Once we have assisted you in finding a property for sale in Malta, and made an offer to the seller which was accepted, and accepted, an appointment is set to sign a Preliminary Agreement / Promise of Sale, more commonly known in Malta as a “Konvenju”.
What is a 'Konvenju'?
A konvenju involves an agreement which binds the seller and purchaser to conclude the sale within a stipulated timeframe (term of Konvenju). However, an important procedure of the konvenju in Malta involves that all conditions of the terms laid down are met by both parties.
Property of sale duration
Between the Konvenju (promise of sale) and the deed of sale, a three-month gap is typical. In rare cases and situations, especially when serious issues are involved, the owner/seller and possible buyer may agree to prolong this term up to six months. This might arise when there are complications with a house loan, an inheritance, a structure that is still under construction or being completed, or land that is being sold pending building permission.
During this time, the notary will conduct searches on your behalf, legally examining the status of the property you are going to purchase. The notary will verify that it is free to be sold, that no legal duties exist to obstruct the sale, that the structure was erected in accordance with MEPA laws, that no pending debts are associated with it, and that it is not involved in any settlement dispute.
Relative documents will be developed with the goal of finalizing the deed of sale in the future. If an impediment to the sale is discovered, the notary will contact both the owner/seller and the buyer to negotiate and cancel the agreement.
To avoid issues post-contract of the promise of sale, it is essential that you speak with the owner about the settlement and transfer of all the property’s utility bills, as well as ensuring that he/she has paid all bills due. Officially, this cannot be done until you have taken possession of the property, so meet or instruct the property owner to go to Arms Limited to settle the bills the day before the sale is completed, so that when you sign the contract, they will show you the final receipt of payment to Arms Limited and you can both sign the transfer form provided by ARM Limited.
Promise of sale fees
Once the Promise of Sale has been signed by both parties, the buyer is to pay 1% provisional stamp duty (this is part payment of 5% of the balance due on signing of the final contract), and a pre-agreed deposit, which is usually circa 10%.
During the term of Konvenju
- The Notary carries out searches on the property in question. Ensuring that there are no pending payments, hypothecs or loans taken against the property. Aside from this, s/he will also verify the legal title of the property.
- Purchase will need to finalise what is required of him, as specified in the Konvenju, such as arrange for a bank loan, check building permits on the property, etc.
- The Seller will need to complete the property, also as specified in the Konvenju. This may include installation of kitchens/bathrooms; bringing the property from a shell state to a finished state, etc.
Once the terms stipulated in the contract are completed in the agreed timeframe (alternatively, both parties may agreed to extend the term of Konvenju), a date is set for both parties to sign the final contract.
This is usually done at the bank (should the purchase be financed by a loan), a notary public’s office or at one of our offices. The contract is read to both parties and signed if both are in agreement.
Any outstanding balance are settled at this point, including the remaining balance to the vendor, 1% notary fees to the notary public, and the balance due to the Commissioner of Inland Revenue for stamp duty. Learn more how to sell a property in Malta.
Signing the promise of sale contract
If you are receiving a loan from a Maltese bank, an appointment will be organized with your notary, the seller, and bank officials at your selected bank’s offices (typically in Valletta) where you will read the final deed together, make the appropriate payment, and receive the keys.
At JK Properties, we take every precaution to guarantee that selling your property in Malta is an easy process. Furthermore, given our expertise in Malta real estate, we make sure to assist you avoid any extra costs added to the knovenju. Irrelevant if you are a first-time or second time-buyer, extra costs that may be faced throughout the buying process include; legal fees, market prices, resell prices, and many more.
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