MALTA Law and Practice Contributed by: Damien Degiorgio and Ramona Galea, Fenech Farrugia Fiott Legal
Furthermore, it does not seem that the pandemic had any lasting effect on the inflation prices of real estate as purchasers continue to face diffi - culty in obtaining bank loans to acquire immov - able property in Malta. 1.3 Proposals for Reform A number of recommendations have been made to address the shortcomings seen to be present in the regulation of the construction sector and its enforcement. In this respect, it would also be relevant to mention Legal notice 37 of 2024 on the Avoidance of Damage to Third Party Prop - erty (Amendment) Regulations, and Legal notice 38 of 2024 on Construction Sites Insurance Obli - gation Regulations, as these have been imple - mented to regulate contractors. In fact, contractors are required to have a licence covered by a valid insurance policy that covers any loss, damage, injury or death that may be suffered as a consequence of an act or omis - sion by the contractors, its/their employees or any person operating under its/their direction. Should such licensed personnel not be covered by a valid insurance, they shall be personally lia - ble for any damage that may ensue. Additionally, a vetting process has been introduced to ensure scrutiny and guarantee transparency whereby any natural or legal person applying to become a construction contractor must fulfil certain requirements such as being in possession of a mason’s licence or employing people who have a minimum number of years of experience. As mentioned, a number of recommendations that target the construction sector have also been made. It has been suggested that a set of National Building Codes should be concluded and published on the basis of European Building Codes to ensure that architects are compliant with the Building Construction Act. The issue of
health and safety has also been delved into and it has been suggested that site safety officers should have the authority to suspend any con - struction works until any wrongdoing has been remedied, especially when the health and safety of workers have been grossly prejudiced. It has been recommended that administrative practices be further scrutinised, to ensure that work permit applications by employers for third- country nationals are better verified. Lastly, and of note, is the carrying out of workplace inspec - tions in that no construction site should ever operate in an uninspected manner. In addition to the above, the government is set to amend the current law on leases, by regulat - ing the number of tenants that a residence can have. It is expected that the government shall prescribe that the number of people allowed to share a bedroom shall not exceed that of two tenants in the case of shared rentals. Also, land - lords shall be able to register between eight and ten tenants in residences with four to five bed - rooms, provided that there is a minimum of two bathrooms in the property. Such proposals have been made as response to the current tenant situation whereby landlords in Malta have been accepting more tenants than they should, given the size of the property being leased. Although most of these recommendations have been implemented, it still remains to be seen whether such provisions shall be enforced and, if enforced, then the manner in which they will impact the construction industry and landlords choosing to rent out their property.
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