Real Estate Management 1

(Published 8th November, 2024)

Act

No. 28 of 2024

I assent

DR. LAZARUS MCCARTHY CHAKWERA

PRESIDENT
4th November, 2024

ARRANGEMENT OF SECTIONS
SECTION
PART I__PRELIMINARY
1. Short title and commencement
2. Interpretation
3. Practice of real estate business
4. Exempted real estate transactions

PART II__ADMINSITRATION
5. Commissioner for Estate Management
6. Powers and functions of the Commissioner
7. Appointment of Government real estate managers and
authorized real estate managers

PART III__REAL ESTATE MANAGEMENT COUNCIL

8. Establishment of the Real Estate Management Council
9. Powers and functions of the Council
10. Composition of the Council
11. Tenure of office and vacancies
12. Meetings of the Council
13. Committees of the Council
14. Allowances and expenses
15. Appointment of Chief Executive Officer
16. Removal of Chief Executive Officer
17. Appointment of other staff
2 Real Estate Management No. 28

SECTION
18. Oath of secrecy
19. Disclosure of interest
20. Protection from liability
21. Common seal
22. Annual reports

PART IV__FUNDS AND PROPERTY OF THE COUNCIL

23. Sources of funding for the Council
24. Accounts and audit

PART V__REGISTRATION AND LICENSING OF REAL ESTATE AGENCY

AND REAL ESTATE MANAGEMENT PRACTICE, AND REGISTRATION OF
REAL ESTATE DEVELOPMENT PRACTICE
25. Requirement for registration and licence to practice as real
estate agent or real estate manager
26. Qualifications for registration as a real estate agent or real
estate manager
27. Application for a licence
28. Renewal of licence
29. Revocation or suspension of a licence
30. Requirement for registration and licence to practice as real
estate developer
31. Qualifications for registration as real estate developers
32. Registration of real estate developers
33. Suspension or cancellation of real estate developer
registration
34. Right of appeal against refusal to register or grant licence
35. Register of real estate agents, real estate managers and real
estate developers
36. Place of business of licensed real estate agent, real estate
managers and real estate developers
37. Forms for real estate transactions
38. Sales and purchase agreements
39. Mode of payment for real estate transactions
40. Client accounts
41. Real estate transaction certificates
42. General rules of conduct
43. Transaction report
44. Books of account and audit of real estate agents, real estate
managers and real estate developers
No. 28 Real Estate Management 3

SECTION
45. Other records to be kept
46. Annual reports of real estate agents and real estate managers

PART VI__DISPUTE RESOLUTION

47. Appeals Committee
48. Powers of the Appeals Committee
49. Submission of decision to the Council
50. Alternative dispute resolution
51. Review of decision
52. Appointment of real estate inspectors
53. Inspections

PART VII__MISCELLANEOUS
54. Code of ethics
55. Negligence
56. Administrative sanctions
57. Offences
58. Regulations
59. Savings and transition

An Act to provide for the regulation of practice of real estate

agents, real estate developers and real estate transactions, to
provide for the establishment of the Real Estate Agency
Council, and to provide for matters incidental thereto or
connected therewith
ENACTED by the Parliament of Malawi as follows__

PART I__PRELIMINARY

1.__This Act may be cited as the Real Estate Management Act, Short title and
2024, and shall come into operation on such date as the Minister commence-
ment
may appoint by notice published in the Gazette.

2.__In this Act unless the context otherwise requires__ Interpretation

“Chief Executive Officer” means the Chief Executive officer

of the Council appointed under section 15;
4 Real Estate Management No. 28

“Commissioner” means the Commissioner for Estate

Management appointed under section 5;
“connected contract”, in relation to any land, means any one of
two or more contracts which provides for disposition of the land
or for building thereon or for matters ancillary to such disposition
or building on terms, either expressed or implied, whereby the
completion of any such contract is conditional upon completion
of any other such contract;
“Council” means the Real Estate Agency Council established
under section 8;
“development” means the carrying out of building,
engineering, or other operations in, on, over or under any land, or
the making of any material change in its use or in the use of any
buildings or other land, for the purpose of disposal of such land
or any part thereof in a development scheme;
“development scheme” means a scheme, or intended scheme,
for the development of land, the subdivision or proposed
Cap. 23:01 subdivision of which is subject to the Physical Planning Act;
“estate” means an estate or interest in land, and includes the
improvement on the estate or interest in land;
“Financial Intelligence Authority” means the Financial
Intelligence Authority established under the Financial Crimes
Cap. 7:07 Act;
Cap. 57:01 “land” has the meaning ascribed to it under the Land Act;
“Malawi Revenue Authority” means the body established
Cap. 39:07 under the Malawi Revenue Authority Act;
“net listing” means an agreement to sell or lease real estate for
a stated price that authorizes a licensed real estate agent to keep
money in excess of the stated price received from the sale or
lease;
“the practice of real estate business” has the meaning ascribed
to that expression in section 3.
“prepayment contract” means any contract under which at the
time of entering into the contract, or any connected contract, there
are to be performed by one party for the benefit of the other party,
or for the benefit of a party to a connected contract, obligations,
expressed or implied, with regard to__
(a) the building of roads, or the carrying out of engineering
or other operations in on, over or under any land the subject of
the contract or any connected contract; or
No. 28 Real Estate Management 5

(b) the carrying out of any building operations, including,

the construction or completion of any house, townhouse, or
apartment in a condominium building, and of the structures or
works for the use in connection therewith upon any such land,
and under which moneys are payable by the party to benefit
from the performance and discharge of such obligations prior
to the performance and discharge thereof;
“real estate agent” means a person who performs any act or
engages in any transaction which results or is intended to result in
the sale, exchange, purchase, renting or leasing of real estate or in
a loan secured or to be secured by mortgage or other
encumbrance on real estate, and includes a real estate auctioneer;
“real estate developer’ means a person who carries on, whether
in whole or in part, the business of real property development;
“real estate manager” means a person who oversees the
maintenance, security, facility management, rental income,
payment of fees and taxes of real property; and
“real property” means land or interest in land including any Cap. 39:07
lease issued under the Land Act or the Customary Land Act. Cap. 59:01

3.__Subject to section 4, for the purpose of this Act, a person Practice of

engages in the practice of real estate business if, on behalf of real estate
business
another person, for compensation or valuable consideration directly
or indirectly paid or expressly or impliedly promised, or with intent
to collect or receive compensation or valuable consideration
therefor, the person__
(a) appraises, auctions, sells, exchanges, buys, leases or rents
or offers, attempts or agrees to appraise, auction or negotiate the
sale, exchange, purchase, lease or rental of, any land, or otherwise
acts as a broker in relation to any land;
(b) advertises or holds out to the public by any oral, printed or
online representation that the person is engaged in the business of
appraising, auctioning, buying, selling, exchanging, leasing or
renting, land;
(c) manages land or engages in any other business concerned
with the management of land, either in a consultative capacity or
as an agent;
(d) takes any part in procuring of sellers, purchasers, lessors,
lessees, landlords or tenants of land; or
(e) directs or assists in procuring of prospects, or the
negotiation or closing of any real estate transaction which results
in a sale, exchange, lease, lease or rental of land of another or is
calculated to have that result.
6 Real Estate Management No. 28

