Part 5: What Is a Promise of Sale (Konvenju)?
And why signing it is a BIG deal in Malta’s property buying process
This step is a major milestone in the buying process. Your offer has been accepted – brilliant!
The next step is putting everything in writing with a notary by signing the promise of sale (konvenju). This preliminary agreement binds the buyer and seller and sets out key terms, timelines, and protections.
In this beginner-friendly guide, you’ll learn how to choose a notary, what goes into the promise of sale, which conditions to include, what to take with you on signing day, and what happens after you sign.
Step 1: Choosing your notary (and whether to consult a lawyer)
- Your choice, by law: Even if the seller or developer recommends a notary, the choice is entirely yours. Pick someone you feel comfortable with.
- Fees: Notary fees are regulated by law and calculated using the Notaries of Malta electronic calculator (link here). Certain fees may vary depending on the property’s value, loan amount, root of title, searches, and other specifics.
- Neutral role: Notaries are neutral and unbiased. Because their role is not to advocate for you, it may be sensible to consult a lawyer before signing. A brief legal review can prevent costly mistakes down the line.
Selecting your notary
| Point | What it means for you |
|---|---|
| Legal right of choice | You decide which notary to use. |
| Regulated fees | Use the Notaries of Malta calculator; some items vary by case. |
| Neutral role | Consider a lawyer to protect your interests before signing. |
Step 2: What a promise of sale (konvenju) includes
Your notary drafts the promise of sale. While details vary, it typically covers the items below.
Typical contents
| Item | What it covers |
|---|---|
| Details of both parties | Buyer and seller information. |
| Property information | Address, type, level of finishing, whether ground rent applies, and other relevant details. |
| Deposit payment | Amount, payment terms, and who holds the deposit (seller or notary). Customary practice is 10%, but it’s negotiable. Banks typically finance up to 90% of the price; the rest is your funds. Timing of payment can also be negotiated. |
| Property price | The agreed purchase price. |
| Validity period | How long the promise of sale is valid and when the final deed is due. If bank-financed, validity is typically 6 months (can vary by agreement). |
Common protective clauses (add those that apply)
- Subject to bank loan approval: If the bank does not lend the required amount within the agreed timeframe, the promise of sale becomes null. Coordinate with your bank on how many weeks are needed for the sanction letter and reflect this in the agreement.
- Subject to approved permits and legal searches: If pending permits are refused by the Planning Authority, the agreement is null.
- Subject to Housing Authority approval (if applicable): For example, the 10% Deposit Payment Scheme – make completion subject to approval. (You can find more information on this here).
- Date of completion (on plan/shell): Specify the completion date for properties in shell form or sold on plan.
- Easements and servitudes: Record any third-party rights affecting the property.
- Subject to conforming to all planning and sanitary laws.
- Subject to planning permission (regularisation/sanctioning): If agreed works or legalisation are needed, state that completion is subject to obtaining those permissions.
- Subject to electricity and water meters (construction/on plan): Include a clause requiring meter installation so a compliance certificate can be issued (confirming works match approved permits and regulations).
- Subject to a maximum of 5% discrepancy in measurements (on plan): If the discrepancy exceeds 5%, you have the right to terminate and render the agreement null and void.
- Other clauses required by law: Such as the seller’s warranty of peaceful possession and absence of latent defects.
- Other conditions agreed: E.g., a list of agreed finishings.
Step 3: What to bring and pay on signing day
Prepare documents and payments in advance, and check payment methods with your notary.
Buyer checklist (signing day)
| Item | Details (source-based) |
|---|---|
| Deposit | Usually 10% of the price. Typically paid by personal cheque or banker’s draft; bank transfer is also possible. If transferring, ask your bank to lift transfer/credit limits in advance. Your notary may decide which payment types they accept. |
| Stamp duty (part-payment) | Pay 1% of the total property value at promise of sale signing (the rest is paid later on). |
| ID | ID card, passport, or other official identification. |
Cash rule: Cash payments exceeding €10,000 are illegal under Financial Intelligence Analysis Unit regulations (FIAU).
Seller checklist (signing day)
| Item | Details (source-based) |
|---|---|
| Proof of ownership | Copy of the original acquisition document. |
| Plans & docs | May include block plan, ID documents, and any other required paperwork. |
Who holds the deposit?
The notary normally retains the deposit until the final deed. In some cases, the seller may request it be transferred directly to them (this is typically done by when buying direct from developers) – this must be expressly agreed. Be 100% certain you are comfortable releasing your deposit, there have been issues in the past where such deposits were lost – consult with your notary!
Step 4: What happens after you sign
- Walking away: Once signed, you cannot back out without losing the deposit, unless there is a valid reason covered by your clauses (e.g., bank loan denied; permit not approved) – hence the importance of adding certain clauses.
- Read carefully: Take your time and bring someone you trust to review the agreement. Ask questions; a good notary will guide you.
- Registration: The notary should register the promise of sale within 21 days. You and the seller will receive a postal notification from the Inland Revenue once registered. If you don’t receive it a few days after the 21-day period, contact the notary to confirm everything is in order.
Simple timeline
- Offer accepted → choose notary (optionally consult a lawyer).
- Notary drafts promise of sale with agreed clauses.
- Sign: pay deposit (customarily 10%) and 1% stamp duty; provide ID.
- Notary registers within 21 days → watch for Inland Revenue notification.
- Proceed to satisfy conditions (bank sanction letter, permits, meters, completion date, etc.).
- Move to final deed within the validity period (often 6 months when bank-financed, but as agreed).
Mini-glossary
- Promise of sale (konvenju): A binding preliminary agreement between buyer and seller that sets conditions, price, timelines, and protections.
- Validity period: The timeframe within which the final deed should be signed (often 6 months when bank-financed, but can vary by agreement).
- Sanction letter: The bank’s formal approval of your loan – time needed should be agreed in the clause.
- Easements/servitudes: Rights that allow others certain uses affecting the property (e.g., access, apertures).
- Compliance certificate: Confirms works match approved permits and comply with current regulations (relevant when buying on plan/under construction).
- Ground rent: A payment tied to the land where the property stands (recorded if applicable).
Short FAQ (source-based)
Q1: Do I have to pay exactly 10% as a deposit?
A: Typically, yes. 10% is common practice as banks will usually mortgage the remaining 90%.
Q2: What if my bank doesn’t approve the loan in time?
A: Include a subject to bank loan approval clause with a realistic timeframe for the sanction letter. If approval is not granted as specified, the agreement should become null.
Q3: Can I make the promise of sale conditional on pending permits or finishing lists?
A: Yes. Include subject to permits/legal searches, planning permission, meters installation, and agreed finishings as applicable.
Q4: What happens if measurements on plan are off?
A: For on-plan purchases, a maximum 5% discrepancy is allowed. If exceeded, you may terminate and render the agreement null and void.
In Summary
The promise of sale is where your deal becomes structured and protected.
Choose your notary, consider a quick legal review, and ensure the agreement records the price, deposit, validity period, and all relevant protective clauses – from bank approval to permits, meters, and measurement tolerance.
Arrive prepared on signing day, keep clear records, and track the 21-day registration. Which two clauses will you prioritise to protect your position before moving to the final deed?
Next: Part 6 – What Happens Between the Konvenju and Final Deed
We’ll cover due diligence, bank loan approval, required documents, insurance, and how to avoid nasty surprises before your final signature.
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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.
