Labour MP Owen Bonnici has called on the government to turn the land registry computerised system from one based on names of owners to one based on property.

Speaking during the debate on second reading of the Notarial Profession and Notarial Archives Bill, he said it was difficult if not well nigh impossible for one to find the owners of property if one did not guess who the owners might be. The present system was inefficient.

Dr Bonnici recalled that in the 1980s, the Labour government had started introducing the registration of land. This continued under the present government but things were nearly at a standstill.

The Labour MP said the Bill strengthened the notarial profession. Abuses by a small number of notaries damaged the profession and he called for action against those who repeatedly made mistakes or engaged in fraudulent practices.

Banks were very much concerned over delays in registering documents in the Land Registry. He called on the government to explore ways how notaries could pay the documentation tax online and even suggested that notaries be given some tax credits for using such a system.

Notaries were faced with increased bureaucracy and they had to be paid a just fee while carrying out their work ethically.

Earlier, opposition spokesman on justice José Herrera (PL) expressed satisfaction that the notarial exam was being given more weight and taken more seriously. He believed things would improve and be better regulated.

In Italy, notaries were held in high esteem and the Italian government appointed them as magistrates. One should discuss who could be a member of the judiciary. At present not more than 40 per cent of lawyers worked in court and thus the others were automatically excluded from forming part of Bench.

The Bill envisages severe penalties. Notaries breaking the law could be fined not less than €1,000 and not more than €5,000 for a first offence. Second-time relapses could face fines and imprisonment.

It was right that notaries should hold a doctorate in law. This would make for better administration. Grades should get higher since a lot of students are opting to read law. Mature students should be thoroughly interviewed and assessed on abilities and qualifications to join the course. If the amount of professionals is inflated, the notary profession would lose much of its importance.

The Bill stated that examination results would be valid for five years. Dr Herrera asked whether this meant the exam would be undertaken every five years.

For the first time, notaries would be bound to take out an insurance policy which was an added expense. Dr Herrera suggested that the Notaries Council could seek a collective insurance policy. The Bill defined civil responsibilities better and thus the importance of insurance.

An important item in the Bill was the notary trust account as a check against abuses in the system. However, new notaries could find a problem in opening their trust account because of expenses. Notaries have now a right to give advise and so they have to be responsible for their action, just as other professionals.

Dr Herrera advised students practising as notaries to be fully conversant with the contents of the Bill.

Justyne Carauna (PL) said she agreed with the proposals in the Bill but felt further clarifications were needed.

She said it was a pity that some notaries were careless and were putting citizens through unnecessary hardships. She referred to a case where a woman had to endure a 12-year saga and incur court expenses because her notary had lost the testamentary act. This was why an appropriate system to safeguard citizens was needed.

Many new Gozitan notaries were concerned because the Bill was introducing new elements, one of which was to the examination to get the title. Some felt they would be doing a lawyer’s task, something which they were not trained for. It was thus opportune to offer courses to notaries both in Malta and Gozo.

Moreover, the majority of contracts of sale occurred through banks. These banks usually employed lawyers and carried out all the searches and examinations of title needed. Dr Caruana asked whether this would be enough as a final report on the title or whether notaries should still be requested to sit for their own examination.

Turning to insurance, Dr Caruana said this was going to be a burden for all notaries especially new ones. She asked whether income was an issue in this case and if there was a minimum liability. It would be more beneficial to have a sample presented to notaries, she said.

Referring to Trust Accounts, Dr Carauna said a minimum of €12,000 were needed to open such an account, an amount that was high for every notary. Interjecting, Parliamentary Secretary Jason Azzopardi said that this account was to be treated by the banks as an ordinary deposit account.

She felt a two-year practice with a professional notary was beneficial to students. However, since changes were to be made to the law course, the university should provide guidance. She said a reconsideration of the diploma of notary public was opportune and asked what utility this diploma would have after this Bill came into force.

Dr Caruana appealed to the Notarial Council to continue helping new notaries and called for mechanisms that would encourage students to take up this career.

Nationalist MP Beppe Fenech Adami said the Bill reflected the legal development in the notarial sector and it was the result of several proposals from notaries, practices that were already taking place and case-law.

He praised the amendment making it obligatory for notaries to complete the six-year course in law, thus obtaining a doctorate to qualify for the warrant since the last two years were of extreme importance.

The amendment requiring notaries to spent two years of practice was sensible as it was the time where the student could apply the theory learnt at university.

The Bill also strengthened the impartiality of notaries.

Dr Fenech Adami said it was important to tag the money held by the notary on behalf of his clients: this would create an audit trail and thus would reduce abuse.

Philip Mifsud (PN) spoke on property bought in good faith which later one found did not conform fully to building permits. In transferring property, notaries had to explain to buyers that architects shouldered a lot of responsibility when they signed Land Registry plans. He called for more coordination between notaries and architects where transfer of property was involved.

One had to emphasise the need of the professional indemnity insurance related to the turnover of work, adding that on entering the profession a new notary should not pay a lot of money. He suggested setting up a mechanism where one could pay in advance when transferring property.

The debate continues next Monday.