Exempted real 4. This Act does not apply to a real estate transaction in which a
estate
transactions
person__
(a) acts personally, or an employee acts on behalf of the
employer in the regular course of employment, to acquire, lease
or rent real estate for the use or investment of that person or
employer;
(b) acts as an attorney for another under a valid power of
attorney for the purposes of negotiating or executing contracts,
transfers or conveyance in respect of interest in real estate;
(c) being a person practising as a legal practitioner, furnishes to
any person legal advice and services ancillary thereto, in
connection with real estate business within the scope of the
profession of such person as such, or within such narrower limits
as may be prescribed by regulations under this Act;
(d) negotiates a loan secured or to be secured by a mortgage or
other encumbrance on real estate for that person or employer;
(e) acts as a licensed auctioneer of movable property;
(f) buys, sells or otherwise deals in any stock, mortgage or any
other security, or certificate of beneficial interest in any trust;
(g) as a public officer or an employee, performs the official
duties of that public office or employee;
(h) as a receiver, a trustee in bankruptcy, executor,
administrator, guardian or conservator is performing the function
of that person;
(i) sells real estate under an order of a court;
(j) as a trustee, acts under a written instrument of trust, or deed
or declaration of trust, or will, or a regular employee of a trustee,
acts in the course of the employment; and
(k) as a financial institution licensed under the Financial
Cap. 7:07 Services Act, lawfully engages in business, or a regular employee
of such financial institution acts in the course of the employment,
or acting in the capacity of a fiduciary, is__
(i) acting for itself in negotiating a loan secured or to be
secured by a mortgage, or other encumbrance on real estate;
(ii) acting for itself with reference to real estate owned,
mortgaged, leased or rented, by or to it or which it seeks to
acquire, lease or rent for its own use; or
(iii) a credit union that operates under any written law and
undertakes the transaction or the regular employees of that
credit union act in the course of the employment.
No. 28 Real Estate Management 7

PART II__ADMINSITRATION
5.__(1) There shall be a Commissioner for Estate Mmanagement Commissio-
(in this Act otherwise referred to as the “Commissioner”) who shall ner for Estate
Management
be a public officer, and shall be responsible for advising the Minister
on all matters in relation to real estate management and activities.
(2) A person shall not be qualified to be appointed Commissioner
under this Act unless that person__
(a) holds a minimum of a Bachelors’ degree in real estate or
land management from a university or institution recognized or
accredited by the National Council for Higher Education, or an
equivalent qualification;
(b) is registered and licensed under this Act; and
(c) has practiced for not less than ten years’ as a registered
licensed real estate manager.
6.__(1) Subject to special and general written direction of the Powers and
Minister, the Commissioner shall be responsible for__ functions of
the
(a) advising the Minister on real estate management and real Commissio-
estate agency matters; ner

(b) the development of land in terms of the provision of basic

infrastructure, including access roads, electricity, water, street
lights and fibre cables;
(c) the issuance of ground rent invoices and maintenance of
ground rent database;
(d) preparing and maintaining a record of Government
buildings;
(e) calling for bi-annual returns, in the prescribed form, from
registered and licensed real estate agents and real estate managers
on their work;
(f) preparing and submitting to the Minister quarterly reports
on real estate activities;
(g) managing complaints arising out of real estate transactions;
and
(h) performing any other functions as may be assigned by the
Minister.
(2) In performing functions under subsection (1) the
Commissioner shall have power to__
(a) appoint, recommend or approve authorized Government
real estate managers for assignments as may be required;
(b) recommend to the Council disciplinary measures to be
taken against any Government estate manager; and
8 Real Estate Management No. 28

(c) impose fees for accessing information from the data bank.
(3) The Commissioner shall perform functions and exercise
powers under this Act in a manner which__
(a) promotes transparency and public confidence in real estate
practice;
(b) does not allow any other interest to compromise or in any
other way jeopardise the integrity of the real estate practice; and
(c) manifests fairness and impartiality without due regard to
one’s social or economic status.
Appointment 7.__(1) There shall be such number of Government real estate
of managers appointed in the public service, who shall be subordinate
Government
real estate to and assist the Commissioner in the performance of the functions
managers and of the Commissioner under this Act as shall be determined by the
authorized Minister.
real estate
managers (2) Government real estate managers shall undertake estate
management of Government property in Government departments
or entities as may be required from time to time.
(3) Government real estate managers shall undertake estate
management under the supervision of the Commissioner.
(4) The Commissioner may appoint any registered and licensed
real estate manager to be an authorized real estate manager to
undertake real estate management functions, as may be directed by
the Commissioner.
(5) A person shall not be qualified to be appointed a Government
real estate manager under subsection (1), or an authorized real estate
manager under subsection (4) unless that person__
(a) holds a minimum of a Bachelors’ degree in real estate or
land management from a recognized institution or equivalent
qualification; and
(b) is registered and licensed under this Act.
(6) The names of all Government real estate managers and
authorized real estate managers appointed pursuant to this section
shall be published in the Gazette.

PART III__REAL ESTATE MANAGEMENT COUNCIL

Establishment 8.__(1) There is hereby established the Real Estate Management
of the Real Council (in this Act otherwise referred to as the “Council”).
Estate
Management
Council
No. 28 Real Estate Management 9

(2) The Council shall be a body corporate with perpetual

succession, and a common seal, and shall be capable, by that name,
of__
(a) doing and performing all acts as may be necessary or
expedient for the furtherance of the provisions of this Act; and
(b) subject to this Act, doing and performing all such acts as a
body corporate may, by law, do or perform, or such as are
incidental or appertain to a body corporate.
9.__(1) The Council shall be responsible for promoting and Powers and
facilitating the development and regulation of real estate agency functions of
the Council
practice, and the provision of real estate agency services in Malawi.
(2) Without derogation from the generality of subsection (1),
the Council shall__
(a) regulate the practice of real estate business and real estate
developers in Malawi;
(b) prescribe or approve courses of study for real estate
business;
(c) conduct and set standards for qualifying examinations for
registration as real estate agents;
(d) register and license real estate agents and real estate
managers;
(e) register real estate developers;
(f) provide forms for real estate transactions;
(g) issue real estate transaction certificates;
(h) maintain and publish a register of real estate agents, real
estate managers and real estate developers;
(i) set performance standards for real estate agency business
and management practice;
(j) facilitate and promote education which is necessary for the
development and growth of real estate agency business and
management practice;
(k) establish programmes of continuing education for real
estate agents and real estate managers;
(l) monitor and evaluate compliance with this Act and in
furtherance of that, conduct inspections;
(m) establish and enforce a code of conduct and ethics for real
estate agency business and management practice;
(n) monitor the performance of real estate agents and real
estate managers;
10 Real Estate Management No. 28

