When property is to be purchased and the price and conditions have been decided and agreed a preliminary agreement of sale is signed between the vendor and the purchaser on terms and conditions agreed upon and subject to good title and issue of any relative permits to purchase. On signing of the preliminary agreement a deposit of 10% of the price is lodged with Vendor or Legal Advisor or Notary or Estate Agent. This agreement is usually valid for 3 to 6 months and should the purchaser fail to conclude or complete the final agreement for valid reason at law the deposit will forfeit in favour of the vendor. During the agreed time by both parties the Notary will undertake and carry out all the necessary research of the property to confirm good title as well as submit the necessary applications to purchase to the relative Government Departments. Once all the necessary permits have been issued and researches have proved clear title to the property, the final contract of sale may be settled. The total balance (full price) of the purchase price plus legal expenses and stamp duty are paid on the signing of the contract and vacant possession is given by the vendor on contract. The agreements and contracts are normally written in English or Maltese. Within 3 weeks of signing the promise of sale agreement, the Notary will register the said agreement with the Commissioner of Inland Revenue and pay 1% of the sale price on account of Duty due by the purchaser on the final deed of sale.
The Notary will also carry out researches on the property and verifies clear legal title, assuring that there are no outstanding debts, hypothecs or liens on the property.
The purchaser must honour all the conditions mentioned in the promise of sale agreement such as that the bank application for loan and ascertaining that the property is covered by a building permit etc.
When the property being purchased is to be used as purchaser’s ordinary place of residence, stamp duty is charged at 3.5% on the first €150,000 and 5% on the remaining value.
Any other property purchase, Stamp Duty is charged at 5% on the total value of the property. No Stamp Duty is charged on the value of the movable property (furniture and fittings) being transferred with the immovable property.
a. Approximately 1% / 2% Notary fees.
b. Lawyer’s fee (Only if required- approximately 1% / 5%).
c. Searches, registrations etc (approximately € 600).