Buying Property

Purchasing a new property as a rental investment or permanent residence can be quite stressful. Michael Kyprianou (Malta) Law Firm can provide you with the necessary guidelines to make this process as easy as possible.

Once you agree on a price with the seller, a Promise of Sale Agreement has to be signed and filed with the Inland Revenue Department. This Agreement is valid for three months, or an agreed period of time and is binding both the buyer and seller of the property subject to certain conditions. These conditions will have to be agreed upon by both parties, and will determine whether any complications in the process are grounds for cancellation of the contract. It is normal for a notary to retain 10% of the property value as a deposit in favour of the seller, should the buyer decide not to purchase for any valid reason, the seller has the right to keep the deposit.

Upon signing the promise of sale agreement, the purchaser has to pay an amount equivalent to 1% stamp duty as part payment of the full 5 %payable upon the execution of the final deed of sale.

Once a final deed of sale is signed, the exchange of the property is concluded and the purchaser has to pay balance of the purchase price, the remaining 4% duty on the sale, fees due to the Notary Public, usually at 1%.

Michael Kyprianou (Malta) can draft, review or negotiate the Promise of Sale Agreement, to ensure your protection in case of any complicated matters, such as complications with Bank Loans, issues with the structure or legality of the property and MEPA permits.

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