ACT No. XXVIII of 2019 AN ACT to promote the development of the private rented sector by ensuring standards of fairness, clarity and predictability in contractual relations between lessors and lessees and to safeguard and protect the right to adequate accommodation, and to make

I assent.

(L.S.)

GEORGE VELLA

President

8th November, 2019

ACT No. XXVIII of 2019

AN ACT to promote the development of the private rented sector by

ensuring standards of fairness, clarity and predictability in

contractual relations between lessors and lessees and to safeguard

and protect the right to adequate accommodation, and to make

provision with respect to matters ancillary thereto or connected

therewith.

BE IT ENACTED by the President, by and with the advice and

consent of the House of Representatives, in this present Parliament

assembled, and by the authority of the same, as follows:-

(1)

The short title of this Act is the Private Residential Short title

and commenc-

Leases Act, 2019.

ement.

(2) This Act shall come into force on such date as the Minister

responsible for housing may by notice in the Gazette establish, and

different dates may be so established for different provisions and

different purposes thereof.

In this Act, unless the context otherwise requires

Interpretation.

"the Act" means the Private Residential Leases Act, 2019; Act No.

XXVIII of

2019. "Adjudicating Panel" means the Adjudicating Panel for

Private Residential Leases established by article 23;

"Authority" means the Housing Authority established by

article 3 of the Housing Authority Act;

"Board" means the Rent Regulation Board established by

article 16 of the Reletting of Urban Property (Regulation) Cap. 69.

Ordinance;

"lessee" means the lessee of the premises, or his spouse,

civil union partner, cohabitant or a member of his family up to

the second degree, whether direct or collateral;

"letting of shared residential space" means the letting of

any separate space in an apartment or building, with shared

amenities, such as kitchen and bathroom facilities;

"long private residential lease" means any lease,

negotiated for a primary residential purpose in accordance with

article 8 and which is not a short private residential lease;

"Minister" means the Minister responsible for housing;

"private residential lease" means any long or short private

residential lease, including the letting of shared residential

space, which is entered into after 1st January, 2020, and any

lease for a residential purpose entered into before the 1st

January, 2020, which would still be in its original or renewed

period on the 1st January, 2021;

"residence" means a tenement let for a primary residential

purpose

Provided that guest houses or dormitories shall not

be considered as a residence for the purpose of this Act

Provided further that tenements in the island of

Malta and which are occupied by residents of the island of Gozo

and Comino due to employment or education on the island of

Malta shall also be regulated by this Act. The same shall apply

to residents of the island of Malta, who occupy tenements in the

island of Gozo and Comino due to employment or education on

the island of Gozo and Comino

Provided further that any property or part of a

property used as a residence must be fit for habitation;

"short private residential lease" means any lease,

negotiated for a duration of six (6) months, which is meant to

satisfy the need of the following categories of lessees

(a) non-resident workers who are employed either

for a period less than six (6) months or only to complete a

specific task within a maximum period of six (6) months;

(b) non-resident students who are enrolled in

courses for less than six (6) months;

(c) residents who need to rent an alternative

primary residence for a period of less than six (6) months;

(d) non-residents who need to rent a tenement for

a period of less than six (6) months, provided that they

would not be seeking to establish their long residence in

Malta

Provided that a contract of short lease shall

identify the specific category within which the lessee falls

into and attest it through attached documentation. In the

absence of either of these requirements the contract shall

be deemed to be a private residential lease in accordance

with article 8

Provided further that any short private

residential lease negotiated for a period exceeding six (6)

months shall also be deemed to be a private residential

lease in accordance with article 8

Provided further that short private residential

leases may not be extended;

"tourist" means any person who is traveling to and staying

in places outside his usual environment for not more than one

(1) consecutive year for leisure, business or other personal

purposes other than by taking up employment or to establish his

business in the place visited.

(1)

The provisions of the Act shall apply to private Applicability.

residential leases that are entered into or renewed after the entry into

force of the Act

Provided that leases which were granted after the 1st June,

1995, and which are still in force on the day of the entry into force of

the Act shall continue to be regulated exclusively by the provisions of Cap. 16.

the Civil Code, except for the cases specified under article 5.

(2)

The provisions of the Act shall not apply to

(a)

tenements belonging to the Government of Malta

Provided that tenements owned by private

foundations set up for the purpose of providing affordable

housing shall not be considered as tenements belonging to

the Government;

(b) tenements let to any tourist, exclusively for tourism

purposes

Provided that if a property is registered as a holiday

furnished premises in accordance with the Malta Travel and

Tourism Services Act, the Act shall still apply if the applicant Cap. 409.

does not qualify as tourist;

(c)

tenements which are not let for a primary residential

purpose;

(d)

tenements let before the 1st June, 1995.

(3)

The provisions of the Act shall not apply to the letting of

urban tenements where contracts of emphyteusis or sub-emphyteusis

have been or are about to be converted into leases by virtue of law.

PART II

PRIVATE RESIDENTIAL LEASE CONTRACTS

(1) All private residential lease contracts entered into after Obligation to

the entry into force of the Act, including their renewal, whether register

residential

express or tacit, shall be registered

lease contracts.

Provided that contracts of private residential leases which are

not registered in accordance with the provisions of the Act shall be

null and void.

(2) It shall be the duty of the lessor to register, within ten (10)

days of the commencement of the lease, the private residential lease

contract with the Authority

Provided that such registration shall be made subject to an

administrative fee levied by the Authority

Provided further that registrations made later than the time

specified in sub-article (2) shall be subject to an additional fee.

