REAL ESTATE AGENTS, PROPERTY BROKERS AND PROPERTY CONSULTANTS ACT *

PROPERTY CONSULTANTS

CHAPTER 615

REAL ESTATE AGENTS, PROPERTY BROKERS AND

PROPERTY CONSULTANTS ACT *

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

property brokers and property consultants.

7th July, 2020

ACT XXXII of 2020.

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

Brokers and Property Consultants Act.

In this Act, unless the context otherwise requires

"Act" means the Real Estate Agents, Property Brokers

2020. and 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;

*This Act has been repealed by Act XXVII of 2024.

PROPERTY CONSULTANT

"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,

PROPERTY CONSULTANTS

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

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

arranging transactions involving the acquiring or disposing or leasing

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

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.

PROPERTY CONSULTANT

(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 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 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

PROPERTY CONSULTANTS

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

PROPERTY CONSULTANT

(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

that

(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

application together with such other information and documentation

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

PROPERTY CONSULTANTS

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).

PROPERTY CONSULTANT

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

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

the Board.

(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

be

(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;

PROPERTY CONSULTANTS

(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

PROPERTY CONSULTANT

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

PROPERTY CONSULTANTS

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

PROPERTY CONSULTANT

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 to hear and determine objections made by any person

aggrieved by any 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

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

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