Reform on the circulation of donated properties

The reform that radically modifies the rules regarding the circulation of donated real estate, contained in Article 44 of the Simplifications Bill, has been definitively approved. This is a provision that has been awaited for over ten years by the National Council of Notaries and is considered by industry professionals to be a historic turning point, capable of eliminating one of the main causes of uncertainty in the Italian real estate market.

With this reform, those who purchase a property from a donation now finally have the certainty of not having to return it, putting an end to a situation that for decades has hindered sales, mortgages, and access to credit.

Why did the previous legislation create problems?

Before the reform, the Civil Code provided that, upon the death of the donor, the injured legitimate heirs (spouse, children, or, where applicable, ascendants) could bring an action for restitution against the donee or their successors. cause, that is, third-party purchasers of the property.

All this within ten years of the donor's death, even if the donation had been made many years earlier.

Anyone who purchased a property originally received as a gift risked losing it even after a long time, if an heir claimed it. Banks preferred not to grant mortgages on donated properties, which were considered precarious and unreliable as mortgage collateral. Donated properties were often difficult to market, discouraging sellers and potential buyers.

The result was a real estate market slowed by legal risks that were difficult to prevent, despite property surveys, notarial inspections, and insurance.

What changes with the new law?

The reform eliminates the possibility for injured legitimate heirs to take action directly against third-party purchasers. The action for reduction remains, but it becomes an exclusively monetary action, exercisable only against the donee.

The property can no longer be claimed by an excluded heir. The buyer becomes permanently protected and untouchable. The protection of the legitimate heirs is no longer guaranteed on the property, but through a credit towards the donee equivalent to the detrimental share of the legitimate portion.

This change structurally alters the relationships between heirs, donee, and third-party buyers, addressing the root of the historical uncertainty that has surrounded donated properties.

Concrete advantages for those who buy a donated property

Thanks to the new regulation, those who purchase a donated property no longer risk losing it in subsequent years. The "restitution nightmare" has thus definitively disappeared, often causing cancellations or requests for significant discounts.

Donated properties are once again perfectly marketable, with no need for specialized insurance, additional guarantees, or lengthy negotiations.

Banks will now be able to accept these properties without reservation as mortgage collateral, making it easier for young couples buying their first home, families with average incomes, and entrepreneurs in need of financing.

Costs are also reduced, as expensive insurance coverage is no longer necessary.

With the reform, the market gains stability and predictability. The absence of restitution risk will eliminate one of the main causes of slowdown in sales, generating positive effects on the volume of trade and the liquidity of household assets.

And the legitimate heirs? The protection remains, but it changes form

The reform does not eliminate the protection of injured legitimate heirs. It is simply remodeled. They can no longer sue to recover the property, but they can ask the donee for monetary compensation equal to the injured legitimate share.

Thus, the reform achieves two objectives:

1. protecting forced heirs
2. avoiding penalizing good faith purchasers

A balance that did not exist before.