The White Paper will – according to the latest version seen by the Federation of Real Estate Agents – only apply to real estate agents and property management companies, which account for roughly half the market.

Intermediaries or introducers (sensara) will apparently not be included – although a few have expressed concern that they will also be forced to come in line. At the moment, they operate as “introducers” and claim a two per cent fee, which in practice is shared between buyer and seller.

It also will not cover all the other ways in which property is sold, from property websites and printed publications, to television programmes and auctions – all of which still have a significant impact on the professionalism of the property sector, the federation believes.

“And it is not clear whether foreign companies operating on a cross-border basis will be exempted,” the president of the federation, Douglas Salt, said.

“There is space in the market for all forms of operator. It is up to real estate agents to ensure that customers feel they are getting value for money from us,” he said.

The government is currently drawing up a White Paper on the regulation of real estate agents, something the federation hoped to avoid, having self-regulated for years. For example, disputes were handled by the federation’s board of ethics.

However, it is now working closely with the government to ensure that the eventual legislation would reach the federation’s aim: improving standards across the board. The council is currently reviewing the draft of the White Paper before this is sent out for public consultation. The ministry did not reply to questions sent to it.

“As property values go up, consumers need the best possible advice from agents and negotiators, as mistakes will be that much more expensive. And with so many more foreigners buying property – particularly high net worth individuals – it is important for Malta as a whole to deliver on what we promise,” Mr Salt said.

The main thrust of the White Paper will be to establish warrants for both an agency and its negotiators, awarded after successful training and certification.

“We are proposing that those who have over two years experience will get an automatic licence, those who have less than that would have to attend a brief course, while new entrants will need to follow the full course – ideally an evening course so that they can still start working under supervision.

“It is not yet clear who will provide the training or the certification, or who will monitor and discipline the licensees. We are assuming that there will be an entity with the authority to both fine and strike off rogues,” he said.

The federation hopes that the training and warrant would raise the profile of the negotiators, weeding out those who are – somewhat naively – after a quick buck.

“It will definitely mean that entrants will have to make more of a commitment. If done professionally, negotiators need comprehensive knowledge and a variety of skills. My company trains its negotiators for over three months,” he added.

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