What hidden legal issues can come up when buying property in Malta?

Two outcomes when a problem is found

As Dr. Laferla explains, when the searches reveal "legal problems, legal issues on the said property," the notary can "either try and address those problems and resolve them with the… involvement of the parties, or else, if said issues cannot be resolved, then the promise of sale will fall through."

Resolving the issue

Many problems can be fixed with the cooperation of both sides — a registered debt settled and cancelled before the deed, a missing consent obtained, or a defect regularised. This is done with the involvement of the parties, and it's a normal part of getting a transaction to the final deed.

When it can't be fixed

If the issue simply cannot be resolved, the promise of sale falls through — the condition that the property be free of legal problems has failed, so the purchase does not proceed. Because a well-drafted Konvenju is made subject to the property being free of legal issues, this protects the buyer: you are not forced to complete the purchase of a property with unresolved problems.

Why this is the point of due diligence

This is exactly why the searches happen between the Konvenju and the final deed, not after. They surface problems at the one moment you can still act on them — resolve them, or walk away with your deposit protected.

Sources

• Dr. Michael Laferla — Yitaku Asks video (resolve with the parties, or the promise of sale falls through)
• Civil Code of Malta, Chapter 16 — Article 1357 (conditional promise of sale)
• Notarial Profession and Notarial Archives Act, Chapter 55 — the notary's duty to disclose defects in title
• Maltese notarial practice — resolution of title defects before the final deed