Chapter 644

[ CAP. 644. PROPERTY MARKET AGENCY CHAPTER 644 PROPERTY MARKET AGENCY ACT AN ACT to establish the Property Market Agency and to make provision for the regulation of the property market. 26th September, 2024 ACT XXVII of 2024. Part I Part II Part III Part IV Part V Part VI Part VII Part VIII Part IX Part X ARRANGEMENT OF THE ACT Preliminary 1-2 The Property Market Agency 3-17 Licensing of Real Estate Agents, Property 18-25 Brokers, Branch Managers and Property Consultants Registration 26-27 Consumer shall be given Information, 28-30 Brokerage shall be Declared, Annual Returns Special Powers of the Agency 31-33 Power to make Regulations 34 Appeals from Decisions of the Agency 35 Administrative Penalties 36 Transitory Provisions 37-40 PART I Preliminary 1. Act. 2. The short title of this Act is the Property Market Agency Short title. In this Act, unless the context otherwise requires: Interpretation. "Administrative Review Tribunal" means the Administrative Review Tribunal established by article 5(1) of the Administrative Justice Act; "Agency" means established by article 3; the Property Market Agency "authorisation" means an authorisation granted by the Agency in terms of article 20(5); "beneficial owner" shall have the same meaning as assigned to it in the Prevention of Money Laundering and Funding of Terrorism Regulations; "Board" means the Board of the Agency;    Cap. 490.       S.L. 373.01. 1 2 [ CAP.644. PROPERTY MARKET AGENCY "branch manager" means any natural person who is a licence holder and who acts as an intermediary in the process of negotiating and carrying out transactions, involving the acquistion or transfer or lease of land in terms of this Act and who is also licenced and employed or engaged to supervise any property consultant; "Executive Head" means the Executive Head of the Agency;   Cap. 356. "developer" means the owner of the land on which development is executed in terms of the Development Planning Act;  Cap. 16. "land" means all immovable property as defined in the Civil Code and which is not extra commercium; "licence" means a licence issued by the Agency to exercise the activity of a property broker, real estate agent, or to act as a branch manager or property consultant or specific property consultant or other property market intermediary; "licence holder" means any holder of a licence issued by the Agency for exercising the activity of a real estate agent or a property broker or to act as a branch manager or a property consultant or a specific property consultant, or other property market intermediary, depending on the type of licence issued by the Agency; "Minister" means the Minister responsible for the property market; "occasional broker" means an individual who acts as a broker in property transactions who: (a) does not advertise his services in printed media, broadcasting media or on electronic media networks; and (b) restricts his services to occasional transactions not being more than two (2) transactions involving the acquisition, transfer or lease of land during each calendar year; and where the total value of the land so acquired, transferred or leased in such transactions does not exceed one million euro (€1,000,000), or any other amount whether less or more than one million euro (€1,000,000) as may be established by the Minister by regulations issued under this Act; and (c) does not employ or contract other persons in the conduct of his business; PROPERTY MARKET AGENCY [ CAP. 644. "partnership" includes a commercial partnership formed and registered under the Companies Act or a civil partnership as provided for in Title X of Part II of Book Second of the Civil Code;  Cap. 386.   Cap. 16. "property broker" or "immovable property broker" means any natural person who has a licence to act as an intermediary in the process of negotiating and carrying out transactions involving the acquisition, transfer or lease of land in terms of this Act and neither employs nor engages, whether under a contract of service or a contract for services, any branch manager and, or any property consultant and includes an occasional broker and a specific property consultant; "property consultant" means any natural person who has a licence to act as an intermediary in the process of negotiating and carrying out transactions involving the acquisition, transfer or lease 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; "property market intermediary" includes a branch manager, a property broker, a property consultant, a real estate agent and any other licensee and "property market intermediary " shall be construed accordingly; "real estate agent" means any natural person who has a licence to act as an intermediary in the process of negotiating and carrying out transactions involving the acquisition, transfer or lease of land and employs and, or engages, whether under a contract of service or a contract for services, one (1) or more branch managers and, or one (1) or more property consultants; "Register" means the Register of Licence Holders issued to exercise the activity of property brokers, real estate agents, branch managers, property consultants, specific property consultants and occasional brokers, active on the date of publication, held by the Agency; "specific property consultant" means a person employed or engaged by a developer to act as a property consultant specifically in respect of property developed by that developer. PART II The Property Market Agency 3. (1) There shall be established a body to be known as the Property Market Agency. (2) Subject to the provisions of this Act and of any other law, it Establishment of the Property Market Agency. 3 4 [ CAP.644. PROPERTY MARKET AGENCY shall be the function of the Agency to regulate the activities of property market intermediaries. (3) Without prejudice to the generality of its functions provided for in sub-article (2), the Agency shall have the following duties and functions: (a) to submit proposals and recommendations to the Government regarding national policy in relation to intermediaries in the property market with due consideration for the specific situation and requirements of Malta from time to time, but in any case not later than five (5) years from the last proposals and, or recommendations; (b) to issue standards in respect of brokerage and related services, in the property market; (c) to participate in any discussions leading to development planning and, or economic policies; (d) to monitor the real estate market, directly by encouraging and coordinating research and by commissioning, and where the Agency deems necessary, publish such research, surveys or other professional studies; (e) to act as regulator and to implement any function related to the property market which may be assigned to it in accordance with any law; (f) to organise and promote educational campaigns related to the property market and in particular to consumer protection in relation to the said market; (g) to promote and co-ordinate the training of persons working as property intermediaries; (h) to give