Buyers Guide

Buyers Guide

While looking to purchase a property in Malta or Gozo it is best to get your financial affairs in order before you begin your search. You will also need to engage the professional services of a Notary Public, an Architect, and preferably a Lawyer. You will, if you need a mortgage, have this in place prior to searching.

What We Require From You

When looking to view any of our properties it is important for us to pass on the correct information to our vendors.  Information such as what type of buyer you are.  Do you still have a property for sale? Are you a first time buyer for example.  We shall collect details from you that create your own customer record on our database.   This information is not shared in any way, but rather allows us to inform you of any changes in buying processes, offers on first time buyer stamp duty relief and if necessary to explain about the A.I.P Certificate.  We do however, inform the owner as to the type of buyer you are – if for example you have not sold a property but wish to make an offer; that decision to accept your offer is based on information about your own status. Further details that we require of a viewer is:

  • Name of all Parties involved with Purchase:
  •  I.D Number/s of all parties involved with Purchase:
  •  Email Address of all parties involved with Purchase:
  •  Contact Number of all parties involved in Purchase:
  •  Do You have A Property To Sell? Yes or No?
  •  Have You Signed A Promise Of Sale On Your Property? Yes or No?
  •  Are You A First Time Buyer? Yes or No?
  •  Do You Have Your Sanction Letter Approval From Bank if required? Yes or No?
  •  Are You an E.U. Citizen Holding an E.U. Passport?

Making an Offer

Typically the offer process is thus;

  • If you have found your property, your agent will submit an offer to the seller agent or direct to the owner themselves.
  • Property in Malta is typically overpriced as there is a common practice of ‘adding on’ agent fees to the asking price. We do not engage in that practice at SanMartin.properties.
  • The owner may reject any initial offer, but that is where you agent steps in and helps with any negotiation.
  • The offer can be done verbally or in writing – but has no official binding contract until a ‘promise of sale’ otherwise known as a ‘Konvenju’ has been signed.

Promise Of Sale (Konvenju)

  • Once your offer has been accepted it is advisable to arrange the Promise of Sale to be signed as soon as possible. You the buyer, choose the Notary, and the process will be carried out at their office. All parties meet at the signing, the owner, any heirs or anyone else connected to the transaction including your agent.
  • The Notary will expect certain documents from the owner to be presented at this stage – namely any deeds that represent their own acquisition.
  • It is during the konvenju, that any conditions are stated, payment details, completion dates etc.
  • The Promise of Sale (Konvenju) is legally binding with an initial validity period of around 90 days.
  • During this period the Notary is carrying out searches, dealing with any permits that may be required and investigating the line of acquisition.
  • As a buyer you will have certain payments to make at this initial meeting. Crucially a sum of 10% of the sale price, this is normal practice in Malta, and is generally held in escrow by the Notary. There is also a 1% fee to be paid to the Inland Revenue, this is to cover the provisional duty – the outstanding paid at the time the final deed is settled.
  • You will need you I.D card or passport with you at this meeting.

In The Mean Time

  • You would have got in touch with an Architect, and they will inspect the property for you and assist you with providing the Notary with a copy of the Land Registry Plan. Your Notary will need to see this.
  • If you have a bank loan then the bank will expect to see a Home Insurance document covering the property.
  • See that any conditions you have requested (if any) are being seen to by the current owner.

Final Deed

  • The property is transferred into your ownership
  • All final balances are to be paid on the day
  • If a mortgage/loan provider is involved then final signing is done at their headquarters.
  • If no financial institution is involved then the Final Deed signing is carried out at the Notary Office.
  • The outgoing owner will present all utility bills paid and up to date.
  • If there is any ground rent then that too will be paid up t date.
  • Thereafter the Notary will register the contract with the Land registry, generally in a time frame of 15 days.

Costs Involved

  • Stamp Duty: In Malta is calculated at 3.5% for the initial €150K of purchase price.Thereafter 5% for any remaining – IF this is a primary residence.
  • First Time buyers are now entitled to stamp duty relief of the first €5000  (This has been extended into 2016)
  • Ground Rent: If applicable.
  • Registration Fees: These are dependent on the value of the property you have purchased and start at €59 for a property in the selling bracket of €69,000 – €93,174.
  • Notary Fees: These fees are now in Maltese Law and are issued according to notary Guidelines. At an estimate they will fall between 1.5% and 2.5%

If you have any other questions relating to the purchase of property in Malta please do not hesitate to contact us.