The ombudsman has reiterated demands for property buyers to be given more protection by the government from rogue notaries.

Notary Thomas Vella was jailed for seven years last week for misappropriating over €600,000 from 85 clients.

Money for property purchases, including deposits, registration fees and taxes due to the Inland Revenue Department, are handed to a notary, who acts as an intermediary in the property deal.

Vella admitted to running off with these deposits and taxes instead of registering the property deeds with the Inland Revenue.

Reacting to the news, the Ombudsman’s Office, headed by Joseph Zammit McKeon, said recommendations to offer prompt redress for those impacted by rogue notaries had gone unheeded since 2023, despite being flagged to the government and parliament.

These proposals included having the chief notary to the government step in to register the property transfer deed, without any further expense to the client whose notary had defaulted, and the government reserving the right to take action against the notary in question.

The Ombudsman had investigated the issue following complaints that the tax authorities were demanding payments from property buyers that had already been handed over to their notary.

Complainants, having already paid these taxes to the notary, felt aggrieved by the Commissioner for Revenue’s policy to request repayment of these same tax dues, the ombudsman said.

“The Commissioner for Inland Revenue’s position resulted in double payments, adding financial burdens on purchasers,” the ombudsman said.

It was noted how the only remedy available to those who have been bitten by a notary who has run off with the funds – short of taking legal action – is to again pay the taxes due on the property transfer.

If they fail to do so, the property purchase would not be able to go through.

The tax authorities maintained that they were not responsible when a notary failed to pass on payment. The ombudsman was critical of this stance, stating that at law, notaries were public officers, and the state could not shift the burden on bona fide taxpayers.

“… the government is in the strongest position in applying the full weight of the law against the public officer designated by law to collect tax due to the Commissioner for Revenue,” the ombudsman had said in his 2023 report.

While acknowledging the current legal constraints, the ombudsman criticised the authorities for “neglecting” the plight of those finding themselves in this situation.