Buying or selling property in Malta can be an exciting but daunting process, especially when faced with the legal terms within contracts. Whether you’re a first-time buyer, investor, or someone selling a property, it’s crucial to understand these terms to protect yourself from potential issues.

Here’s a breakdown of some key legal terms you’ll encounter in Maltese property contracts in 2024:

Preliminary Agreement (Konvenju)

The preliminary agreement, or “Konvenju,” is the first major document signed by both parties. It outlines the intent to buy or sell the property and locks in the agreed price and conditions. It’s legally binding, and backing out without a valid reason could lead to penalties.

Deposit

Typically, when signing the preliminary agreement, a deposit (usually 10%) is paid by the buyer to the seller. This deposit secures the deal but is refundable if the sale doesn’t go through due to specific conditions not being met (e.g., loan approval failure).

Promise of Sale

In Malta, the “Konvenju” often serves as a promise of sale, laying out the timeline for completing the final sale.

Final Deed

This is the official document that transfers the ownership of the property from the seller to the buyer. It is signed in front of a notary, and at this point, the full payment is made, and keys are handed over.

Ground Rent (Cens)

Some properties in Malta are sold with “Cens” or ground rent, meaning the buyer will need to make annual payments to the landowner. It’s important to clarify whether the property is freehold or leasehold and whether ground rent applies.

Understanding these terms will give you peace of mind and ensure you’re fully aware of your rights and obligations in a property transaction. Always consult with a notary or legal advisor to make sure you fully understand what you’re signing. Property deals are significant investments, and the right advice is invaluable.