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The buyer
That’s you! Your interest is to ensure that
you’re buying a structurally sound property
that has a clean legal title, all planning permits in
order, and with the rights, possibilities and defects
that you are aware of and happy with.
2
The seller
The interest of the seller is to sell validly what
he owns at the highest possible price. He
may omit to provide information that may affect the
value or your perception of the property. So be sure to
ask all the right questions and obtain all the correct
documentation.
3
The notary public
The notary is a public officer entrusted with
the enrollment of public deeds such as the
purchase and sale of immovable property. He is an
impartial party in the agreement and should not
advise any of the parties. It is the notary’s duty to
disclose all facts concerning the property as emerge
from the legal acts processed by him as part of the
transaction. The notarial profession is very respected
and upright, subject to exceptional cases where
notaries tied to property developers (sellers) or estate
agents (agents for the sellers) might have an interest
to ‘expedite’ the title-verification process possibly
overlooking material defects in title. As an inbuilt
safeguard, the law entitles the buyer to appoint
the notary, and buyers are advised to avoid being
convinced to use the seller or estate agent’s notary.
The buyer will pay the notaries fees anyway and is
therefore entitled to use a notary recommended by
the buyer’s lawyers.
4
The estate agent
The main interest of the estate agent is to
sell the property and make sure that the deal
goes through. While most estate agencies ensure
their property consultants follow good ethical and
professional standards, the real estate profession is
not regulated in Malta and it is not unheard of for
estate agents to be tempted to sell at all costs and to
overlook defects of any type concerning the property.
5
The lawyer for the seller
The seller is entitled to legal representation
and advice on the resale of his property. This
ensures that his interests are being safeguarded in the
final contractual negotiations made in conclusion of
a contract in front of the notary public. Remember,
you may soon end up in the position of a seller and
your rights and interests will need to be seen to by
your lawyer.
www.reimag.co.za
6
The lawyer for the buyer
Your lawyer’s role is to protect and enforce
your interests, empower you in the negotiation
process by providing legal advice and information,
advising on the legal and tax implications of the
specific transaction and on the legal vehicle being
used to acquire the property (trust, company,
direct), if any. In the event that you are unable to be
present on the date of the signing of the preliminary
agreement or final deed of sale, it is quite common
for the buyer to authorise his lawyer to represent him
under Power of Attorney, attending and signing the
contract on you behalf.
Choosing your lawyer
While any lawyer is likely to take on a property
transaction, you are advised to choose a lawyer
who specialises in property transactions as well as
immigration law. While most lawyers will be versed
in the basics of property law, in the case of foreign
buyers, it’s important for the lawyer to also be aware
of the rules specific to the ownership, transfer and
subletting of property by a foreign resident under
one of a number of residence schemes and permits
available under Maltese law. Foreign buyers are often
tempted to reduce the transaction costs by doing
away with legal representation or choosing a lawyer
based on the fee quoted. Remember that you get
what you pay for and, compared to the far higher
price you are paying for your investment, saving a
small percentage looks silly when considering the
serious risks that this involves. A good lawyer will
help you from entering a property purchase that you
will regret or, where possible, a competent lawyer will
offer solutions that address the defects or obstacles
encountered in a satisfactory manner. If no solution
can be found to material defects in title. Do not buy.
You will otherwise live to regret it.
Now no amount of expertise in Maltese is going to
have you understanding the processes and paperwork
for buying a property in Malta. It will certainly
help, but you need to do some research as well. The
Maltese do love their paperwork. In general, to turn
pitfalls into pleasures when buying a property in
Malta, all you have to do is take a personal interest:
ask questions and make sure you understand the
answers. It’s easy to get drawn into the atmosphere
and the excitement and forget common sense. Don’t.
This is too big a decision to be made without all your
wits about you.
RESOURCES
www.ccmalta.com
Offshore Handbook 2016
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