DISPOSAL OF GOVERNMENT LAND ACT

DISPOSAL OF GOVERNMENT LAND

CHAPTER 268

DISPOSAL OF GOVERNMENT LAND ACT

To regulate the grant on any title of immovable property belonging to or

administered by the Government, and to provide for matters ancillary

thereto or connected therewith.

11th July, 1977

ACT XXXIII of 1976, as amended by Acts II of 1979, XIII of 1983, XIV of

1999, XVII of 2004; Resolution No. 178 of the 11th April, 2005; Legal

Notice 423 of 2007; Resolution No. 318 of the 19th November, 2007; Act

III of 2011; Resolutions No. 284 of the 14th December, 2011, No. 338 of the

6th December, 2012, and No. 227 of 2015 of the 22nd June, 2015; Act XVII

of 2017.

Repealed by Act XVII of 2017 .

The short title of this Act is the Disposal of Government

Land Act.

Added by

XVII. 2004.3.

(Article 3)

Amended by

Resolution No.

Policy relating to the Transfers of Government Land

178 of the 11th

April, 2005;

L.N. 423 of 2007;

Resolution No.

318 of the 19th

November, 2007;

Resolution No.

284 of the 14th

December, 2011;

Resolution No.

338 of the 6th

December, 2012.

Resolution No.

227 of the 22nd

June, 2015;

XXVII. 2016.6.

Interpretation

1. In this document the words ‘land’ and ‘transfer’ shall have the same

meaning as is given to them by this Act; and any reference to ‘government land’ or

‘government building’ includes a reference to any land or building administered by

Government.

2. The cases in which government land may be transferred according to policy

as contained in this schedule are additional to the cases in which government land

may be transferred according to article 3(1)(a), (b), (d), (e) and (f) of this Act.

Transfer by title of sale or redemption

3. Government land may be sold or the perpetual or temporary dominium

directum burden thereon may be redeemed if such land consists of flats, houses or

garages which are offered by means of a public notice to be bought or redeemed by a

person who resides therein in the case of flats or houses, or by the recognized

emphyteuta or tenant in the case of garages, under such conditions as are shown in

that notice.

3a. The perpetual dominium directum of government land, where the ground-

rent is revisable, may be redeemed by the recognised emphyteuta, in accordance

with any conditions contained in a public notice.

3b. Government land which had originally been granted by Government on title

of lease or title of emphyteusis, even if such emphyteusis has expired, and which is

used for commercial purposes only may, by means of a public notice or scheme in

force, be granted on a new title of lease or emphyteusis to the present tenant or

person occupying the said tenement.

Transfer by title of emphyteusis

4. Government land may be transferred by title of emphyteusis

(a) if it consists in land which is offered for development under a ‘Home

Ownership Scheme’ by means of a public notice containing the

conditions of the transfer and the manner of choice of the person who is

making an offer;

(b) if it consists in land which is offered for an industrial project after

applicant would have satisfied Government about the benefit which the

project would render to the country’s economy and that it would create

DISPOSAL OF GOVERNMENT LAND

an adequate number of jobs;

(c) if it consists in land which is offered for twenty-five (25) years for the

building of kiosks according to plans approved by the Planning

Authority, to such persons who in 1996 had a valid permit issued by the

Department of Lands to operate a kiosk in such same locality;

(d) if it consists of land granted for a period of fifty (50) years to licensed

livestock farmers in the dairy and/or pig-breeding sectors for the

running of farms.

5. Emphyteutical grants given previously under the ‘Home Ownership

Schemes’ for a definitive period, may be converted into perpetual emphyteusis.