advice on the property market as the Minister may from time to time request; (i) to undertake periodic reviews of educational programmes and structures related to the activities of property market intermediaries, and where the Agency deems necessary to publish such analysis, in order to recommend improvements in such programmes and in policies and to identify sources for the training of persons in relevant fields of activity so as to ensure the continuous availability of suitably qualified personnel; (j) to administer any budgetary allocation as may be assigned to it for purposes related to the property market or such other purposes as may be linked to such budgetary allocation; PROPERTY MARKET AGENCY [ CAP. 644. (k) to promote effective communication and coordination with government entities and private organizations involved in the formulation of policies related to the activities of the property market; (l) to identify overseas developments related to property market and which are of direct interest and relevance to Malta; (m) to set up databases and obtain access to international databases in the property market field, not later than three (3) years from the coming into force of this Act, and ensure that such databases are continuously updated; (n) to act as a contact point with respect to various regional, interregional and international organizations and to organize participation in seminars, conferences and in action groups and working groups of relevance to Malta’s interests in the field of activity of the Agency; (o) to set up networks of professional persons and organizations to assist in the formulation of policies, and the implementation of programmes, and to monitor areas of importance related to the property market of interest to Malta; (p) to carry out any other function not covered by this sub-article related to the activities of the property market as may be delegated to it by the Minister; (q) carry out any other function ancillary or conducive to the functions, duties and aims of the Agency. (4) The Agency shall be a body having a distinct legal personality and shall be capable, subject to the provisions of this Act, to enter into contracts, to hold and dispose of property of any kind for the purpose of its functions, to sue and be sued and to enter into all such other transactions as are incidental or conducive for the proper performance of its functions. (5) The Agency shall consist of a Board and of a Directorate. (6) The legal and judicial representation of the Agency shall vest in the Chairperson: Provided that the Board may appoint the Executive Head or any one (1) or more of the members of the Directorate staff to appear in the name and on behalf of the Agency in any judicial proceedings and in any act, contract, public deed, instrument or other document whatsoever. (7) Any document purporting to be an instrument made or issued by the Agency and signed by the Chairperson on behalf of the 5 6 [ CAP.644. PROPERTY MARKET AGENCY Agency shall be received in evidence, and shall unless the contrary is proved, be deemed to be an instrument made or issued by the Agency. Board of the Agency. 4. (1) The Board of the Agency shall be composed of a Chairperson and four (4) to eight (8) other members appointed by the Minister from amongst persons who in the opinion of the Minister have experience and knowledge in the field of activity of the Agency, or other regulatory experience, or other regulatory experience of nongovernmental associations, or in the exercise of the legal profession of advocate, or persons who in the opinion of the Minister represent the wide perspective of the various opinions of the stakeholders in the sector. (2) One (1) of the members of the Board of the Agency shall be appointed by the Minister as Deputy Chairperson. The Deputy Chairperson shall have all the powers and perform all duties of the Chairperson during the absence of the Chairperson or during any period when the Chairperson cannot perform his functions for any other cause, or during any vacancy in the office of the Chairperson. (3) The Board may act notwithstanding any vacancy in its composition or during the absence of any member as long as the Chairperson or the Deputy Chairperson and any two (2) other members are present. (4) A person shall not be eligible to be appointed, or to continue to hold office, as a member of the Board if he is: (a) interdicted or incapacitated; (b) has been declared bankrupt; or (c) has been found guilty in Malta or abroad of an offence liable to a punishment of imprisonment of more than one (1) year other than an offence of an involuntary nature.          Cap. 446. (5) For the purpose of sub-article (4)(c), a person who has been found guilty of an offence as specified in sub-article (4)(c) shall still be disqualified to hold office notwithstanding that any punishment awarded has been suspended, or such person has been conditionally released, or put under probation without the infliction of any punishment or such person has been sentenced according to the Probation Act without the infliction of any punishment. (6) The members of the Board, including the Chairperson and the Deputy Chairperson, shall be appointed for a term of three (3) years and may be reappointed. (7) The members of the Board shall receive such remuneration as the Minister may determine upon their appointment. (8) The Minister shall appoint a person to act as Secretary to the PROPERTY MARKET AGENCY [ CAP. 644. Board. 5. (1) The Board shall be responsible to establish the policy to be adopted by the Agency in the exercise of its functions under this Act in consultation with the Minister and it shall also have the functions established in this article. Functions of the Board. (2) The Board shall be responsible to ensure that the Agency carries out its functions in accordance with this Act and in accordance with any policy established by it. (3) The Board may from time to time, where it thinks fit, make general rules for the guidance of the Agency in the exercise of its functions under this Act, and may at any time revoke or vary such rules. (4) The Board shall also verify and approve the accounts of the Agency and the draft estimates and the financial plans of the Agency, prepared by the Executive Head before their final submission to the Minister in accordance with this Act. (5) The Board shall be kept informed by the Executive Head on the general running of the Agency. 