What Is a Promise of Sale (Konvenju) in Malta?
Key Takeaways
A promise of sale (konvenju) legally binds buyer and seller after an offer is accepted.
Buyers have full legal right to choose their own notary in Malta.
Include protective clauses covering loans, permits, and compliance.
Expect to pay a 10% deposit and 1% stamp duty at the signing of the promise of sale.
Once signed, your notary registers the agreement within 21 days.
Introduction
This agreement transforms your accepted offer into a legally binding commitment. It outlines your price, deposit, conditions, and timelines, defining what happens next. For first-time buyers, understanding this step is essential as it’s where you finally secure the property you’ve worked so hard to find, while gaining legal protection as the buyer.
In this article, we’ll walk you through how to select your notary, what a konvenju includes, what to bring on signing day, and what happens afterwards.
Choosing Your Notary (and Why It Matters)
Your first task is appointing your notary, and Maltese law gives you total freedom of choice in this matter. Even if the seller or developer recommends someone, the decision is yours alone.
Notaries act as neutral professionals, ensuring that the transaction is legally sound for both sides. They do not represent you personally, so if you want additional reassurance, consider a quick legal review by a lawyer before signing.
Their fees are regulated by the Notaries of Malta schedule and can be estimated using their official tool. Costs may vary slightly depending on the property value, loan amount, and research required, but transparency is guaranteed.
💡 Tip: Make sure that you always feel comfortable with your notary; they’ll be the one ensuring your transaction is fully legal and properly registered.
What’s Included in a Promise of Sale
Once chosen, your notary drafts the promise of sale document, covering key details like:
- Buyer and seller information
- Property description and address
- Deposit and payment terms
- Agreed purchase price
- Validity period (commonly 6 months if bank-financed)
The konvenju also includes important protective clauses that secure your position if something goes wrong. Common examples include:
- Subject to bank loan approval: Agreement becomes void if financing is refused within the set period agreed between both parties.
- Subject to permits and legal searches: Protects you if essential planning permissions are denied or not properly in place.
- Subject to Housing Authority approval: Especially if using government schemes like the 10% Deposit Payment Scheme.
- Completion conditions: For on-plan or shell properties, specify handover date and finishing details in the promise of sale.
- Measurement discrepancy clause: Allows withdrawal from the promise of sale if the final property size differs by more than 5% from the original approved plans.
- Compliance and meters clause: Ensures the home meets all planning and sanitary laws and includes working utilities.
💡 Important: Clearly list what “finished” means in the promise of sale, such as flooring, doors, bathrooms, or other inclusions. Ambiguity at this stage can lead to disputes later.
What to Bring and Pay on Signing The Promise Of Sale
Make sure to go prepared to the signing of the promise of sale, as this is the day your property purchase becomes legally binding.
| Buyer Checklist | What You’ll Need |
|---|---|
| Deposit (10%) | Paid by personal cheque or bank draft. Some developers accept transfers, but always confirm with your notary. |
| Stamp Duty (1%) | First part-payment of the 5% total tax; the remaining balance is due on the final deed. |
| Identification | Valid ID card or passport. |
| Cash Rules | Payments over €10,000 must not be made in cash under FIAU regulations. |
The seller must provide ownership proof, property plans, and identification. Your notary usually holds the deposit safely until the signing of the final deed. If a seller asks for it directly, seek written assurance and your notary’s approval before agreeing; this step protects your funds further.
What Happens After You Sign The Promise Of Sale
Once signed, the promise of sale (konvenju) is legally binding. You cannot withdraw without losing your deposit unless one of your clauses (like loan refusal or permit rejection) applies.
After signing:
- Your notary registers the agreement with Inland Revenue within 21 days.
- You’ll receive a notification letter confirming registration. Follow up if it doesn’t arrive within a few days.
- During the validity period, you’ll finalise loan approval, confirm permits, and arrange certificates like compliance and meter installation.
- You then proceed to the final deed of sale, which is typically within six to eight months if financed.
💡 Tip: Always keep a copy of your signed konvenju and confirmation of registration. These are your proof of legal commitment and deposit payment.
The Bottom Line
The promise of sale is far more than a formality; it’s the legal heart of Malta’s property buying process. When drafted correctly, it protects your deposit, financing, and legal standing, ensuring your journey to homeownership continues smoothly.
Choose your notary carefully, read every clause, and confirm that key protections, such as bank loan approval and compliance, are included.
Property Portfolio simplifies everything before you reach this stage by gathering listings from multiple Maltese agencies, helping you find verified properties faster.
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FAQs
Q1: Do I have to pay exactly 10% as a deposit?
A1: Typically, yes. The standard deposit is 10%, as banks usually finance the remaining 90%.
Q2: What if my bank loan isn’t approved in time?
A2: Include a subject to bank loan approval clause with a realistic timeframe for your sanction letter. If it seems like the sanction letter is not going to be approved on time, ensure to contact your notary to ask for an extension on the promise of sale.
Q3: Can I add conditions for pending permits or finishes?
A3: Definitely. Add clauses for legalisation, meter installation, or finishing lists.
Q4: What happens if measurements on-plan don’t match the final property?
A4: If the size differs by more than 5%, you can typically cancel the agreement without penalty.
Q5: How long is a promise of sale valid?
A5: Usually six months for bank-financed properties, but it can be adjusted by agreement.
Mini Glossary
Promise of Sale (Konvenju): Legal agreement binding both buyer and seller before the final deed.
Validity Period: Time allowed to complete the final purchase, usually six months.
Sanction Letter: A formal bank document approving your home loan amount.
Ground Rent: A payment tied to the land ownership of the property.
Easements/Servitudes: Legal access or shared use rights that may affect a property.
Compliance Certificate: A document verifying that all works follow approved building permits.
This article is for general information only and does not constitute legal, tax, or financial advice. Always consult a licensed professional in Malta for your specific situation.