Transfer by title of lease

In this Act, unless the context otherwise requires -

"disposal" means the transfer or grant of any land under any title

whatsoever, including, but without prejudice to the generality of

the aforesaid -

(a) any lease or encroachment or other right of use as well

as any grant of any real or personal right in or over any

land;

(b) a renewal of any real or personal right in or over any

land, whether tacit or expressed on new terms and

conditions (provided that an increase in rent, ground

rent or compensation for use shall not be deemed to be

a new condition), but including a renewal of any real

or personal right in or over any land originally made in

pursuance of a special resolution of the House of

Representatives, even when made on the same terms

and conditions;

(c) any change of any condition included in the disposal

of any land other than land disposed of by the Housing

Authority or by the Government for housing purposes,

as long as the land remains subject to the condition

that it be used for housing purposes, or land disposed

of by a local council established under the Local

Councils Act

Provided that the transfer of any land acquired under any

title under the provisions of the Land Acquisition (Public Purposes)

Ordinance, where such land is no longer required for a public

purpose, to the person from whom such land was so acquired, or to

his successors in title, shall not constitute a disposal for the

purposes of this Act where the transfer back is made for the

consideration (including damages) paid by the Government on the

acquisition together with interests at five per centum per annum

from the date of the payment up to the date of the transfer back to

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such persons where such land was acquired by the Government

under absolute ownership, and where the land is held by

Government on public tenure or possession and use, the transfer

back is made subject only to the cessation of the annual payment of

the relative recognition rent or acquisition rent as the case may be;

"land" includes any property which is immovable either by its

nature or by reason of the object to which it refers, as provided in

articles 308, 309 and 310 of the Civil Code.

(1) No land which belongs to or is administered by the

Government shall be disposed of unless such disposal is made in

accordance with one of the following provisions, that is to say -

(a) after a call for tenders published in the Gazette in

respect of the property proposed to be disposed of; or

(b) after an announcement of an auction as published in

the Gazette in respect of the property to be disposed

of

Provided that no land may be so disposed of unless it

forms part of a Building Development Zone according

to any law for the time being in force

Provided further that the Minister responsible for land

may by regulations establish the manner and procedure

for the holding of any such auction;

(c) according to the policy applicable to the land being

transferred, as shown in the Schedule, which Schedule

can only be changed by virtue of a Resolution of the

House of Representatives;

(d) in accordance with a special resolution of the House of

Representatives which is in force at the time of the

disposal; or

(e) to a body corporate established by law for the purposes

of any function of such body

Provided that any land disposed of to a body

corporate, other than the Housing Authority or a local

council established under the Local Councils Act,

under this paragraph (including a disposal made to it

by another body corporate as authorised by this

proviso) shall not without the approval of the House of

Representatives expressed in a resolution, or in

accordance with this sub-article, be disposed of by any

body corporate, other than the Housing Authority or a

local council as aforesaid, except in favour of the

Government or of another body corporate established

by law; or

(f)

where a change of any condition included in the

disposal of any land consists of a modification to the

conditions of a lease or to the conditions of a contract

of emphyteusis or sub-emphyteusis which is made for

a public purpose as defined in the Land Acquisition

(Public Purposes) Ordinance, which change shall not

affect property exceeding a footprint of one hundred

DISPOSAL OF GOVERNMENT LAND

square metres (100 sq.m), such disposal may also be

made without adherence to any of the procedures or

formalities prescribed in this article but in such case it

shall only have effect after the following conditions ar

satisfied

(i) that the Minister shall within four weeks from

the conclusion of a conditional agreement to

make the modification or if the House of

Representatives is not in session at the end of

the said period within four weeks from the date

when the House next meets, lay a copy of the

contract of lease or emphyteusis or sub-

emphyteusis indicating the modifications

proposed on the table of the House; and

(ii) the modification aforesaid shall only be valid

and come into effect if, after the procedure

stipulated in sub-paragraph (i) has been

completed, the House does not within a period

of twenty-eight days after the completion of the

said procedure resolve that the modification

shall be rejected or amended, and immediately

upon the expiry of the said period of twenty-

eight days the modification shall, unless it is

rejected as aforesaid, come into effect as

originally proposed or as amended by means of

the said resolution; or

(g) in accordance with any other law for the time being in

force.