(3) The registration shall have a retrospective effect from the

date of commencement of the lease.

(4) If the lessor fails to comply with the obligation stipulated in

sub-article (2), the lessee may proceed to register the lease contract

himself, at the expense of the lessor

Provided that the lessee shall have the right to retain part of

the rent for the purpose of reimbursement of the administration fee

paid to the Authority.

(5) An application for registration under article 4 may not relate

to more than one (1) private residential lease.

(6)

A separate application is required for every private

residential lease that is created

Provided that the lessor shall be bound to register the renewal

in accordance with the Act.

(7) As part of the process of registration, the Authority may

demand the lessor to specify the number of occupants that shall reside

in the tenement

Provided that such figure shall only be used for statistical

purposes and it shall not be invoked by the lessor in any action for the

termination of the contract on the grounds of unlawful sub-letting

Provided further that such figure shall be without prejudice to

the lessee’s rights under article 1615 of the Civil Code.

(8) The Authority shall have the power to introduce and enforce

minimum standards of habitability for tenements which are offered

for letting

Provided that the registration of a lease contract by the

Authority shall not in any manner be held as a certification of the

habitability of a leased tenement.

(1) Private residential leases which were entered into after Transitory

the 1st June, 1995, but before the coming into force of the Act, and provision.

which would still be in force on the 1st January, 2021, whether in

their original or renewed term, shall be registered

Provided that the obligation to register shall also apply to any

lease that is renewed beyond the 1st January, 2021.

(2)

It shall be the duty of the lessor to register the private

residential lease contract with the Authority in accordance with sub-

article (1) by the 1st January, 2021.

(3) In the case of a conflict between the registered contract and

articles 7, 9 and 11, the articles contained in the Act shall prevail.

(4) The registration of a lease under sub-article (1) shall require

the declaration of any amount deposited by the lessee by way of

security in accordance with article 6(1)(b) and the presentation of an

inventory in accordance with article 6(1)(c)

Provided that it would be sufficient for the inventory to attest

the condition of the property at the time of the registration of the

contract

Provided further that the tenant shall be bound to provide

access to the landlord for the purpose of the compilation of such

inventory, and in the absence of an agreement between the parties, the

lessor may file an application in accordance with the procedure laid

down under article 1548A of the Civil Code.

(5) If the lessor fails to comply with the obligation stipulated in

sub-article (1), the lessee may proceed to register the contract himself,

at the expense of the lessor

Provided that the lessee will have the right to retain part of

the rent for the purpose of reimbursement of the administration fee

paid to the Authority.

(1) All private residential lease contracts made after the Requisites in

entry into force of the Act shall be made in writing and shall include writing

contract of

the following requirements

private

residential

lease.

(a)

the tenement to be leased;

(b)

the agreed use of the tenement let;

(c)

the period for which that tenement shall be let;

(d)

whether such lease may be extended and in what

manner;

(e) the amount of rent that shall be paid and the manner

in which such payment shall be made;

(f)

any amount deposited by the lessee by way of

security for the performance of his obligations; and

(g) an inventory, in the form of documentary evidence,

attesting the condition of the tenement as well as the state of any

furniture and domestic appliances supplied by the lessor.

(2)

In the absence of one (1) or more of these essential

requirements established in sub-article (1), the contract shall not be

registrable, therefore, shall be null and void.

(3)

The Minister may, after consulting the Authority, by

regulations publish a model private residential lease agreement which

may be used as a basis by any person entering into a private

residential lease contract

Provided that the Minister shall also be entitled to publish a

standard form containing the clauses mentioned in sub-article (1) and

which may be made compulsory for any person entering into a private

residential lease contract which is not in accordance with the model

agreement.

(1) Any of the following clauses which are inserted in a

private residential lease contract, shall be deemed to be without

effect

(a) clauses which provide for the automatic termination

of the contract other than the non-fulfilment of the lessee’s

obligations under articles 1554, 1555, 1555A and 1614 of the

Civil Code or the non-observance of any one (1) of the

conditions of the lease for which termination had been expressly

foreseen

Provided that where the lessee fails to pay

punctually the rent due, the lessor shall always call upon the

lessee in accordance with article 1570 of the Civil Code;

(b)

clauses which authorise the lessor to reduce,

without equivalent consideration, any benefits stipulated in the

contract;

(c)

clauses that exempt the lessor from any of the

responsibilities to which he is bound by law, including those

foreseen in articles 1545 and 1546 of the Civil Code, without Cap. 16.

equivalent consideration;

(d)

clauses which impose the payment of additional

considerations, other than the rent, the deposit, the insurance on

the contents of the tenement and any contributions foreseen in

accordance with article 11(4) of the Condominium Act

Provided that any expenses relating to the ordinary

maintenance of the common parts of a condominium shall be

limited to those duties which, in accordance with the Civil Cap. 16.

Code, are at the charge of the lessee

Provided further that the lessee may request the

restitution of any amounts unduly paid;

(e)

clauses which impose on the lessee any additional

consideration for the use of the movables, beyond the payment

of rent for the use of the dwelling

Provided that the lessee may request the restitution

of any amounts unduly paid;

(f)

clauses which stipulate the payment of a fixed

amount, separate from the rent, for the consumption of water,

electricity or other utility service if such amount does not reflect

the actual consumption of such utility services by the lessee

calculated at the rate reflecting the primary residential use of the

tenement and the total number of occupants residing therein;

(g) clauses which limit the use which one is expected to

make of a residence, subject to the observance of the provisions

relating to the maintenance and improvement contained in the

Civil Code and the rules of good neighbourliness.

