ACT No. XXXII of 2020 AN ACT to make provision for the licensing of real estate agents, property brokers and property consultants.

I assent.

(L.S.)

GEORGE VELLA

President

3rd July, 2020

ACT No. XXXII of 2020

AN ACT to make provision for the licensing of real estate agents,

property brokers and property consultants.

BE IT ENACTED by the President, by and with the advice and

consent of the House of Representatives, in this present Parliament

assembled, and by the authority of the same, as follows:-

(1) The title of this Act is the Real Estate Agents, Property

Brokers and Property Consultants Act, 2020.

(2) This Act shall come into force on such date or dates as the

Minister responsible for the property market may establish by notice in

the Gazette and different dates and different transitory arrangements

may be so established for different provisions or different purposes of

In this Act, unless the context otherwise requires

"Act" means the Real Estate Agents, Property Brokers and

2020. Property Consultants Act, 2020;

"Administrative

Review

Tribunal"

means

the

Administrative Review Tribunal established by article 5(1) of the

Administrative Justice Act;

"authorisation" means an authorisation granted by the

Board in terms of article 5(5);

"beneficial owner" means the same as the definition

assigned to it under the Prevention of Money Laundering and

Funding of Terrorism Regulations;

"Board" means the Licensing Board established under Part

5 of the Act;

"branch manager" means any natural person who is a holder

of a licence and is employed or engaged to supervise any property

consultant;

"land" means that it includes all immovable property as

held in the Civil Code and which is not extra commercium;

"licence" means a licence issued by the Board to exercise

the activity of a property broker, or real estate agent or to act as a

branch manager or property consultant;

"licensee" means any holder of a licence issued by the

Board exercising the activity of a real estate agent or a property

broker or to act as a branch manager or a property consultant,

depending on the type of licence conferred by the Board;

"Minister" means the Minister or the Parliamentary

Secretary responsible for the property market;

"partnership" means participants in a business undertaking

who are free to agree on the legal form which best suits their

needs;

"property broker" means any natural person who has a

licence to act as an intermediary in the process of negotiating and

arranging transactions involving the acquiring or disposing of

leasing of land in terms of this Act and does not employ and, or

engages (whether under a contract of service or a contract for

services) any branch managers and, or any property consultants;

"property consultant" means any natural person who has a

licence to act as an intermediary in the process of negotiating and

arranging transactions involving the acquiring or disposing or

leasing of land in terms of this Act and is employed or engaged

(whether under a contract of service or a contract for services) by

an estate agent and who acts under the directions of the same or

those of a branch manager;

"real estate agent" means any natural person who has a

licence to act as an intermediary in the process of negotiating and

arranging transactions involving the acquiring or disposing or

leasing of land and employs and, or engages (whether under a

contract of service or a contract for services) one or more branch

managers and, or one or more property consultants;

"register" means the register of licences issued to exercise

the activity of property brokers, real estate agents, branch

managers and property consultants as provided in Part III of the

Act.

PART II

Licensing of Real Estate Agents, Property Brokers, Branch

Managers

and Property Consultants

(1) The activity of a property broker or real estate agent Licensed

means the acting as an intermediary in the process of negotiating and property

brokers or real

arranging transactions involving the acquiring or disposing or leasing estate

that shall be

of land, including when the said activity is carried out through the licensed.

engagement or the employment of a branch manager or a property

consultant or both.

(2) No person shall carry on the activity of a property broker or

real estate agent or be employed or engaged as a branch manager or

property consultant after the 31st December, 2021 unless he is the

holder of a licence issued under the Act.

(3) No licence shall be required where a person acts as an

intermediary in the process of negotiating and arranging transactions

involving the acquiring or disposing or leasing of land on an occasional

basis and does neither advertise his services nor does he employ or

engage anyone to assist him in the carrying out of the said occasional

activity

Provided that such person shall still be required to submit a

notification in the form prescribed by the Board for the purpose to

inform the Board of the intention to carry out such occasional activity

and provide any other information which the Board may require

Provided further that the Board may require such persons who

carry out the activity on an occasional basis to furnish it with

information on the number and value of transactions on an annual basis,

and, or on an ad hoc basis as the Board may consider necessary.

(4)

For the purposes of this article

"occasional basis" means acting as an intermediary in the

process of negotiating and arranging not more than two (2)

transactions per annum involving the acquiring or disposing or

leasing of land.

(5) Where a real estate agent intends to carry out his activity with

some other person, they shall form a partnership, having as its main

object the activity envisaged under sub-article (1), and they shall seek

the authorisation of the Board prior to the commencement of activity.

(6) The provisions of sub-article (4) shall also apply to property

brokers.

(7) Any person who does not comply with the requirements of this

article shall be liable to an administrative fine (multa) not exceeding

twenty thousand euro (€20,000).