(o) monitor real estate advertisements in the print and

electronic media, including the world-wide web, to ensure
compliance with this Act;
(p) maintain a national database of real estate transactions;
(q) prescribe the scale of fees for real estate transactions;
(r) establish structures and mechanisms for__
(i) resolving disputes between real estate agents or real
estate developers and their clients;
(ii) settling complaints made against real estate agents or
real estate developers by their clients; and
(iii) the discipline of real estate agents or real estate
developers who violate the established standards or who
breach the code of conduct and ethics;
(s) assisting relevant authorities in the enforcement of
compliance with regulatory requirements on anti-money
laundering and countering the financing of terrorism in the real
estate agency business and real estate management practice; and
(t) performing any other function connected with the objects of
the Council.
(3) The Council shall perform its functions and exercise its
powers provided in this Act independent of the direction, influence
or interference of any person, entity or authority.
Composition 10.__(1) The Council shall consist of__
of the
Council (a) five members representing real estate agents, real estate
developers, and persons with knowledge and experience in real
estate transactions, appointed by the Minister;
(b) a representative of Local Government Associations,
appointed by the Minister; and
(c) the following ex-officio members__
(i) the Principal Secretary responsible for land matters or his
or her designated representative;
(ii) the Director General of the Financial Intelligence
Authority, or his or her designated representative; and
(iii) the Chief Executive of the National Construction
Industry Council, or his or her designated representative.
(2) The Minister shall, in making appointments under subsection
(1) (a)__
Cap. 25:06 (a) take into account the provisions of the Gender Equality Act;
and
No. 28 Real Estate Management 11

(b) have regard to the need for continuity in the membership of

the Council so that at least two members of the immediate past
Council shall be retained.
(3) The Chairperson of the Council shall be appointed by the
Minister from amongst the persons appointed under subsection 1 (a)
and (b).
(4) The Vice-Chairperson of the Council shall be elected by
members of the Council from among their number at the first
meeting of the Council.
11.__(1) A member of the Council, other than ex-officio member, Tenure of
shall hold office for a period of three years, and shall be eligible to office and
vacancies
be re-appointed for a further term of three years.
(2) A member of the Council, other than an ex officio member,
may at any time resign from office in writing addressed to the
Minister.
(3) A member of the Council, other than an ex-officio member,
who is absent from three consecutive meetings without sufficient
cause ceases to be a member of the Council.
(4) The Minister may by letter addressed to a member revoke the
appointment of that member where the member is__
(a) unable for any reason to perform the functions of a
member;
(b) adjudged to be of unsound mind;
(c) declared bankrupt;
(d) convicted of an offence, and sentenced without the option
of a fine; or
(e) ceases to hold the qualifications for appointment as a
member, or circumstances arise which would have disqualified
the member to be appointed a member of the Council.
(5) Where a member of the Council is, for a sufficient reason,
unable to act as a member, the Minister shall determine whether the
inability would result in the declaration of a vacancy.
(6) Where a vacancy occurs in accordance with subsection (2),
(3), (4) or (5), or by reason of the death of a member, the Minister
shall appoint a person to fill the vacancy.
(7) The Council may, in its discretion, at any time and for any
period, co-opt any person with specific knowledge, information or
expertise, to attend any meeting of the Council or a committee of the
Council, and to address the Council or a committee of the Council
12 Real Estate Management No. 28

on any matter, but such person shall not be eligible to vote at the
meeting on a decision of the Council or a committee, as the case
may be.
(8) Section 19 shall apply, with necessary modifications, to a
person attending a meeting of the Council or committee of the
Council pursuant to subsection (7).
Meetings of 12.__(1) The Council shall meet at least once every three months
the Council for the despatch of business at a time and place determined by the
Chairperson.
(2) The Chairperson shall, at the request in writing of not less
than one-third of the membership of the Council, convene an extra-
ordinary meeting of the Council at a time and place determined by
the chairperson.
(3) The quorum at a meeting of the Council is five members.
(4) The Chairperson shall preside at meetings of the Council, and
in the absence of the Chairperson, the Vice-Chairperson shall
preside and, in the absence of both the Chairperson and Vice-
Chairperson, a member of the Council elected by the members
present from among their number shall preside.
(5) A decision of the Council on any question shall be by a
majority of the members present and voting, and in the event of an
equality of votes, the person presiding shall have a casting vote.
(6) The Chief Executive Officer shall be the secretary of the
Council, and shall record and keep minutes of meetings of the
Council, and the minutes shall be confirmed at the subsequent
meeting of the Council.
Committees 13.__(1) The Council may establish such number of committees
of the as the Council determines necessary for the performance of its
Council
functions under this Act.
(2) A committee may consist of, either members of the Council
only, or members of the Council, and such other suitably qualified
persons as the Council may determine.
(3) The Council shall appoint a chairperson of each committee
from among members of the Council appointed under section 10 (1)
(a) and (b).
(4) Every committee shall act in accordance with any directions
given in writing to the Committee by the Council.
(5) The Chief Executive Officer, shall act as secretary of
committees of the Council, or may, with the approval of the
No. 28 Real Estate Management 13

Chairperson, delegate senior members of staff of the Council to act

as secretaries to committees.
14.__(1) Members of the Council and members of a committee of Allowances
the Council shall be paid such allowances as the Minister may and expenses
determine, after consultation with the Minister responsible for
finance.
(2) The Council may reimburse any reasonable expenses incurred
by a member of the Council, a member of a committee of the
Council or a person invited to attend a meeting pursuant to section
11 (7).
15.__(1) The Council shall appoint a Chief Executive Officer for Appointment
the Council who shall be the chief executive officer of the Council, of Chief
Executive
and shall, subject to the general direction of the Council, be Officer
responsible for the day to day operations of the Council.
(2) The Chief Execute Officer shall be appointed through a
competitive process, and on such terms and conditions as the
Council may determine.
(3) A person shall not be appointed as Chief Executive Officer
unless the person__
(a) possesses a minimum qualification of a Master’s degree in
a relevant field obtained from a reputable university or institution
recognized or accredited by the National Council for Higher
Education;
(b) has proven and demonstrable expertise in the management
and regulation of real estate, or any field relevant to the functions
of the Council;
(c) has not less than ten years’ experience in real estate
transactions;
(d) has not less than ten years’ experience in executive
management; and
(e) is registered and licensed to practice under this Act.
(4) The Chief Executive Officer may delegate a function to an
officer of the Council, but shall not be relieved of the ultimate
responsibility for the performance of the delegated function.
16.__(1) The Council may terminate the appointment of the Chief Removal of
Executive Officer on the following grounds__ Chief
Executive
(a) incompetence in the execution of functions of the office; Officer

