Okay, I’ve analyzed the provided text regarding compensation for preliminary real estate damage. Here’s a breakdown, summarizing the key points adn extracting the actionable advice:
Summary of the Article
The article dissects a recent Italian court case (court of Milan, n. 2992 of 08/04/2025) concerning a failed real estate purchase proposal and the subsequent claim for damages. The prospective buyers (“spouses S.”) sued the prospective sellers (“spouses V.”) after the sellers backed out of the deal.The buyers sought compensation for various expenses and emotional distress. The court ultimately rejected the buyers’ claims due to a failure to adequately prove the damages and a direct causal link between the sellers’ actions and the claimed losses. Additionally, the court found one of the buyers (the wife) lacked active legitimacy because she wasn’t a party to the preliminary contract.Key takeaways & Advice
Burden of Proof is Critical: you must prove (1) the existence of a valid preliminary contract, (2) the damage you suffered, and (3) a direct causal link between the other party’s breach and your damages.
Documentation is essential: Keep meticulous records of everything:
Contracts
Receipts for expenses (agency fees, moving costs, etc.)
Bank statements showing actual payments
Correspondence
Medical certifications if claiming emotional distress affecting one’s health.
Prove the Extent of the damage: It’s not enough to just say you incurred a cost. You must prove the amount. In the case described, the buyers couldn’t prove they paid a higher price for a replacement property as the actual purchase price was identical.
Establish Causation: Show that the damage would not have occurred but for the breach. For example, the court noted the moving expenses would have incurred anyway.
“Equitable” Damage Awards are Rare: The court can only estimate the damage if proof of the damage exist, and if the exact amount cannot be proven as it is indeed arduous to quantify.
Active Legitimacy (Critically important for Spouses/Partners):
Ensure all intended buyers are named parties in the preliminary contract, or use a “per person to be appointed” clause (Selection Friends).
If a “per person to be appointed” clause is used, strict formalities must be followed: the appointment must be in the same form as the contract, and the appointed person must explicitly accept the role.
Contractual, Not Pre-contractual Liability: Once a preliminary contract is signed, any liability arising from a breach is contractual, not pre-contractual.Actionable Advice (Paraphrased for Clarity)
- Before Signing a Preliminary Contract:
Consult with a real estate lawyer before signing anything. They can help you structure the contract to protect your interests,including clear clauses outlining potential damages in case of breach.
Ensure all parties who intend to purchase the property are correctly listed on the contract. If not, properly utilize and execute the “per person to be appointed” clause with explicit acceptance from the appointed party.
- If a Breach Occurs:
Immediately consult with a real estate lawyer.
Gather all documentation to support your claim for damages.
be prepared to prove:
The validity of the preliminary contract.
The specific damages you suffered (with receipts and proof of payment).
A direct causal link between the breach and your damages.
* Be realistic about your chances. If you lack solid documentation, your claim is unlikely to succeed.
In essence, the article is a cautionary tale emphasizing the importance of thorough documentation and professional legal advice in real estate transactions, especially when dealing with potential breaches of preliminary contracts. The court case underscores that a simple claim for damages is not enough; you need concrete evidence to support your claims.
