Residential Property law in Gibraltar

Residential Property law in Gibraltar: Brief overview of the conveyancing process

At Strait Law, our team of dedicated barristers and solicitors are well-versed in Gibraltar’s property law and are here to guide you through every step of the process. In this post, we will provide an overview of our conveyancing service and share some tips for navigating the property market.

For Buyers:

1. Legal Due Diligence: We check that the title deeds provided by Vendors are registered with Land Property Services and constitute satisfactory proof of good title for the property.  We will also request responses to Preliminary Enquiries Before Contract (PEBC) to obtain, inter alia, details about any works or alterations carried out at the property and related consents and planning permissions.  We will also ensure that the property has a valid Certificate of Fitness, Electrical Installation Condition Report (EICR), Energy Performance Certificate (EPC) and adequate buildings insurance, as well as establishing ongoing liability for rates, services charges and other outgoings.
2. Survey and Valuation: This is optional but advisable if you have any concerns about the physical condition of the property and may result in a reduction in the purchase provide if works are required.  If obtaining a mortgage, the mortgage provider will conduct a very basic valuation of the property.
3. Purchase Agreement:  The terms for the purchase of the property will be contained in a contract between the vendor and purchaser which can include provision for any anomalies or outstanding issues discovered in the legal title or pre-contract enquiries.  Once contracts have been exchanged, the parties are legally bound to complete the transaction and failure to do so may incur financial penalty or the defaulting party.
4. Understanding the Stamp Duty: Stamp duty is payable both in relation to the purchase of the property and any mortgage monies received or redeemed as part of the transaction.  Stamp duty rates vary according to the value of the property and the status of the purchaser.  At Strait Law, we can advise you of the stamp duty payable in respect of your property purchase and any reductions and/or exemptions which may be available to you.
5. Leasehold property:  Most properties in Gibraltar have leasehold title.  We will take care of dealing with the relevant management companies and/or lessors, to obtain the necessary approvals and execution of completion documentation.
6. Completion:  Completion takes place when the balance of purchase price is paid to the vendors and the property is legally transferred to the purchasers.
7. Registration with Land Property Services:  Following completion, we will ensure that all newly executed deeds relating to the assignment and any mortgage, are duly registered with Land Property Services in Gibraltar within the six-month deadline.

For Sellers:

1. Property Valuation:  Before listing your property, obtain a professional valuation of the current market and help you set a competitive and fair asking price.
2. Preparing the Property:  Ensure that your property is in the best possible condition before viewings begin. Address any repairs or renovations that may increase the property’s appeal and value. It is advisable to settle any outstanding utility bills, rates, and taxes associated with the property.
3. Legal Documentation: Have all the necessary legal documents in order, including the title deeds and any documentation related to planning permissions or major renovations. Potential buyers will likely request to review these documents during the negotiation phase.

At Strait Law, we understand that buying or selling property is a significant financial and legal undertaking. Our team of experienced barristers and solicitors is here to offer you tailored legal advice and support throughout your property transaction.