(b) incapacity to perform functions of the office by reason of

physical or mental infirmity;
14 Real Estate Management No. 28

(c) failure to declare a conflict of interest relating to any matter

under consideration by the office or the Council;
(d) being found guilty of misconduct punishable by dismissal
under the contract of employment;
(e) being convicted of an offence and sentenced to a term of
imprisonment; and
(f) being declared or adjudged bankrupt by a competent court
of law.
(2) The Council shall not terminate the appointment of the Chief
Executive Officer, unless the Chief Executive Officer is given an
opportunity to be heard.
Appointment 17.__(1) The Council shall employ such other members of staff,
of other staff and may engage the services of such short-term advisors,
subordinate to the Chief Executive Officer, as may be required or
may be necessary for the proper and efficient discharge of the
functions of the Council.
(2) The Council may delegate to the Chief Executive Officer the
appointment, discipline and dismissal of members of staff in
specified junior ranks, and the Chief Executive Officer shall report
to the Council, at its next sitting, every appointment, disciplinary
decision or dismissal made pursuant to this subsection.
(3) The members of staff of the Council appointed under
subsection (1) shall be appointed on such terms and conditions as
the Council may determine.
(4) Section 19 shall apply, with necessary modifications, to the
dismissal of members of staff employed under this section.
Oath of office 18. Every__
(a) member of the Council;
(b) member of a committee of the Council;
(c) member of staff of the Council; and
(d) person co-opted to attend a meeting of the Council pursuant
section 11 (7),
shall upon assumption of office, or before attending a meeting of the
Council, take an oath of secrecy in the form set out in the Schedule.
Disclosure of 19.__(1) A member of the Council or a committee of the Council,
interest or a person invited to attend a meeting of the Council or a committee
of the Council pursuant to section 11 (7) , or any member of staff of
the Council, who has a direct or indirect interest in any matter
No. 28 Real Estate Management 15

before the Council or a committee of the Council, as the case may

be, shall disclose the interest as soon as is practical before or soon
after the commencement of the meeting, and shall not take part in
any consideration or discussion of, or vote on, any question on such
matter at that meeting or any subsequent meeting.
(2) A disclosure of interest under subsection (1) shall be recorded
in the minutes of the meeting at which it was made.
(3) Where a person fails to disclose an interest in accordance with
subsection (1) and the Council or committee of the Council makes
a decision which benefits that person, a close relative, or
professional or business partner, of that person, the decision shall, to
the extent that it benefits that person, the close relative, or
professional or business partner, as the case may be, be null and
void.
(4) Where a member contravenes subsection (1), the chairperson
shall notify the Minister who shall revoke the appointment of the
member.
(5) Without limiting any further cause of action that may be
instituted against the member, the Council shall recover the benefit
derived by a member who contravenes subsection (1) in addition to
the revocation of the appointment of the member.
(6) For purposes of this section, “close relative” includes a
spouse, child and any person related by blood or marriage to a
person mentioned in subsection (1).
20. No action or proceeding shall be brought personally against Protection
any member of the Council or committee of the Council, or a from liability
member of staff of the Council, in respect of any act or omission
done in good faith in the course of carrying out the provisions of this
Act.
21.__(1) Subject to this section, the common seal of the Council Common seal
shall be kept by the Chief Executive Officer, and shall not be used
except in the manner authorized.
(2) All deeds, instruments, contracts and other documents shall be
considered duly executed by, or on behalf of, the Council__
(a) where they are required to be under seal, if sealed with the
common seal and authenticated by the Chairperson, or other
member nominated in that behalf by the Council, and the Chief
Executive Officer, or any other officer authorized by the Council
for that purpose; or
(b) where they are not required to be under seal, if executed in
16 Real Estate Management No. 28

that behalf by a member authorized by the Council for that

purpose.
(3) A deed, instrument, contract or any other document executed
in accordance with subsection (2) shall, in law, bind the Council, its
assignees and its successors, and may be varied or discharged in the
same manner that it was executed.
(4) All courts and other persons acting in a judicial capacity shall
take judicial notice of the common seal of the Council affixed to any
document and shall presume, unless otherwise proven, that it was
duly affixed.
Annual 22.__(1) The Council shall cause to be prepared and submitted to
reports the Minister, within three months after the end of each financial
year, an annual report on the general conduct of the affairs of the
Council and the activities carried out during that financial year.
(2) The report submitted under subsection (1) shall be in the
prescribed form, and there shall be appended to the report__
(a) an audited statement of the financial position of the
Council;
(b) an audited statement of the income and expenditure of the
Council; and
(c) such other information as the Minister responsible for
finance may require, in accordance with the provisions of the
4 of 2022 Public Finance Management Act.
(3) The Minister shall, as soon as practical, but not later than six
months after the end of the financial year, lay before the National
Assembly a copy of the annual report.

PART IV__FUNDS AND PROPERTY OF THE COUNCIL

Funds and 23.__(1) The funds and property of the Council shall consist of__
property of
the Council (a) such sums as may, from time to time, be payable to the
Council from moneys appropriated by Parliament;
(b) moneys from fees charged by the Council in the
performance of functions of the Council under this Act;
(c) levies the Council may charge on real property transactions;
(d) subscriptions from real estate agents and real estate
developers; and
(e) such sums of money or other property, real or personal, as
may be acquired, purchased or received by or transferred to the
Council, whether by way of donation, devise, bequest, purchase
or otherwise.
No. 28 Real Estate Management 17

(2) The funds and property of the Council shall be exclusively

under the control of the Council, and shall be utilized solely for the
purposes of this Act in accordance with the written directions of the
Council, and for no other purpose.
(3) The Council shall, at all times, comply with the provisions of
the Public Audit Act, the Public Finance Management Act, and the Cap. 37:01
Public Procurement and Disposal of Assets Act. 4 of 2022
Cap.37:03
24.__(1) The Council shall cause to be kept all proper books of Accounting
account and records of accounts of income, expenditure and assets and audit
of the Council in accordance with the provisions of the Public
Finance Management Act. 4 of 2022

(2) The accounts of the Council shall be audited at the end of each
financial year in accordance with the Public Audit Act. Cap. 37:01

(3) The financial year of the Council shall be a period of twelve

months in line with the financial year of the Government.
(4) The first financial year of the Council may be such shorter or
longer period than twelve months as the Council may determine, but
being not less than six months nor more than eighteen months.

PART V__REGISTRATION AND LICENSING OF REAL ESTATE AGENCY

AND REAL ESTATE MANAGEMENT PRACTICE, AND REGISTRATION OF
REAL ESTATE DEVELOPMENT PRACTICE
__
25. (1) No person shall engage in the practice of real estate Requirement
agency business or real estate management, unless that person is for
registration
registered and licensed under this Part. and licence to
practice a as
(2) Any person who contravenes subsection (1) commits an real estate
offence and shall, on conviction, be liable__ agent or real
estate
(a) in case of an individual, to a fine of K5,000,000, and to manager
imprisonment of two years; or
(b) in the case of body corporate, to a fine of K10,000,000.
26.__(1) A person is eligible to register as a real estate agent Qualifications
under this Act if the person__ for
registration as
(a) holds a minimum qualification of a Diploma in real estate, a real estate
or an equivalent qualification obtained from a university or agent or real
estate
institution recognized or accredited by the National Council for manager
Higher Education; and
(b) has complied with such additional requirements, including
the acquisition of practical experience in real estate agency
business, as may be prescribed by the Council.
18 Real Estate Management No. 28

