addicta editorial team · 12 min read · 231 reads

The transfer decree is the order of the enforcement judge that transfers ownership of the asset from the debtor to the successful bidder (art. 586 c.p.c.). It is not a notarial deed: it is a judicial order, issued ex officio after the balance of the price has been paid. It is the moment you become the owner for all purposes. Between the award and the decree there is a sequence of steps with precise timescales, costs and obligations. Knowing them in advance avoids surprises and lets you plan the overall budget of the operation.

Post-award timeline

The steps after the award follow a set order. Each step has its own timescale and depends on the completion of the previous one.

Notice of the award. The professional delegate notifies the person who submitted the bid, the debtor and the creditors of the outcome of the auction by PEC. Notice is given within a few days of the close of the auction. From this moment the deadline for paying the balance of the price starts running. The provisional award report is the document that identifies you as the successful bidder and that you will use to start the subsequent procedures (mortgage, first-home tax benefits, quotes for works).

Payment of the balance of the price. The successful bidder must pay the difference between the award price and the deposit already lodged within the deadline stated in the bid, which in any case cannot exceed the maximum set by the judge in the sale order (usually 120 days, 60–90 in some courts). Payment is made by bank transfer to the procedure’s IBAN notified by the professional delegate, with the exact payment reference indicated by the delegate. Keep the transfer receipt: it is proof of payment and the delegate needs it to certify the payment to the judge.

Filing of documents. Once the payment of the balance has been verified, the professional delegate prepares and files with the judge the documents needed to issue the decree: award report, certification of payment of the balance, updated cadastral certificates, a copy of the appraisal. This step can take 10–20 working days.

Issue of the transfer decree. The enforcement judge examines the documents and issues the decree. Timescales vary from 30 to 90 days from payment of the balance, depending on the court and its workload. Some courts are particularly quick (20–30 days); others are slower (60–90 days or more). There is no peremptory legal deadline by which the judge must issue the decree, but the reform of civil procedure (Legislative Decree 149/2022) introduced incentives for speed.

Registration of the decree. The decree is registered in the land registers at the Conservatoria (today the Property Registration Office of the Revenue Agency). Registration makes the transfer enforceable against third parties. It is normally handled by the delegate or the court clerk. Registration is quick: 5–15 working days from the filing of the registration note.

Cadastral transfer. After registration, the cadastral transfer (voltura) updates the holder of the asset in the land registry from the debtor to the successful bidder. This too is generally handled by the delegate. Timescale: 10–20 working days.

In total, from the award to full ownership registered and transferred in the cadastre: from 2 to 7 months in most cases. The range is wide because it depends heavily on the speed of the specific court.

The balance of the price: timescales and method

The deadline for paying the balance is the one stated in the bid submitted through the PVP Web Form, which in any case cannot exceed the maximum deadline set by the judge in the sale order under art. 569 c.p.c. In most proceedings the maximum is 120 days from the award, but some courts set shorter deadlines (60 or 90 days). If the order sets 60 days and the bidder enters 120 in the Web Form, the binding deadline remains the one in the order. Always check the maximum deadline in the notice of sale before filling in the bid. Once submitted, the bid cannot be changed, and the deadline stated (or the one in the order, if shorter) is peremptory and cannot be extended. Settled case law of the Court of Cassation: no extension is allowed, not even for documented force majeure.

If you don’t pay the balance by the deadline, the consequences are serious. You lose the deposit paid. The judge issues a decree revoking the award (art. 587 c.p.c.). The asset is put back up for sale, and the former successful bidder is liable for any shortfall between the price of the first award and that of the subsequent one. In concrete terms: if you won at €200,000 and don’t pay, and the asset is resold for €170,000, you must pay the €30,000 difference on top of the deposit already lost.

If you buy with a mortgage loan for a court auction, the 120 days cover the entire bank process: valuation, approval, signing, disbursement. That is why it is essential to start talking to the bank before the auction, not after.

The balance is paid by bank transfer to the procedure’s IBAN. The professional delegate provides the IBAN and the exact payment reference to use in the transfer. Don’t use generic references: the delegate must be able to match the payment to the specific procedure.

