A woman who bought an apartment was left without the deed to the property she purchased after her notary failed to transfer property taxes and duties to the government. 

Pauline Azzopardi bought an apartment in 2019 for €185,000 and the stamp duty and taxes were paid to the notary to be transferred to the Commissioner of Revenue.

But the notary was “in financial trouble” and failed to pass on the money and so the contract of sale could not be registered, according to a complaint filed with Ombudsman Joseph Zammit McKeon.

Despite the parliamentary Ombudsman conducting a “thorough investigation” and recommending the government take action last January, a consumer rights group last week said that nothing has been done. 

“ACR (Association for Consumer Rights) Malta is seriously concerned to see that the government is ignoring the Ombudsman’s opinion, which was submitted to parliament one year ago,” the group said. 

The Ombudsman also wrote to the parliamentary speaker in November, saying, “no progress was being registered”.

Azzopardi was not alone in her plight, with the Ombudsman also referring to two companies left in a similar situation. The notary was not named in either case.

The Ombudsman’s office also pointed out that as things stand, people in Azzopardi’s situation are “being prejudiced and subjected to undue hardship as they are unable to register property legally acquired by them unless they incur a considerable expense and fork out the sums due to the public exchequer once again”. 

The Ombudsman recommended that the government find a solution without delay for Azzopardi and others in a similar situation. 

Generally, the Ombudsman said legal provisions and policies that provide more robust protection needed to be introduced. 

It added: “Online systems whereby tax and duty payments are made directly to the department on the same day of the publication of the contract, with the consequent registration of the deed should be considered”.

Two other properties did not have deed transferred

The Ombudsman made similar recommendations in the cases of the two companies BJ Malta Investments Ltd and MYMAZE Ltd which bought properties in St Julian’s and Valletta in 2018 and 2019 respectively. They also did not have the deed to the properties transferred to them after the notary failed to forward the taxes he received. 

The Ombudsman said the authorities seemed “completely insensitive” to the hardship of “innocent contracting parties” by expecting them to pay up and advising them to take expensive and time-consuming court action.

It said innocent people were being penalised for doing no wrong.

“Claiming that the notary was chosen by the parties and that therefore government cannot be held responsible is illogical in the opinion of this office as the notary is a public officer and the parties could not have foreseen that the notary would not deposit the funds with the CFR,” it said.

“It also appears that the insurance which notaries are required to have in line with the legislation introduced does not cover cases where the notary has fraudulently and intentionally misappropriated funds”.

After the two reports were published in January last year Justice Ministry permanent secretary Johan Galea replied to the Ombudsman in February.

 

Besides himself, he was writing on behalf of the Commissioner for Revenue, the Permanent Secretary in the Ministry for Finance, and the Permanent Secretary in the Ministry for Home Affairs.

He said that consultations were being carried out “with a view to possible viable options to addressing as much as possible the recommendations common in both cases”.

“Undoubtedly, you will appreciate that this task may also have to involve legislative amendments,” the permanent secretary said. 

The Ombudsman also brought the issue to the prime minister back in July but only received a reply in October when a reminder was sent.

The two reports and all correspondence were tabled after the Ombudsman went to the Speaker.