Real Estate Expropriations After the Cartabia Reform: What Actually Changes

If you've been following real estate auctions in Italy over the past few years, you'll have heard about the Cartabia reform. But beyond the name, what actually changes for those looking to buy property at auction or who find themselves involved in enforcement proceedings? The changes are concrete — from the possibility of a direct sale of seized property to the creation of a national auction database — but their practical effects largely depend on how individual courts are implementing them.

In this guide we analyze the four main innovations introduced by the reform in real estate enforcement, compare the before and after with a detailed table, and examine the real impacts for debtors, creditors, and buyers.

The regulatory framework: where the reform originates

The Cartabia reform of civil procedure is based on Legislative Decree no. 149 of October 10, 2022, which entered into force (for the enforcement part) on February 28, 2023, applicable to proceedings commenced after that date. Two key accompanying measures are:

• The corrective decree (Legislative Decree no. 164 of October 31, 2024), effective November 26, 2024, which supplements and corrects various aspects of civil enforcement.
• The implementing decree on the database (Ministerial Decree no. 99 of July 11, 2023), governing the operation of the judicial auction database.

The entire framework sits within the National Recovery and Resilience Plan (PNRR) context, with an ambitious stated goal: reducing the disposition time of civil justice by 40% by June 30, 2026 (compared to the 2019 baseline).

How it worked before: the "classic" model

Before the Cartabia innovations, real estate enforcement followed a well-established sequence: enforceable title and formal notice (precetto) → seizure with registration → case enrollment → expert valuation → hearing under art. 569 CPC → sale order and advertising → auction and award → transfer decree → distribution of proceeds.

The enforcement judge was the central figure, assisted by the judicial custodian and the professional delegate for sales. Two aspects of the "before" are particularly relevant for understanding the "after":

• No codified direct sale mechanism within the proceedings: any "off-auction" solutions were purely negotiated/atypical arrangements, outside the code's model.
• Greater emphasis on formal requirements: the executory formula (formula esecutiva) and service in executory form played a more significant role in practice.

The four innovations of the Cartabia reform

The reform intervenes on four main axes in real estate enforcement. Let's examine each one.

1. Direct sale (arts. 568-bis and 569-bis CPC)

This is the most significant change. The debtor can now initiate a sale "directed" to a specific buyer, at a price no lower than the appraised value, by filing a petition with a deposit. The mechanism is designed to preserve competitiveness and creditor protection:

In practical terms, the direct sale can reduce the number of auction attempts and price reductions when a ready buyer exists and the price aligns with the appraisal. However, it can also generate contested sub-phases (admissibility, opposition, bidding competition) requiring efficient judicial management.

2. Electronic asset search (art. 492-bis CPC)

Legislative Decree 149/2022 rewrote art. 492-bis CPC on the electronic search for assets to seize, redefining the prerequisites and contents of the petition (including references to certified email — PEC — and qualified electronic delivery services). The 2024 corrective decree further refined specific provisions.

The practical effect is an acceleration of the asset investigation phase and greater standardization of information flows. For creditors, this means being able to direct enforcement action toward the most efficient asset, reducing information asymmetry and limiting proceedings initiated against assets of little value.

3. Abolition of the executory formula and title digitalization

A systemic change: for the purposes of forced execution, it is no longer necessary to affix the executory formula or to serve in executory form. The 2024 corrective decree reinforces the "digital" approach by requiring that enforceable titles be issued as certified true copies or digital duplicates.

For real estate enforcement, this eliminates bureaucratic friction (releases, formulas, paper duplications), although the quantitative effect on timelines is not codified by law and must be measured on a case-by-case basis.

4. Judicial auction database

Legislative Decree 149/2022 established a database of judicial auctions at the Ministry of Justice, containing identifying data of bidders, accounts used for deposits and prices, and expert valuation reports. The implementing regulation is Ministerial Decree no. 99 of July 11, 2023.

The impact is twofold: enhanced traceability (including for anti-money laundering purposes) and analytical and monitoring capability for auction dynamics at the national level.

Comparative table: before and after the reform

Here's a summary comparison across all key areas:

Practical impacts: what changes for auction buyers

For those participating in real estate auctions — private buyers, investors, professionals — the Cartabia reform has concrete effects on several fronts:

Greater transparency. The judicial auction database and the standardization of information flows make the entire process more accessible and traceable. For those searching for auction properties, this means being able to rely on more structured and verifiable information.

New competitive dynamics. The direct sale introduces an alternative channel to the traditional auction. As a buyer, you might find properties awarded without going through a public bidding process — but you might also find yourself competing with an offer already submitted by the debtor, which becomes the "benchmark" to beat.

Potentially faster proceedings. The abolition of the executory formula, the digitalization of titles, and the electronic asset search tend to reduce "dead time" in proceedings. However, be aware: the law does not set mandatory deadlines for the overall duration of enforcement. The effect on timelines depends on the efficiency of each individual court.

What about expropriation for public utility?

A necessary clarification. Expropriation for public utility — where the public administration acquires private property for public purposes — remains governed by Presidential Decree 327/2001 (Consolidated Expropriation Act). The Cartabia reform does not directly modify it.

The phases remain unchanged: preliminary designation, declaration of public utility, determination of compensation (provisional and final), possible emergency occupation, expropriation decree, possession, and registrations.

The most significant evolution in this sector has been jurisprudential, not legislative:

• Constitutional Court no. 348/2007: compensation criteria cannot be "too distant" from the property's value, due to obligations arising from the ECHR (via art. 117 of the Constitution).
• Constitutional Court no. 181/2011: unconstitutionality of the criterion based on the average agricultural value (VAM) for non-buildable areas, due to lack of reasonable connection with market value.
• Constitutional Court no. 71/2015: aspects of the "remedial acquisition" discipline (art. 42-bis of the Consolidated Expropriation Act), when the public administration has transformed the property without a valid expropriation title.

These principles affect valuation, compensation, and the owner's defense strategy, but have no connection to the Cartabia reform.

The flow of real estate enforcement today

Here's how the real estate enforcement process is structured in its post-reform configuration, highlighting "new" decision points:

The critical decision point is phase 6: before the reform, only path 6b existed (auction); now the debtor can activate path 6a (direct sale), potentially leading to a faster award and a price that avoids the successive markdowns of traditional auctions.

Key regulatory references

For those who want to dig deeper, here's the map of sources:

• Legislative Decree 149/2022 — Cartabia reform implementation in civil procedure (effective from 28/02/2023)
• Legislative Decree 164/2024 — Corrective decree (effective from 26/11/2024)
• Ministerial Decree 99/2023 — Judicial auction database regulation
• Art. 568-bis CPC — Direct sale
• Art. 569-bis CPC — Direct sale procedures
• Art. 492-bis CPC — Electronic search for assets to seize
• Art. 560 CPC — Custody arrangements
• Art. 591-ter CPC — Appeal to the enforcement judge (internal remedies)
• Presidential Decree 327/2001 — Consolidated Expropriation Act (unchanged by the Cartabia reform)

If you're considering buying property at auction, the reform doesn't change the fundamental approach: carefully read the CTU expert report, verify urban planning and cadastral compliance, calculate ancillary costs, and bid with a clear strategy. What changes is the context: more digital tools, greater traceability, and a new option (the direct sale) that can alter price dynamics for certain properties.

On Aste Florio you can explore thousands of auction properties across Italy, with expert report information already organized, an interactive map to search in your area, and advanced filters by type and price range. The right tool to turn regulatory changes into concrete opportunities.