Whether you are Maltese and buying a property for the first time, or are relocating and purchasing a property, it is always advisable to seek the assistance of a reputable real estate agent, who will guide through the whole process and guide you through the documentation you require.
First and foremost, you would need to establish your budget. If you need to take a home loan, then it is advisable to contact your bank so as to be guided to price bracket of property you can afford. It depends on your income, and deposit amount you have available. Once your property budget has been established together with your bank, you can start looking for a property within your budget.
Once Owners Best has assisted you and found the right property for you and negotiated any special conditions, an appointment is set up for the signing of the Preliminary Agreement or what is commonly known as ‘Konvenju’.
The Preliminary Agreement is basically an agreement that binds both parties (purchaser and vendor) to conclude the sale at an agreed date, subject to a number of conditions.
The documents required at this stage are your identity card or passport. The Preliminary Agreement is signed in front of a Public Notary and upon signing, you would be required to pay 1% provisional stamp duty, as part payment of the full 5% which balance is paid on signing of the final deed.
A deposit, which is generally 10% of the purchase price is also paid upon signing the Preliminary Agreement. If the property being purchased is your first property, then you can benefit from the first time buyer scheme, where the stamp duty of the first €200,000 has been removed as a concession and calculated at 5% on the remaining balance.
A common condition set in the Preliminary Agreement, is that the final deed is subject to bank loan (if you are financing your purchase through a home loan) and subject to MEPA permits are in place.
Once your Preliminary Agreement is in place, you can proceed to set an appointment with your bank, so that they start the process to issue the Sanction Letter.
The bank would require your latest three payslips as proof of employment and also an FS3 together with the preliminary agreement and your identity card. In the meantime, the Notary will commence searches on the property to verify the ownership of the property being bought.
As soon as all the documents have been completed, a date is set for the actual signing of the final deed is set up.
If you are taking a home loan, the signing of the final deed is normally held at the local bank’s legal office or else if it’s not the case at the Notary’s office.
The final deed is read and agreed upon and the balances due are paid accordingly. The balances due are the selling price to the vendor, the balance due to the Commissioner of Inland Revenue for stamp duty as well as Notary fees to the Notary Public.
You are now the proud owners of your new home.