(2)

The registration of the private residential lease contract by

the Authority shall not imply the validation of any unlawful terms

contained therein.

A long private residential lease cannot have a duration of Minimum

less than one (1) year. Any agreement stipulating a shorter duration contractual

duration for

shall be deemed to have been agreed for a period of at least one (1) long leases.

year

Provided that this article does not apply to short private

residential leases or the letting of shared residential space.

(1) A private residential lease shall cease to have effect

upon the expiration of its term, whether such term is conventional,

legal or judicial, provided that the lessor gives notice to the lessee at

least three (3) months before by registered letter

Provided that for the purpose of proving the fulfilment of his

obligation under sub-article (1), it shall be sufficient for the lessor to

provide evidence that the registered letter has been sent within the

stipulated time, and to the correct address.

(2)

If the lessor does not serve the lessee with a notice of

termination within the specified time, the private residential lease

shall be deemed to have been renewed for a further period of one (1)

year

Provided that in the absence of a notice of termination by the

lessor, the lease shall continue to be renewed.

(3)

This article shall not be applicable for short private

residential leases or letting of shared residential space.

A short private residential lease shall cease to have effect by

operation of article 1566 of the Civil Code.

(1) The lessee may not withdraw from a long private

residential lease before the lapse of

(a) six (6) months in the case where the lease is for a

period of less than two (2) years;

(b) nine (9) months in the case where the lease is for a

period of two (2) years or more but less than three (3) years; or

(c) twelve (12) months in the case where the lease is for

a period of three (3) years or more

Provided that if the lessee withdraws from a long private

residential lease before the lapse of the period stipulated in sub-article

(1), the lessor may retain an amount not exceeding one (1) month’s

rent from the deposit left by the lessee by way of security, so however,

that the lessor may still proceed against the lessee to collect any other

amount due by him

Provided further that sub-article (1) shall be without prejudice

to the lessor’s right to demand the termination of the lease in case of

the lessee’s non-fulfilment of any one (1) of his obligations.

(2) From the lapse of the periods mentioned in sub-article (1)

onwards, the lessee may withdraw at any time by giving notice to the

lessor, by registered letter

(a) at least one (1) month before in the case where the

lease is for a period of less than two (2) years;

(b) at least two (2) months before in the case where the

lease is for a period of two (2) years or more but less than three

(3) years; or

(c) at least three (3) months before in the case where the

lease is for a period of three (3) years or more.

(3) The parties may agree to stipulate more advantageous

conditions for the lessee in connection with the withdrawal of the

lease.

(4) No penalty may be imposed on the lessee for exercising his

rights of withdrawal according to the periods stipulated in sub-article

(1).

(5) In the absence of an adequate serving of notice, the lease shall

be deemed not to have been terminated by the lessee

Provided that for the purpose of proving the fulfilment of the

lessee’s obligation under sub-article (2), it shall be sufficient for the

lessee to provide evidence that the registered letter has been sent

within the stipulated time, and to the correct address.

(1) The lessee may not withdraw from a short private Withdrawal by

the lessee in the

residential lease before the lapse of one (1) month.

case of short

private

residential

(2)

Following the lapse of the period mentioned in sub-article

leases.

(1), the lessee may withdraw at any time from a short private

residential lease so long as he gives a prior notice to the lessor of at

least one (1) week, by a registered letter.

(3)

The parties may agree to stipulate more advantageous

conditions for the lessee in connection with the withdrawal of the

lease.

(4) No penalty may be imposed on the lessee for exercising his

rights of withdrawal in accordance with this article.

(1)

The rent shall be freely stipulated between the parties.

(2) Unless otherwise agreed, the payment of the rent shall be

deemed to have been calculated for one (1) month. In no case may the

lessor require the advance payment of more than one (1) month’s rent,

unless it is otherwise agreed by the parties

Provided that this shall be without prejudice to the lessor’s

right to request an amount by way of security, for the performance of

the lessee’s obligations.

(3) The lessor shall be obliged to deliver to the lessee a receipt of

the payment, unless it has been agreed that payment is made through

procedures that are capable of proving the effective fulfilment of the

obligation.

(1) Rent increases may only take place once every year. In

the absence of any express agreement, the rent cannot be revised

during the term of the lease.

(2)

Yearly increases may not exceed the annual variations

recorded in the Property Price Index published by the National

Statistics Office. The annual variation shall be understood as the

average of the previous four quarters recorded until the date of the

increase.

(3)

The increase foreseen in sub-article (2) may never exceed

the previous rent by more than five per cent (5%).

(4)

If the average annual variation is negative, this shall not

result in the reduction of the rent.

(1) Any agreement, whether verbal or in writing,

determining any condition which does not result from the written and

registered contract shall be considered as void.

(2)

In the cases referred to in sub-article (1), the lessee may

request the restitution of any amounts paid in excess of the total

amount resulting from the written and registered contract.

(3)

Any clause intended to derogate the minimum contractual

duration established by the Act shall be null and void.

(1) Any contract entered into for the lease of a shared

residential space shall have a duration of six (6) months.

(2)

The lessee may withdraw from the lease, at any time, by

giving one (1) week prior notice to the lessor by a registered letter.

(3) No penalty may be imposed on the lessee for exercising his

rights of withdrawal.

(4) The letting of shared residential space is also subject to the

rules of registration under article 4.

