The requirements for purchasing a property in Malta differ on the property type and also its location.
These generally include the following;
A Promise of Sale commonly referred to in short as a ‘POS’ or as better known in maltese a ‘Konvenju’, is signed between the Buyer and Seller once the price and conditions have been agreed between all parties. The POS is generally written in English and valid for 3 or 6 months, binding both parties to the agreed terms of the property purchase. This is normally signed in the presence of a Notary. The signing of the Final deed (contract) is subject to a clear property title and the issuance of the relevant permits as applicable.
A deposit of 10% of the total price is normally paid on the Promise of Sale which can be held by a Notary or paid directly to the Sellers, together with a 1% stamp duty which is paid to the Malta Government / Inland Revenue Department. This deposit will be forfeited in favour of the Seller should the Buyer/s fail to complete the final deed for no valid legal reason.
Stamp Duty equivalent to 5% of the total price is to be paid on the final contract (of which 1% would is paid at the POS stage).
Notarial Fees range between 1% and 3% which include property searches fees. The Notary is responsible for drawing up the property contract (representing the buyer) whilst also ensuring a clear title to the property.
An EPC (Energy Performance Certificate) needs to be obtained from an assessor and registered with the Building Regulation Office before being issued to the person who commissions it. The certificate is presented and attached in the Final Contract.
All of the above are handled by the Purchaser, whilst the Brokerage Fee is paid by the Seller.
During the course of a Promise of Sale, due diligence is carried out on both parties, whilst ensuring proof of funds for the property purchase is from legitimate activities.
Can I get a Home Loan?
Yes, local banks provide Home Loans provided that purchasers are able to demonstrate a stable income in a workplace. Here at Buy Property we are able to facilitate this process for you by scheduling appointments at the major local banks lending departments.
If you are unsure of the process involved in acquiring a new property, do not hesitate to contact us.