(1) Any person is eligible to obtain a licence to act as a

property broker or real estate agent or a branch manager, provided he

(a) has attained the age of eighteen (18) years or has been

emancipated to trade in accordance with article 9 of the

Commercial Code; and

(b) holds a certificate in real estate having as its subject

matter the legal, financial, technical and communication issues

related to real estate, its marketing and sale, at a minimum of

twelve (12) ECTS at level four (4) of the Malta Qualifications

Framework attained from a fully licensed training institution with

a regular licence by the National Commission for Further and

Higher Education, or;

(c) any other qualifications which the Malta Qualifications

Recognition Information Centre recognises as being equivalent

Provided that where the equivalence of the

qualifications are deemed to be only partial, it shall be possible

for the applicant to prove his competence in the areas where it is

deemed to be lacking by means of an assessment set by the

Board.

(2)

Any person is eligible to act as a property consultant, provided

(a) has attained the age of eighteen (18) years or has been

emancipated to trade in accordance with article 9 of the Cap. 13.

Commercial Code; and

(b) holds a certificate in real estate having as its subject

matter the legal, financial, technical and communication issues

related to real estate, its marketing and sale, at a minimum of

eight (8) ECTS at level four (4) of the Malta Qualifications

Framework attained from a fully licensed training institution with

a regular licence by the National Commission for Further and

Higher Education; or

(c) any other qualifications which the Malta

Qualifications Recognition Information Centre recognises as

being equivalent

Provided that where the equivalence of the

qualifications are deemed to be only partial, it shall be possible

for the applicant to provide his competence in the areas where it is

deemed to be lacking by means of an assessment set by the

Board.

(3) Notwithstanding sub-article (1) and sub-article (2), no person

shall apply for or obtain or be eligible to hold a licence under the Act if

(a) he is a bankrupt and has not obtained his order of

discharge, or, if he has obtained his order of discharge, it is

suspended for a term not yet expired or is subject to conditions

not yet fulfilled; or

(b) having regard to the applicant’s conduct and repute,

his financial position, and to the interests of the public, the

applicant is not fit and proper person to carry on the activity of

property broker or real estate agent or act as branch manager.

(1) Every person who desires to obtain a licence under the

Act shall submit an application to the Board in the prescribed form.

(2)

Every application under sub-article (1)

(a) shall state the place or places of activity where

applicant intends to carry out the activity; and

(b) shall, where the applicant has or proposes to have two

(2) or more places of activity, specify which of those places of

activity is to be his principal place of activity.

(3) Real estate agents who intend to carry out their activity

through a partnership in compliance with the provisions of sub-articles

(4) and (5) of article 3 shall submit an application to the Board in the

prescribed form.

(4)

Every application under sub-article (3) shall state

(a) the official full name and registration number of the

partnership;

(b) the date of incorporation or registration of the

partnership;

(c) the registered address or principal place of activity of

the partnership;

(d) the names and identity reference numbers of all

directors, partners, company secretary and beneficial owners; and

(e)

the licence number of the directors who are licensees.

(5) The Board shall authorise the exercise of the activity as

envisaged under sub-articles (4) and (5) of article 3 upon being satisfied

(a) the requirements of sub-articles (4) to (6) of article 3

have been complied with; and

(b) having regard to the beneficial owners’ conduct and

repute, their financial position, and the interests of the public, the

beneficial owners are fit and proper persons to be involved in a

partnership which has as its main object the activity envisaged

under article 3(1).

(6)

There shall be no change in beneficial ownership, in the board

of directors or partners of a partnership, formed for the purpose of sub-

articles (4) or (5) of article 3, unless the said change is notified to the

Board in the prescribed form and the Board gives its approval thereto

upon being satisfied that the criteria set out in articles 3(6) and 5(5) are

met.

(7) In case of a change in beneficial ownership, in the board of

directors or partners, of a partnership formed for the purpose of sub-

articles (4) or (5) of article 3, the partnership may not resume its

activity unless such changes are approved by the Board in terms of sub-

article (6).

(8) When the Board decides to refuse a request for an approval of

a change as envisaged in sub-article (6), it shall inform the applicant

and state in the notice the grounds for its decision.

(9) The Board shall also be informed whenever

(a) any one (1) director or partner of a partnership formed

for the purposes of sub-articles (4) or (5) of article 3 resigns or is

otherwise removed; or

(b) it is resolved or otherwise decided that a partnership

formed for the purposes of sub-articles (4) or (5) of article 3 be

dissolved and consequently wound up.

(1) The applicant shall submit to the Board a copy of his Notice of

application together with such other information and documentation application

determination.

filed in support of the application or which may be requested by the

Board to reach a determination relative to the said application.