(5) Any lease of shared residential space may not be renewed

and it shall cease to have effect by operation of article 1566 of the Cap. 16.

Civil Code.

(6)

The above provisions shall also apply where either the

lessor, or the lessee in case of a sub-lease, also reside in that property.

(7) The Authority shall have the power to introduce and enforce

safety and security standards in relation to tenements which are let to

more than one (1) household, including rules limiting the number of

persons that could occupy such tenement at once.

(1) The lessor is bound to ensure an adequate supply of Water and

water and electricity whenever a tenement, or any part thereof, is electricity

services.

leased for a residential purpose

Provided that this article shall be without prejudice to the

supplier’s rights to suspend the supply of water and electricity under

the Electricity Supply Regulations and Water Supply Regulations, in S.L.

the case of non-payment of an account or where such powers are

specifically reserved to the Chairman of the electrical distribution

system operator or the Water Services Corporation as the case may be.

(2) The lessor is bound to acknowledge the number of persons

residing in the tenement for the purpose of calculating the correct

tariff applicable for electricity and water supply, and to grant the

lessee access to the account details relative to the leased tenement

Provided that the lessor’s obligations under this sub-article

shall be without prejudice to the lessee’s possibility of applying for

his temporary recognition as a consumer by the service provider and

to assume responsibility for the payment of bills relative to the leased

tenement, in his own name.

(3) Any additional amounts incurred by the lessee as a result of

the lessor’s default to maintain his obligations stipulated in sub-article

(2) shall be recoverable by the lessee

Provided that the lessee may retain part of the rent due for the

purpose of reimbursement of such expenses.

(4)

The lessee shall ensure that no arrears for water and

electricity services are pending with respect to the period of the lease

Provided that the non-payment of water and electricity bills

during any period of the lease shall be considered as a partial default

and it shall entitle the lessor to demand the dissolution of the contract

in accordance with article 1570 of the Civil Code

Provided further that the tenant shall not be bound to pay the

utility services until he is provided with a copy of the bill, unless he

would have direct access thereto.

(1) A tenant in default of his obligations, who remains in

occupation of the rented tenement beyond the lapse of his title, shall

be bound to pay the lessor an amount equivalent to the rent until the

date of the effective eviction of the property.

(2)

A demand for such compensation may be made

simultaneously with the demand for termination of the lease and, or

for the eviction of the lessee from the rented tenement.

(3)

Nothing contained in sub-article (1) shall preclude the

lessor’s right to obtain compensation for any greater damage.

PART III

MONITORING AND ENFORCEMENT

(1) Notwithstanding the provisions of any other law, for the

purposes of verifying whether any tenement is occupied for a

residential purpose by any person or persons who are not the owners of

the tenement and who would be occupying the tenement without a

valid title of lease, for the sole reason that the lease agreement does not

satisfy the requisites ad validitatem in writing of a contract of lease or

that although it satisfies the requisites ad validitatem in writing is not

registered in accordance with the provisions of the Act, the

Chairperson of the Authority and such officer, employee or any other

person as may be authorised by the Chairperson for this purpose, and if

so required by the Chairperson with the assistance of the Police Force,

shall have the right to enter the private tenement, at all reasonable

times in order to inspect the tenement, or verify whether the tenement

is being occupied by any person, or to take any photographs after

entering or request any legitimate information from any occupier of

such tenement

Provided that such access shall require the prior issue of a

warrant signed by a Magistrate.

(2) For the purpose of any investigation on the violation of any

other provision under the Act, the Chairperson of the Authority and

such officer, employee or any other person as may be authorised by the

Chairperson for this purpose, shall have the same right under sub-

article (1), but not before giving notice of at least twenty four (24)

hours to the occupant prior to the entry into the property.

(3) Any person authorised pursuant to sub-article (1) shall

produce a means of identification issued by the Authority and thereon

be authorised to enter the tenement.

(4) If any person makes any false report regarding the violation of

any of the provisions of the Act, knowing the same to be false, he shall

be liable to imprisonment for a period not exceeding three (3) months or

to a fine (multa) not exceeding five hundred euro (€500) or to both such

imprisonment and fine (multa).

(1) If it appears to the Authority that any tenement is Enforcement

occupied for a residential purpose by any person or persons who are procedure.

not the owners of the tenement and who would be occupying the

tenement without a valid title of lease, for the sole reason that the

lease contract does not satisfy the requisites ad validitatem in writing

of a contract of lease or that although it satisfies the requisites ad

validitatem in writing is not registered in accordance with the

provisions of the Act, hereinafter in the Act referred to as "occupation

without title", the Chairperson, or any officer authorised by him, shall

issue an enforcement notice to the person or persons granting the

enjoyment of the tenement without having formalised their

relationship according to law

Provided that no enforcement notice shall be issued in

relation to any lease contract validly entered into before the entry into

force of the Act, saving the provisions of article 5.

(2) The Authority shall, in the case of occupation without title

referred to in sub-article (1), require the person or persons granting

the enjoyment of a tenement without title, to comply with the rules

established in the Act within such time specified by the Authority.

