top of page

Preliminary sale and purchase agreement null if the collateral guarantee is lower than the deposit

According to the Italian Supreme Court (decision no. 19510/2020 dated 18 September 2020), the preliminary sale and purchase agreement regarding a real estate building under construction is null and void if the collateral guarantee, to be provided by the vendor to the purchaser according to art. 2 of Legislative Decree no. 122 of 20 June 2005, has been issued for an amount lower than the sums paid by the purchaser as a deposit without the works having been completed.

In fact, in case of sale of real estate building under construction, Article 2 of Legislative Decree no. 122 of 20/06/2005 provides that the builder, when the preliminary contract is entered into, is obliged to issue a collateral guarantee for an amount equal to the deposit paid by the purchaser under penalty of nullity of the contract.

For further information please email to

10 views0 comments


bottom of page