The Board shall acknowledge receipt of a complete application

without delay and shall process the application within two (2) months

Provided that when the Board requires more time to process

the application or it requires further documentation, it may extend the

processing time established under sub-article (1) by further periods

Provided further that when an extension of time is required,

the Board shall notify the applicant without delay.

(2) The Board shall determine whether the applicant satisfies the

criteria of eligibility to be awarded a licence or authorisation.

(3) In granting a licence or authorisation, the Board may subject it

to any such additional conditions as it may deem appropriate and,

objectively justified, having granted a licence or authorisation, it may,

from time to time, vary or revoke any conditions so imposed or may

impose new conditions.

(4) When the Board decides to refuse a request to grant a licence

or authorisation, it shall inform the applicant or applicants and state in

the notice the grounds for its decision.

(5) Without prejudice to the preceding articles, when, for reasons

of consumer protection or the prevention of crime and fraud, the Board

fails to give a decision within the stipulated time frame, this time frame

shall be extended to a maximum of another two (2) months and the

applicant shall be informed.

(1) No licensee shall exercise the activity of a property

broker or of a real estate agent under any name unless the name has first

been approved by the Board.

(2) An applicant for a licence, or a licensee, may at any time apply

in writing to the Board to approve a name for the purposes of sub-

article (1), which name shall not be approved if it considers that the

name so nearly resembles the name of any other person, firm, or

company exercising the activity as a licensed property broker or real

estate agent in or outside Malta as to be likely to deceive, or that the

name is that of any person, firm, or company.

(3) The Board shall issue an identity document to a licensee under

this Act. The identity document shall contain a photograph of the

licensee and such other information as the Board may deem necessary.

This shall include, inter alia, his name, the licence type, registration

number and term of validity. The identity document shall remain the

property of the Board and shall be returned to the Board on the

suspension or revocation of a licence issued under this Act.

(4) Every licensee who contravenes sub-article (1) or sub-article

(2) is liable to an administrative fine (multa) not exceeding twenty

thousand euro (€20,000).

A licence shall, unless it is sooner cancelled, or in accordance

with the provisions of this Act, remain valid until the expiration of five

(5) years in respect of which it is issued, and shall be renewed after the

expiration of the said period unless there are grounds not to renew the

licence as provided under this Act.

(1) The Board shall refuse to renew a licence on any of the

following grounds

(a) the licensee is found to be in breach of any provision

specified under this Act;

(b) the licensee has permitted any person, other than a

licensee in terms of this Act, to act as his agent in the exercise of

his activity;

(c) having regard to the character or fitness and propriety

of licensees, it is not in the public interest that the licence be

renewed;

(d) the licensee failed to undertake a set minimum of

hours of continuing professional development set by the Board

during the preceding five (5) years.

(2) When the Board decided not to renew a licence, it shall

inform the licensee and state in the notice the grounds for its decision.

(1) A licensee may at any time surrender his licence by Surrender,

forwarding a written notice to that effect, together with the licence, to suspension

cancellation of a

the Board.

licence.

(2) Licensees may at any time notify the Board that they do not

intend to keep operating through a partnership as envisaged under sub-

articles (4) and (5) of article 3 by forwarding a written notice to that

effect to the Board.

(3) The Board shall endorse on the notice the date on which it

receives the notice, and the licence or authorisation shall, as from that

date, cease to have effect.

(4) The surrender of a licence or authorisation under this article

shall not affect the licensee’s or partnership liability, as the case may

(a) to pay any fees or other money payable or to be

payable in accordance with this Act on or before the date on

which the licence would, but for its surrender, expire;

(b) to perform any obligation required to be performed

under this Act on or before that date;

(c) for any act done or default made before the date on

which the licence or authorisation ceased to have effect.

(5) A licence or authorisation may be cancelled or suspended by

the Board in any of the following instances

(a) where it determines that the licensee no longer fulfils

or meets the requirements of, or has contravened, any of the

provisions of this Act or of any rules issued thereunder, or has

failed to satisfy or comply with any obligation or condition to

which the licence is subject by virtue of or under this Act;

(b) where any beneficial owner, member of the board of

directors or partner, of a partnership formed for the purpose of

sub-articles (4) or (5) of article 3, no longer meets the conditions

set out in article 5(5)

Provided that without prejudice to the generality of

this sub-article, the Board shall be entitled to cancel or suspend a

licence or authorisation whenever it receives any adverse

information from any other authority including other authorities

responsible for the supervision and enforcement of any other

obligations to which the exercise of the activity of property

broker or real estate agent may be subject to;

(c) where a partnership formed for the purposes of sub-

articles (4) or (5) of article 3 is to be dissolved and consequently

wound up.