(3)

In enforcing the terms of sub-article (2), the Authority may

(a) order to whoever grants the enjoyment of a tenement

without title to conform with the obligations contained in the

Act for a minimum period of one (1) year and at a rent which

does not exceed seventy-five percent (75%) of the rental value

of the tenement; or

(b) if an agreement in writing according to the terms of

the Act, already exists between the parties, and the Authority

deems such conditions to be in line with the average market

conditions, require the person or persons granting the enjoyment

of a tenement without title to register such agreement in

accordance with article 4

Provided that the compliance with either one (1) of

such requests shall not prejudice the Authority’s right to take

further action in accordance with article 22

Provided further that for the purposes of establishing

the rental value of the property, the Authority shall engage an

architect to assist it

Provided further that a copy of the architect report

shall always be presented to the person or persons granting the

enjoyment of a tenement without title.

(1) Without prejudice to any other remedy in terms of the

Act, in the event that a person served with an enforcement notice

under article 20 fails to comply with any of the requirements of such

notice within the time therein specified, the Authority may file an

application before the Board demanding that, if the Board is satisfied

that an occupation without title according to sub-article 20(1) is in

existence, a written contract shall be entered into for a period of three

(3) years at a rent which does not exceed seventy-five percent (75%)

of the market rental value of the tenement.

(2) The Board may order that any amount be paid as

compensation for the occupation of the tenement to the person

granting the enjoyment of a tenement without title, whilst the hearing

of an application filed in terms of sub-article (1) is pending

Provided that the remedy under sub-article (1) shall not apply

in the case of the occupation without title of shared residential space

Provided further that if there exists sufficient evidence to

determine that the agreed amount for the occupation without title was

lower than seventy-five percent (75%) of the market rental value of

the tenement, the rent shall be fixed at such amount agreed by the

parties.

(1)

Any person who

(a) is found granting any tenement, or any separate

space therein, for a residential purpose, which is not in

accordance with the provisions of the Act;

(b) hinders, obstructs, molests or interferes with, or

attempts to hinder, obstruct, molest or interfere with, any officer

or employee of the Authority, or any police officer, or any

public officer in the execution of his duties under the law, or

fails to comply with any reasonable requirement demanded of

him by any such person as aforesaid or otherwise fails to assist

him in the carrying out of the said duties, or knowingly

furnishes such person with false information or neglects or

refuses to give any information required for the purpose

aforesaid; or

(c) makes a declaration for any one (1) of the purposes

of the Act which is false, misleading or incorrect in any material

respect,

shall be guilty of an offence against the Act and shall be liable, on

conviction, to a fine (multa) of not less than two thousand and five

hundred euro (€2,500) and not exceeding ten thousand euro

(€10,000)

Provided that if upon the serving of an enforcement notice

under article 20, the person found guilty of violating the terms of the

Act proceeds to conform with the Authority’s request within the time

specified by the Authority, the fine (multa) shall not exceed five

thousand euro (€5,000).

(2) Proceedings against any person for any offence as is

mentioned in sub-article (1) shall be taken before the Court of

Magistrates (Malta) or the Court of Magistrates (Gozo), as the case

may be, as courts of criminal judicature in accordance with the

provisions of the Criminal Code

Provided that, notwithstanding the provisions of article

376(1)(b) of the Criminal Code, the court shall, at the request of the Cap. 9.

prosecution or of the accused, take down evidence given by the

witnesses in the manner provided for either in article 390(6) of the

Criminal Code or in any law for the time being in force.

PART IV

ADJUDICATING PANEL FOR PRIVATE

RESIDENTIAL LEASES

(1) There shall be an Adjudicating Panel for private Establishment

residential leases, hereinafter referred to as the "Adjudicating Panel". of

Adjudicating

Panel for

private

(2) The Adjudicating Panel shall have exclusive jurisdiction to

residential

decide disputes relating to private residential leases to which the Act

leases.

applies, in so far as the claim does not exceed the value of five

thousand euro (€5,000), involving issues mentioned in

(a) articles 1540, 1541, 1542, 1543, 1545, 1546, 1548,

1556, 1559, 1561, 1562, 1563 and 1564 of the Civil Code in as

long as these do not include a demand for the termination of the

lease;

(b) article 17 in so far as the dispute is solely between

the lessor and the lessee; and

(c) any dispute relating to the retention or

reimbursement of any amount left by way of security deposit as

indicated under article 6(f)

Provided that a demand made in accordance with the

articles mentioned in sub-article (2) may also be included in

other demands or pleas made before the Board, in any action

affecting private residential leases, over which the Adjudicating

Panel has no jurisdiction, including where the demand is made

for the termination of the lease or the eviction of any person

from the lease

Provided further that the Adjudicating Panel shall

only hear claims relative to registered contracts.

(3) The administration and organisation of the Adjudicating

Panel and the administrative control of its officers and employees

shall be the responsibility of the Chairperson of the Authority.

(1)

The Adjudicating Panel shall consist of the following

(a) a Chairperson, who will be a person who has

practiced as an advocate for not less than three (3) years; and

(b) two (2) to four (4) professionals of a recognised

standing chosen from amongst persons of known integrity and

with knowledge of and experience in the real estate sector.

(2)

All members sitting on each panel, including the

Chairperson and the deputy Chairperson, shall be appointed by the

President of Malta acting on the advice of the Prime Minister.

(3) Members of the Adjudicating Panel shall be appointed for a

term of five (5) years and, on the lapse of their term, they shall not be

eligible for re-appointment.

(4)

The Chairperson and members of the Adjudicating Panel

shall receive such remuneration as the Minister may, from time to

time, determine.

