Buying off-plan - also called “on-plan” or pre-construction - means buying a property before it’s built, based on plans and a developer’s delivery schedule. Malta has specific legal protections for off-plan buyers that don’t apply to a resale purchase.
Stage payments
A typical off-plan payment structure is roughly:
- 10% at the promise of sale (konvenju)
- 30–40% at structural completion
- 30% at finishes stage
- Balance on the final deed
Exact staging varies by developer and project, and is negotiable in some cases depending on the project’s stage of construction at the time you buy.
The developer’s bank guarantee
Under Malta’s Property Sales (Off-Plan) Act 2018, the developer must lodge a bank guarantee or insurance bond covering the full deposit amount before taking your money, and the konvenju must be filed at the registry within seven working days of signing. This is the key legal protection that distinguishes an off-plan purchase from simply trusting a developer’s promises.
If completion is delayed
The Off-Plan Act locks in an agreed delivery date. If the developer misses it, you’re entitled to either an extension by mutual agreement, or a full refund of your deposit plus statutory interest - you are not obliged to accept an indefinite delay.
Shell form vs finished
Off-plan properties are commonly sold as shell form - structural work complete but no internal finishes - rather than fully finished/turnkey. Confirm exactly which finishing stage your price includes before signing, since fitting out a shell adds a further budget and timeline on top of the developer’s own delivery date.
Timeline
Off-plan purchases run on the developer’s construction schedule, commonly 12 to 36 months from signing to delivery - plan financing and any onward housing needs (renting elsewhere in the interim, for example) around that horizon rather than a resale property’s typical 3–4 month timeline.
Sources
- A Guide to Buying Property Off-Plan - Frank Salt Real Estate