Notary ordered to pay difference in price after failing to register promise of sale extension

A notary has been ordered to pay €29,117.17 to a band club for failing to register an extension to a promise of sale agreement, causing the club to have to fork out a higher price, after renegotiating a new purchasing agreement.

The First Hall, Civil Court, presided by Mr Justice Silvio Meli ordered notary Charles Vella Zarb to pay LM12,500, today €29,117.17, to Birzebbugia's St Peter's Band Club after a civil court ruled that he had failed in his professional duties when he did not register the renewal of a promise of sale agreement the band club had entered into.

St Peter's philharmonic society had signed a promise of sale agreement with a third party on July 29 2004 to purchase a building in Birzebbugia valued at LM65,000.

The purchasers had paid LM4,000 in terms of this agreement, which was drawn up by notary Vella Zarb. Another LM15,000 were to be paid on the final deed, with the rest due to be paid in installments of LM3,000.

The court observed that this promise of sale had been renewed twice and that the notary had not registered the second renewal with the Inland Revenue Department, as required by law.

This omission meant that the promise of sale was not renewed and that the plaintiffs could not force the sale to go through when the seller refused to appear on the final deed.

Mr Justice Meli was told that the plaintiffs had to then negotiate a new sale price, amounting to LM77,500. The final contract was signed before another notary.

The notary argued that he had registered the original agreement and its first renewal, but not the second renewal because the parties had not expressly authorised him to do so.

However, the court pointed out that this authorisation was implied since the renewal was effected "subject to the same terms and conditions " of the original agreement.

In addition, the defendant had not informed his clients that he was not going to register the second renewal of the promise of sale, observed the court.

The court upheld the plaintiff's request, ordering the notary to pay the €29,117.17 difference between the original and final price, as well as the legal expenses of the case.

"A notary is a public officer who is duty bound to execute the instructions of his clients who are paying for his services," the court said. “He cannot take unilateral decisions which are likely to prejudice the interests of his clients thereby betraying their trust.”

Lawyer Henry Antoncich was the plaintiff's legal counsel.