Caroline Olds Real Estate
Caroline Olds Monaco Sales Guide

Procedural advice to our clients - Sales Guide

Buying a property in Monaco

We conduct a thorough search of our own listing and across all agencies at the start of a new enquiry and keep searching until we have found the perfect apartment for you.

The next step is for us to prepare a purchase proposal and agree terms. This is always done in writing. The proposal includes a detailed description of the property, the price proposed and timescales to complete (between 2 weeks and 2 months).  To show the goodwill and seriousness of the buyer, Monaco purchase offers are submitted with a cheque of 10 % of the value of the proposed purchase price, which serves as a deposit and will be cashed upon acceptance.  In some cases, this 10% deposit will be transferred to the Notary immediately upon acceptance.

The buyer is responsible for the notary, transfer and registration fees (6%) and an agency fee of 3% plus VAT. These sums are due upon closure. The Purchase Proposal, once accepted and supported by a cheque, is a legally binding document.  If the buyer decides not go ahead with the transaction, he will lose his deposit.  

In some cases there will have to be 2 visits to the Notary to complete the sale. The first is for signing a Preliminary Agreement, which is usually necessary when terms are more complicated. The second is for the completion of the sale with the Final Act.

The Notary

The Monaco Notaire is an institution unique to the Principality. He has the monopoly for preparing the Final Deed and conducting all relevant searches about the property.

The role of the Notary

The Notary has the responsibility to check that each party involved in the sale has “full capacity“ or the right to either sell or purchase the property. He has to conduct all searches relating to the current title of the property and ensure that these searches do not reveal any easements or restrictions which could reduce the value of the property or affect its enjoyment.

In addition, the Notary has to check that no mortgage or charge exists over the property. If that proves to be the case, he has to take all necessary actions, so that all pre-existing mortgages/charges are repaid upon completion. He also has to check the status of the property in relation to planning and ensure that the searches do not reveal anything that is likely to reduce the value of the property in the future. He has the duty to check that all rights of preemption have been waived.

The purchase cannot be completed until the local authority has provided the Notary with all information pertaining to the above. If there is a mortgage on the property, he has to contact the bank which has issued the mortgage and prepare the mortgage deed.

The Final Deed

During the (final) visit to the Notary, the vendor and the purchaser will have the deed read through to them by him and agree on any amendments, so that it becomes finalised. The purchaser will have to pay the balance of the funds due, upon which the Notary will instruct the estate agency to hand over the keys to the new owner of the property. Once in possession of the entire amount of the agreed sale price, the Notary will have to pay any claims by lenders, tax authorities, etc. and disburse the balance to the vendor.

Follow up Actions

The Notary has the responsibility to register the title deed with the Land Registry. The original deed will be kept by him indefinitely, but the new owner will be provided with a copy of the title, as registered with the Land Registry, which is the proof of his ownership. This document will be available to the purchaser approximately two months after completion. The purchaser is entitled, however, to a copy of the signed deed on the day of completion.

Choice of Notary

Each party has the freedom to select their own Notary. The purchaser is under no obligation to instruct the vendor’s Notary to act on his behalf as well.

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