Important aspects of owning a property in MonacoJanuary 28, 2021
Monaco is almost like a fairytale land. With gorgeous landscapes, classic architecture, green spaces, luxurious buildings and breath-taking views, Monaco has everything that a real estate investor or a potential buyer is looking for! Located right between the Mediterranean Sea and the Southern Alps, Monaco has proximity to the water and the mountains, one of the most significant selling points! Real estate in Monaco is highly sought after, especially by affluent investors foreign investors are looking to buy property in some of the most glamorous areas in the world. If you’ve been looking for property for sale in Monaco, here are some essential aspects about owning property in Monaco that you need to keep in mind before you close the deal!
You need to find a real estate agent that is right for you
In Monaco, most real estate agents are used to dealing with ultra-high net worth individuals. So, off the bat, almost every real estate agent that you meet will seem perfect. However, you need to do your fair share of research and find a real estate agent who can help you find a property that is right for you. Also keep in mind that, in Monaco, all real estate agents and real estate companies charge a commission of 3 per cent that is exclusive of 20% VAT. There is usually a small window for negotiation, but that totally depends on the real estate agent and the value of the property you want to purchase.
You’re going to need a good notary
Whether you’re a buyer or a seller, you’re going to need a good notary if you’re looking to buy or sell property in Monaco. A notary can help ensure that the whole process of purchasing the new property, transferring the deed and closing the deal is done smoothly and effectively to ensure that the transaction is risk-free. It is highly recommended that you seek the advice of a notary or an independent legal expert in the early stages of buying property to ensure that there are no hiccups along the way.
You’re going to need to make an offer in writing
In Monaco, it is necessary to make an offer in writing before you can begin the process of negotiation. This written offer must include all the important details of the transaction and information about the buyer. The written offer must consist of the offered price of the property, the validity period of the offer after which the offer becomes null and void, the timing of the acquisition as well as essential conditions prevalent to the purchase. This written offer also needs to have the buyer’s details, current address proof, and the details of a communication channel for a seller.
You need to confirm your intent to purchase
Along with your written offer, you need to verify your intention to purchase with a deposit. Usually, this deposit is around 10 per cent of the total value of the property. However, this amount can be higher or lower, depending on what has been decided between the buyer and the seller. Once the seller accepts the offer, the notary will collect the deposit amount, considered the official intent to purchase.
Here, it is important to remember that a written offer to purchase property is legally binding in Monaco. Once the seller has accepted the written offer, the offer becomes a binding contract in the eyes of the law. If the buyer decides to back out of this offer once it has been accepted, the buyer must forfeit the deposit. In case the seller decides to back out after accepting the offer, he or she must return the full amount, and the notary usually asks the seller to pay a certain amount as compensation to the buyer.
In Monaco, you can invest in real estate to give out on rent, or you can buy property for your personal use. If you wish to apply for residency in Monaco, the best way to do so is by owning a home in this beautiful country. However, you can also get residency in Monaco if you’re renting a house or an apartment in this country since the past year. Since there is no property tax in Monaco, it is recommended that you buy property in Monaco since this is an excellent investment in the long-term, depending on what your budget allows. You are free to call your new purchase your home for life without paying anything over and above the purchase price. If you decide to rent out this property, the monthly rental you earn is pure profit as you do not have to pay the government any property tax. However, you must discuss your intent to purchase property in Monaco with a real estate company or a notary before you start the process of buying your new home.