(2) A person shall be eligible to regisster a real estate manager

under this Act if the person__
(a) holds a minimun qualification of a Bachelor’s degree in
real estate, or an equivalent qualification obtained from a
university or institution recognized or accredited by the National
Council for Higher Education; and
(b) has complied with additional requirements, including the
aquisition of practical experience in real estate management, as
may be prescribed by the Council.
(3) A firm is eligible to register as a real estate agency firm, if the
firm__
Cap.46:03 (a) is incorporated under the Companies Act or registered
Cap. 46:02 under the Business Registration Act; and
(b) has at least one practitioner registered and licensed as real
estate agent under this Act.
(4) A firm is eligible to register as a real estate management firm,
if the firm__
(a) is incorporated under the Companies Act, or registered
under the Business licencing Act; and
(b) has employed at least one practitioner registered and
licensed as a real estate manager.
(5) Any person who qualifies to practice as a real estate agent or
real estate manager, or to perform real estate services under this Act
may make an application to the Council for registration.
(6) An application for registration shall__
(a) be in the prescribed form, accompanied with the prescribed
fees;
(b) in the case of a company, society, association or partnership
be accompanied with a declaration that officers of the company,
society, association or partnership do not have any criminal
record;
(c) where appropriate, be accompanied with the prescribed fee
for examination; and
(d) be accompanied with evidence that the applicant is a citizen
of Malawi or has permanent residence in Malawi.
Application 27.__(1) Any person who desires to practice as an estate agent, or
for a licence a real estate manager, or a real estate agency firm, or a real estate
management firm, or to perform estate agency services under this
Act may make an application to the Council for grant of a licence.
No. 28 Real Estate Management 19

(2) An application for a licence under subsection (1) shall__

(a) be in the prescribed form, accompanied with the prescribed
fee;
(b) in the case of a company, society, association or
partnership, be accompanied with a declaration that officers of
the company, society, association or partnership do not have any
criminal record; and
(c) be accompanied with evidence that the applicant is a citizen
of Malawi or has permanent residence in Malawi.
(3) The Council may issue a licence to a person under this
section, within ninety days after the receipt of an application, if the
Council determines that the applicant__
(a) is a registered real estate agent or real estate manager under
this Act;
(b) has__
(i) in the case of a real estate agent, a diploma; and
(ii) in the case of a real estate manager, a degree,
in valuation, real estate management, land economy, land
management, land administration, property development and
management from a university or institution recognized or
accredited by the National Council for Higher Education in
Malawi;
(c) has passed a qualifying examination conducted by the
Council or an independent testing service designated by the
Council;
(d) has not been convicted of an offence, and sentenced
without the option of a fine;
(e) has a Tax Identification Number;
(f) has taken out a professional indemnity approved by the
Council; and
(g) in the case of a company, society, association or
partnership, has designated, as its representative for the purpose
of obtaining the licence, an officer or partner who, as an
individual, has a licence to practice as a real estate agent.
(4) A licence issued under subsection (3) shall__
(a) be in the prescribed form;
(b) bear the name and address of the licensee;
(c) in the case of a licence for a real estate agent issued to a
company, society, association or partnership, bear the name of
20 Real Estate Management No. 28

each designated officer or partner to whom, as an individual, a

real estate agent’s licence has been issued;
(d) indicate the date of issue;
(e) subject to renewal, be valid for one year from the date of
issue; and
(f) be subject to the terms and conditions determined by the
Council.
(5) A person who is designated as an officer or a partner for the
purpose of obtaining a real estate agent licence is entitled to perform
the functions of a real estate agent or officer of the company,
society, association or partnership to which that person is a
designated officer or partner:
Provided that a designated officer or partner shall not act as a real
estate agent on that person’s own behalf for as long as that person
remains a designated officer or partner of the company, society,
association or partnership.
(6) A licence issued under this section shall not be transferrable.
Renewal of 28.__(1) A licence granted under section 27 may be renewed after
licence expiry by application to the Council.
(2) An application for a renewal of a licence under subsection (1)
shall be__
(a) in the prescribed form, accompanied with the prescribed
fee; and
(b) signed by the applicant;
(3) The Council may grant an application for a renewal of a
licence under this section where the applicant__
(a) is not in breach of any of the terms and conditions of the
licence or the code of conduct;
(b) satisfies the requirements for the grant of the licence;
(c) has a valid tax clearance certificate; and
(d) has paid the prescribed fee for the renewal of the licence.
Revocation 29.__(1) Except as otherwise provided in this Act, the Council
and shall revoke the real estate agent or real estate management licence
suspension of
licence of a company, society, association or partnership, if the company,
society, association or partnership__
(a) ceases to have a registered and licensed real estate agent or
real estate manager as the designated officer or partner of that
company, society, association or partnership;
No. 28 Real Estate Management 21

(b) is de-registered under the written law under which it was

registered; or
(c) obtained the licence by fraud.
(2) Without limiting subsection (1), the Council may revoke the
licence of a real estate agent or real estate manager, if__
(a) an agreement entered into by the real estate agent or real
estate manager and the company, society, association or
partnership in relation to the licence of the real estate agent or real
estate manager ceases to be effective;
(b) the real estate agent or real estate manager is convicted by
a court of competent jurisdiction of an offence, and sentenced
without the option of a fine; or
(c) in the performance of a function authorized by the licence,
the real estate agent or real estate manager__
(i) knowingly makes a fraudulent misrepresentation;
(ii) acts in the dual capacity of agent and undisclosed
principal in the same transaction;
(iii) acts for more than one party in the same transaction
without the knowledge and consent of the parties that the
licensee represented in the transaction;
(iv) accepts, gives or charges an undisclosed commission,
rebate or profit on expenditures from a principal;
(v) commingles the money or other property of a property
owner with those of the licensee;
(vi) fails to disclose information on a property which is the
subject matter of a transaction; or
(vii) accepts from a prospective seller a net listing.
(3) The Council may suspend the licence of a real estate agent or
real estate manager, if the agent or manager, in the performance of
a function authorized by the licence__
(a) fails to use the real estate forms required for that function,
where the function is a real estate transaction;
(b) accepts cash in payment for the function, where the
function is a real estate transaction;
(c) fails, within thirty days, to pay out money received into the
client account, to the person entitled to that money;
(d) pays a commission or fees to, or shares a commission or
fees with, a person who is not a registered and licensed real estate
agent or manager; or
(e) fails to give a copy of the sale and purchase agreement to
both the seller and purchaser of real property.
22 Real Estate Management No. 28

