Buying a home under construction: how to check the builder and protect your deposits
Updated to
In short: if you are buying a property still to be built from an individual, art. 2 of D.Lgs. 122/2005 requires the builder to deliver to you, when you sign the preliminary contract, a bank or insurance guarantee equal to the sums you pay before the deed of sale. Without it, the contract is void and only you can invoke this. Before signing, also check the builder.
Is the builder's guarantee mandatory?
Yes. Under art. 2 of D.Lgs. 122/2005, when you sign a contract that leads to the non-immediate transfer of a property still to be built, the builder must deliver to you a guarantee equal to the sums already collected and those it will collect before the deed of sale. If it is missing, the contract is void, and only the buyer may invoke the nullity.
The conditions, according to the text in force on Normattiva as of October 2026:
- Buyer is a natural person (art. 1).
- Property to be built: building permit required, but construction not yet at a stage that allows occupancy certification (agibilità) (art. 1).
- Permit requested after 21 July 2005, the date the decree came into force (art. 5).
- Sums excluded: those disbursed under the contract by the lender granting your mortgage, and public contributions already secured by an independent guarantee (art. 2).
It cannot be waived: any contrary clause is void (art. 5, para. 1-bis). It is issued by a bank or an insurance company (art. 3), in accordance with the standard model of the Ministerial Decree of the Ministry of Justice of 6 June 2022, no. 125. Check the issuer: for IVASS, an insurer may issue guarantees only if authorised for the "cauzione" (surety) class; for banks, the Bank of Italy's "Albi ed elenchi di vigilanza" (supervisory registers and lists) service is available.
What happens to deposits if the builder fails?
If the builder enters a "situazione di crisi" (state of crisis), you can call on the guarantee and recover the sums actually paid, with statutory interest (art. 3 of D.Lgs. 122/2005). The state of crisis includes seizure of the property and insolvency procedures: bankruptcy (now liquidazione giudiziale, judicial liquidation), preventive composition with creditors (concordato preventivo), compulsory administrative liquidation, and extraordinary administration.
- In the case of seizure, you call on the guarantee after notifying the builder that you withdraw from the contract.
- In the case of an insolvency procedure, if the officer of the procedure has not notified that it intends to take over the preliminary contract.
- The demand must be made to the guarantor in writing, with proof of payments, by registered letter with return receipt; the guarantor must pay within thirty days of receipt.
What is the ten-year insurance and when must it be delivered to you?
It is a ten-year indemnity insurance policy for your benefit, which the builder must deliver to you at the deed of sale, on pain of nullity that only you may invoke (art. 4 of D.Lgs. 122/2005). From the completion of the works it covers material and direct damage to the property from total or partial collapse or serious construction defects.
The minimum content is set out in the standard model of Decree no. 154 of 20 July 2022 (Official Gazette no. 247 of 21 October 2022). If the policy does not arrive, you may withdraw and call on the guarantee from the date on which the notary certifies that he or she has not received it (art. 4, para. 1-ter). These rules, introduced by the Business Crisis Code (D.Lgs. 14/2019) and in force from 16 March 2019, apply to building permits requested or submitted after that date (art. 5, para. 1-ter).
What must the preliminary contract for a home to be built contain?
For building permits requested after 16 March 2019, the preliminary contract must be concluded by public deed or notarised private agreement, that is, before a notary, and must state, among other things, the technical specifications, the maximum duration of the works, the price and payments, the details of the guarantee, mortgages and the building permit (art. 6 of D.Lgs. 122/2005).
| Protection | What it provides | Provision |
|---|---|---|
| Guarantee | Covers sums paid before the deed of sale; delivered on signing the preliminary contract | arts. 2-3 |
| Ten-year insurance | Damage from collapse or serious construction defects; delivered at the deed of sale | art. 4 |
| Form of the preliminary contract | Public deed or notarised private agreement | art. 6, para. 1 |
| Content of the preliminary contract | Technical specifications, works deadlines, price and deposit, guarantee, mortgages, building permit; attached specifications | art. 6 |
| Mortgage on the property | The notary does not execute the sale unless the mortgage loan has first been split or a title has been perfected to cancel or split the mortgage or seizure | art. 8 |
| Non-waivability | Any contrary clause is void | art. 5, para. 1-bis |
How do you check a builder before signing?