The transfer decree: what it contains and what it orders

The transfer decree (art. 586 c.p.c.) is a short order but one with great legal effect. Its typical content includes:

1. The identification of the asset transferred (cadastral data, description, location).
2. The identification of the successful bidder (full personal details, tax code).
3. The award price and confirmation that the balance has been paid.
4. The order to cancel all mortgages, attachments, seizures and prejudicial registrations on the property.
5. The order to vacate the property, if occupied by the debtor or by third parties without an enforceable title.
6. The settlement of the procedural costs and of the professional delegate’s fee.
7. The taxes payable by the successful bidder.

The decree serves as the deed transferring ownership and constitutes the title for registration in the land registers, for the cadastral transfer and for any enforcement of the release order. No notarial deed is needed: the decree is sufficient for all subsequent formalities. A notary is only needed if you buy with a mortgage loan, to sign the loan agreement and register the mortgage in favour of the bank.

Purging of mortgages and cancellation of encumbrances

One of the structural advantages of buying at auction is purging (purgazione): the transfer decree orders the cancellation of all encumbrances registered against the property. Bank mortgages, mortgages of the Revenue Collection Agency (formerly Equitalia), judicial mortgages, attachments, precautionary seizures: they are all cancelled.

The cancellation is carried out by the land registrar at the request of the delegate or the court clerk, at no extra cost to the successful bidder (the costs of cancellation are borne by the procedure). The successful bidder does not have to do anything: cancellation is an automatic effect of the decree.

In practice, the actual cancellation in the registers may take a few weeks after the decree is registered. During this period, a mortgage register search may still show the old encumbrances. This is not a problem: the transfer decree is authoritative and the cancellation will take place. If you need a “clean” search for the mortgage or other purposes, ask the delegate about the status of the cancellation.

Excluded from cancellation are easements (rights of way, rights of view, aqueduct easements), planning and landscape restrictions, and third-party rights in rem that do not derive from mortgage registrations or prejudicial registrations. If the appraisal reports active easements, they survive the decree and burden the buyer.

A second exception, provided for by art. 586, paragraph 1, c.p.c., concerns mortgages securing obligations assumed by the successful bidder. This is the residual but legally provided-for case of a successful bidder who takes over the original mortgage loan secured on the property (typically in land credit under art. 41 TUB). In these cases the mortgage is not cancelled by the decree because it serves the credit relationship the successful bidder has chosen to keep. In ordinary real estate enforcement practice, taking over the loan is uncommon: the successful bidder generally asks for the full cancellation of pre-existing encumbrances and, if needed, registers a new mortgage to secure their own loan.

The practical result is that the asset reaches the successful bidder “clean”: no mortgages, no attachments, no seizures. Regardless of the debtor’s previous debt situation. This legal clean-up is an advantage that an ordinary sale does not offer with the same certainty.

Taxes and tax costs

The taxes payable by the successful bidder depend on the nature of the asset, the status of the buyer and the tax regime of the seller (which in enforcement proceedings is the debtor).

For sales subject to registration tax, it is possible, but not automatic, to apply the price–value system. Art. 1, paragraph 497, of Law 266/2005 was originally interpreted as not applicable to auction sales; its extension to public auctions was established by the Constitutional Court in ruling no. 6 of 23 January 2014. The option must, however, be exercised: the successful bidder must submit an express request for the price–value system, normally to the professional delegate before the transfer decree is issued. Without a request, the taxable base remains the award price. The personal and objective requirements are mandatory: a buyer who is a natural person not acting in the course of a business, artistic or professional activity; a residential property and its appurtenances; a transfer subject to registration tax (not VAT).

Where applicable, the taxable base is the cadastral value of the property (cadastral income × multiplier, 115.5 for a first home, 126 for other residential buildings) instead of the award price.

Example: a property with a cadastral income of €800, bought as a first home for €180,000, with a price–value request submitted. Cadastral value: 800 × 115.5 = €92,400. Registration tax: 2% of 92,400 = €1,848. Without the request, the tax would be calculated on the award price: 2% of 180,000 = €3,600. Difference: €1,752. Failure to submit the request cannot be remedied later.

