At NotGreedy, we don’t compromise on service when it comes to guiding our clients through the buying process. We know that buying a home is one of the most important decisions you’ll ever make, and we’re here to help every step of the way with guidance and advice. Here’s a quick summary of how property is bought and sold in Malta.
Once a buyer decides on a property they would like to buy, the first step towards securing the purchase is to sign a promise of sale agreement with the seller before a notary public. At this stage it is a good idea to discuss certain topics and establish the facts clearly so that all parties are in agreement about things like:
Other conditions such as payment methods and whether the agreement shall be subject to the buyer obtaining a bank loan or even subject to certain permits being issued by MEPA.
Once the promise of sale is signed with the notary, the notary then registers the agreement with the Commissioner of Inland Revenue together with 1% provisional tax (collected from the buyer on the promise of sale). The notary will then begin carrying out the necessary background checks on the seller and the property during the validity period of the promise of sale leading up to the final contract. During this period, the buyer is encouraged to carry out all other requirements with his/her architect as well as with the bank if a bank loan is being taken. The seller is also encouraged to carry out the EPC (Energy Performance Certificate) for the property which is required by law.
Once all of these important details have been finalised, the notary contacts all the parties involved - buyer, seller and agent - and schedules an appointment for the final contract to be signed. If a bank loan is being taken by the buyer, the final contract will take place at the bank’s legal office. The contract is then read out by the notary to the parties and once everyone is satisfied, the contract is signed and the balance of payment, tax, notarial fees and expenses and any agency fees are settled. At this stage, the buyer and seller may sign any forms regarding the transfer of services in the property such as water and electricity and the keys are passed on from seller to buyer. The notary then registers the contract with Public Registry within 21 days from signing.