(4) The Council shall not suspend or revoke a licence, unless the
Council__
(a) gives at least ten working days’ written notice to the person
whose licence the Council intends to suspend or revoke, as the
case may be;
(b) states in the notice mentioned in paragraph (a) the grounds
of the suspension or revocation, as the case may be;
(c) serves on the affected licensee a copy of any complaint or
charges which the Council proposes to consider; and
(d) gives the licensee affected, the opportunity to__
(i) appear personally for a hearing or be represented by a
legal practitioner; and
(ii) examine and cross-examine witnesses and present
documents and other evidence in support of the case of that
affected licensee.
Requirement 30.__(1) No person shall engage in the practice of real estate
for development unless that person is registered under this Part.
registration as
real estate (2) Any person who contravenes subsection (1) commits an
developer
offence and shall, on conviction, be liable__
(a) in case of an individual, to a fine of K5,000,000, and to
imprisonment of two years; or
(b) in the case of body corporate or partnership, to a fine of
K10,000,000.
Qualifications 31.__(1) A person is not eligible to register as a real estate
for developer unless the proposed development involves a development
scheme in which__
registration as
real estate
developer
(a) the number of lots into which the land is, or is intended to
be, subdivided exceeds five;
(b) the number of strata lots comprising building units to be
constructed exceeds five; or
(c) the person carrying out or proposing to carry out the
building scheme is also carrying out or has carried out, within the
preceding twenty-four months, another development scheme of
whatever size.
(2) The Minister may prescribe rules for establishment of
development schemes for real estate development.
(3) Without derogating from the generality of subsection (2), the
Minister may make rules for__
No. 28 Real Estate Management 23

(a) the nature and type of development schemes that may be

established in accordance with any written law;
(b) the nature and form of prepayment contracts real estate
developers may enter into with clients in respect of development
schemes;
(c) advertisements of real estate development schemes;
(d) the requirements for trust accounts and the responsibilities
of financial institutions in respect thereof;
(e) dealings with money in trust accounts; and
(f) such other matters as the Minister may deem necessary for
the management of development schemes.
32.__(1) Subject to section 31, a person who desires to carry out Registration
any real estate development shall, before commencing such of real
estate
development, apply to the Council, for registration as a real estate developers
developer.
(2) An application under subsection (1) shall be in the prescribed
form, and accompanied by the prescribed fee.
(3) The Council shall not register a person as a real estate
developer unless the Council is satisfied that such person__
(a) has identified and acquired land for purposes of a
development scheme as defined under section 31;
(b) has demonstrated financial capacity to carry out such
development in such manner as the Council shall prescribe; and
(c) has not been convicted at any time of an offence, and
sentenced without the option of a fine.
(4) Every real estate developer registered in accordance with this
section shall, in every year, on or before the first day of April after
the date of registration, pay to the Council a prescribed annual fee.
33. The Council may suspend or cancel the registration of a real Suspension or
estate developer where the Council is satisfied that__ cancellation
of real estate
(a) the registration was obtained by misrepresentation or fraud; developer
registration
(b) [the real estate developer has contravened the Financial
Crimes Act, or any written law relating to real estate; or Cap. 7:07

(c) circumstances have arisen which would have disqualified

the real estate developer from registration under this Act.
34. Where the Council refuses to grant an application for Right of
registration or a licence for a real estate agent or real estate manager, appeal against
refusal to
or registration for real estate developer, the Council shall notify the register or
applicant in writing within ten days of its decision, giving reasons grant a
licence
24 Real Estate Management No. 28

for the decision, the Council shall inform the applicant of the right
of appeal conferred by section 47.
Register of real 35.__(1) The Council shall keep and maintain a register in which
estate agents, shall be recorded the personal and business details of registered and
real estate
managers and licensed real estate agents and real estate managers, and registered
real estate real estate developers.
developers
(2) The register shall be open for inspection to the public during
working hours, and a copy of, or an extract from, the register may
be made by any interested person on the payment of the prescribed
fee.
(3) The Council shall annually publish in the Gazette and a daily
newspaper of nationwide circulation that the Council may
determine, a list of registered and licensed real estate agents and real
estate managers, and registered real estate developers who are in
good standing.
(4) The Council shall establish and maintain a national database
on real estate transactions which shall contain the transaction
records of each licensed real estate agent.
(5) The Council shall keep the transaction records referred to in
subsection (4) for a period of at least five years.
(6) The national database on real estate transactions referred to
subsection (4) shall, on request made in writing to the Council, be
made accessible to the Financial Intelligence Authority and the
Malawi Revenue Authority.
Place of 36.__(1) Every registered and licensed real estate agent and real
business of estate manager, and every registered real estate developer, shall
licensed real
estate agents, maintain a place of business in Malawi, and conspicuously display
real estate in that place of business__
managers and
real estate (a) the registration and licence of the real estate agent or real
developers estate manager, or registration certificate of real estate developer,
or a certified true copy thereof, as the case may be; and
(b) in the case of a real estate agent or a real estate manager,
the fees to be charged by the real estate agent or real estate
manager, as the case may be.
(2) Every registered and licensed real estate agent or real estate
manager, and every registered real estate developer shall give
written notice of a change of business location to the Council before
any change, and the Council shall effect the change in the register
and in any subsequent publication of the list of real estate agents,
real estate managers or real estate developers.
No. 28 Real Estate Management 25

(3) The Council may suspend or cancel the registration and

licence of any real estate agent or real estate manager, or suspend or
cancel the registration of any real estate developer, that fails to
comply with subsection (2).
37.__(1) All real estate transactions, including transactions Forms for
otherwise exempted from the application of this Act, shall executed real estate
transactions
on prescribed real estate transaction forms issued by the Council.
(2) The application for a real estate transaction forms shall be
made to the Council, and the Council shall, on the payment of the
required fee__
(a) record the personal and business details of the applicant;
and
(b) issue real estate transaction forms to the applicant.
(3) Any real estate transaction in which prescribed forms issued
by the Council are not used is void.
(4) For the purpose of this section, real estate transaction forms
include know your customer information forms, purchase
agreement and sales agreement forms, and disclosure of defect or
health hazard forms.
38. Subject to any written law, a real estate agent, real estate Sale and
purchase
manager, or real estate developer shall, in relation to each real estate agreements
transaction prepare as appropriate, a sales and purchase agreement
or a lease agreement and give the seller and the buyer or the lessor
and the lessee a copy each of the agreement.
39.__(1) All payments for real estate transactions shall be by bank Mode of
draft, cheque, bank transfer or electronic money transfer. payment for
real estate
(2) No real estate agent, real estate manager or real estate transactions
developer shall accept cash in payment of any real estate
transaction.
(3) Any person who contravenes this section commits an offence,
and shall, on conviction, be liable__
(a) in case of an individual, to a fine of K5,000,000, and to
imprisonment of two years; or
(b) in the case of body corporate, to a fine of K10,000,000.
40.__(1) Every real estate agent, real estate manager and real Client
estate developer shall separate their funds from those of the clients, accounts
and shall open and operate a separate clients’ or trust account into
which moneys due in relation to real estate transactions shall be
kept.
26 Real Estate Management No. 28

