When the Dream of a Home Becomes a Bureaucratic Nightmare

The purchase of a property often represents the most significant investment in a person's life, a moment filled with expectations that can quickly turn into a situation of profound stress when unforeseen obstacles emerge. One of the most critical scenarios occurs when, after signing the preliminary sale agreement and paying the deposit, the bank revokes the mortgage approval due to hidden defects or urban planning irregularities found by the surveyor on the property. This situation not only prevents the deal from closing but also exposes the buyer to the concrete risk of losing the sums already paid and suffering further financial damages. As an expert lawyer in compensation for damages in Milan, I fully understand the anxiety and frustration that arise from having financing denied due to others' fault, risking the loss of a lifetime's savings due to discrepancies that the seller failed to disclose.

The Regulatory Framework: Seller's Liability and Buyer's Protection

Under our legal system, the seller is obligated to guarantee that the property sold complies with urban planning and cadastral regulations and is free from defects that significantly reduce its value or make it unfit for its intended use. When the bank refuses to disburse the mortgage following a technical appraisal that highlights building code violations, non-sanable discrepancies, or structural defects not disclosed during negotiations, contractual or pre-contractual liability on the part of the seller is established. According to the Civil Code, the seller must act in good faith during negotiations; failing to disclose crucial circumstances such as a building code violation constitutes a breach of this obligation. If the mortgage is denied due to causes solely attributable to the property's condition, the buyer cannot be considered in breach. On the contrary, it is the seller who has failed to provide a marketable property under the agreed terms. In such cases, the law provides specific remedies for the protection of the prospective buyer, ranging from contract termination due to non-performance to claims for compensation for all damages suffered, including the return of double the earnest money deposit paid, if applicable.

Studio Legale Bianucci's Approach to Property Damage Compensation

Avv. Marco Bianucci, an expert lawyer in compensation for damages operating in Milan, handles these delicate disputes with an analytical and strategic method aimed at the full recovery of sums due to the client. Studio Legale Bianucci's strategy begins with an in-depth analysis of all documentation: from the preliminary sale agreement to correspondence with the lending institution, up to the appraisal that identified the defects. It is crucial to demonstrate the direct causal link between the seller's failure to disclose the defects and the bank's denial of financing. The primary objective is to protect the client's assets by acting promptly to block any attempts by the seller to collect the deposit and, concurrently, initiating procedures to obtain fair compensation. Avv. Marco Bianucci's approach favors, where possible, a rapid and effective out-of-court resolution but guarantees a firm and competent defense in court if the opposing party refuses to acknowledge their responsibilities. In-depth knowledge of Milan's real estate dynamics and case law on property sales allows the firm to build solid defenses aimed at obtaining not only the return of funds paid but also reimbursement for ancillary expenses incurred unnecessarily, such as loan processing fees or agency commissions.

Frequently Asked Questions

Can I get my deposit back if the bank doesn't grant me the mortgage due to issues with the house?

Absolutely. If the mortgage denial is solely due to urban planning irregularities or property defects not disclosed by the seller, the seller is considered the non-performing party. In this case, you are entitled not only to the return of the deposit paid but often can claim double the amount if it was paid as a confirmatory deposit, in addition to potential compensation for further damages suffered.

What damages can I claim besides the return of the deposit?

In addition to the deposit, you can claim compensation for all direct expenses incurred unnecessarily in anticipation of the purchase. These may include loan application processing fees, bank appraisal costs, any fees paid to your own technicians, and, in specific cases, even the commission paid to the real estate agency, provided it can be proven that the agent was aware of the defects and did not inform the buyer. An expert lawyer in compensation for damages will be able to accurately quantify the recoverable damages.

What happens if the seller claims they were unaware of the defects?

The seller's good faith or ignorance regarding the defects often does not exempt them from liability. Those who sell a property are legally responsible for the absence of hidden defects and the property's urban planning compliance. If the defects are such that they prevent the mortgage disbursement and thus the closing of the deal, the seller is still liable for objective non-performance, being required to return sums received and compensate the buyer for damages incurred after legitimately relying on the validity of the deal.

Does the real estate agency have any responsibility in these cases?

The real estate agency has a duty to inform the parties of circumstances known to them, or that they should have known with ordinary diligence, which may affect the conclusion of the deal. If the real estate agent was aware of the discrepancies or if these were easily discoverable by a professional in the sector and were not communicated, the agency could also be held professionally liable and may be required to compensate for damages or return the commission.

Request a Case Evaluation

If you find yourself in a situation where the mortgage has been revoked due to structural or bureaucratic problems with the property and you fear losing your deposit, it is essential to act quickly. Avv. Marco Bianucci, an expert lawyer in compensation for damages in Milan, is available to examine your documentation and outline the best strategy to protect your savings. Contact Studio Legale Bianucci at via Alberto da Giussano 26 for professional advice and to understand how to obtain fair compensation for the damages suffered.