(2) A Resolution of the House of Representatives approved in

terms of subarticle (1)(d) and (e) will remain valid for one year

from the date of approval, but such Resolution can be extended by

virtue of another Resolution or other Resolutions proposed after

another period of one year.

(3) A disposal of land to which subarticle (1) applies, made in

accordance with the provisions of this article, shall not require any

further authority or sanction.

(4) Before notice of a motion proposing a resolution, as is

referred to in subarticle (1)(d), is given to the Clerk of the House by

a Minister, such Minister shall cause such motion to be referred to

the National Audit Office Accounts Committee established under

Part IV of the Second Schedule to the Auditor General and National

Audit Office Act, and no notice of a motion as aforesaid may be

given before the said committee shall have discnssed the motion

and reported thereon to the House.

(5) Not later than fifteen days after a Minister shall have

caused a notice as is referred to in subarticle (4) to be referred to it,

the National Audit Office Accounts Committee shall meet to

discuss the draft deed or writing or notice, as the case may be, and

shall not later than one month after the said draft deed or writing or

notice, as the case may be, has been referred to it, report thereon to

the House

DISPOSAL OF GOVERNMENT LAND

Provided that where the said Committee fails to report to

the House in a final manner within the said period of one month,

the Minister may proceed to give notice to the Clerk of the House

proposing a resolution as is referred to in subarticle (1).

(6) When the Committee referred to in the preceding subarticle

is convened for the purposes of this Act, two additional members of

the House of Representatives, one appointed by the Prime Minister,

the other by the Leader of the Opposition, shall have the right to

attend, and take part in the debate in this Committee, without the

right to vote.

(7) Where the report of the National Audit Office Accounts

Committee on a motion is unanimous, the House shall proceed to

vote on such motion and on any amendments proposed in the said

report without debate.

(1) Any disposal of land to which article 3 applies made

otherwise than in accordance with the provisions of that article

shall be null and void.

(2) The nullity of a disposal made in contravention of the

article aforesaid may be demanded also by the Attorney General or

by any person who is a member of the House of Representatives at

the time of the demand.

(1) Any person who enters into or appears on any deed,

instrument or contract (whether in his own name or on behalf of

others) in contravention of any of the provisions of article 3, and

any person who induces any other person to enter into or appear on

any such deed, instrument or contract as aforesaid or the making

thereof, or aids or abets any of the aforesaid acts, shall be guilty of

an offence and shall be liable on conviction to a fine (multa) not

exceeding two thousand and three hundred and twenty-nine euro

and thirty-seven cents (2,329.37) or to imprisonment not exceeding

six months or to both such fine and imprisonment

Provided that it shall be a defence for any person to prove

that he took reasonable steps to ascertain that the deed, instrument

or contract would not, where made, be in contravention of the

provisions aforesaid.

(2) For the purposes of any proceedings under subarticle (1), a

declaration made by a court of competent jurisdiction that a

disposal is null and void on the ground that it was made in

contravention of any of the provisions of article 3, or a mere

declaration that it was so made, shall be conclusive evidence that

the disposal was made in contravention of these provisions; and

where any action for any such declaration has been taken, the

period of prescription in respect of any offence against this article

shall be suspended until a final judgment on the issue is given or

the action is abandoned.

DISPOSAL OF GOVERNMENT LAND

DISPOSAL OF GOVERNMENT LAND

Government land may be given by lease

(a) if it consists in a new building (not being a building for commercial use)

which is offered on a points system after the issue of a public notice

indicating, at least in a general manner, the criteria on which the

allocation of points will be made;

(b) if it consists in an old building (not being for commercial use) which is

offered according to the merits of the case to whosoever is listed on the

registers of the government department which is responsible for such

matters;

(c) if it consists in a factory which is offered for an industrial project after

applicant would have satisfied Government about the benefits which the

project would render to the country’s economy and that it would create

an adequate number of jobs;

(d) if it consists in agricultural land

(i) which is offered on agricultural lease to whosoever would be

cultivating it although such person may not have any title thereto

(ii) in respect of which, following the death of the tenant, there is no

other person who qualifies as a tenant or who is able to continue

the lease in terms of the Agricultural Leases (Reletting) Act, then

such agricultural lease may be given to the brothers or sisters or to

the sons or daughters of the said brothers or sisters of the said

tenant whether individually or in solidum between them or

between any of them who at the time of the tenant’s death was a

bona fide professional farmer.

