From Renting to Owning: The Rent to Buy Agreement under Italian Law

A rent to buy agreement (known under Italian law as a contract for the use of property with a view to its subsequent transfer) allows a prospective purchaser to take immediate possession of a property while postponing the purchase to a later date under terms agreed in advance by the parties.

This legal arrangement, governed by Article 23 of Decree-Law No. 133/2014, converted into Law No. 164/2014, provides a practical solution for individuals who are unable or unwilling to purchase a property immediately.

For example, a prospective buyer may need additional time to obtain mortgage financing, or may prefer to finance only part of the purchase price through a mortgage and pay the remaining balance directly over a period of three or four years.

Under a rent to buy agreement, which is generally intended to last longer than an ordinary residential lease, the prospective purchaser takes possession of the property immediately.

During the occupancy period, the occupant pays a periodic amount consisting of two components:

• one portion is consideration for the use and enjoyment of the property;

• the other is credited, in whole or in part, towards the future purchase price.

  
  

If, at the end of the agreement, the occupant exercises the contractual right to purchase the property, the amounts credited towards the purchase price are deducted from the final amount due.

If the occupant decides not to proceed with the purchase, the amounts paid on account of the purchase price may be refunded, depending on the contractual provisions agreed by the parties and the applicable legal rules.

For the seller, a rent to buy agreement provides an opportunity to market the property while retaining appropriate legal safeguards. For the prospective purchaser, it offers greater flexibility in planning the investment and the opportunity to assess the property before completing the purchase.

Registration of the agreement in the Italian Land Register provides significant legal protection, making the agreement enforceable against third parties and protecting the prospective purchaser against certain events that may adversely affect the property.

Careful drafting of the agreement is essential to clearly regulate the rights and obligations of the parties, the allocation of payments, the conditions for exercising the right to purchase and the consequences of any breach of contract.

A rent to buy agreement can therefore be an attractive legal solution for both parties.

However, as with any contractual arrangement, it also involves legal risks, making appropriate legal advice highly advisable before entering into the agreement.

Milan, 13 July 2026

Avv. Giovanni Babino