6. (1) The Directorate of the Agency shall consist of the Executive Head, Senior Managers and such other officers and employees of the Agency as may be engaged by the Agency from time to time. (2) The Executive Head shall be in charge of the overall management and executive action of the Agency and shall keep the Board informed on the general running of the Agency and of the result of the operations of the Agency. The Executive Head shall be, in particular but without prejudice to the generality of the foregoing, responsible for the carrying out by the Agency of the functions assigned to it under Part III to Part X of this Act. (3) The Executive Head shall be appointed by the Minister, after consultation with the Board, for such period and on such terms as the Minister may, in consultation with the Board, determine. (4) The Senior Managers and the other officers and employees of the Directorate shall be selected by the Executive Head and engaged by the Agency in accordance with the applicable terms and procedures. (5) The Agency may also act by means of such contractors as it may from time to time engage: Provided that such contractors shall at all times act in accordance with such instructions as may be given to them by the Executive Head. The Directorate. 7 8 [ CAP.644.  Cap. 9. PROPERTY MARKET AGENCY (6) The Executive Head and the Directorate staff shall for all purposes of the Criminal Code be considered as public officers, and shall be afforded all protection and may incur all liability as such. (7) The Executive Head and the Directorate staff shall, subject to any contrary provision in this Act or in any other law, abide by any code of ethics applicable to public officers: Provided that the Board may not be precluded in any manner from making further rules regulating the conduct of the Executive Head and of the Directorate staff to supplement any such Code of Ethics. Meetings of the Board. 7. (1) The Board shall meet at least ten (10) times a year so however that the Board shall ensure that the period of time between one meeting and another shall not exceed eight (8) weeks. Other meetings of the Board shall be convened as may be necessary. (2) The Secretary to the Board shall take minutes of decisions at its meetings. The minutes shall be signed by the Secretary and the Chairperson. (3) The meeting of the Board shall be chaired by the Chairperson or in his absence by the Deputy Chairperson. (4) Decisions of the Board shall be adopted by a simple majority of votes of the members present and voting, and in the event of an equality of votes the Chairperson, or where the meeting is presided by the Deputy Chairperson, the Deputy Chairperson shall have and exercise a second or casting vote. The quorum at Board meetings shall consist of three (3) members. (5) The Executive Head shall be entitled to attend the meetings of the Board and to take part in the discussions. The Board may invite any other member of the Directorate staff to attend meetings of the Board and to participate in the discussions. The Executive Head and any member of the Directorate staff taking part in any discussion of the Board shall not have a vote in the meetings in which they participate: Provided that the Chairperson may, if he considers it proper to do so, at any time exclude the Executive Head or any member of the Directorate staff invited to attend at a meeting of the Board from any meeting or part thereof. (6) Any participation in a meeting of the Board of a person not entitled to be present shall not invalidate the proceedings of the meeting nor shall such proceedings be invalidated if it is subsequently discovered that a person acted in good faith as a member and a defect in his appointment or qualification is afterwards discovered. (7) A week’s notice shall be given to the members of the Board PROPERTY MARKET AGENCY [ CAP. 644. 9 of any meeting thereof: Provided that in case where an urgent situation arises and decisions are to be taken forthwith, decisions taken by at least two (2) members of the Board, one (1) of whom being the Chairperson or the Deputy Chairperson shall be valid as if taken by a meeting of the Board regularly convened with proper notice. (8) Subject to the other provisions of this Act, the Board shall regulate its own proceedings. 8. Without prejudice to the other provisions of this Act, the appointment of officers and other employees of the Agency shall be made by the Agency. The terms and conditions of employment shall be established by the Agency with the concurrence of the Minister. Staff appointments. 9. The Agency shall appoint and employ, at such remuneration and upon such time terms and conditions as it may determine, such officers and employees of the Agency as may, from time to time, be necessary for the due and efficient execution of the functions of the Agency. Appointment and functions of officers and employees of the Agency. 10. (1) The Prime Minister may, at the request of the Agency, from time to time direct that any public officer shall be detailed for duty with the Agency in such capacity and with effect from such date as may be specified in the Prime Minister’s order. Detailing of public officers for duty with the Agency. (2) The period during which an order shall apply to any officer specified therein shall, unless the officer retired from the public service, or otherwise ceases to hold office at an earlier date, or unless a different date is specified in such order, cease to have effect after one (1) year from the effective date of such order unless the order is revoked earlier by the Prime Minister. 11. (1) Where an officer is detailed for duty with the Agency in accordance with the provisions of article 10, such officer shall, during the time in which such order has effect in relation to him, be under the authority and administrative control of the Agency but he shall for other intents and purposes remain and be considered and treated as a public officer. (2) Without prejudice to the generality of sub-article (1), an officer detailed for duty: (a) shall not during the time in respect of which he is so detailed: (i) be precluded from applying for a transfer to an Agency of the Government in accordance with the terms and conditions of service attached to his appointment with the Government at a date on which he is so detailed for duty; or Status of public officers detailed for duty with the Agency. 10 [ CAP.644. PROPERTY MARKET AGENCY (ii) be so employed that his remuneration and conditions of his service are less favourable than those which are attached to the appointment under the Government held by him at the date aforesaid or which would have become attached to such appointment, during the said period, had such officer not been detailed for duty with the Agency; and    Cap. 93.   Cap. 58. (b) shall be entitled to have his service with the Agency considered as service with the Government for the purposes of any pension, gratuity or benefit under the Pensions Ordinance and, or the Widows’ and Orphans’ Pensions Act, and of any other right or privilege to which he would be entitled, and liable to any liability to which he would be liable, but for the fact of his being detailed for duty with the Agency. (3) Where an application is made as provided in sub-article (2)(a)(i) the same consideration shall be given thereto as if the applicant had not been detailed for service with the Agency. (4) The Agency shall pay to the Government such contributions as may from time to time be determined by the Minister responsible for finance in respect of the cost of pensions and gratuities earned by an officer detailed for duty with the Agency as aforesaid during the period in which he is so detailed. Offer of permanent employment with the Agency to public officers detailed for duty with the Agency. 