(5)

A person shall not be eligible to be appointed or to hold

office as a Chairperson or as a member of the Adjudicating Panel if

he

(a) is a member of the House, of a local council or of

the European Parliament; or

(b)

is engaged in any business which has as its

objective the development of real estate or the renting of

immovable property

Provided that professional activity limited to the

design of buildings and the supervision of their construction

shall not be construed as engagement in any real estate

development business; or

(c) has previously conducted himself in such a manner

as to cast doubt on his competence or soundness of judgement;

or

(d)

has a financial or other interest as is likely to

prejudicially affect the discharge by him of his functions; or

(e)

is otherwise not a fit and proper person to hold that

office.

(6) Any member of the Adjudicating Panel may resign his office

by letter addressed to the President.

(7) In the exercise of his functions under the Act, a member of

the Adjudicating Panel shall not be subject to the control or direction

of any other person or authority. An adjudicator may not be removed

from office except in the manner and for the reasons provided for in

article 97(2) of the Constitution, and any law or regulation made

pursuant to article 97(3) of the Constitution for the purposes of article

97(2) thereof shall apply mutatis mutandis to the procedure for the

presentation of an address and for the investigation and proof of the

inability or misbehaviour of an adjudicator under the provisions of

this article.

(8) Members of the Adjudicating Panel shall be subject to the

Code of Ethics for Members of the Judiciary drawn up by the

Commission for the Administration of Justice in accordance with

article 101A(11)(d) of the Constitution, and reports or allegations of

such breaches shall be investigated by the Commission for the

Administration of Justice.

The provisions of the Code of Organization and Civil

Procedure relative to abstentions by and challenges to a magistrate,

and to the subrogation of and the distribution of duties amongst

magistrates shall, mutatis mutandis, apply to any member of the

Adjudicating Panel.

(1) Every claim filed before the Adjudicating Panel shall

be made in writing.

(2)

The claim filed in accordance to sub-article (1) shall be

served to the defendant, who has a right to file a reply in writing

before the Adjudicating Panel within ten (10) days.

The Adjudicating Panel shall deliver judgement within the

shortest time possible but not any later than five (5) working days

from the date of the last submission by the parties, the witnesses or

the experts, as the case may be.

The Adjudicating Panel shall have power, exercisable

through its Chairperson, or by the person so authorised by the

Chairperson, to

(a)

summon witnesses;

(b)

take expert advice;

(c)

require any person who appears to it to have a

special knowledge of the matter under consideration to furnish

orally or in writing such particulars in relation thereto as the

Adjudicating Panel may require;

(d)

require access to the premises.

(1) Every investigation by the Adjudicating Panel shall be

conducted in private.

(2) The Adjudicating Panel may hear or obtain information from

such persons as it thinks fit, and may make such enquiries as it thinks

fit. It shall not be necessary for the Adjudicating Panel to hold any

hearing

Provided that a hearing shall only be given by the

Adjudicating Panel if it is considered to be necessary by the

Adjudicating Panel

Provided further that the defendant shall have the right to file

both a statement of defence as well as any counter-claim in terms of

the Act.

(3) If at any time during the course of an investigation it appears

to the Adjudicating Panel that it is necessary to hear any oral

submissions, the Adjudicating Panel shall issue a notice of hearing to

the parties and shall summon any person that the Adjudicating Panel

considers to be relevant to the investigation, to appear before it and to

require them to give any evidence or produce any documents in their

possession, as it deems necessary

Provided that summons for attendance before the

Adjudicating Panel shall be signed by the Chairperson of the

Adjudicating Panel

Provided further that a summons may be served either by

hand or by registered post.

(1) Any party who feels aggrieved by a decision of the Appeal.

Adjudicating Panel may appeal on a point of law to the Court of

Appeal composed of one (1) judge only in accordance with article

41(9) of the Code of Organization and Civil Procedure.

(2)

The appeal shall be filed within twenty (20) days from the

date of the decision of the Adjudicating Panel.

(3) The Court of Appeal shall be constituted in accordance with

article 41(9) of the Code of Organization and Civil Procedure.

PART V

MISCELLANEOUS

(1) The registry of the Adjudicating Panel shall maintain a Registry of

register of all the final judgments relating to contractual defaults defaults.

which are decided by the Adjudicating Panel, Board and the Court of

Appeal and offences in contravention of article 85 of the Criminal Cap. 9.

Code in relation to arbitrary or forced evictions of occupants of leased

properties, including de facto lessees.

(2) Access to this register will be given to prospective lessors or

lessees who intend to sign a private residential lease agreement

Provided that information relating to any judicial or quasi-

judicial decisions delivered against the counterparty will only be

released upon the presentation of a draft lease agreement, identifying

the contracting parties.

(3) Persons included in the register may request the cancellation

of their name from such registry upon the presentation of evidence

that any debts or arrears for which they would have been found liable

would have been cleared.

(4) Any record of any person contained in the registry referred

to in this article shall be automatically canceled upon the lapse of

three (3) years from the entry of such record.

(5)

The procedures relating to the registry referred to in this

article as well as its contents shall remain, in any case, subject to the

Data Protection Act and Regulation (EU) 2016/679 of the European

Parliament and of the Council of 27 April 2016 on the protection of

natural persons with regard to the processing of personal data and on

the free movement of such data, and repealing Directive 95/46/EC

(General Data Protection Regulation).

(1)

In exercising his functions under the Housing

Authority Act, the Chairperson of the Authority may make a request

in writing to a public authority requesting only the necessary details

relating to the person or property concerned.

(2)

When making a request under sub-article (1), the

Chairperson of the Authority shall provide the purpose for such a

request and the function being exercised under the Act.

