The Promise of Sale in Malta: What Buyers and Sellers Should Know

Sign the promise of sale in Malta and you have not bought a home yet, but you have already committed real money and real legal obligations to it. Most buyers treat the konvenju as a formality on the way to the final contract. It is the opposite. This is the document that locks the price, fixes the deadline, and decides who loses out if the deal falls apart. Get it right and the final deed is a signature and a bank transfer. Get it wrong and you can forfeit a five-figure deposit over a clause you skimmed.

What the promise of sale in Malta actually commits you to

The promise of sale, the konvenju, is a legally binding preliminary agreement signed in front of a notary. It is not a handshake or an online reservation. It sets out the agreed price, what is included in the sale, any conditions the deal depends on, and the date by which the final public deed must be signed. Both sides are bound from the moment pen meets paper.

The notary then registers the agreement with the tax authorities within 21 days of signing. That registration is what triggers the provisional stamp duty and puts the transaction on the official record, so it protects you as much as it obliges you.

The deposit, and why people lose it

Standard practice is a 10 percent deposit paid on signing. It is usually held by the notary or the agency rather than handed straight to the seller, which shields both sides while the searches are carried out.

Here is the part buyers underestimate. If you walk away after the konvenju without a valid reason at law, the seller can keep that deposit. "I changed my mind" or "I found something cheaper" is not a valid reason. A refused bank loan, a defective title, or an unmet condition written into the agreement usually is. So the conditions you negotiate into the konvenju are not paperwork, they are your exit routes. The most important one for most buyers is a subject-to-finance clause: if the bank declines your loan, you get your deposit back rather than losing it.

Stamp duty: you pay some now, the rest later

Stamp duty in Malta is 5 percent of the price for most buyers. You do not pay it all at the end. A provisional 1 percent is typically settled when the promise of sale is registered, and the remaining 4 percent falls due on the final deed.

First-time buyers get a genuine break. Since 28 October 2025, the first 200,000 euro of the price carries zero stamp duty, and 5 percent applies only above that. That is up to 10,000 euro saved. It is claimed through the same process, so tell your notary early that you qualify, because the relief is not applied automatically if nobody flags it.

What happens between signing and the final deed

The gap between the konvenju and the contract is not dead time. It is when your notary earns the fee. During this period the notary runs the searches: confirming the seller actually owns what they are selling, checking for hypothecs and debts registered against the property, verifying that any ground rent is declared, and confirming the property matches its planning permits. This is exactly where a bargain can turn into a liability, an unpermitted room, an undischarged loan, a title that does not add up.

A konvenju is usually valid for three months, though you can agree a longer term when a bank or a complicated title needs it. Use the time well. Arrange your loan, commission the architect valuation the bank will ask for, and read the searches when they come back rather than waiting for a one-line summary at the notary's desk. If your purchase depends on a mortgage, this is also the window in which the bank issues its sanction letter, so line up your paperwork early rather than in the final fortnight. A three-month deadline sounds generous until a bank query or a title correction eats a month of it.

The final deed

On the day of the contract, the kuntratt, you pay the balance of the price, the balance of the stamp duty up to the full 5 percent, and the notary's professional fee. Keys change hands and the title transfers into your name. If everything agreed in the konvenju was clean and every condition was met, this is the calm, boring part. That is the goal.

A note for sellers

The konvenju protects you too, but only if it is specific. Vague conditions favour the buyer, because an open-ended "subject to finance" with no deadline lets a hesitant buyer stall for months while your property sits off the market. Pin down what is included, set realistic timelines, and be honest about ground rent and permits from the start. A title problem discovered by the buyer's notary at search stage is far more expensive than one you disclosed up front.

Get advice before you sign, not after

The most common mistake we see is treating the promise of sale as the easy first step and saving the scrutiny for the final deed. By the final deed your room to negotiate is gone. The leverage lives in the konvenju: the conditions, the deadline, the deposit terms. Read them, question them, and have someone experienced beside you when you sign.

If you are approaching this stage, talk to one of our agents before you commit anything in writing, and read our guides on notary fees and property tax and fees in Malta so nothing on the final bill surprises you.

Frequently asked questions

Is the promise of sale legally binding in Malta?

Yes. The konvenju is a binding preliminary agreement signed before a notary. Once signed, both buyer and seller are committed to the price, conditions and deadline set out in it, subject only to the conditions written into the agreement.

How much deposit do I pay at the promise of sale?

Standard practice is a 10 percent deposit on signing, usually held by the notary or agency until the final deed. If the buyer withdraws without a valid legal reason, that deposit can be forfeited to the seller.

When do I pay stamp duty when buying in Malta?

Stamp duty is 5 percent for most buyers. A provisional 1 percent is typically paid when the promise of sale is registered, with the remaining 4 percent due on the final deed. First-time buyers pay nothing on the first 200,000 euro.

How long is a konvenju valid for?

Usually three months, though the parties can agree a longer term if a bank loan or a complex title needs more time. The notary uses this window to complete the searches before the final deed.