Selling a home with works underway: the remaining installments

Selling an apartment while an extraordinary intervention is underway in the condominium, such as redoing the facade or the roof, raises a recurring question: who pays the installments still to be paid, the seller or the buyer? The answer depends on when the obligation arose, that is, on the resolution that approves the works, and on the parties' agreements. Without clear clauses, an open worksite is an almost certain source of disputes. Let us see how to structure the sale.

The obligation arises with the resolution, not the payment

The settled principle is that the duty to contribute to extraordinary expenses arises with the owners' meeting resolution that approves the intervention and its cost, not with the physical execution or the payment of the individual installments. Whoever was the owner on the date of the resolution is, toward the condominium, the party required to contribute, even if the installments fall due later.

If the resolution predates the sale, therefore, the obligation toward the condominium arose in the seller's hands. The remaining installments, although falling due after the deed, relate to an expense already approved when the unit was the seller's. This does not prevent the parties from agreeing otherwise between themselves, but it sets the starting point.

The role of the progress of works

In works underway, the condominium pays the contractor based on progress reports, and owners are asked for installments tied to that plan. The progress of works helps to picture what has already been done and what remains at the time of the sale, but it does not by itself shift the obligation, which stays tied to the resolution. It is nonetheless valuable data for quantifying the sums at stake and structuring the settlement.

Knowing the total amount approved, the installments already paid and the remaining ones lets the parties know exactly how much they are negotiating and write clauses consistent with the real figures.

Possible solutions between seller and buyer

Since the internal allocation is freely available to the parties, they can choose among various solutions, provided they are put in writing.

• The seller pays all installments for works approved before the sale
• The buyer takes on the remaining installments with a corresponding price reduction
• Installments are allocated based on the progress of works at the deed date
• Part of the price is held as security until the installments are settled
• The seller reimburses the share of the works fund already used for the intervention

Watch out for related tax incentives

When the works qualify for tax deductions, the sale also affects this aspect. In general, deduction installments not yet used follow the property and pass to the buyer, unless the parties expressly agree that they remain with the seller. It is a point to clarify in the deed, because the value of the remaining deductions can be significant and must be considered in setting the price.

For the specific tax aspects it is always advisable to consult a professional, but the sale must not overlook the fate of the deductions tied to the works underway.

Communicating to the manager

With an open worksite, the timely communication of the sale to the manager is even more important. The manager must know to whom to bill the remaining installments and how to record any agreements between the parties. Until the communication, the seller remains jointly liable to the condominium, so they could receive payment requests for the installments even after selling.

It is useful to attach to the communication a statement of the agreements reached on the installments, so that the condominium accounting reflects the parties' will and no requests are directed at the wrong party.

A practical example

Imagine a facade intervention approved in January, with ten installments, and the sale of the unit in June, when five installments have been paid and five remain. Toward the condominium, the obligation arose in the seller's hands with the January resolution. The parties may, however, agree that the buyer pays the five remaining installments by reducing the price, or that the seller settles them before the deed. What matters is that the choice is written and communicated to the manager.

Managing worksites and installments with always up-to-date data

Selling with works underway requires knowing at all times how much has been approved, how many installments are paid and how many remain, per unit. Well-kept accounting of extraordinary works, with the allocation plan and the status of payments, makes it easy to quantify the sums and write precise clauses.

AmministraPro keeps accounting of extraordinary works with the allocation plan, paid and remaining installments per unit and produces statements useful for the sale, so seller and buyer know the sums at stake with certainty. The features are described on the /funzioni page, while the available plans are listed on /prezzi.