The guarantee applies once the builder is already in crisis; to decide whether to sign, you need the public data on it: the Registro Imprese extract, the filed accounts, protests, insolvency proceedings, shareholders and directors. These are facts with source and date, not forecasts, and they should be read together.
- Company registry extract (registroimprese.it): date of incorporation, registered office, directors, registered insolvency proceedings; company name and VAT number must match the preliminary contract.
- Filed accounts: net equity compared with share capital and the date of the last filing. A newly incorporated company has no accounts: that calls for more caution.
- Protests: in the Registro informatico dei protesti of the Chambers of Commerce, visible for five years.
- Shareholders and directors: who stands behind the company, and whether protests or proceedings are recorded against them.
- Mortgages: through a mortgage search at the Agenzia delle Entrate; see prejudicial entries at the land registry: examples.
If instead you are commissioning works from a contractor, the rules are different: see how to check a building contractor. For deposits outside this decree, the logic is that of any deposit paid to a supplier.
What should you ask the notary before the preliminary contract?
The notary drafts the preliminary contract in the form required by the decree: it is worth asking him or her to confirm the technical points, namely that the guarantee conforms to the model, the mortgages, the building permit and the ten-year insurance at the deed of sale. This guide does not replace the opinion of a notary or of a lawyer on your contract.
- Does the guarantee cover all sums I will pay before the deed of sale, including any deposit, and does it conform to the standard model?
- Are there mortgages or seizures on the property, and when will they be split or cancelled?
- Has the building permit already been issued or only applied for?
Verifica report at €19 or Decisione at €49 for a builder?
The Verifica report (€19) covers the financial side of these checks: protests, insolvency proceedings, beneficial owner, shareholders and directors, signals from the accounts, and the comparison between the sum you are about to pay and the estimated operating credit line. Decisione (€49) adds properties registered to the company in the Catasto, offices held and shareholdings of shareholders and directors in other companies, and reclassified accounts.
No report monitors the progress of the site or verifies the guarantee: these remain your responsibility and that of the notary.
Frequently asked questions
Is the builder's guarantee mandatory?
Yes, if you are buying a property still to be built from an individual. Art. 2 of D.Lgs. 122/2005 requires the builder to deliver to you, on signing the preliminary contract, a bank or insurance guarantee equal to the sums paid and to be paid before the deed of sale. Without it, the contract is void and only you can invoke this; you cannot waive it.
What happens to deposits if the builder goes bankrupt?
You can call on the guarantee and recover the sums actually paid, with statutory interest (art. 3 of D.Lgs. 122/2005), unless the officer of the insolvency procedure has notified that it intends to take over the preliminary contract. The demand must be made to the guarantor in writing, with proof of payments, by registered letter with return receipt; the guarantor must pay within thirty days.
Must the preliminary contract for a home to be built be drawn up by a notary?
Yes, for building permits requested after 16 March 2019: art. 6 of D.Lgs. 122/2005 requires a public deed or a notarised private agreement. The preliminary contract must state, among other things, the technical specifications, the maximum duration of the works, the price and payments, the details of the guarantee, mortgages and the building permit.
What is the ten-year insurance for a home to be built?
It is a ten-year indemnity insurance policy for the buyer's benefit, which the builder must deliver at the deed of sale on pain of nullity (art. 4 of D.Lgs. 122/2005). From the completion of the works it covers material and direct damage to the property from total or partial collapse or serious construction defects. The standard model is in Decree no. 154 of 20 July 2022.
How can I tell whether a builder is reliable?
With public data: the Registro Imprese extract, the filed accounts (net equity and date of the last filing), protests, insolvency proceedings, shareholders and directors. These are facts with source and date, not forecasts. The Verifica report (€19) gathers protests, proceedings, shareholders and signals from the accounts, and compares the sum you are about to pay with the estimated operating credit line.
Want to check a specific company?
Credit limit, beneficial owner and warning signs, in minutes.
Check the builder from €19The service is in Italian.