First-home tax benefits also apply to auction purchases, under the same conditions as for ordinary purchases: the successful bidder must declare that they intend to take up residence in the municipality where the property is located within 18 months of the transfer decree and that they do not own other properties bought with first-home benefits in the same municipality.

In addition to taxes, the successful bidder pays part of the professional delegate’s fee. Art. 2, paragraph 7, of DM 227/2015 charges the successful bidder with half of the fee for the ownership transfer phase, plus the related overheads and the expenses actually incurred for registration, recording and cadastral transfer. The rest of the delegate’s fee (study and sale phases) is borne by the procedure and paid out of the proceeds of the award. The amount payable by the successful bidder is typically between €300 and €1,500, plus VAT, social security contributions and out-of-pocket expenses, depending on the award price and the complexity of the procedure. The actual settlement is contained in the transfer decree.

What you can (and cannot) do between the award and the decree

The period between the award and the issue of the decree is an operational grey area. You are not yet the owner, but you have a protected legal expectation.

What you can do. Start the mortgage application with the bank, presenting the award report. Ask for quotes for renovation work. Contact the custodian for information on the condition of the property. Prepare the paperwork for first-home tax benefits. Check planning and cadastral compliance with a technician. Contact the building manager to find out the status of the condominium charges.

What you cannot do. Enter the property if it is occupied (you need the decree with the release order). Start renovation work (you are not the owner and have no standing to apply for building permits). Let the property. Transfer the award to third parties, except in the limited case of a bid for a person to be named (to be exercised within 3 days of the award).

For the timescales of vacating an occupied property, the transfer decree is the necessary prerequisite: without a decree, there is no enforceable release order.

The sale method does not affect the post-award steps: whether the auction was synchronous, asynchronous, mixed or in-person, the timeline from the balance to the decree is identical.

Frequently asked questions

How long does it take from the award to the transfer decree?

It depends on the court. After the balance of the price has been paid, the judge issues the decree within a time that varies from 30 to 90 days. In courts with a heavy workload, it can take more than 90 days. In total, from the award to the decree: from 2 to 5 months in most cases.

Do I need a notary for the transfer decree?

No. The transfer decree is a judicial order of the enforcement judge and, under art. 586 c.p.c., it transfers ownership and constitutes the title for registration in the land registers and for the cadastral transfer, without the need for any additional notarial deed. A notary is only involved if the successful bidder buys with a mortgage loan, to sign the loan agreement and register the mortgage in favour of the bank.

Can I sell the property before the decree?

No. Ownership passes with the transfer decree. Before the decree, you can only transfer your position within the limits of naming a third party (a bid for a person to be named), if provided for in the original bid, and this must be exercised within 3 days of the award.

Are all mortgages really cancelled?

Yes. The transfer decree orders the cancellation of all mortgages, attachments, seizures and prejudicial registrations. The cancellation is carried out by the land registrar at the request of the delegate. Easements and restrictions that do not derive from mortgage registrations are excluded.

How are taxes on an auction purchase calculated?

For purchases subject to registration tax (the majority), the successful bidder can request the price–value system by submitting an express request to the delegate before the decree is issued: the taxable base becomes the cadastral value of the property instead of the award price. Without a request, the taxable base remains the award price. The option is only available for residential properties and their appurtenances and for buyers who are natural persons not acting in the course of a business or professional activity. The registration tax rate is 2% for a first home and 9% for other properties. For purchases subject to VAT (less frequent in enforcement proceedings), the taxable base is always the award price and the price–value system does not apply.

What happens if the judge delays issuing the decree?

There are no direct coercive tools to hurry the judge. You can ask the professional delegate for information on the status of the file. In the event of significant delays (more than 6 months after paying the balance), you can file an application with the judge through a lawyer to urge the issue of the decree.

Can I get the first-home tax benefits?

Yes, under the same conditions as for ordinary purchases. You must declare that you intend to take up residence in the municipality where the property is located within 18 months of the issue of the transfer decree and that you do not own other properties bought with the benefits. The registration tax rate drops from 9% to 2% of the cadastral value.

The transfer decree closes the judicial phase of the purchase. From that moment you are the owner, with all the rights and obligations that come with it. The complete procedure, from the first step to this point, is in the guide to buying at a court auction.