12. (1) The Agency may, with the approval of the Prime Minister, offer to any officer detailed for duty with the Agency in accordance with the provisions of article 10 permanent employment with the Agency at a remuneration and on terms and conditions not less favourable than those enjoyed by such officer at the date of such offer. (2) The terms and conditions included in any offer made shall not be deemed to be less favourable merely because they are not in all respects identical with or superior to those enjoyed by the officer concerned at the date of such offer, if such terms and conditions, taken as a whole, in the opinion of the Prime Minister offer substantially equivalent or greater benefits.    Cap 93. Cap. 58. (3) Every officer who accepts permanent employment with the Agency offered to him in accordance with the provisions of sub-article (1) shall, for all purposes other than those of the Pensions Ordinance and of the Widows’ and Orphans’ Pensions Act, and saving the provisions of sub-article (6), be deemed to have ceased to be in service with the Government and to have entered into service with the Agency on the date of his acceptance, and for the purposes of the said Ordinance and of the said Act, so far as applicable to him, service with the Agency shall be deemed to be service with the Government within the meanings thereof respectively. PROPERTY MARKET AGENCY [ CAP. 644. (4) Every such officer who, immediately before accepting permanent employment with the Agency, was entitled to benefit under the Widows’ and Orphans’ Pensions Act, shall continue to be so entitled to benefit thereunder for all intents as if his service with the Agency were service with the Government.    Cap. 58. (5) The Agency shall pay to the Government such contributions, as may from time to time be determined by the Minister responsible for finance, in respect of the cost of pensions and gratuities earned by an officer who has accepted performance of employment with the Agency in accordance with this article during the period commencing on the date of such officer’s acceptance. (6) (a) For the purposes of this article posts and salary grades with the Agency shall be classified in the closest corresponding grades and incremental levels in the service with the Government of Malta by reference to job description, skills, responsibilities and other analogous factors. (b) The classification referred to in paragraph (a) shall be carried out by a board composed of a Chairperson appointed by the Ministry responsible for finance and two (2) other members, one (1) appointed by the Ministry centrally responsible for personnel policies in the public service and one (1) appointed by the Agency. The classification shall be subject to the final approval of the Minister responsible for finance. (c) Such classification shall take place within three (3) months of any adjustment of salaries of employees in Government service and, or of employees of the Agency. (d) No post shall be classified in a grade higher than that of Grade 3 in the service of the Government or other grade that the Minister responsible for finance, may from time to time, by notice in the Gazette determine. (e) Without prejudice to article 113 of the Constitution, no person may, following a classification, be entitled to rights in accordance with the Pensions Ordinance less favourable than those to which he would have been entitled to prior to such classification. 13. The financial year of the Agency shall commence on the 1st of January and end on 31st of December:    Cap. 93. Financial year. Provided that the first financial year of the Agency shall commence on the date of coming into force of this Act and shall end on the 31st day of December of the following year. 14. (1) The Executive Head shall, not later than sixteen (16) weeks before the end of each financial year, submit to the Board estimates of the income and expenditure of the Agency for the Estimates and expenditure. 11 12 [ CAP.644. PROPERTY MARKET AGENCY following financial year. (2) In the preparation of such estimates the Agency shall endeavour to ensure that the sums to be allocated to the Agency are at least sufficient to meet all sums properly chargeable to its income and expenditure accounts including, but without prejudice to the generality of that expression, depreciation. (3) The estimates shall be made in such form, and shall contain such information and such comparisons with previous years, as the Board may direct. (4) Not later than three (3) weeks from the receipt of such estimates from the Executive Head, the Board shall consider such estimates and shall transmit the same with, or without amendments to the Minister for his approval. (5) Before the end of the financial year, the Minister shall approve and adopt such estimates with or without amendments. (6) If in respect of any financial year it is found that the amount so approved is not sufficient or a need has arisen for expenditure for a purpose not provided for in the estimates, the Executive Head shall cause supplementary estimates to be prepared and to be sent forthwith to the Board for transmission to the Minister for his approval, and in any such case the provisions of this article shall, as far as practicable, apply to the supplementary estimates. Advances from the Government. 15. The Minister may, acting in accordance with appropriation legislation, make advances and provide such funds to the Agency for carrying out its functions under this Act, in accordance with such estimates approved in accordance with article 14. Accounts and audit.    Cap. 281. 16. The Agency shall keep proper books of accounts. Such accounts shall be audited by auditors appointed by the Board with the concurrence of the Minister from among persons qualified to be appointed as auditors in accordance with the Accountancy Profession Act. Such accounts shall moreover be subject to audit by the Auditor General. Annual report. 