Once a buyer has selected a property he would like to buy in Malta, the konvenju will be signed. We have put together an FAQ to answer the most important questions about the konvenju.
What is the konvenju?
The konvenju also referred to as promise of sale or preliminary agreement is a document drafted by the notary public which binds seller and buyer to conclude a property purchase within a set time span subject to specific conditions.
How long is the time span?
The time span is usually three months and is called term of konvenju.
What are these conditions?
These conditions include but are not limited to:
– The purchase price
– Remaining construction works to be completed by the seller, if any
– Included items (e.g. furniture, kitchen), if any
– Necessary bank loans
– Necessary permits e.g. AIP permit
– Other special requests by either party
What happens if these conditions are not met?
If any of the agreed conditions stipulated in the konvenju are not met the buyer is not obliged to buy the property. For instance, if the vendor’s legal title is not in order or the purchaser is not granted a bank loan the property purchase will not be concluded.
Are there any payments due on signing the konvenju?
Yes, on signing the konvenju the buyer pays a deposit of usually 10 % of the purchase price. The deposit may be transferred directly to the vendor or kept by the notary. Further, 20 % of the stamp duty has to be paid by the buyer. The remaining 80 % is due on signing of the final deed.
If you have any further questions about the konvenju feel free to leave a comment, send us a message or reach out to one of our property agents. For more information, you may also read our guide for property purchasers in Malta or take a look at our properties being offered for sale.