(3) The requested public authority shall provide the Chairperson

of the Authority the requested information referred to in sub-article

(1) within fifteen (15) days

Provided that the Chairperson of the Authority shall keep a

record of the request thereof, including the dates when the request

was submitted and when such data was provided or refused by the

public authority

Provided further that a public authority shall reject a

Chairperson’s request if it does not possess the requested information, or

if the request is contrary to law, incomplete or disproportionate to the

aim pursued.

Nothing in the Act shall prejudice the application of the Data

Protection Act or the Regulation (EU) 2016/679 of the European

Parliament and of the Council of 27 April 2016 on the protection of

natural persons with regard to the processing of personal data and on

the free movement of such data, and repealing Directive 95/46/EC

(General Data Protection Regulation).

The Minister may make regulations to give better effect to

the provisions of the Act, and without prejudice to the generality of

the foregoing may, by such regulations, prescribe anything that is to

be or which may be prescribed and provide for a ny matter

consequential, incidental to or connected with the provisions of the

Act.

PART VI

CONSEQUENTIAL AMENDMENTS

In the second proviso of sub-article (1) of article 85 of the Amendment to

Criminal Code the words "defence of another person." shall be Criminal

substituted by the words "def ence of another person:" and

immediately thereafter there shall be added the following new

proviso

"Provided further that in cases of arbitrary or forced

evictions of an occupant from the property which he occupies as

his primary residence, including any unpermitted entry into the

property, removal of furniture, appliances or personal

belongings from the property, or the suspension or interruption

of water and electricity services, in whichever manner,

including the installation of devices which enable the owner to

suspend the direct supply of water and electricity services to the

property, the fine (multa) shall not be less than one thousand

five hundred euro (€1,500) and not more than four thousand

euro (€4,000).".

Immediately after paragraph (h) of article 253 of the Code of Amendment to

Organization and Civil Procedure, there shall be added the following the

Organization

new paragraph

and Civil

Procedure.

"(i) Decisions of the Adjudicating Panel for Private

Residential Leases.".

Article 1525 of the Civil Code shall be amended as follows

Amendment of

article 1525 of

the Civil Code.

(a) the second paragraph of sub-article (1) thereof, shall

be substituted by the following new paragraphs

"The Rent Regulation Board (hereinafter

referred to as the "Rent Board") established under

the Reletting of Urban Property (Regulation)

Ordinance shall decide all matters affecting the

leases of urban tenements including residential as

well as commercial tenements including causes

relating to the occupation of urban tenements

where such leases have expired, and any damages

resulting during such period of occupation. Other

leases fall under the competence of the courts of

civil jurisdiction while matters relating to

agricultural leases shall fall under the competence

of the Rural Leases Control Board appointed

according to the provisions of the Agricultural

Leases (Reletting) Act

Provided that matters relating to the

validity of a contract of lease, shall be examined

by the courts of civil jurisdiction, so however, that

any other matter following the determination of

such matters relating to validity shall fall under

the competence of the Rent Board.

The Rent Board shall also have the competence

to decide demands related to maintenance, repairs,

defects and faults of the tenement including latent

ones, damages or improvements, amounts due for

water and electricity and any amount left by way

of security deposit by the tenant, where such

demands are included in other demands or pleas

made before the Board, over which the

Adjudicating Panel has no jurisdiction."; and

(b) in the definition "club" of sub-article (3) thereof, the

words "in accordance with the provisions of the law." shall be

substituted by the words "in accordance with the appropriate

provisions of the law;" and immediately thereafter there shall be

added the following new definition

" "private residential lease" means any long or short

private residential lease, including the letting of shared

residential space, which is entered into after 1st January,

2020, and any leases for a residential purpose entered into

before the 1st January, 2020, which would still be in its

original or renewed period on the 1st January, 2021.".

In sub-article (3) of article 1531A of the Civil Code the words

"articles of this Code." shall be substituted by the words "articles of

this Code:" and immediately thereafter there shall be added the

following proviso

"Provided that private residential leases shall be

[Act No. XXVIII

regulated by the Private Residential Leases Act, 2019.".

Immediately after article 1531A of the Civil Code there shall

be added the following new article

" Conditions for

1531AA. With regard to the letting of any private

letting of private

residential lease entered into after the 1st January, 2020,

residential lease.

the contract of lease shall be made in writing and shall

[Act No. XXVIII

stipulate the conditions specified under the Private

Residential Leases Act 2019, namely

(a) the tenement to be leased;

(b) the agreed use of the tenement let;

(c) the period for which that tenement

shall be let;

(d) whether such lease may be extended

and in what manner;

(e) the amount of rent that shall be paid

and the manner in which such payment is to be

made;

(f) any amount deposited by the lessee by

way of security, for the performance of his

obligations; and

(g) an inventory attesting the condition of

the tenement as well as the state of any furniture

and domestic appliances supplied by the lessor.".

In sub-article (2) of article 1532 of the Civil Code, the words Amendment of

"made after the 1st January, 2010." shall be substituted by the words article

the Civil Code.

"made after 1st January, 2010:" and immediately thereafter there shall Cap. 16.

be added the following new proviso

"Provided that any private residential leases entered

into after the 1st January, 2020, shall be presumed to

have been entered into for a period of one (1) year,

unless the parties agree to a short private residential

lease or the letting of shared residential space in

Act No. XXVIII of

accordance with the Private Residential Leases Act,

2019. 2019.".

Article 1534 of the Civil Code shall be amended as follows

Amendment of

article 1534 of

the Civil Code.