17. (1) The Board shall as soon as practicable, but not later than six (6) months after the close of each financial year, transmit to the Minister an annual report consisting of: (a) auditors; a copy of the annual accounts certified by the (b) a report on the operations of the Agency during the previous financial year; and (c) any research, survey or other professional studies and analysis of educational programmes and structures related to PROPERTY MARKET AGENCY [ CAP. 644. the activities of intermediaries in the real estate market that the Agency deems necessary. (2) The Minister shall, and in any case by not later than six (6) weeks after the receipt of the annual report of the Agency, or where the House is during that period not in session, not later than the second week after the House reconvenes, ensure that the annual report is laid on the Table of the House and the House shall, if a request is made by at least one member of the House within thirty (30) days after it is so laid, discuss the annual report during a dedicated parliamentary sitting which shall be held within a period of sixty (60) days after the said laying. PART III Licensing of Real Estate Agents, Property Brokers, Branch Managers and Property Consultants 18. (1) The activity of a property broker or real estate agent consists of acting as an intermediary in the process of negotiating and carrying out transactions involving the acquistion or transfer or lease 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 specific property consultant. (2) No person shall exercise the activity of a property broker or real estate agent or be employed or engaged as a branch manager or property consultant or specific property consultant unless such person is in possession of a valid licence issued under this Act: Provided that specific property consultants shall be required to obtain a licence in terms of this Act, in cases where the Minister may so establish by regulations issued under this Act. (3) Notwithstanding the other provisions of this Act, a person registered with the Agency as an occasional broker shall not require a licence in accordance with this Act to act as an occasional broker: Provided that such person shall, prior to his involvement whatsoever in any transaction, still be required to request approval from the Agency prior to the commencement of any activity in the form prescribed by the Agency for the purpose of informing the Agency of the intention to carry out such occasional activity and to provide any other information which the Agency may require: Provided further that the Agency shall ensure that an occasional broker provides the Agency with information on the number and value of transactions on an annual basis and, or on an ad hoc basis as the Agency may deem necessary: Provided further that the registration of any such person as an occasional broker shall only be valid for a period of one (1) calendar year and may be renewed by the Agency, unless there exists a Licensing requirement. 13 14 [ CAP.644. PROPERTY MARKET AGENCY valid reason for the Agency to determine otherwise, and provided that it is shown to the satisfaction of the Agency that any such person has during the period of his registration conformed with the requirements set out in this Act, in the exercise of his trade as an occasional trader. (4) Where a real estate agent or a property broker intends to carry out his activity with some other person, they shall form a partnership, having as its main object the activity envisaged under subarticle (1), and they shall seek the authorisation of the Agency prior to the commencement of activity. (5) (a) Any person who fails to comply with the provisions of this article shall be liable to an administrative penalty not exceeding twenty thousand euro (€20,000) to be imposed by the Agency; (b) Any real estate agent, or developer of real estate who employs or engages any property consultant, or specific property consultant or branch manager who acts in breach of this article shall also be personally liable for such breach and for the payment of an administrative penalty as is provided for in paragraph (a). Eligibility for licences.    Cap. 13. 19. (1) Any person is eligible to obtain a licence to act as a property broker or real estate agent or a branch manager provided such person: (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 aspects 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 by the National Commission for Further and Higher Education; or (c) holds any other qualifications which the Malta Qualifications Recognition Information Centre recognises as being equivalent: Provided that where the Agency considers the equivalence of the qualifications to be only partial, the applicant may provide alternative evidence as a proof of his competence which the Agency may deem satisfactory or otherwise. (2) Any person is eligible to act as a property consultant or as a specific property consultant, provided such person: PROPERTY MARKET AGENCY [ CAP. 644. (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 aspects 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 by the National Commission for Further and Higher Education; or (c) holds any other qualifications which the Malta Qualifications Recognition Information Centre recognizes as being equivalent: Provided that where the Agency considers the equivalence of the qualifications to be only partial, the applicant may provide alternative evidence as proof of his competence which the Agency may deem satisfactory or otherwise. (3) Notwithstanding sub-articles (1) and (2), no person shall apply for, or obtain, or be eligible to hold a licence, or for the renewal of a licence, in accordance with this Act if: (a) he is interdicted or incapacitated in terms of civil law or is bankrupt and has not obtained the order of discharge issued by the competent Court, or if he has obtained the order of discharge, it is suspended for a term which has not yet expired or is subject to conditions which are not yet fulfilled; and (b) he does not present a certificate of conformity issued by the Commissioner for Tax and Customs; or (c) having regard to the applicant’s conduct and repute, his financial position and the interests of the public, the applicant is not a fit and proper person to carry out the activity of property broker or real estate agent or to act as branch manager, property consultant, or specific property consultant. (4) The Minister, after consulting the Agency, may by regulations establish: (a) the minimum subject matter requirements of any courses or other training leading to the granting of a certificate in real estate in terms of this article; (b) the minimum subject matter requirements of any continuous professional development organised in respect of estate agents, property brokers, branch managers, property consultants or specific property consultants;    Cap. 13. 15 16 [ CAP.644. PROPERTY MARKET AGENCY (c) the level or length of experience which a person shall require in order to be exempt from producing formal qualifications or from undergoing further training in order to be eligible to continue to perform any activity which requires a licence under this Act; and (d) the content of any aptitude test to which a person exercising an activity which requires a licence in accordance with this Act may be required to sit for. Application for a licence. 