Following the launch of a White Paper on Malta’s Property Code and Regulations, we now need to move to the next stage and ultimate objective of the White Paper, which is to regulate the local real estate profession.

The first task is to legislate in an effort to regulate all estate agencies, agents, property consultants and property managers who operate locally.

This Act would have the objective of safeguarding the interests of consumers and to promote public confidence in professionals’ performance. To make this Act tenable, one needs to compile a viable code of ethics covering the relationship between agencies, as well as ethical conduct with clients.

To ensure that such a code is functional, agencies would need to create internal training programmes in line with international standards. In this respect, I hope that the respective authorities would ensure that all efforts undertaken by individuals and agencies in this regard reach the desired standards.

Given my experience, I support the idea that all agents and agencies must operate under a licence that can only be obtained against a clean criminal record. Licensees pay annual fees – it is currently being suggested that these vary from €250-500 – depending on whether one is an individual agent or an agency.

Furthermore the idea is to allow an agency or agent who has been operating in excess of two calendar years to be licensed automatically against subscription.

The market needs to raise the bar

When it comes to qualifications, the market really needs to raise the bar. The White Paper is proposing that agents become accredited either via a diploma or via another equivalent certification.

Over the years, I have increasingly seen a lacuna in the education of agents and thus I fully agree that one needs to be familiar with topics such as law, economics, business management, hands-on administration tasks, technical knowledge and valuation skills.

Our vision as property specialists has always been that of belonging to an industry that would eventually be recognised as a profession. Internally we have set a benchmark for ourselves, which we have worked on for the past decade. In fact, we feel we have been a catalyst and one of the main contributors to the materialisation of this White Paper.

As industry professionals we have been given ample time during which to prepare ourselves for the tasks at hand, given that we have four whole weeks to discuss and forward suggestions towards the fulfilment of the White Paper. I trust this will help to make the project as seamless and as effective as possible right from inception.

I valued the address made at the launch of the White Paper by Parliamentary Secretary for Competitiveness and Economic Growth, Jose Herrera, who highlighted that this White Paper became a reality as a result of the lobbying of some of the reputable agencies who identified the need for such a structure that would take their industry forward seriously and effectively.

Suggestions will be heard via the Federation of Estate Agents and the Malta Developers Association and this is the very reason as to why the authorities are adamant in their aim to work very closely with all industry players in enacting such a legislation.

In conclusion, I believe that even though the process of regulating the industry may in some ways deter the present operating standards of a number of industry players who do have great skills, ability and potential as excellent estate agents, it is imperative to maintain the course of action being taken at this given moment in time.

This is very important for the industry. Ultimately, it will be important for individual careers which will attain professional recognition, impeding unorthodox practices and strengthening ethical business regulation within this sector.

I look forward to the conclusion of the consultation period granted and I encourage industry players to work hard on the submission of suggestions so as to initiate the course of action for regularisation in the most efficient and effective manner possible.

Kevin Buttigieg is chief executive officer of Re/Max Malta.