(6)

In the circumstances referred to in sub-article (4), the Board

may instead of the suspension or cancellation of a licence or

authorisation, order the removal and replacement of any such person

who may be involved in the partnership.

(7) When the Board decides to suspend or cancel a licence or

authorisation, it shall inform the licensee or licensees and state in the

notice the grounds for its decision.

PART III

Registration

(1) For the purpose of this Act, the Board shall set up and

maintain a Register of Licensees which the Board shall ensure to make

available to the public using any means it deems fit.

(2)

The Register shall include the following details

(a) in the case of the issue of a licence, the name and

address of the licensee, the qualification by virtue of which he is

entitled to hold a licence under this Act, the address of the

principal place of activity and of any approved branch office, the

name of the branch manager of such branch office, the date on

which the application was granted and the type of licence issued;

(b) in the case of real estate agents exercising their

activity through a partnership

(i) the official full name and registration number

of the partnership;

(ii) the date of incorporation or registration of the

partnership;

(iii) the registered address or principal place of

activity; and

(iv) the names of all directors, partners, company

secretary and beneficial owners;

(c) where real estate agents employ or engage property

consultants, an updated list including the personal details of all

property consultants who are employed or engaged with the real

estate agent;

(d) in the case of the renewal of a licence, the date on

which the application was renewed;

(e) in the case of the cancellation of a licence or

certificate of approval or the suspension of a licensee or holder

of a certificate of approval, the date and the grounds on which

the cancellation or suspension was made.

(3) The Board shall also, in respect of any entry, record such other

particulars as may be required by this Act or as may from time to time

be prescribed.

(4) The register shall be amended wherever a licence or certificate

of approval is issued, renewed, or cancelled under this Act, or a

licensee or holder of a certificate of approval is suspended.

(5) Licensees shall keep the Board updated at all times with

information which the Board considers necessary for the purposes of

maintaining the register and perform its supervisory functions under

this Act.

PART IV

Information to be Given to the Consumer

Licensees shall make known to the parties the fees to be

charged for their services in advance

Provided that if the licensee was active during the negotiations

between the parties but the transaction was not completed, a fair

compensation would still be due and shall be determined by a court.

PART V

Licensing Board

(1) There shall be a Board, to be known as the Licensing

Board appointed by the Minister, consisting of

(a) an advocate who has practiced for not less than five

(5) years, who shall preside and;

(b) four (4) members chosen from amongst persons of

known integrity and with knowledge of and experience in any of

the following

(i)

commerce, economy and industry;

(ii)

matters relating to social and community

affairs;

(iii) sustainable development and urban planning;

(iv) legal matters.

(2) A member of the Board shall be disqualified from taking part

in such circumstances that would disqualify a judge in a civil suit; and

in any such case the member shall be substituted by another person

appointed for the purpose by the Minister.

(3) There shall also be a secretary of the Board to be appointed by

the Minister and shall have such duties as may be assigned to it by the

Board.

(4) The members of the Board shall hold office for a period of

three (3) years, and shall be eligible for reappointment.

PART VI

Power to make Regulations

(1) The Minister may make regulations for the better

carrying out of the provisions of this Act.

Without prejudice to the generality of this sub-article, such

regulations may, in particular provide for any matter relating to persons

acting as an intermediary in the process of negotiating and arranging

transactions involving the acquiring or disposing or leasing of land,

including those on an occasional basis, as well as any other matter

relating thereto, taking account of all relevant considerations, including

professional qualification standards or ethical conduct. Such

requirements may include rules, conditions, and, or exemptions in

relation to the carrying out of all activities envisaged under this Act.

(2) The Board may issue regulations containing requirements to

be fulfilled by persons acting as an intermediary in the process of

negotiating and arranging transactions involving the acquiring or

disposing or leasing of land, including those on an occasional basis.

Such requirements may include rules, conditions and, or exemptions in

relation to the carrying out of all activities envisaged under this Act.

PART VII

Appeals from Board Decisions

(1) The Administrative Review Tribunal shall be competent Appeals from

to hear and determine objections made by any person aggrieved by any Board

decisions.

decision of the Board

Provided that, unless otherwise prescribed by law, an objection

lodged in terms of this sub-article to the Administrative Review

Tribunal shall be filed within twenty (20) days from the receipt of the

Board’s decision.

(2) There shall be a right of appeal in accordance with the

provisions of Part IV of the Administrative Justice Act from decisions Cap. 490.

of the Administrative Review Tribunal under sub-article (1) and such

appeal shall be to the Court of Appeal (Inferior Jurisdiction).

Passed by the House of Representatives at Sitting No. 350 of the

30th June, 2020.

ANĠLU FARRUGIA

Speaker

RAYMOND SCICLUNA

Clerk of the House of Representatives

€1.44