4 STAGES of buying a home in Malta ( Plus Bonus )

We wanted to break down in quick easy digest what the critical stages are in home purchases on the Maltese islands.

1. Budget & Requirements

The first thing to do is identify what you require and how much can afford to spend.

Do you want a sea view in a modern apartment or are you after a House of Character in a quiet village?

Head over HERE to search through our latest available properties.

It’s best to be very clear about your requirements from the start. If you need a mortgage then now is the time to speak to your bank or mortgage advisor. Once you have a mortgage offer you are then in a strong buying position.

2. Viewings

The buying market is very competitive in Malta so we advise an early viewing to secure that ideal home.

Our agents will do everything possible to ensure you see a property within the quickest time frame, even chauffeur you there and accompany you throughout.

We like to be on hand during viewings to answer any questions and to negotiate any difficult areas.

3. Making an Offer

Once you’ve decided on a property and your offer has been accepted the next stage is the signing of a ‘Preliminary Agreement’ between the buyer and the seller.

This agreement is often referred to as the ‘Convenium’ or ‘Konvenju’ in Maltese or ‘Promise of Sale’, and binds both parties to the transaction based on a set of mutually agreed terms and conditions.

The Preliminary Agreement is usually valid for three months and after the signing (but before entering into a final deed of sale), a Notary would be engaged by the buyer to carry out the necessary searches into the property to confirm everything is in order before proceeding.

It is at this stage that 1% of the 5% total stamp duty fee is payable to the Inland Revenue and a 10% deposit is paid by the buyer. The remaining 4% of the stamp duty will be paid with the publication of the final deed.

Also, note that the 1% of stamp duty will be refunded if the final deal fails to materialize and that the deposit agreed on during the signing of the Preliminary Agreement will be handed over to the seller if the buyer does not sign the final deed without a valid reason at law.

The following terms must be agreed before the Preliminary Agreement is signed:

• Price

• Ground Rent

• Features included in the price

• Payment terms

• Works to be undertaken by the owner

• Terms of Preliminary Agreement / Promise of Sale

Note: In Malta, the agreements and contracts are always written in English.

4. Final Contract of Sale (Final Deed)

Once all the conditions of the Preliminary Sale agreement are complete and all duties fulfilled, all parties get together to sign the final deed.

It is the responsibility of the Notary to draft the final deed and prepare it for signature. The normal procedure is as follows:

• The final deed is often signed at our office or at the bank if a mortgage is required by the buyer.

• The final contract is read out and if both parties agree to the terms and conditions the contract will be signed.

• Time to pay the balance (the purchase price less any deposits paid on account) to the seller.

• Both parties must now confirm that they have settled all expenses in relation to the purchase and property.

• The keys of the property are then exchanged.

• The contract will now be registered at the Public Registry by the Notary.

5. Protection

Since you are now well on your way to becoming a homeowner, then it’s more than likely that you will need home insurance to give you some financial protection in case something goes wrong.

Whether it’s a fire or high winds, the outcome can be terrible, and so it’s imperative to have yourself covered under such circumstances. You will find that most home insurance policies will cover some amount of accidental damage to buildings. For instance, what if someone were to accidentally crash a car into your home? Under a basic policy, something like this would normally be covered. However if that isn’t enough, you can always pay an additional premium to have a greater level of coverage.

For that, we think it's best you speak to our friends over at Max Insurance Brokers who will find you the best cover at the best price, whilst meeting your specific requirements.