20. (1) Every person who intends to obtain a licence in accordance with this Act shall submit an application to the Agency in the prescribed form. (2) Every application under sub-article (1): (a) shall declare the locations of activity where the applicant intends to carry out the activity; and (b) shall, where the applicant has or proposes to have two (2) or more locations of activity, specify which of those locations of activity is to be his principal place of activity. (3) Real estate agents or property brokers who intend to carry out their activity through a partnership in compliance with the provisions of article 18(4) shall submit an application to the Agency in the prescribed form. (4) Every application under sub-article (3) shall declare: (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 any licence holders. (5) The Agency shall authorise the exercise of the activity as envisaged under article 18(4) upon being satisfied that: (a) the requirements of article 18(4) have been complied with; and (b) having regard to all directors, partners, company PROPERTY MARKET AGENCY [ CAP. 644. secretary and the beneficial owners’ conduct and repute, their financial position, and the interests of the public, all directors, partners, company secretary and beneficial owners are fit and proper persons to be involved in a partnership which has as its main object the activity envisaged under article 18(1). (6) There shall be no change in beneficial ownership, in the board of directors or partners or company secretary of a partnership where such is required under any other law, formed for the purpose of sub- article 18(4), unless the said change is notified to the Agency in the prescribed form and the Agency, gives its approval thereto upon being satisfied that the criteria set out in articles 18(4) and 20(5) are satisfied. (7) In case of a change in beneficial ownership, in the board of directors or partners, or company secretary of a partnership where such is required under any other law, formed for the purpose of article 18(4), the partnership may not resume its activity unless such changes are approved by the Agency. (8) When the Agency decides to refuse a request for an approval of a change as provided for in sub-article (6), the Agency shall inform the applicant and state in the notice the grounds for the decision. (9) The Agency shall also be informed whenever: (a) any one (1) director or partner or company secretary or beneficial owner of a partnership formed for the purposes of sub-article (4) of article 18 resigns or is otherwise removed; or (b) it is resolved or otherwise decided that a partnership formed for the purposes of the said sub-article (4) of article 18 is to be dissolved and consequently wound up. 21. (1) The applicant shall submit to the Agency 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 Agency to reach a determination relative to the said application. The Agency shall acknowledge receipt of a complete application without delay and shall process the application within two (2) months: Provided that when the Agency requires more time to process the application or requires further documentation, the Agency may extend the processing time established under sub-article (1) by further periods: Provided further that when an extension of time is required, the Agency shall notify the applicant without delay. Notice of application and determination. 17 18 [ CAP.644. PROPERTY MARKET AGENCY (2) The Agency shall determine whether the applicant satisfies the criteria of eligibility to be awarded a licence or authorisation. (3) (a) When issuing a licence or authorisation the Agency may subject such licence or authorisation to any conditions as it may deem appropriate and objectively justified. The conditions of a licence or authorisation may be varied or revoked, from time to time, by the Agency and new conditions may also be so imposed. Before varying or revoking the conditions of a licence or authorisation and before imposing new conditions the Agency shall grant the licence holder an opportunity to make submissions about the proposed variation, revocation or imposition of proposed new conditions; (b) licences and other authorisations issued in accordance with this Act may be made subject to the payment of fees as may be established by the Minister with the concurrence of the Minister responsible for finance by regulations made in accordance with this article: Provided that in establishing the said fees the Minister with the concurrence of the Minister responsible for finance may specify that the Agency shall be the sole user of revenue collected from the said fees and that such revenue shall be used to defray costs incurred by the Agency to properly establish, operate, maintain and promote its obligations or any part thereof. (4) When the Agency decides to refuse a request to issue a licence or authorisation, it shall inform the applicant and state in the notice the grounds for the decision. (5) Without prejudice to the preceding articles, when for justified and valid reasons the Agency is unable to reach a decision within a time period stipulated in this Act or in any regulations made thereunder the said time period shall be extended for further periods each of which shall not exceed two (2) months. The applicant shall be informed of any such extension. Effect of licence. 22. (1) No licence holder shall exercise the activity of an intermediary in the process of negotiating or carrying out transactions involving the acquisition, transfer, or lease of land in terms of this Act under any name unless the name has first been approved by the Agency. (2) An applicant for a licence or a licence holder may, at any time apply in writing to the Agency to approve a name for the purposes of sub-article (1), which name shall not be approved if the Agency considers that the name closely 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 which is likely to deceive, or that the name is that of any person, firm, or company. PROPERTY MARKET AGENCY [ CAP. 644. 19 (3) The Agency shall issue a licence document to a licence holder in accordance with this Act. The identity document shall contain a photograph of the licence holder and such other information as the Agency may deem necessary. The said information shall include, inter alia, the name, the licence type, registration number and term of validity. The identity document shall remain the property of the Agency and shall be returned to the Agency on the suspension or revocation of a licence issued under this Act. (4) The licence holder has the obligation to indicate the licence rgistration number when he advertises, promotes or negotiates any property. (5) Any licence holder who breaches the provisions of subarticle (1) or of sub-article (2) shall be liable on conviction, to an administrative penalty of not more than twenty thousand euro (€20,000) to be imposed by the Agency. 23. A licence shall, unless it is revoked earlier in accordance with the provisions of this Act, remain valid until the expiration of five (5) years from when 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. Expiration and renewal of licence. 24. (1) The Agency shall refuse to renew a licence on any of the following grounds: Refusal to renew a licence. (a) the licence holder is found to be in breach of any provision specified under this Act; (b) the licence holder has permitted any person, other than a licence holder in terms of this Act, to act as his representative in the exercise of his activity; (c) having regard to the character or fitness and propriety of licence holders, it is not in the public interest that the licence be renewed; (d) the licence holder failed to undertake a set minimum of hours of continuing professional development set by the Agency during the preceding five (5) years; (e) the licence holder failed to pay any fees or other dues payable to the Agency in accordance with this Act; (f) the licence holder does not present a certificate of conformity issued by the Commissioner for Tax and Customs. (2) When the Agency decides not to renew a licence, the Agency shall inform the licence holder by notice in writing giving reasons for its decision. 