Buying a property

 

Buying a property in Monaco is simple.

Like few other countries in the world, Monaco has notaries responsible for the transfer of ownership of real estate.

 

I - The first step, once you have found a property that you want to buy, is to sign a purchase offer prepared by a real estate agent.

This contract must include the designation of the property (with lot number), its price, the date before which the sale is to take place, the notary responsible for the transaction and any conditions that the Buyer wishes to add. In addition to the signed purchase offer, a 10% down payment check (which will then be cashed by the notary) will indicate the seriousness of the buyer.

 

II - Second, the seller must accept the offer to purchase by signing the contract.

Once the offer to purchase has been signed by both parties, it is delivered to the notary public and the deposit. At this point, the notary will ensure that the sale of the property is not a problem, draft the transfer of ownership agreement and agree on the date of signature where both parties must be present with the real estate agent.

On the date of signing, both parties are present with the real estate agent and sign before the notary the transfer of ownership. On the same day, the buyer receives a certificate stating that he is the new owner and the seller receives his money.

 

Transaction costs

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The costs related to the real estate transaction must be taken into account:

Registration fees: 4.5% of the value of the transaction

Notary fees: 1.5% of the value of the transaction

Agency fees: 3% for the buyer and 5% for the seller (plus 20% VAT).

 

Bid

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Once an offer to purchase is made, it is legally binding. There is no time to withdraw an offer and if it is accepted and the buyer does not wish to proceed, he will owe the seller the equivalent of 10% of the value of the transaction.

The measures of a property do not appear anywhere in the transaction. That's why we strongly advise you to take the measures before making an offer so as not to surprise you once the transaction has been completed.

 

Special Law on Real Estate

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Some apartments in old buildings are subject to special laws that may affect the value of the property. These laws only have effect if the owner wishes to rent his property.

 

Law 887:

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If you buy an apartment under Law 887, you can rent it only to people who:

- are part of the owner's family

- are of Monegasque nationality.

- have been living in the Principality for at least 5 years and have been working for at least 6 months

- have been working in Monaco for at least 5 years

The lease must be for a minimum of 6 years and can be denounced each year only by the will of the tenant. As the rent is not capped, the landlord can ask for the desired monthly rent.

 

Law 1291:

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This law concerns any apartment built before 1 September 1947. Under this law, the monthly rent is capped and chosen by the government.

You can only rent it to the following people in order of priority:

- To Monegasque citizens

- People born of a Monegasque citizen, or a married, widowed or divorced person.

- People born in Monaco who have always lived in Monaco since birth, provided that one of his parents already lives in Monaco at the time of his birth.

- People living in Monaco for at least 4 years.