Buying, selling or renting a property can be an exciting journey, but it often comes with unfamiliar terminology that can make the process feel overwhelming. Understanding the language used in Malta’s real estate market can help you make informed decisions and feel more confident every step of the way.
At Vassallo Group Realty, we believe that an informed client is an empowered client. Here’s a guide to some of the most common real estate terms you’ll encounter in Malta.
🏡 Freehold vs. Ground Rent
One of the first terms you’ll come across is freehold.
Freehold means you own both the property and the land it is built on.
Some properties, however, are sold subject to ground rent. In these cases, you own the building but pay an annual fee to the landowner unless the ground rent has been redeemed.
Before purchasing a property, it’s important to understand whether it is freehold or subject to ground rent and what your obligations may be.
📝 Promise of Sale (Konvenju)
The Promise of Sale, commonly known as the Konvenju, is a legally binding agreement between the buyer and seller.
This agreement outlines:
- The agreed purchase price
- The conditions of the sale
- The completion date
- The responsibilities of both parties
Once signed, the buyer usually pays a deposit while the notary carries out legal searches before the final deed is signed.
⚖️ Notary
In Malta, the notary plays an essential role in every property transaction.
A notary is responsible for:
- Conducting legal searches
- Confirming ownership
- Checking permits and planning compliance
- Preparing legal contracts
- Registering the final deed
Their role is to protect both the buyer and seller throughout the transaction.
💰 Stamp Duty
Stamp duty is a government tax payable when purchasing property.
The amount depends on several factors, including:
- Whether you’re a first-time buyer
- The property’s value
- Current government incentives
Understanding these costs early helps you budget more accurately.
🏦 Home Loan
Most buyers finance their purchase through a mortgage.
Before beginning your property search, it’s often advisable to obtain bank pre-approval, which gives you a clear understanding of your borrowing capacity and strengthens your position when making an offer.
🏢 Common Parts
If you’re purchasing an apartment, you’ll likely own a share of the building’s common parts.
These typically include:
- Entrance halls
- Staircases
- Lifts
- Roof areas
- Shared corridors
Owners contribute towards the maintenance of these areas through common area fees.
🔑 Furnished, Semi-Furnished and Unfurnished
When browsing rental or sales listings, you’ll often see these descriptions.
Furnished usually includes:
- Furniture
- Kitchen appliances
- Basic household items
Semi-furnished often includes:
- Kitchen
- Bathrooms
- Internal doors
- Air-conditioning (in many cases)
Unfurnished generally means you’ll need to supply most furniture and appliances yourself.
Always ask exactly what is included before signing an agreement.
📍 ODZ (Outside Development Zone)
ODZ refers to land that is protected from most forms of development.
Properties located close to ODZ areas often benefit from:
- Open country views
- Greater privacy
- Less surrounding construction
However, restrictions may apply if future extensions or alterations are planned.
Final Thoughts
Understanding real estate terminology doesn’t just make the buying or renting process easier, it helps you make confident, informed decisions.
Whether you’re purchasing your first home, investing in property, selling your current residence or searching for the perfect rental, having experienced professionals by your side makes all the difference.
At Vassallo Group Realty, we’re committed to making every step of your property journey clear, transparent and stress-free. If you have questions about the Maltese property market, our team is always here to help.
