Key Considerations Before Signing a Promise of Sale for Property Purchase

Understanding the Promise of Sale Agreement

• Definition and Purpose - Learn what a promise of sale is and why it is a crucial preliminary step in property transactions.

• Legal Binding Nature - Understand when the promise of sale becomes legally binding and what obligations it creates for both parties.

• Timeframes and Conditions - Recognize typical deadlines, payment terms and other conditions that may be attached to this agreement.

Thorough Property Inspection

• Physical Condition Check - Know the importance of inspecting the property's structural integrity, fixtures, and fittings.

  
  

• Hidden Defects and Repairs - Identify red flags like water damage, mold, faulty wiring, or pest infestations before committing.

  
  

• Professional Assessment - Consider hiring a qualified building inspector for an unbiased evaluation.

Financial Considerations

• Price Comparison and Market Value - Research comparable property prices in the area to ensure a fair deal.

  
  

• Additional Costs Estimate - Factor in transfer fees, legal and architect fees, taxes, and potential renovation costs.

  
  

• Financing Options and Pre-Approval - Explore mortgage options and secure financing pre-approval to streamline the process.

  
  

• Due Diligence Completion - Keep in mind that all inspections, verifications, and approvals are to be completed before any release of deposit and/or before the final deed is signed.

Regards,

Dr Clara Farrugia Grixti

Notary Public, Malta.