ITALY Law and Practice Contributed by: Guido Alberto Inzaghi, Ivana Magistrelli, Silvia Gnocco and Gabriele Paladini, SI – Studio Inzaghi
6.23 Remedies/Damages for Breach In the event of a tenant breach and termination of the lease, landlords may hold the cash deposit (which, save for large leases, cannot be higher than three monthly instalments of rents) and/or enforce the guarantee. In addition, landlords may seek for further dam - ages (eg, loss of profit and reputational dam - ages) to be ascertained before a court and/or provide in the lease agreement for specific pen - alties. 7. Construction 7.1 Common Structures Used to Price Construction Projects The most common structures are as follows: • a guaranteed maximum price to be deter - mined based on an open book approach, except for variations; • a price determined on the basis of separate prices for certain works, and the overall final price is determined upon the completion of works; or • a cost plus fee basis, where the price is determined on an open book basis plus a pre-agreed fee. 7.2 Assigning Responsibility for the Design and Construction of a Project Landlords might decide to enter into separate agreements for design and construction, and relevant liabilities will remain with the appointed contractor, except in the case of any necessary variations. 7.3 Management of Construction Risk It is market practice to insert penalties to be paid by the contractor in case of delay. Regarding the
fied grounds. Large leases can deviate from this provision. 6.19 Right to Terminate a Lease Leases include a specific termination clause listing all events pursuant to which a landlord can demand termination. In any case, a tenant’s non-fulfilment of its obligations might allow the landlord to terminate the lease. A tenant has the right (according to the final paragraph of Article 27 of Law 392/78) to with - draw at any time from the lease agreement on the basis of “serious grounds” ( gravi motivi ) with six months prior notice. This provision can be derogated by the parties only in large leases. 6.20 Registration Requirements All leases have to be registered with the tax authority, and an annual registration fee equal to 1% of the passing rent must be paid. The regis - tration fee is usually paid equally by the landlord and the tenant. Certain leases that have a first term longer than nine years should be executed before a notary and registered with the Land Register so that they can be opposed to all third parties. 6.21 Forced Eviction If the tenant does not comply with the obliga - tions arising from lease, the landlord can termi - nate the lease and seek eviction. This is a court process, the duration of which changes on a court-by-court basis. 6.22 Termination by a Third Party A lease can be terminated by a third party only in cases of compulsory procedure, and an indem - nity is payable.
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