Property trader activity : Sovereign Order n°10.745 of 5 August 2024 implementing Act n°1.560 of 2 July 2024

Sovereign Order 10.745 of 5 August 2024, issued pursuant to Act 1.560 of 2 July 2024 relating to the regulation of property traders, sets out the terms and conditions for carrying on this activity.

The first condition that the property trader must meet is to take out a financial guarantee in the form of a first demand guarantee against the Treasury, as provided for in article 4 of law no. 1.560 of 2 July 2024. The guarantee is for a period of two years and must be renewed at least two months before it expires.

The amount of the financial guarantee is set at 50,000 euros, regardless of the number and value of transactions in progress.

The property trader then sends the Economic Development Department (DDE) a document issued by the guarantor certifying that the financial guarantee has been set up, at the time of registration in the Trade and Industry Register (RCI) and at least one month before the expiry date of the financial guarantee.

In particular, this document must mention the amount of the guarantee set up, its period of validity, the name of the establishment that issued it and the address of its registered office.

In the event of default resulting from a summons to pay followed by a refusal or remaining without effect for a period of one month from the date of service of the summons on the property trader, the Direction des Services Fiscaux has recourse to this guarantee.

This financial guarantee thus represents tangible protection for the State against the risk of non-payment, reinforcing the legal collection privilege in favour of the Prince's Treasury defined in article 1935 of the Monegasque Civil Code. The purpose of this mechanism is to exclusively protect the interests of the State, which is the sole determinable creditor of the property trader.

When the financial guarantee is called and implemented, the property trader must provide a new financial guarantee in accordance with the conditions set out in articles 4 to 7 of law n° 1.560 of 2 July 2024 and the Sovereign Order, for the remaining period referred to above. Where applicable, the document issued by the guarantor certifying that the financial guarantee has been set up must be sent to the Economic Development Department within two months of the previous financial guarantee being implemented.

The guarantee will remain in full effect regardless of any changes in the financial, legal or other situation of the property trader, particularly in the event of a judgement declaring the property trader to be in liquidation, or in the event that the property trader ceases business.

The second condition is that a copy of the professional indemnity insurance policy provided for under article 8 of law no. 1.560 of 2 July 2024 must be sent to the Economic Development Department when the property is entered in the Trade and Industry Register.

This obligation will guarantee third parties during the execution of the work and the purchasers in the event of defects or faulty workmanship occurring after the transfer of ownership. 

The third condition is that, when the sale of the property is signed, the notary must be provided with a certificate of compliance with electrical standards and a certificate relating to energy standards, as provided for in point 4°) of article 11 of law no. 1.560 of 2 July 2024, dated less than one year and drawn up by an inspection body approved in the Principality.

These certificates must state that the property complies with the electrical standards in force and the energy standards defined in application of Chapters 2 (‘Building envelope, glazed walls and external doors’), 7 (‘Premises lighting’) and 9 (‘Fittings’) of Title III (‘Energy regulations by element’) of Ministerial Order no. 2018 613 of 26 June 2018 on the thermal characteristics of new buildings, renovations of existing buildings and extensions, as amended. In the case of individual production of heating, domestic hot water and/or cooling, the certificate also covers chapters 3 (‘Heating’), 4 (‘Domestic hot water’) and 5 (‘Cooling’).

The certificate relating to energy standards must be accompanied by form E in Annex III of the aforementioned ministerial order (see end of article), duly completed, relating to the current energy performance of the walls, whether or not the property is a single property unit.

If you are already established in the Principality as a property trader, and you would like to carry out new transactions, the Valeri Agency team will be delighted to select the most suitable properties for you to buy and/or to market them for you.

Do not hesitate to contact us!

Form E of Ministerial Annex No. 2018 613 of 26 June 2018