Several notarized document

Comprehensive Guide to Expenses, Advantages, and Taxation of Multiple Notarial Acts

Concurrent and Aggregated Notarial Transactions

Requirements for registration, mortgage and cadastral taxes, and the process for involvement of the parties in a notarial contract.

When various legal dealings are amalgamated in a single record due to their interconnectedness by individuals or items, we refer to it as a multiple notarial transaction. It is a notarized paper that encompasses several autonomous legal transactions that could be carried out separately but are merged for convenience and efficiency.

In actuality, this format is applied when a single record encompasses multiple property transfers or agreements between different individuals and concerning various items, while each transaction retains its legal autonomy.

What Constitutes Multiple Transactions?

In the legal and fiscal domain, multiple transactions (or transactions with various legal dealings) are a sole document comprising several distinct orders or agreements.

This structure is commonly utilized in administrative law, particularly when a single document creates separate legal effects for different participants.

Instead of drafting numerous separate documents, the parties consolidate various objectives into a single transaction for simplification and convenience. For instance, in a family property reorganization, a parent may vend a house to one child who will concurrently swap a piece of land with their sibling.

Principal Characteristics

Unified Setting

All agreements are formalized in a singular notarial document and signed as part of a unified process.

Interconnected Transactions

Frequently, individual clauses are interlinked or result from one another. For instance, the property sale may necessitate the prior rectification of the former deed or the execution of an inheritance division.

Multiple Participants

A document might involve property transfers among distinct sellers and buyers, merging numerous transactions in a single notarial contract.

Taxation of Multiple Deeds

Tax concerns demand special focus. Insights on this subject are elaborated in the circulars issued by the Italian Tax Authority, including circular no. 37/1986 and circular no. 18/E of 2013, interpreting the regulations of Articles 21 et seq. of the D.P.R. 131/86 - Unified Text of the Law on Registration Tax.

Distinct Taxation

Normally, each transaction within a document is taxed individually, as an autonomous act. In case one seller conveys two properties to two different buyers, the registration tax is computed separately for each sale.

Principle of Essential Connection

If one transaction directly follows from another, either legally or inherently, the tax is levied only once - for the transaction with the higher rate.

Minimal Registration Tax

For real estate transactions subject to proportional tax, if the sum of the taxes for the individual transactions is beneath the established minimum, a fixed amount of €1,000 per document is applicable.

Mortgage and Cadastral Taxes

Mortgage and cadastral charges are calculated distinctly for each transaction. Nonetheless, for transactions subject to VAT, standard rates of €200 per tax are commonly imposed.

Definition of a Cumulative Deed

A cumulative deed is a singular document formalizing the transfer of multiple properties under a single notarial agreement.

While the term is occasionally interchangeable with a multiple deed, in notarial practice, it predominantly highlights the presence of multiple properties or participants being dealt with simultaneously.

Usage of a Cumulative Deed

This structure is primarily employed to save time and streamline document processing.

Sale of Diverse Properties

One seller transfers multiple apartments, warehouses, or land parcels to a single buyer.

Sale by Multiple Co-owners

Several individuals, such as heirs, simultaneously vend their shares or distinct items to one buyer, obviating the need for separate agreements.

Vehicle Sales

One document can document the sale of a company's vehicle fleet or several vehicles to one or multiple buyers.

Tax and Registration Aspects

From a taxation perspective, registration tax is typically calculated individually for each transaction within the deed. However, if the final sums fall below the statutory minimum, a unified flat fee is applied to the entire document.

Concerning registration, despite the singular nature of the deed, the notary is obligated to register each property separately in the official registries. This ensures the continuity of ownership records for each property and simplifies subsequent verifications.

Varieties of Notarial Acts

To gain a better grasp of the concept of a multiple notarial act, it is beneficial to explore the primary categories of notarial documents.

Classification by Form

Official Notarial Document

The document is entirely drafted by a notary, who affirms the declarations of the parties and ensures the legality of the transaction. This document holds the highest probative value and is archived in the notary's official records. Most property transactions are formalized in this manner.

Notarized Private Paper

The text can be prepared by the parties or third parties, and the notary verifies the signatures, confirming the identity of the signatories and the signing date. In this scenario, the notary is also responsible for ensuring the document's compliance with the mandatory legal provisions.