Government releases White Paper for Condominium Act Reform

The government has released a White Paper for public consultation on the reform of the Condominum Act, with proposals to establish a condominiums regulator and tribunal.

The document, unveiled by Minister for Public Works and Planning, Stefan Zrinzo Azzopardi, and Minister for Justice, Jonathan Attard, outlines various proposals and observations designed to enhance the legislative framework governing condominiums.

The main legislative changes proposed in the Condominium Act reform include the establishment of a regulator, the creation of a new tribunal for Condominium Affairs, granting legal personality to condominiums, ensuring the competence of administrators, and making professional insurance for administrators and property insurance for common areas mandatory.

Zrinzo Azzopardi highlighted the importance of modernising the Condominium Act, noting that the urban reality in Malta has changed substantially since the law was first enacted in 2001. He emphasised that, with more people residing in condominiums today, updating the legislation has been an ongoing discussion.

The impetus for the current reform effort followed a public consultation held in 2021. This process suggested introducing new legal principles and draft a new bill that would result in an updated Condominium Act better aligned with the contemporary needs of the country.

Key among the issues addressed in the White Paper is the question of whether condominiums should be granted legal personality, thus treating them as legal entities, according to Zrinzo Azzopardi.

Zrinzo Azzopardi also stressed the need for clear standards governing the operation and management of condominiums, as well as the regulation of administrators to enhance the quality of services offered to residents.

Attard, speaking at the launch event, underlined the importance of providing legal certainty in this sensitive area.

“We are providing legal certainty in such a sensitive area. This is because we are proposing new definitions, introducing key players who will work in the sector, and above all, a legal remedy to allow people to resolve conflict efficiently.”

The White Paper, detailing the proposed reforms, is available for public review. Submissions can be sent until December 6, 2023.