(2) Any person who contravenes this section commits an offence,

and shall, on conviction, be liable__
(a) in case of an individual, to a fine of K5,000,000, and to
imprisonment of two years; or
(b) in the case of body corporate, to a fine of K10,000,000.
Real estate 41.__(1) A real estate transaction, including a transaction
transaction otherwise exempted from the application of this Act, shall not be
certificates
complete until the parties to the transaction have been issued with a
real estate transaction certificate by the Council.
(2) A person who engages in a real estate transaction shall apply
for a real estate transaction certificate and accompany the
application with the prescribed fee determined by the Council.
(3) The application under subsection (2) shall include__
(a) the personal details of the applicant;
(b) the particulars of the real estate transaction to which the
real estate transaction certificate is intended to relate including__
(i) personal details of the parties to the transaction;
(ii) details of the property which is the subject of the
transaction;
(iii) the nature of the transaction;
(iv) the valuation report, if any, on the property which is the
subject of the transaction;
(v) the sums of money payable in the transaction;
(vi) details of the mode of payment used for payment of the
transaction; and
(vii) details of receipts issued to cover payment of taxes
payable for the transaction including receipts from the Malawi
Revenue Authority; and
(c) copies of the purchase and sales agreement on the
transaction.
(4) The Council shall issue the real estate transaction certificate
to an applicant within thirty days after receipt of the application.
(5) Where the Council has reasonable grounds to believe that
there has been any misrepresentation in respect of a real estate
transaction or payments made in relation to the real estate
transaction which is the subject of the application have been under-
declared or far exceeds the value of the property, the Council may__
(a) conduct an investigation into the transaction;
No. 28 Real Estate Management 27

(b) cause an independent valuation of the property to be made;

or
(c) refer the transaction to the Financial Intelligence Authority
and the Malawi Revenue Authority for investigation.
(6) Notwithstanding any provision in any written law, the Land
Registrar shall not register any real property or interest in real
property which has been the subject of real estate transaction,
including a transaction otherwise exempted from the application of
this Act under section 3 (1), if the application for registration is not
accompanied with a real estate transaction certificate issued by the
Council.
(7) Any registration of real property or interest in real property by
the Land Registrar contrary to subsection (6) shall be void.
42.__(1) A real estate agent, real estate manager or real estate General
developer shall not, in relation to real estate agency practice or a real rules of
conduct
estate transaction__
(a) make any misrepresentation for the purpose of obtaining a
licence or registration, or in any report that the real estate agent,
real estate manager or real estate developer submits to the
Council;
(b) act in the dual capacity of real estate agent, real estate
manager or real estate developer and an undisclosed principal in
the same transaction;
(c) act for more than one party in the same transaction without
the knowledge and consent of all the parties involved in the
transaction;
(d) pay commission or fees to or share commission or fees with
a person who is not a registered licensed real estate agent or real
estate manager or registered real estate developer, as the case may
be;
(e) accept, give or charge any undisclosed commission, rebate
or profit on expenditures for a principal;
(f) commingle the money or property of a client or principal
with the money or property of the real estate agent, real estate
manager or real estate developer;
(g) fail to give the seller and the buyer a copy of the sales and
purchase agreement; or
(h) accept from a prospective seller a net listing.
(2) A real estate agent, real estate manager or real estate developer
shall disclose to the buyer any defect with the property that the real
estate agent, manager or developer is dealing with.
28 Real Estate Management No. 28

Transaction 43.__(1) Every real estate agent, real estate manager and real
reports estate developer shall, in addition to the reporting obligation under
Cap. 7:07 the Financial Crimes Act, submit to the Council quarterly reports in
hard copy and electronic format covering each real estate
transaction undertaken by the real estate agent, real estate manager,
or real estate developer within the quarter to which the report
relates.
(2) The report mentioned in subsection (1) shall be in the
prescribed form, and may contain matters, as may be prescribed.
(3) A real estate agent, real estate manager, or real estate
developer who fails to comply with subsection (1) shall be liable to
pay to the Council an administrative penalty of__
(a) in case of an individual, K1,000,000; or
(b) in the case of body corporate or partnership, K5,000,000.
Books of 44.__(1) Every real estate agent, real estate manager and real
account and estate developer shall keep books of account and proper records in
audit of real
estate agents, relation to every real estate transaction.
real estate
managers and (2) The books of account and the records referred to in subsection
real estate (1) shall be in conformity with the national accounting standards,
developers and shall__
(a) on request by the Council, be open for inspection by the
Council;
(b) among other things, contain the financial details of each
real estate transaction undertaken by the real estate agent, real
estate manager or real estate developer.
(3) A real estate agent, real estate manager and real estate
developer shall, within one month after the end of the calendar year,
appoint a qualified auditor to audit the accounts of the real estate
agent or real estate developer, and the auditor shall submit the audit
report to the real estate agent, real estate manager or real estate
developer within one month after the appointment.
(4) A real estate agent, real estate manager and real estate
developer shall keep the transaction records of real estate
transaction referred to in this section for a period of at least seven
years.
Other records 45. Every real estate agent, real estate manager and real estate
to be kept developer shall keep records which contain, among others, details of
(a) the parties to each real estate transaction;
(b) the date of the real estate transaction;
No. 28 Real Estate Management 29

(c) each mode of payment issued for the payment of a real

estate transaction;
(d) each property which is the subject of a real estate
transaction;
(e) the nature of each transaction;
(f) the valuation report on each property which is the subject of
a real estate transaction; and
(g) the sums of money payable in respect of each real estate
transaction.
46.__(1) Every real estate agent and real estate manager shall, Annual
within three months after the end of each calendar year, submit to reports of
real estate
the Council a report covering the real estate transactions undertaken agents and
by that real estate agent and real estate manager in the previous year. real estate
managers
(2) The report under subsection (1) shall include the audit report
of that real estate agent or real estate manager, as the case maybe.

PART VI__DISPUTE RESOLUTION

47.__(1) The Council shall establish, for the purpose of hearing Appeals
grievances under this Act, an Appeals Committee (in this Act Committee
otherwise referred to as the “Appeals Committee”) which shall
comprise of__
(a) one member of the Council, designated by the Chairperson;
(b) two real estate agents, and one real estate manager
registered and licensed under this Act, appointed by the Minister;
and
(c) a legal practitioner of not less than ten years’ experience,
appointed by the Minister.
(2) A person aggrieved by the conduct of a real estate agent, real
estate manager or a real estate developer, or by a decision of the
Council relating to a registration or licence may make a complaint
to the Council.
(3) The Council shall refer the complaint to the Appeals
Committee for a hearing within fourteen days after receipt of the
complaint.
(4) The decisions of the Appeals Committee shall be by simple
majority, and shall__
(a) contain a statement of the reasons for the decision,
including a determination of each issue of fact or law;
(b) be signed by each member of the Appeals Committee; and
(c) be submitted to the Council.
30 Real Estate Management No. 28

