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Buying Property for Maltese Nationals
Buying Property for Maltese Nationals
   
Services to Buyers  

We at 1 STOP Property Services will help you step by step of the way before, during and after the property sale in all aspects of the property purchase including the searching, negotiating, financing, finishing, furnishing and moving in your newly acquired property.  Our goal is to provide a personalized and professional, hassle free, fully comprehensive service (1 STOP shop), at the very best value to all our clients through our  network of professional business partners, associates,  suppliers , service providers , and contacts  who have been chosen over the years for their excellent standards, reliability and integrity .

  • We will show you a number of properties that meet your requirements and are within your price range
  • We will help you negotiate the best possible deal to achieve a successful sale
  • We shall inform you about related laws and proceedings should you require
  • We will liaise with architects, notaries and legal advisors, financial and tax consultants, on your behalf in order to conclude the property sale at the most favorable conditions
  • We will assist you should you require bank finance.
  • We promise to do whatever we can to help you make your property transaction as smooth as possible.

Should you require additional information please contact us

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Buying  Procedures  

Purchasing a property is one of the most important decisions you will ever make. It is important to know your rights and limitations. It is therefore advisable to seek professional advice to help you step by step on the way to make the best possible investment.
Before you start looking for property, consider the following:

  • What size of property do you require for the immediate future?
  • Where are you used to living, your life style and where would you prefer to live?
  • Services, transport, amenities, schools, churches etc.
  • What is your budget and how will you finance your purchase?
  • What type of property do you like?
  • Any hobbies that require extra space.
  • The above points must be related to your affordability, values and, necessities.

We at 1 STOP Property Services will help you step by step along the way before, during and after the property sale in all aspects of the property purchase including the searching, negotiating, financing, finishing, furnishing and moving into your newly acquired property.
Once you have chosen the property and a verbal agreement is reached with the owner, confirm the following points before a promise of sale agreement (preliminary agreement) is entered into:

  • The price
  • If the property is Freehold or if it has any Ground Rent (Perpetual or Temporary)
  • If any fixtures, fittings, furniture or other extras are included in the price?
  • What are the Payment Terms?
  • Are there any works that have to be completed by the owner?
  • Are there any conditions on the promise of sale (e.g. Subject to Bank loan, building permit, architect’s approval etc.)

Once the above points are clear and agreed on by both parties, a notary public is appointed (normally chosen by the Purchaser) and the promise of sale agreement (preliminary agreement) can be drawn up. The promise of sale agreement MUST contain all the points previously agreed on and listed above.

  • The Deposit - Usually the deposit, on account of the purchase price, is the equivalent to 10% of the purchase price, paid on the promise of sale agreement (preliminary agreement). Note that  earnest (kapparra) is not a deposit on account of the purchase price and therefore is less binding as neither party can oblige the other to appear on the final deed of purchase. The penalty in this case is only limited to the sum of the earnest (kapparra)
  • Term - When will the definite deed (contract) be signed? A promise of sale agreement is only valid for three months unless otherwise agreed upon 
  • The deposit ,on account of the purchase price, is forfeited in favour of the vendor if  the purchaser does not appear on the definite deed (contract) without a valid reason at law

During the term of the promise of sale agreement (preliminary agreement) and the definite deed ( contract), ALL  the parties concerned must fulfill all their  duties and obligations as stated on the promise of sale agreement (preliminary agreement).

  • The Notary (engaged by the purchaser) must register the said promise of sale agreement (preliminary agreement) within 3 weeks of its  signing with the Commissioner of Inland Revenue and deposit 1% of the property purchase price on account of Duty on Documents due by the purchaser on the definite deed of sale (contract). (In the event that the deal falls through, then the provisional 1% stamp duty paid by the purchaser on the promise of sale agreement (preliminary agreement) will be refunded in full.
  • The Notary carries out all the necessary searches on the property and verifies clear legal title, to check 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 eg. Bank loan applications, building permit applications, architect’s approval etc. within the specified time frames as listed on the promise of sale agreement (preliminary agreement).
  • The vendor on his part must also honour all the conditions listed in the promise of sale agreement, applicable to him/ her/ them  e.g. (completion of works) as agreed upon within the specified time frames as listed on the promise of sale agreement (preliminary agreement).

Once all the above conditions of the promise of sale agreement (preliminary agreement) have been completed, the parties get together to sign the definate deed (contract). The normal procedure is as follows:

  • If a bank loan is required for the purchase, the definite deed (contract) is signed at the bank.
  • The definite deed (contract) is read out to all parties concerned and if ALL is in order all the parties sign it. 
  • The balance due on the definite deed (contract) i.e. the purchase price less all the money already paid on account, is paid to the vendor.
  • The vendor settles any outstanding amounts concerning the property e.g. water, electricity, telephone etc. 
  • The Vendor hands over the keys of the property to the purchaser.
  • The notary public registers the contract at the public registry (and the land registry if applicable). 

Duty on Documents on the purchase price must be paid to the Commissioner of Inland Revenue less the 1% Duty on Documents which would have already been paid on the signing of the preliminary agreement. Additionally to this the Notarial fees and other expenses are payable. These would normally be in the range of 1% - 1.5% in total.

If the property being purchased is to be used as purchaser's primary residence, then the Duty on Documents applicable is 3.5% on the first Lm 50,000 (€ 116,469) and 5% on the remaining balance
For ALL other types of property purchase, the Duty on Documents applicable is 5% on the total value of the property.

No Duty on Documents is applicable on the value of the movable property (furniture and fittings) being transferred with the immovable property.

Please note that this is only general information about Buying Property in Malta and is not to be deemed as the definite procedure for all transactions. Certain cases are more complex and require further knowledge and expertise, for the transaction to go smoothly, obviously depending on the particular situation. The majority of people only purchase a property a couple of times in their lifetime, while notaries and estate agents go through these procedures on a regular basis. We strongly advise that you make use of the services of a professional real estate agency and a competent notary public to avoid misunderstandings and possibly faulty decisions on one of the biggest investments of your life.

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Bank Loans  
  • Maltese Nationals & Foreign Nationals  alike may obtain finance from local banks for the purchase of immovable property 
  • There is no set minimum or maximum amount
  • You can borrow up to 90% of the purchase price or completion costs
  • Monthly Repayments up to 30% of your total gross income from salary and other sources
  • Flexible loan repayment terms of up to 40 years
  • Finance is provided by local banks against the security of the property itself.
  • Interest rates on home loans in Malta compare very favorably and are very competitive with interest rates in other countries.
  • Local banks treat Maltese Nationals & Foreign Nationals alike in relation to lending criteria.

Should you require any further information about locals Banks please contact us

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