20 [ CAP.644. Surrender, suspension or cancellation of a licence. PROPERTY MARKET AGENCY 25. (1) A licence holder may at any time surrender his licence by forwarding a written notice to that effect, together with the identity document, to the Agency. (2) Licence holders may at any time notify the Agency that they do not intend to keep operating through a partnership as envisaged under article 18(4) by forwarding a written notice to that effect to the Agency. (3) The Agency shall list 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 licence holder’s or partnership’s liability, as the case may be: (a) to pay any fees or other dues payable to the Agency 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; and (d) where the Agency receives reports from any other agency, including from authorities responsible for safety and enforcement of any other obligation that the licence holder may be subject to; (5) A licence or authorisation may be cancelled or suspended by the Agency in any of the following instances: (a) where the Agency determines that the licence holder no longer fulfils or meets the requirements of, or has breached, 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, or company secretary of a partnership formed for the purpose of article 18(4), where such is required under any other law, no longer meets the conditions set out in article 20(5); (c) where a partnership formed for the purposes of article 18(4) is to be dissolved and consequently wound up; (d) when the Agency receives any negative reports PROPERTY MARKET AGENCY [ CAP. 644. 21 from any other Agency including other authorities responsible for the supervision and enforcement of any other obligations to which the exercise of the activity of any licensee may be subject. (6) In the circumstances referred to in sub-article (5), the Agency 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 Agency decides to suspend or cancel a licence or authorisation, the Agency shall inform the licence holder or licence holders by notice in writing giving reasons for its decision. PART IV Registration 26. (1) For the purpose of this Act, the Agency shall maintain an internal Register which shall be kept in a secure manner, and which shall include the following details: (a) in the case of the issue of a licence, the name of the licence holder, the date on which the licence was issued, the term of validity, the type of licence issued and the registration number; (b) in the case of real estate agents or property brokers exercising their activity through a partnership: (i) the official full name and registration number of the partnership; (ii) activity; the registered address or principal place of (iii) the date of incorporation or registration of the partnership; (c) where real estate agents employ or engage property consultants, an updated list including the 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 licence was renewed; (e) in the case of the cancellation of a licence or certificate of approval or the suspension of a licence holder or holder of a certificate of approval, the date on which the cancellation or suspension was made; (f) in the case of an occasional broker, the name of the Register of Licence Holders. 22 [ CAP.644. PROPERTY MARKET AGENCY occasional broker, the date on which the approval was issued by the Agency, the period of validity and the registration number: Provided that the Agency shall only make publicly available that information which is strictly necessary to enable the public to verify whether an intermediary is licensed or authorised to operate. (2) The Agency shall also, in respect of any registration, record such other particulars as may be required by this Act or, as may from time to time, be prescribed. (3) The Agency shall ensure that any personal data contained in the Register shall not be further processed in a manner that is incompatible with the purpose of this Act. (4) The Agency shall provide the data subjects with all the information in relation to the processing of their personal data in accordance with article 13 and 14 of Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC (General Data Protection Regulation), which is necessary to ensure fair and transparent processing. (5) The Agency shall amend the Register every three (3) months and shall seek to keep the information found therein accurate and continuously up-to-date as may be established by the Minister by means of regulations made under this Act. Data Protection.         Cap. 586. 27. (1) Any processing of personal data by the Agency for the purpose of this Act shall fully comply with the provisions of Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC (General Data Protection Regulation) and the Data Protection Act, including the regulations made thereunder, and the right to the protection of personal data pertaining to natural persons. (2) The Agency, whilst taking into account the nature, scope, context and purposes of the processing, as well as the risks of varying likelihood and severity for the rights and freedoms of the data subjects, shall implement appropriate technical and organisational measures in an effective manner and integrate the necessary safeguards into the processing, in order to protect the rights of the data subjects and to ensure a level of security appropriate to the risk. (3) For the purposes of ensuring and to be able to demonstrate compliance with all the principles relating to the processing of personal data as held in Article 5 of Regulation (EU) 2016/679 of the PROPERTY MARKET AGENCY [ CAP. 644. 23 European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC (General Data Protection Regulation), the controller shall implement appropriate data protection policies, which policies shall be periodically reviewed and updated where necessary. (4) The data protection officer designated by the Agency in accordance with Article 37 of Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC (General Data Protection Regulation) shall be involved and consulted properly and in a timely manner on all issues in relation to the processing of personal data. PART V Consumer shall be given Information, Brokerage shall be Declared, Annual Returns 28. Licence holders and occasional brokers shall inform the parties with regard to the fees that shall be charged for their services in advance: Fees. Provided that if the licence holder or occasional broker were active during negotiations between the parties in such a manner as to entitle them to fair compensation despite the fact that the transaction was not finalised, such compensation shall be determined by a court. 