Duty on Documents and Transfers (Amendment) Rules, 2014

L.N. 465 of 2014

DUTY ON DOCUMENTS AND TRANSFERS ACT

(CAP. 364)

Duty on Documents and Transfers (Amendment) Rules, 2014

IN exercise of the powers granted by article 22 of the Duty on

Documents and Transfers Act, hereinafter referred to as "the Act", the

Minister for Finance has made the following rules:-

The title of these rules is the Duty on Documents and Citation.

Transfers (Amendment) Rules, 2014, and these rules shall be read and

construed as one with the Duty on Documents and Transfers Rules, S.L. 364.06

hereinafter in these rules referred to as "the principal rules".

Immediately after rule 3 of the principal rules, there shall Adds new rule

3A to the

be added the following new rule

principal rules.

" Professional

(1) The transferee in a transfer

valuation.

inter vivos of any immovable or any real right

over an immovable, where the transfer is

effected by public deed or in the case of a

declaration made in terms of article 33 of the

Act, and where such transfer takes place on or

after the 15th November 2014, may produce to

the notary publishing the relative deed, a

professional valuation consisting of a report as

provided in sub-rule (2) drawn up by an

architect in possession of a warrant issued

under article 5 of the Periti Act. The architect’s

report shall be annexed to the deed relating to

the transfer by the notary publishing such deed.

(2) The architect’s report shall contain a

clear explanation of the conclusions of the

valuation, setting out the basis of the valuation

including the type of valuation undertaken and

the definition of value and shall include the

following information

(a)

the date of the report,

addressed to the transferee;

(b) a description of the physical

attributes of the immovable property,

including a site plan, type of property and

access, footprint, locality including

description of the surrounding area,

approximate age of premises, status of

property,

standards

of

finishing,

description of surrounding view, other

structural characteristics and amenities;

(c)

a description of the legal

attributes of the immovable property,

including reference to the compatibility

of the property with the development

permit;

(d) a description of the rights/

interest in the property which are the

subject of the valuation;

(e)

the date as of which the

valuation applies and the date of

inspection of the immovable property;

(f)

a description of the extent and

scope of the work undertaken to

determine the valuation including the

description of all assumptions and any

limiting factors on which the valuation is

based as well as any special, unusual or

extraordinary assumptions including the

probability that such will occur;

(g) an

explanation

of

the

rationale that supports the valuation

conclusion in the report including a

description of the relevant information

and data examined;

(h) a market analysis and the

valuation approaches and procedures

followed, where applicable;

(i)

the

name,

professional

qualifications, and signature of the

expert responsible for drawing up the

report and carrying out the valuation

Provided that a professional

valuation of the immovable or any real right

over an immovable shall not be valid if the date

on which the architect’s report is drawn up is

earlier than forty days preceding the date on

which the relative deed is published or is later

than twelve months from the date of death of

the person from whom the transfer causa

mortis originates, as the case may be

Provided further that, if from the

date on which the architect’s report was drawn

up until the date of the deed, any changes and,

or alterations are carried out on the property,

the transferee shall be required to inform the

architect who has drawn up the report of such

changes and, or alterations and the architect

shall update the report accordingly

(3) Where the notary publishing the

relative deed submits, together with the notice

referred to in article 51 of the Act, the

architect’s report referred to in this rule, the

Commissioner may at his absolute discretion

accept such valuation and in such case the real

value of the immovable property shall be such

amount as determined by the architect. The

Commissioner shall, for the purpose of

determining whether the immovable property

has been undervalued for the purposes of the

application of this Act in accordance with

article 19(2) of the Act, take into account the

said report.

(4) Subject to the Commissioner’s right

not to accept a valuation made by an architect,

at the time of publication of the deed or

declaration, it shall be deemed that the

valuation of the architect is a determination of

value made by the Commissioner for the

purpose of article 52 of the Act and

accordingly where the price or consideration,

or the value as declared in the deed of transfer

or declaration causa mortis made in

accordance with article 33 of the Act is not less

than eighty-five per centum of the value

provided by the architect, the duty payable, as

applicable, shall be computed and paid on the

in the deed of transfer, whichever is the higher,

or the value as declared in the declaration

causa mortis.".

3. Immediately after rule 3A of the principal rules, there shall

Adds new rule

3B to the

be added the following new rule

principal rules.

" Evidence of

(1) Where the Commissioner is

any act or

of the opinion that any document which has

omission on

been produced to or obtained by him for any

the part of a

warrant holder.

purpose of Duty on Documents and Transfers

Act, constitutes or contains evidence of any act

or omission on the part of a warrant holder, and

that such act or omission is an act or omission

mentioned in article 15(a)(i) to (iv) of the Periti

Act, he shall, subject to the other provisions of

this rule, send a copy of that document to the

Chamber of Architects.

(2) The Commissioner shall certify any

document he sends to the Chamber of

Architects in accordance with sub-rule (1) as a

true copy of the original and shall send to the

Chamber of Architects together with any such

document a statement giving the reasons for

which he has formed his opinion.

(3) The Chamber of Architects may use

any document received in accordance with the

provisions of this rule for the purpose of an

enquiry which it may conduct under the said

Act but not for any other purpose.

(4) A document sent to the Chamber of

Architects and certified as a true copy of the

original in accordance with this rule shall be

admissible as evidence as if it were the original

and the production of such document shall not

empower any court or authority to request the

Commissioner to produce the original of such

document or to give evidence on such

document except as may be allowed under the

other provisions of the Act

Provided that the Commissioner

may be required to produce the original of any

such document in any case where it is

necessary to prove the handwriting or the

signature or the identity of the warrant holder

in question, but only for the purpose of such

proof and provided that the said original shall

be returned to the Commissioner as soon as it

is no longer required for the purpose for which

it has been produced.

(5) Within a reasonable time from the

receipt of any document sent to it in

accordance with this rule, the Chamber of

Architects shall inform the Commissioner in

writing whether it proposes to use the said

document for the purpose referred to in sub-

rule (3) or not, and, in the latter case, the

Chamber of Architects shall state the reason

for its decision not to make such a use and

shall return the document to the Commissioner.

(6) Within a reasonable time from the

conclusion of any enquiry in which any

documents referred to the Chamber of

Architects in accordance with this rule have

been used, the Chamber of Architects shall

deliver to the Commissioner a copy of its

decision on that enquiry.

(7) Nothing in this rule shall be

construed as -

(a)

empowering the Chamber of

Architects to request any information or

documents from the Commissioner or to

otherwise have access to documents or

other

information

held

by

the

Commissioner;

(b) binding the Commissioner to

give evidence or explanations in respect

of any documents sent by him to the

Chamber of Architects;

(c)

binding the Commissioner to

conduct any investigation or make

reports on the conduct of any warrant

holder.

(8) The documents to which this rule

refers are

(a)

any report signed by a

warrant holder;

(b) any information, records, or

computations, or any extract thereof, in

respect of which a report referred to in

paragraph (a) has been made.".

€0.54