Powers of the 48.__(1) The Appeals Committee shall determine the time and
Appeals
Committee
place for hearings of the Appeals Committee.
(2) The Appeals Committee may by summons require the
attendance and testimony of witnesses and the production of
documents.
Submission of 49.__(1) The Council shall approve the decision or refer the
decision to the decision back to the Appeals Committee for reconsideration within
Council
fourteen days after receipt of the decision of the Appeals Committee
in relation to a hearing.
(2) Where the Council refers the decision back to the Appeals
Committee for reconsideration, the Council shall attach to the
decision the reasons for the reference for reconsideration.
(3) Where the Council approves the decision of the Appeals
Committee, the Council__
(a) shall within fourteen days after the approval serve on the
affected party a copy of the decision, and the reasons for the
decision;
(b) may suspend or revoke a licence of a real estate agent or
real estate manager, or suspend or revoke the registration of a real
estate developer; or
(c) take any other action as appropriate.
(4) The Council shall revoke the licence of a person who after
being given notice fails to take the required remedial action within
the specified time.
Alternative 50.__(1) Parties to a transaction under this Act may agree to
dispute resolve a dispute that arises in relation to a transaction in accordance
resolution
Cap. 6:03 with the Arbitration Act:
(2) An agreement of the parties under subsection (1) shall not oust
the jurisdiction of the Court.
(3) Where parties agree to resolve a dispute in accordance with
subsection (1), the Arbitrator shall, within fourteen days after the
referral of the dispute, initiate action to resolve the dispute.
Review of 51.__(1) A person who is not satisfied with a decision of the
decision of Council may within one month after being informed of the decision,
Council
Cap. 6:03 apply to the High Court for a review of that decision.
(2) An application for a review of a decision shall not, unless
otherwise determined by the court, operate as a stay of execution of
the decision.
No. 28 Real Estate Management 31

52.__(1) The Council shall appoint real estate inspectors for the Appoint-
effective implementation of the functions of the Council under this ment of real
estate
Act. inspectors
(2) An inspector appointed under subsection (1) shall be issued
with an identity card by the Council.
(3) An inspector shall produce the identity card whenever
required in the discharge of the duties of the inspector under this
Act.
53.__(1) An inspector may at a reasonable time during the day for Inspections
the purpose of inspection, enter the premises of a real estate agent,
real estate manager or real estate developer, or premises which the
officer has reasonable grounds to believe relate to a real estate
transaction, including a transaction otherwise exempted from the
application of this Act.
(2) An inspector may only enter premises for inspection after that
officer or authorized person has produced for the inspection of the
occupier of the premises, the identification and authority of that
officer or authorised person.
(3) The inspector may, in furtherance of an inspection, request,
among others, for__
(a) copies of real estate agreements;
(b) information and records on real estate transactions; and
(c) the real estate transfer certificate for any completed real
estate transaction.

PART VII__MISCELLANEOUS
54.__(1) The Council shall, develop and adopt a Code of Ethics Code of
for real estate agents, real estate managers and real estate developers ethics
to regulate the practice and conduct of real estate agents, real estate
managers and real estate developers.
(2) The Code of Ethics shall, without derogating from the
generality of subsection (1), stipulate the procedures and guidelines
for the practice and professional conduct and discipline of real
estate agents and real estate developers in accordance with this Act.
(3) The Code of Ethics shall be published in the Gazette.
55. A real estate agent, real estate manager or real estate Negligence
developer negligently misrepresents any data or information
obtained in the course of a real estate transaction, shall be personally
32 Real Estate Management No. 28

liable for professional negligence arising from such

misrepresentation:
Provided that no liability shall accrue against a real estate agent,
real estate manager or a real estate developer acting in good faith
and applying appropriate skills and knowledge.
Administrative 56. Any person who__
sanctions
(a) fails to conspicuously display a licence issued in
accordance with this Act contrary to section 36;
(b) fails to use forms issued by the Council for a real estate
transaction contrary to section 37; or
(c) fails to submit an annual report to the Council contrary to
section 46,
shall be liable to pay to the Council an administrative penalty of
K1,000,000, and K100,000 for each day that the default or failure
continues.
Offences and 57. Any person who__
penalties
(a) advertises as a real estate agent or real estate manager
without registration and a licence issued under this Act, or as a
real estate developer without registration under this Act;
(b) engages in a real estate transaction without registration and
a licence issued under this Act;
(c) falsifies a document under this Act;
(d) obstructs an authorized officer in the performance of the
duties of that officer under this Act; or
(e) fails to submit transaction reports contrary to section 43,
commits an offence and shall, on conviction, be liable__
(i) in case of an individual, to a fine of K1,000,000, and to
imprisonment for twelve months; and
(ii) in the case of body corporate, to a fine of K5,000,000.
Regulations 58.__(1) The Minister may, on the advice of the Council, make
regulations to prescribe for__
(a) facilities to be provided by real estate agents, real estate
managers and real estate developers;
(b) the content and conduct of examinations for real estate
agents, real estate managers and real estate developers;
(c) the establishment of real estate development schemes;
No. 28 Real Estate Management 33

(d) the form and content of reports to be submitted by real

estate agents, real estate managers or real estate developers to the
Council;
(e) the effective monitoring, assessment and improvement of
real estate agency, real estate management and real estate
developer practice;
(f) fees for examination, grant or renewal of licence, processing
and recording of transactions fees, and any other fees chargeable
under this Act; and
(g) any other matters for the effective implementation of this
Act.
(2) Notwithstanding the provisions of section 21 (e) of the Cap. 1:01
General Interpretation Act, regulations made under subsection (1)
may provide for offences the contravention of which may impose a
penalty of__
(a) in the case of an individual, a fine of K1,000,000 and
imprisonment for twelve months; and
(b) in the case of a corporation, a fine of K5,000,000.
59.__(1) Any subsidiary legislation made under the Land Savings and
Economy Surveyors, Valuers, Estate Agents and Auctioneers Act, transition
Cap. 53:08
repealed by the Property Valuation Act, 2024, in force immediately 26 of 2024
before the commencement of this Act__
(a) shall remain in force, unless in conflict with Act;
(b) shall be deemed to be subsidiary legislation made under
this Act; and
(c) may be replaced, amended or repealed by subsidiary
legislation made under this Act.
(2) A real estate agent or real estate manager who is registered
under the Land Economy Surveyors, Valuers, Estate Agents and
Auctioneers Act, repealed by the Property Valuation Act, 2024, shall Cap. 53:08
continue to practice real estate agency as if registered under this Act.
(3) Any licence, permit or other authority granted under the Land
Economy Surveyors, Valuers, Estate Agents and Auctioneers Act,
repealed by the Property Valuation Act, 2024, shall continue, subject Cap. 53:08
to the terms and conditions, to have effect as if it was granted under
this Act.
34 Real Estate Management No. 28

SCHEDULE (s. 18)

OATH OF SECRECY
I, …..........................………, being a member of the Council/member of a
committee of the Council/having been invited to attend a meeting of the
Council/a meeting of a committee of the Council/a member of staff of the
Council, do swear/affirm that I will freely without fear or favour, affection, or
ill-will discharge the functions of a member of the Council/member of a
committee of the Council/ member of staff of the Council, and I will not, directly
or indirectly, reveal any matter related to such functions to any unauthorized
person or otherwise than in the course of duty. So help me God.
..................................................................
Signature of the person making the oath or affirmation

Sworn [or affirmed] by the said …………………………………...…

at …………………………… this … day of …………………, 20….
Before me:
……………………………………………………
Commissioner for Oaths

Passed in Parliament this seventeenth day of September, two thousand and

twenty-four.
FIONA KALEMBA
Clerk of Parliament

Printed by THE GOVERNMENT PRINTER, Lilongwe, Malawi—9219—(Price K10,500.00)