(a) in sub-article (1) thereof, the words "by means of a

valuation by experts." shall be substituted by the words "by

means of a valuation by experts:" and immediately thereafter

there shall be added the following new proviso

"Provided that in case of occupation without

title under the Private Residential Leases Act,

Act No.XXVIII

2019, the rent shall be fixed in accordance with

the provisions contained in the said Act."; and

(b) in sub-article (2) thereof, the words "made after the

1st January, 2010." shall be substituted by the words "made after

the 1st January, 2010:" and immediately thereafter there shall be

added the following new proviso

"Provided that in the case of occupation

without title which are in existence after 1st

January, 2020, the rent shall be determined in

Act No. XXVIII accordance with the Private Residential Leases

of 2019.

Act, 2019.".

Article 1536 of the Civil Code shall be amended as follows

(a) in the proviso of sub-article (1) thereof, the words "of

one term only." shall be substituted by the words "of one term

only:" and immediately thereafter there shall be added the

following new proviso

"Provided further that in case of private

residential leases under the Private Residential

Act No. XXVIII

Leases Act, 2019, the lease shall be deemed to be

of 2019.

renewed in accordance with the said Act."; and

(b) in sub-article (2) thereof, the words "1st January,

2010." shall be substituted by the words "1st January, 2010:" and

immediately thereafter there shall be added the following new

proviso

"Provided that private residential leases under

Act No. XXVIII

the Private Residential Leases Act, 2019 shall be

of 2019.

regulated in accordance with the said Act.".

In sub-article (1) of article 1541 of the Civil Code,

immediately after the words "under such conditions as the" there shall

be added the words "Adjudicating Panel for Private Residential

Leases, the".

In article 1566 of the Civil Code, the words "notice to the

other." shall be substituted by the words "notice to the other:" and

immediately thereafter there shall be added the following new proviso

"Provided that private residential leases under the

Private Residential Leases Act, 2019, shall be regulated

Act No. XXVIII of

2019. in accordance with the said Act.".

The Reletting of Urban Property (Regulation) Ordinance shall

be amended as follows

(a) in sub-article (4) of article 16 thereof, immediately

after the words "where such leases have expired" there shall be

added the words "after the termination of the rent, and any

damages resulting during such period of occupation:";

(b) immediately after sub-article (4) of article 16 thereof,

there shall be added the following new proviso and new

paragraph

"Provided that matters relating to the validity of a

contract of lease, shall be examined by the courts of civil

jurisdiction, so however, that any other matter following

the determination of such matters relating to validity shall

fall under the competence of the Rent Board.

The Rent Board shall also have the competence to

decide demands related to maintenance, repairs, defects

and faults of the tenement including latent ones, damages

or improvements, amounts due for water and electricity

and any amount left by way of security deposit by the

tenant, where such demands are included in other demands

or pleas made before the Board, over which the

Adjudicating Panel has no jurisdiction.";

(c) in sub-article (1) of article 16A thereof, immediately

after paragraph (a) there shall be added the following new

proviso

"Provided that when the demand for eviction is made

with a claim for rent or any other consideration due or

damages for any compensation, the Rent Board shall

decide the demand for eviction at the first hearing before

deciding any other demands made by the applicant:";

(d) in sub-article (4) of article 16A thereof, immediately

after the words "any executive officer of the courts" there shall

be added the words "after judicial hours"; and

(e) immediately after article 16A thereof, there shall be

added the following new article

" Board shall

16B. The Board shall not deal with any

not determine

demand

made by either party to the lease, if the

causes relative

to leases that agreement, contracted after the entry into force

are not

of the Private Residential Leases Act, 2019, is

registered.

Act No.

not registered in accordance with article 4 of

XXVIII of

the Private Residential Leases Act, 2019

2019. Act No.

XXVIII of

2019. Provided that the Board shall not have

jurisdiction to determine any demand made by

either party to a lease entered into after the 1st

June, 1995, but before the coming into force of

the Private Residential Leases Act, 2019, which

Act No.

XXVIII of

is renewed or extended beyond the 1st January,

2019. 2021, and which is not registered in accordance

Act No.

with article 5 of the Private Residential Leases

XXVIII of

2019. Act, 2019.".

Immediately after article 4 of the Housing Authority Act,

there shall be added the following new articles

" Monitoring

4A. (1) The Authority shall have the function to

monitor

all activities and private residential leases falling

within the scope of the Private Residential Leases Act,

XXVIII of 2019, to ensure that all such private residential leases are in

2019. accordance with the requirements of the said Act and may

for such purpose request and obtain the assistance of the

Police Force, any department of Government or any agency

of Government.

(2) The Authority shall specifically be entitled to

monitor

(a) such private residential leases entered into

after the entry into force of the said Act;

(b)

any occupation without title according to

article 20 of the said Act existing after the coming into

force of the said Act

Provided that the onus of proof that any

rental activity is not in compliance with rules in force

at the time is on the Authority

Provided further that the Authority shall

have the right to represent any occupant without title

in any proceedings under article 21 of the Private

Residential Leases Act, 2019.

2019.

4B. The Authority shall also administer and organise

Organisation

the

Adjudicating Panel for private residential leases and

Adjudicating

a s s u m e a d m i n i s t r a t i v e c o n t r o l o f i t s o ff i c e r s a n d

Residential employees.".

Passed by the House of Representatives at Sitting No. 274 of the

5th November, 2019.

ANĠLU FARRUGIA

Speaker

RAYMOND SCICLUNA

Clerk of the House of Representatives

€2.70