Federation of Estate Agents officially launched

Estate agents have organised themselves formally into a federation. The official launch of the Federation of Estate Agents (FEA) was hosted last Monday by HSBC Bank Malta plc at the Portomaso Suite of Hilton Malta.

Speaking of the FEA's aims, the federation's chairman, Douglas Salt, said they were to:

¤ ensure the various policies and laws concerning the industry protect the interests of both the client and the related businesses;

¤ ensure all business is conducted ethically between agents and their clients, as well as between the agents themselves;

¤ raise the standards of the real estate industry in Malta; and

¤ secure the advancement and facilitate the acquisition of the knowledge needed to carry out this business.

According to Mr Salt, the FEA was set up last November through the initiative of Steve Sant Fournier, under the auspices of the GRTU and thanks to the personal interest of Vince Farrugia and Mario Debono.

"It has been a busy five months for the committee," Mr Salt said. "On the lobbying front we had meetings with (Finance Parliamentary Secretary) Tonio Fenech post-Budget for the amendment of the capital gains tax and are still lobbying for the removal of the five years to leave the choice open throughout the ownership of the property.

"We also had meetings with Government on the possibility of a final withholding tax on rental income. This is in the light of recent actions by the Tax Compliance Unit and also due to an increased demand for rental both by locals and foreigners.

"This increased demand will grow further due to property pricing and also projects like SmartCity that are bound to have a foreign element in their workforce. A final withholding tax will entice more people to put vacant property that they do not wish to sell up for rent."

Among the FEA's early successes was for the estate agents' commission to be exempt from the 12 per cent withholding tax.

"We have also met and written to the EU Commission local representative on the removal of the clause in the AIP (Acquisition of Immovable Property permit) that prevents foreigners renting out their holiday home for periods of the year," Mr Salt said.

"We have started an awareness campaign in the local media on the value for money and benefit of using an estate agent as opposed to paying three per cent just to be on some magazine. On the training front we have approached the Malta Institute of Management design a course for negotiators with an exam certification.

We will be calling an EGM for members to approve a code of ethics with an adjudication panel of non-estate agents, currently being identified to decide on grievances. We are extremely fortunate that HSBC has tied up with us and they have shown a commitment to support agencies in any way that they can. In fact their loan literature will be carrying a leaflet produced by us in conjunction with them on the benefits of using an agency." This was distributed at the launch.

Mr Salt then introduced Sally Robson, chief operating officer of HSBC Bank Malta, who in her first public statement since taking up her appointment in Malta, announced that HSBC Malta is to be the FEA's main sponsor. "We will be exchanging know-how and expertise to continue to offer a comprehensive service for our mutual customers."

Mrs Robson reiterated HSBC's commitment to "provide a top quality home loan business based on competitive pricing, excellent and reliable service levels and relationships. And when it comes to relationships, there is no doubt whatsoever that the ever increasing success of HSBC Bank Malta in the local mortgage market is sustained in no small way by the consistent support we receive from you - the estate agents."

It was thanks to the estate agents' top quality service and the bank's constant endeavour for excellence, "our mutual customers have been able to benefit from a comprehensive package that meets their needs when acquiring a new home".

2005 was again a "truly fantastic year for our home loan business", she affirmed, which was, doubtlessly, "also the result of the untiring efforts of our hard-working and competent staff, at all levels". She then thanked the estate agents, whose referrals were and continued to be a major contributory factor in the attainment of those results.

Turning to the innovation HSBC Malta has introduced, Mrs Robson listed fixed rate loans and the Service Promise, backed by a cash guarantee. New initiatives and financial packages would also be introduced, thanks to the bank's international network to make the local property market attractive to overseas buyers.

"Our collaboration with the federation will no doubt prove to be beneficial in this regard," she said.

HSBC Malta looked forward to a challenging year. "It will not be an easy task. But, nevertheless, our aim is to continue to be the leaders in this sector by offering the best proposition on the local market underpinned by quality and reliable service levels. Through the continued professional approach of HSBC, coupled with the collaboration of the federation's members, I am confident that last year's performance will be repeated and bettered for this year."

The FEA's 2006 council is composed of: Mr Salt, president; Michael DeMaria, vice-president; Trafford Busuttil, secretary; Mr Sant Fournier, treasurer; Ian Casolani, public relations; Manjri Borg Bindra; FEA Website administrator; Joseph Sullivan, legal and judicial matters; and Joe Mercieca, Gozo.