What is a promise of sale?
A promise of sale, also known as ‘Konvenju”, is the first step towards becoming a property owner. It is the agreement signed before a notary public or a lawyer that legally binds the prospective seller and buyer. This agreement specifies a fixed period of time, as well as any agreed terms and conditions such as the facilities included and any works that need to be completed, by the time the property is officially transferred.
The promise of sale needs to be registered with the Inland Revenue Department within 21 days of it being signed.
What happens if the seller or buyer wants to extend the promise of sale?
If either party wants to extend the promise of sale, a new agreement has to be signed. This agreement will refer to the original promise of sale and agree to extend the validity of that promise of sale to a later date. This extension has to be registered with the Inland Revenue Department with 21 days of it being signed.
What is the cost of a notary in Malta?
Since notarial fees are fixed by law and the Notarial Council, these depend on the property in question, the nature of the work that is being conducted by the notary, and the costs of subjective fees, such as title searches. These fees usually include the fixed Public Registry fees, so that the notary is able to register your contract. For more information click here: https://www.notariesofmalta.org/members/calculators/bills/
What is Capital Gains Tax in Malta?
Capital Gains Tax is a tax that applies to the sale of property. For further informationclick here – https://cfr.gov.mt/en/property_shares_transfers/Pages/Buying-a-Property.aspx
Who pays the Stamp Duty in Malta, and what are the costs?
The Stamp Duty in Malta is ue by the buyer. For more information click here: https://cfr.gov.mt/en/property_shares_transfers/Pages/Buying-a-Property.aspx
What constitutes as short let and long let?
Short lets are usually classified as anything under six months, whereas long lets are constituted as anything over six months.
What is needed in order to rent an apartment?
- The first month’s rent, which has to be paid in advance on a monthly basis.
- Proof of ID card or passport to be shown on the lease agreement.
- A deposit which usually is the same amount as the month’s rent. This deposit is paid against any property damages, and will be refunded at the end of the last agreement, if the property is not damaged.
- Utilities advance to cover your water and electricity consumption in the beginning. This fee depends on the size of the property and the number of tenants.
All of the above are required when signing the lease agreement.
What are my obligations, at the end of the tenancy?
You will be required to leave the property the same way that you found it. You could choose to clean it yourself, or hire a cleaning company. You will also need to go through the inventory to ensure that all the items are still there and in good working condition. Finally, you will need to hand over all sets of keys to the landlord.
What is the procedure in Malta, if I want to renew my rental agreement?
If you would like to renew your agreement, you can liaise with us to discuss the conditions.
What is the general rule regarding the Force Majeure clause in Malta?
Force Majeure is a common clause in a rental agreement that frees both parties from their obligations should a natural or unavoidable situation arise beyond the control of the parties – this would exempt one or both parties from fulfilling their obligations. This could include natural disasters such as earthquakes, and circumstances like terrorist activities and war. Depending on your agreement, ‘force majeure’ could also apply to the loss of a job or a death in the family.