The Preliminary Sales Agreement is a fundamental document in Maltese property transactions, serving as the first formal step in the property acquisition process. It is used when parties have agreed in principle to a property sale but need time to conduct due diligence, arrange financing, or fulfill other conditions before the final transfer. The agreement, governed by Maltese law, must comply with specific legal requirements including registration with the Commissioner of Revenue within 21 days and payment of a provisional stamp duty. The document typically remains valid for three months but can be extended by mutual agreement. It must contain certain mandatory elements under Maltese law, including precise identification of the parties and property, purchase price, and duration of validity. This preliminary agreement creates binding obligations on both parties and can only be terminated under specific circumstances defined by law or within the agreement itself.

1. Parties: Identification of the Promise-of-Sale Grantor (Vendor) and Promise-of-Sale Grantee (Purchaser) with full legal names, ID numbers, and addresses

2. Background: Brief context about the property and the intention to enter into a promise of sale agreement

3. Definitions: Key terms used in the agreement including 'Property', 'Deposit', 'Final Deed', and other relevant defined terms

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

5. Purchase Price: The agreed purchase price, deposit amount, and payment terms including the deposit payment required by Maltese law

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

7. Final Deed Obligations: Conditions and requirements for the execution of the final deed of sale

8. Vendor's Warranties: Warranties regarding property ownership, lack of encumbrances, and other standard seller representations

9. Tax and Duties: Provisions regarding payment of duty on documents, capital gains tax, and other applicable taxes

10. Termination Rights: Circumstances under which either party may terminate the agreement and consequences of termination

11. Notices: Process and addresses for serving formal notices between the parties

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

13. Execution: Signature blocks and notarial requirements for valid execution