29. (1) In every contract concluded after the 1st December 2024 whereby land is acquired, transferred or leased the parties shall declare whether or not the services of a real estate agent, a property broker, an occasional broker, a property consultant or a specific property consultant were engaged and whether brokerage is due in respect of the transaction, and if brokerage is so due, the parties shall identify the natural or legal person receiving or who shall receive brokerage fees. Brokerage shall be declared. (2) Any party to a contract and any property broker, occasional broker, property consultant, specific property consultant or real estate agent, who acts in contravention of this article shall be liable to an administrative penalty of not more than ten thousand euro (€10,000). to be imposed by the Agency. 30. Every licence holder and registered partnership shall by not later than the 30th of June of each year file an annual return with the Agency on such form as the Agency shall prescribe indicating all transactions in respect of which the licence holder received brokerage fees during the previous calendar year: Provided that the first return under this article shall be due Annual return. 24 [ CAP.644. PROPERTY MARKET AGENCY to be filed by the 30th of June 2025 in respect of brokerage fees received during the calendar year 2024. PART VI Special Powers of the Agency Powers of Executive Head and authorised officers. 31. (1) For the purposes of this Act, the Executive Head or an officer of the Agency authorised by him shall have the power, at any reasonable time: (a) to enter and to inspect any area or premises in the execution of his functions under this Act; (b) without prejudice to any obligation of professional secrecy under any other law, to require any person to answer any question and, or produce any records under that person’s control concerning any activities relating to this Act carried out in any area or premises; (c) to inspect, to extract, or to take any copy of any record relevant to the administration of this Act; (d) necessary; (e) to give any order under this Act that he may deem to refer any matter to the Board of the Agency. (2) An authorised officer shall, when exercising a power delegated to him by the Executive Head under the provisions of this Act: (a) provide an identification document issued by the Agency when requested by the owner or administrator of any area or premises under inspection; and (b) give reasonable notice, unless such notice would defeat the objective of the intended exercise or inspection. (3) The Executive Head and any officer of the Agency authorised by him, while exercising any power under this Act, may request the assistance of a police officer or of any other person as they may require. Confidentiality. Cap. 496. 32. Without prejudice to the provisions of the Freedom of Information Act, the members of the Board of the Agency, the Executive Head and the Agency’s officers, employees and agents, whether still in service of the Agency or otherwise, shall treat any information and documents acquired in the performance of their duties or the exercise of their functions under this Act as confidential, and shall not disclose any information or document relating to the affairs of any licence holder or occasional broker, which they have acquired in the performance of their duties or the exercise of their functions PROPERTY MARKET AGENCY [ CAP. 644. under this Act except: (a) for the purpose of the performance of their duties or the exercise of their functions under this Act; (b) before any competent court or tribunal in any proceedings to which the Agency is a party thereto or in any criminal proceedings unless such document is a privileged or confidential document which is exempt from disclosure before a court of law under the provisions of any other law; (c) to a public agency explicitly authorised to demand such information under any law; (d) for the purpose of the enforcement of any penalty imposed by the Agency under this Act; and (e) in the form of an aggregation of data or other statistical information, which in the opinion of the Agency does not lead to the identification of any specific person. 33. The members of the Board of the Agency, the Executive Head and the Agency’s officers, employees and any person authorised to act on behalf of the Agency under this Act shall, when acting in the performance of their functions under this Act or under any regulations made thereunder, not be liable for any loss or damage suffered by any person by reason of anything done or omitted to be done by them in good faith in the course of the administration of this Act or of any regulations made thereunder. Exclusion from liability. PART VII Power to make Regulations 34. The Minister may make regulations for the better carrying out of the provisions of this Act and such regulations may also provide for the better implementation of any other law which the Agency is entitled to enforce, for the elimination of difficulties or the setting of time frames and conditions, in respect of the implementation of such law and without prejudice to the generality of the foregoing, such regulations may make provision in respect of: (a) any matter relating to the activities of property brokers, real estate agents, property consultants, specific property consultants, occasional brokers or persons acting as an intermediary in the process of negotiating or concluding transactions involving the purchase, sale, disposal or lease of land, even if on an occasional basis; (b) the establishment of rules, conditions, codes of conduct and bye-laws in respect of the activities referred to in paragraph (a); Power to make regulations. 25 26 [ CAP.644. PROPERTY MARKET AGENCY (c) the establishment of academic, training or other professional or aptitude requirements for the exercise of the activities referred to in paragraph (a); (d) the granting of exemptions from any provisions of this Act in respect of specific activities or transactions or for a specified period of time or to enable transitory arrangements; (e) the extension of the provisions of this Act to any activity related or being of substantially the same nature as the activities referred to in paragraph (a); (f) regulating the procedure according to which it shall be determined whether an administrative penalty provided for in this Act or in any regulations made thereunder shall become due and for providing for the payment of administrative penalties by way of settlement of proceedings leading to the imposition of an administrative penalty as aforesaid; (g) prescribing anything that may be prescribed under this Act. PART VIII Appeals from Decisions of the Agency Right of appeal to Administrative Review Tribunal. 35. (1) The Administrative Review Tribunal shall be competent to hear and determine objections made by any person aggrieved by any decision of the Agency under this Act or under any regulations made thereunder: Provided that, unless otherwise prescribed by l …