Commentary on Judgment No. 11574/2024: Price Clause in the Transfer of Surface Rights

The recent ruling No. 11574 of April 30, 2024, issued by the Court of Cassation, provides important clarifications regarding the validity of price determination clauses in agreements for the transfer of surface rights, particularly in the context of public and facilitated residential construction. This judgment serves as a reference point for industry professionals and citizens involved in contracts of this type.

The Regulatory Context

Law No. 865 of October 22, 1971, in Article 35, regulates the transfer of surface rights within the framework of public residential construction. The ruling in question fits into this regulatory framework, clarifying when a price determination clause may be considered null. In particular, the Court established that such nullity occurs only if the agreed price exceeds that established in the agreement between the builder and the local authority.

The Ruling's Principle

Agreement stipulated pursuant to Article 35 Law No. 865 of 1971 - Preliminary agreement between builder and buyer - Transfer of surface rights - Price determination clause - Nullity - Limits - Consequences regarding the ruling pursuant to Article 2932 of the Civil Code. In the context of public and facilitated residential construction, based on Article 35 Law No. 865 of 1971, the price determination clause for the transfer of surface rights, in the preliminary agreement between the builder and the prospective buyer, is null only in the case it exceeds the price established in the agreement between the same builder and the local authority, so that, if the contractual price is lower than the latter, the contract is valid and the transfer of property rights through a ruling pursuant to Article 2932 of the Civil Code must be subject to the payment of the remaining amount between what is indicated in the contract and what has already been paid.

Practical Implications of the Ruling

This ruling has several practical implications for the parties involved in a contract for the transfer of surface rights:

  • Recognition of the validity of the contract if the price is lower than that agreed upon with the local authority.
  • Clarity on the conditions for the validity of contractual clauses, reducing the risk of litigation.
  • Possibility of forced execution of the contract through a ruling pursuant to Article 2932 of the Civil Code, provided that the remaining amount is settled.

In this way, the Court of Cassation not only clarifies the existing legislation but also provides a more certain framework for builders and buyers, avoiding ambiguities and potential abuses in contracts for the transfer of surface rights.

Conclusions

In conclusion, judgment No. 11574/2024 represents an important step forward in the regulation of surface rights and in the regulation of transfer contracts in the public residential construction sector. The clarity provided by the Court of Cassation allows for better navigation in the complex world of construction agreements, safeguarding the rights of all parties involved and promoting legal certainty.

Bianucci Law Firm