Going about buying a property

Once you've found a property you want to invest in and have agreed price and conditions with the seller, standard procedure in Malta is for a preliminary agreement of sale, or convenium, to be signed. The agreement is drawn up by a notary, and lays out all terms and conditions agreed. It is binding on both parties, and it is normal for a deposit of 10% of the agreed price to be paid at this stage along with 1% of the sinal stamp duty owed to the Government.

This promise of sale agreement specifies the date for the final contract of sale to be signed, usually three months later. During that period, the notary engaged by the purchaser will carry out any research necessary to acertain that the vendor holds good and valid title to the property being sold. If any documentation or applications for the purchase of property need to be submitted to the Ministry of Finance or other authorities, it is done during this period as well.

If the buyer fails to sign the final agreement of sale and complete the purchase without a valid reason, he or she loses the deposit. Equally, if the vendor decides to abort the sale, again without valid reason, the buyer gets the deposit back.

Once the vendor and purchaser, after clear title has been established and any necessary permits obtained, sign the final deed of sale, then the balance of the agreed price is paid, along with all taxes and fees, listed below.

Costs, duties and fees due from the purchaser: Stamp duty 5% of price paid

Notary's fees 1% of price paid (approximately)
Title research and registration €233 (approximately)
Ministry of Finance fees €233 (approximately)

Brokerage fees due to the estate agent are usually paid by the seller.

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