How to become owner of a property in the Principality of monaco
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After having visited some properties and feel a real interest to purchase it, a written purchase proposal will be prepared, duly written-up by us, dated and signed.
This purchase proposal will advise the seller of your intention to proceed, and will be accompanied by a 10% payment deposit (on the total amount of the transaction) by cheque or transfer made to the “Notaire”, remitted into an escrow account, thus making the offer legally valid as engages both parties contractually.
The purchase proposal is a legal act by which the purchaser shows his firm wish to purchase the said property at a specific price, the latter having being agreed by both parties, under our supervision.
This will “freeze” the property and “lock” the price.
The purchase proposal has a real legal value in the Principality of Monaco, as can be considered as a provisional sales agreement in the event of a direct sale (without going through an official sales agreement to speed things up in certain cases).
Must be stated on the provisional sales agreement :
- Full details of the purchaser
- Full details of the property concerned
- The amount of the offer
- The date under which this offer will be considered as void
- The terms under which the seller may reply
- The commission amount due to the real estate agent
Please note that the “Notaire’s” fees are deemed to be paid by the purchaser
Both the purchaser and the seller are then committed to proceed further. As soon as the purchase offer has been accepted by the seller, should the purchaser withdraw from the deal after acceptance of the price by the seller, the deposit payment would legally become the property of the seller. On the contrary, a procedure enforcing the sale could be incurred.
If the purchase offer does not contain any conditions precedent, and if both parties agree, a purchase may be done within a direct sale, without signing a provisional sales agreement. This obviously reduces delays considerably.
Administrative procedures
The provisional sales agreement is a preliminary document prior to signature of the notarial deed in the event of conditions precedent limited in time; with more details then a purchase offer, it confirms before the "Notaire" the intentions of both parties. A lengthy and complex preliminary enquiry in certain cases justifies the purpose of this procedure, especially if financing by a loan is involved.
The notarial deed drawn up by the "Notaire" confirms the details of the sale and the agreement of both parties with a legal and enforceable value. It acquires the same value as a Court decision and formalises the new ownership at a set date and protects your interest.
Costs and Fees
We commit to follow the scale provided by the "Chambre Immobilière Monégasque" (Real Estate Brokers Association) applicable on the date of the sale.
Currently, these are as follows:
- Notary and registration fees are of 6% of the purchase price or 4.5% if a transfer of shares of a Corporate entity
- Agency fees are of 3% plus VAT at 20% (on the 3%) on the purchase price
All fees stated above and balance payment of the purchase price are due on the day of signature of the notarial deed before a “Notaire” established in the Principality.
The "Notaire" is a Notary Public acting on behalf of the State, appointed by Sovereign decree. He therefore provides an official value to any legal documents by the mere public authority that is his. The "Notaire" is first of all a professional who authenticates legal documents by affixing a seal and his signature. He personally recognises the wish of both parties and commits his liability on the contents and date of the deed.