A new bill for the setting up of a Property Market Agency for the regulation of the property market went before parliament on Monday. 

The main role of the agency will be to regulate the activities of property market intermediaries, real estate agents, property consultants and brokers. 

The agency will also be tasked with making recommendations to the government concerning a national policy on property market intermediaries, issuing standards in respect of brokerage and related services in the property market; participating in discussions leading to development planning, monitoring the property market and act as regulator related to the property market.

It will also promote educational campaigns, promote and coordinate the training of persons working as property intermediaries.

The agency’s board will be formed of nine persons appointed by the minister responsible for property.

The bill was moved by Justice Minister Jonathan Attard, who is also responsible for the properties sector. He explained that the new agency will take over the functions performed by the Licensing Board formerly established under the Real Estate Agents, Property Brokers and Property Consultants Act.  

The new law provides that no person may work as a property broker or real estate agent or be employed or engaged as a branch manager, property consultant or specific property consultant unless he/she is in possession of a licence issued by the agency.

People registered with the agency as occasional brokers will not require a licence as long as they, prior to any involvement in any transaction, seek approval from the agency before the commencement of any activity, according to the bill.

Anyone who fails to comply with the provisions of the law shall be liable to an administrative penalty not exceeding €20,000 imposed by the agency.

The bill further provides that in every contract concluded after December 1, 2024 where land is acquired, transferred or leased, the parties need to declare whether or not the services of a real estate agent, broker, occasional broker or property consultant were engaged and whether brokerage was due.

Any party to a contract and any property broker who acts in contravention shall be liable to an administrative penalty of not more than €10,000.

Every licensee and registered partnership will need to file an annual return indicating all transactions that carried received brokerage fees during the previous calendar year.

The Administrative Review Tribunal shall be competent to hear and determine objections made by any person aggrieved by any decision of the agency.

Attard said the bill would benefit not only property intermediaries but also buyers and those who invest in property. 

PN MP Stanley Zammit said the Opposition would vote in favour of the bill, but the country should also be discussing the quality of the property market and the way property prices had soared. 

The bill was unanimously given a second reading.