Buying
A Property In Malta – 3 Easy Steps
•
Step 1 - Reserve Your Property
• Step 2 - Get Permission To Purchase
• Step 3 - Completion
Buying a property in Malta is a fairly simple process - although
it can sometimes seem to move quite slowly by UK standards,
sales are normally completed within three months of the initial
agreement.
Just as in most European countries, a Notary (public solicitor)
is required to oversee the legal proceedings although it can
be a good idea to have a solicitor of your own check over any
contracts.
There are some restrictions on what property foreigners can
buy in Malta; if you are buying a flat / apartment,
it must be worth at least Lm 30,000, while for houses
the minimum value is Lm 50,000.
These
restrictions are intended to prevent locals from being priced
out of the market.
Step 1 - Reserve Your Property
Once you've found a property and agreed a price with the seller,
you and the seller will both have to sign a preliminary agreement,
known as a convenium (konvenju). This sets
out the terms and conditions of the sale, including the dependence
on the search and survey results being satisfactory.
You will be required to pay a 10% deposit at
this point - this will normally be paid to the Notary
and held in trust until completion.
Step 2 - Get Permission To Purchase
In Malta, foreign non-residents have to apply for permission
to purchase a home on the island. Although this may sound scary,
in reality it is purely a formality for British buyers, and
your Notary will take care of this for you.
This application should be made as soon as your preliminary
contract has been signed, as it can take a little time for the
paperwork to come through.
At the same time, your Notary should also initiate all searches
and checks on the property, to allow plenty of time for these
to be carried out.
This stage can take up to three months - the reason for this
limit is that the preliminary purchase agreement (convenium)
is normally only valid for three months. After this time, the
contract is void and the seller is allowed to keep your deposit
as a payment for their wasted time.
Step 3 - Completion
Once all the searches and checks relating to the property have
been completed, you can move straight to completion.
This
is a fairly standard process, requiring you, the seller and
your Notary to get together and sign the contract of sale.
Your notary will be responsible for registering this sale and
you will be required to pay all the closing costs of the sale
at this time. It is wise to budget around 10% of the property's
value for closing costs, which typically include:
- 5%
Stamp Duty
- 1%
Notary's fees
- 1%
Legal fees (if you have an independent solicitor)
- £500-£1000
in search and permit fees
Throughout the buying process, all contracts are in English and
virtually everyone in Malta speaks good English, so you should
not experience any language problems.
Read
On
•
Introduction
• Buying A Property
In Malta – 3 Easy Steps
• Should I Get A
UK or Maltese Mortgage?
• Getting
A Mortgage In Malta
• Other Things To
Consider Before Buying In Malta
• Glossary of Key
Maltese Terms
Buying
Overseas Property and Mortgages