General Buying Procedure
Once a property has been selected and we have negotiated a price agreement, along with any special conditions, between you and the seller, an appointment is set to sign the Preliminary Agreement or what is commonly known as the 'Konvenju' or 'Convenium' or'Promise of Sale'. This is essentially an agreement binding both the purchaser and the vendor to conclude the transaction within an established date (term of Konvenju) subject to a set of conditions. A Notary is appointed by verbal agreement between the two parties, and a sale agreement is drawn up. This should include any conditions of sale by either party.
On agreement to the terms of contract and signing of the 'Konvenju' you will be required to pay 1% provisional stamp duty as part payment of the full 5% which the balance is due on signing of the final deed and an agreed deposit which is generally 10% in such circumstances. It is advisable therefore to ensure that you have the necessary funds lodged directly with the Notary's client account in Malta, some days prior to the signing of the Konvenju. Failure to do this may jeapordise or delay the signing.
During the 'Term of Konvenju':
- The Notary Public carries out the necessary searches to verify legal title and to ensure that there are no outstanding debts, hypothecs or liens on the property. These 'searches' should not be confused with searches carried out during property sales in the UK and other countries, which may be more extensive.
- If an AIP (Application for Immovable Property Permit) is required, then the Notary will make the application on your behalf. Typically this takes between 2-4 months, which is often the reason for preliminary agreement terms with non-Maltese citizens being set for a minimum 3 months in duration.
- The Vendor will complete all special requirements e.g. complete any outstanding works, as agreed with buyer and/or as specifically stipulated in the konvenju.
- The Purchaser should complete all the special requirements e.g. organise any bank loan, check on building permits, etc. as agreed upon with seller and stipulated in the konvenju.
During this entire period we are always available to guide and assist in any queries, concerns or issues the client or the vendor may have in relation to completing the contract. We have very good relationships with all the leading banks on the island and can also assist you in setting up meetings with the bank of your choice.
Once all the above requirements have been completed by all parties concerned, a date is set for the actual signing of the Final Deed. This can also be before the end of the 'Term of Konvenju' if both parties agree. The contract signing will usually take place at the office of the Notary Public or at a venue jointly agreed by the buyer and seller. If a bank loan is involved to secure the property, then the signing will take place at the relevant Bank's premises.
The final deed is read and agreed upon and the balances due will be paid accordingly. Theses are; balance of the selling price to the vendor; the balance due to the Commissioner of Inland Revenue for stamp duty as well as between 1.5 and 2% Notary fees to the Notary Public. The keys to the property are then handed over and you become the new owner of the property. The Notary public registers the contract with the Public Registry.