Price retention at closing to secure condominium expenses

When, at closing, condominium expenses remain not yet quantified, such as an incoming settlement or works approved but not invoiced, the buyer can protect themselves by holding part of the price as security. The retention is an agreement by which a sum is set aside and released only when the expenses are defined and settled. It is a practical and common tool in real estate sales, which reduces the buyer's risk without unduly penalizing the seller. Let us see how it works.

What the retention is for

The buyer is jointly liable to the condominium for contributions of the current year and the previous one. If, at closing, uncertain expenses attributable to the seller exist, the buyer risks having to pay them and then chasing the seller for recourse. Holding a share of the price avoids this risk: the sum stays available until the expenses are clarified, and from it the coverage is drawn.

The retention is useful above all when the figures are not yet final at the time of the deed, for example because the report for the current year has not been approved or because an extraordinary intervention is approved but not yet invoiced.

Typical situations

The retention is justified in the presence of expenses not yet certain in amount or attribution. Some recurring cases help to understand when it makes sense to provide for it.

• Settlement of the current report not yet approved
• Extraordinary works approved but not yet invoiced
• Pending condominium litigation with possible future charges
• The seller's arrears being quantified
• Works fund installments still to be called in

How the clause is structured

The clause must state the amount retained, the reason for the retention, the release conditions and the deadline by which the sum is freed. It is essential to specify to whom the sum goes if the expenses materialize, to whom it returns if they do not, and who verifies the fulfillment of the conditions, usually on the basis of the manager's certificate.

The retained amount must be proportionate to the actual risk, without exaggeration: a disproportionate retention penalizes the seller without real justification. A manager's statement listing the uncertain expenses and their likely amount helps to set a reasonable figure.

Who holds the sum

The retained sum can stay deposited with the notary, who releases it upon the occurrence of the agreed conditions. Deposit with an impartial third party offers guarantees to both sides: the seller knows the sum is bound and not at the buyer's free disposal, and the buyer knows it is set aside to cover the expenses. Alternatively, the parties can agree on other forms of security, but the escrow deposit is the safest solution.

It is wise to define the release instructions clearly, so that the depositary knows exactly when and to whom to deliver the sum, preventing the retention itself from becoming a source of dispute.

Releasing the sums

The release happens when the expenses are defined. If the uncertain expenses materialize and were the seller's responsibility, the sum serves to pay them or to reimburse the buyer who advanced them. If they do not materialize within the agreed deadline, the sum returns to the seller. The key moment is the verification, which must rest on objective documents, typically the manager's certificate or report.

A well-calibrated deadline is important: too short risks expiring before the report is approved, too long needlessly keeps the seller's sum bound. It must be proportionate to the foreseeable time to define the expenses.

Safeguards for the seller

The retention must not become a tool to compress the price. The seller protects their interests by demanding a proportionate amount, a defined release deadline and objective verification criteria. The seller too has an interest in the expenses being clarified quickly, because the sooner they are defined, the sooner the sum is recovered.

Certain figures for a fair retention

A fair retention rests on a reliable estimate of the uncertain expenses: expected settlements, approved works, pending litigation. When the manager has up-to-date reports, tracked resolutions and certificates on the status of payments, the parties can set the amount and deadline on solid grounds, holding neither too much nor too little.

AmministraPro provides statements on the status of payments, fund overviews and a history of resolutions that help to estimate the uncertain expenses, so seller and buyer can calibrate the closing retention on reliable figures. The features are described on the /funzioni page, while the available plans are listed on /prezzi.