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The Preliminary Sale Agreement is a mandatory step in Maltese property transactions, serving as a binding promise between vendor and purchaser before the final deed of sale. This document, governed by Articles 1357-1359 of the Civil Code of Malta, commits both parties to complete the sale within a specified timeframe (typically three months) while setting out crucial terms including property description, price, payment conditions, and completion requirements. It must be registered with the Commissioner of Revenue within 21 days of signing and requires payment of provisional stamp duty. The agreement provides important protections for both parties, allowing time for due diligence, property searches, and securing of finance while legally binding the parties to the transaction. Its use is essential in both residential and commercial property transactions in Malta, requiring careful consideration of tax implications, property laws, and specific conditions that might affect the sale.

1. Parties: Identification of the Vendor and Purchaser with full legal names, ID numbers, addresses and marital status as required by Maltese law

2. Background: Brief context of the transaction and confirmation that the Vendor is willing to sell and the Purchaser is willing to purchase the Property

3. Definitions: Key terms used throughout the agreement including 'Property', 'Deposit', 'Final Deed', 'Completion Date' and other relevant definitions

4. Property Description: Detailed description of the property including address, boundaries, measurements, and registration details as per Land Registry requirements

5. Purchase Price: The agreed purchase price, payment terms, deposit amount and method of payment

6. Duration of Promise: Validity period of the preliminary agreement (typically 3 months under Maltese law unless otherwise agreed)

7. Deposit Terms: Amount of deposit paid, payment conditions and circumstances for refund or forfeiture

8. Conditions for Final Deed: Requirements and conditions that must be satisfied before proceeding to final deed of sale

9. Tax Obligations: Specification of provisional stamp duty payment and respective tax obligations of both parties

10. Warranties and Representations: Standard warranties about property ownership, absence of encumbrances, and legal capacity to sell

11. Notary and Costs: Appointment of notary and allocation of costs related to the transaction

12. Notices: Method and addresses for formal communications between parties

13. Governing Law: Confirmation that the agreement is governed by Maltese law