The institute of civil brokerage under Maltese law with particular reference to the rights and obligations of estate agents

Abstract

Despite the steady growth of the real estate sector as well as the importance that transactions relating to immovable property have on the economy of the island, the role of estate agents, who play a key role in this market, remains somewhat unclear. Whilst jurisprudence invariably makes reference to the institute of brokerage, the recently published White Paper on the regulation of this activity relies on the rules of mandate. The objective of this study is twofold. First of all, it seeks to identify the legal institute that regulates a real estate brokerage activity, and thereby delineate what are the rights and obligations binding all the parties to this contract. Secondly, a broad local jurisprudential analysis attempts to clarify the instances where the estate agent would be entitled to an agreed fee, when he would not, and when he would merely be able to claim a percentage of that amount based on the services that he would have rendered. All this is ultimately contrasted with the proposed legislation for the regulation of estate agents in the coming years.