When purchasing a property directly from a developer in Malta, it's crucial to ask the right questions to ensure you make an informed decision. This process can be complex, and understanding every aspect of the agreement is key to avoiding surprises later on. Here is a comprehensive guide to the essential questions you should ask:

Property & Construction Details

Before diving into the financial and legal aspects, it's important to understand what you're actually purchasing:

1. What is included in the price?Determine whether the property comes as a shell, semi-finished, or fully finished. This will greatly affect both the price and the amount of work needed post-purchase, and may also have an effect on the taxes to be paid.
2. What finishing options are available?Inquire about choices for tiles, bathrooms, doors, etc. Understanding your options can help you personalise the space to your taste, and also have an idea on what it would likely cost when you arrive at the ‘finishings’ stage of your journey.
3. Is there a finishing package, and what does it include?Some developers offer packages that bundle certain finishes, which might be more cost-effective, and help you save time.
4. What materials and brands are used for finishes?Knowing the quality of materials can provide insight into the long-term durability and maintenance of the property.
5. Who is the architect and contractor responsible for the project?Familiarise yourself with the professionals involved to assess their reputation and previous work.
6. Is the property built according to the latest MEPA (Planning Authority) regulations?Compliance with regulations ensures safety and legality, which is crucial for future resale or modifications. This is especially important if you are taking a home loan, as it can be a determining factor on whether or not you actually get the loan from the banks.

Legal & Financial Matters

Understanding the financial and legal implications is essential for a smooth purchase:

1. Is the property freehold or leasehold?If it's leasehold, ask about the conditions to avoid unexpected limitations or costs. If it’s freehold, then you should have nothing to worry about.
2. What is the payment structure?Clarify the deposit, stage payments, and final payment setup to plan your finances effectively, and have everything in line for your loan (if you are taking one).
3. Is there a bank guarantee for deposits paid?Protect your investment by ensuring that your deposit is secure.
4. Are there any additional fees?Inquire about VAT, common parts, and maintenance fees to budget accordingly. Most developers in Malta put the common parts fees separate from the property purchase, and it should be mentioned as such in the promise of sale (POS).
5. What happens if construction is delayed? Are there penalty clauses in the contract?Ensure there are clauses protecting your interests in case of delays. This could be a clause that mentions something along the lines of what would happen if the project is delayed, such as getting your deposit back.
6. Will I get an individual energy performance certificate (EPC) for the property?An EPC provides insight into the energy efficiency of the property, which can affect future savings on utilities.

Development & Timeline

Understanding the development timeline and potential changes is crucial:

1. What is the expected completion date?Confirm the timeline to plan your move and any interim housing needs.
2. Is there a warranty on the construction and finishes?A warranty can protect you against defects or issues that arise post-purchase.
3. Are there any upcoming developments in the area that might affect the property’s value?Future developments can increase or decrease property value, impacting your investment.
4. Will the developer handle permits for modifications or extensions?Knowing this can simplify future renovations or expansions.
5. Who is responsible for the common parts once the project is complete?Understand who maintains shared spaces like lifts, staircases, and lighting, as this can affect your living experience and costs.

After-Sales & Resale Value

Finally, consider the long-term prospects of your investment:

1. Is there a snag list process after completion?A snag list allows you to identify and rectify any issues before finalising the purchase.
2. What are the resale and rental prospects for the property?Understanding market trends can help you gauge the property’s future value and income potential. This would be best discussed with a local trusted real estate consultant for better decision making.
3. Is there a property management service available?Whether you plan on putting your investment on the long term or short term rental market, a property management service can ease the burden of maintenance, especially if you plan to rent out the property.

By asking these questions, you can gain a comprehensive understanding of your potential purchase and make a well-informed decision. If needed, consider compiling these questions into a checklist or guide to streamline your buying process.

It is also highly recommended that prior to the purchase you speak with a:

• Real estate consultant (to understand the potential income and return on investment)
• A notary, to ensure the promise of sale you will be signing covers both the buyer and the seller (financially and legally)
• Optional:
  • An architect to get a better understanding of the property’s building value (helping to ensure you are not over spending on your purchase)