For the purposes of this paragraph "professional farmer" means a

person who is registered with the Director for Agriculture and

who satisfies the following conditions

(a) is registered as a full time farmer with Jobsplus;

(b) has a minimum annual turnover of at least €20,000

calculated on the last three calendar years, that is supported

by proof of sale and from the declarations made in the

Value Added Tax returns

Provided that the turnover shall be based on sales

originating from the agricultural land held by that person

and that the turnover shall exclude any income originating

from the provision of agricultural services including the

contracting or subcontracting of machinery or work, of

income from pruning, of income from grafting, of income

DISPOSAL OF GOVERNMENT LAND

from the delivery or transport of agricultural products, of

income from the transport of water or manure, of income

from the pressing of grapes or olives and of income not

originating from the agricultural land that is held by that

person; and

(iii) is a member of an agricultural cooperative, of a producer

organisation or of a recognized farmers’ association. For the

purposes of this paragraph "agricultural land" means land which

is mainly leased or rented for the growing of agricultural crops,

flowers, fruit-trees or vines and for related agricultural purposes,

including the erection of glasshouses, the assembly of cloches or

cold frames but does not include grazing grounds;

(e) if it consists in land which is directly allocated

(i) to a lotto receiver;

(ii) to a person who has relinquished his place of residence or any

other premises occupied by him for commercial purposes or for

any other use, and would either have been evicted by Government

for any public purpose or would have relinquished such premises

due to its dangerous state;

(f) if it consists in a building (comprising land accessory thereto) which is

mainly offered for a specific commercial use which may be only carried

out under a licence issued by the Government for such use under a

special law;

(g) if it consists in commercial premises which are directly allocated by

Government on a new lease to such children or grand-children as the

preceding tenant would have renounced in their favour (and then only if

such tenant would have reached the age of sixty-one years or is in

receipt of an invalidity pension under the Social Securtity Act (Cap.

318)). The rent of the premises shall be fixed on the basis of the

previous lease increased by ten per cent for each period of ten years

and/or part thereof which would have passed from the date of the last

fixing of the rent of the preceding lease;

(h) if it consists in commercial premises leased on a yearly basis, which

was in the past given by title of lease for an established period

exceeding one year, to the same tenant. The lease of the premises is

given to the same tenant, under the conditions of the original title, other

than for the rent which is fixed again, sohowever that no lease may

exceed a period of fifteen (15) years;

(i) if it consists of land which formed part of a larger land and is being

allocated directly by Government on a new lease to the preceding tenant

under the same conditions but at a different rent;

(j) if it consists of a concession under a temporary title for a maximum

period of time of ten years of land situated outside Malta.

Servitudes, encroachments and other permits.

Servitudes and other similar rights may be created on government land

whenever such rights are required for the proper use of any other land by any other

person, and it would not be the case that such right is given on encroachment terms.

In any other case such rights may and shall be given on encroachment terms.

Encroachment terms are also allowed as regards

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(i) stretches of shore land as ‘beach concessions’;

(ii) land adjacent to coffee-shops and similar establishments for the

placing of tables and chairs; and

(iii) other similar concessions.

Permits may also be granted for the temporary or specific use of government

land.

Right of first refusal

Offers for the transfer of government land may be made subject to the right

known as the right of first refusal in any instance where Government deems it

appropriate that such right should be conceded to any person.

Sub-lease in a lease agreement

Permission may be granted for the sub-lease of part of a larger building for

commercial use connected with or accessory or ancillary to use made by the

Government of the building of which the leased premises form part.

Transfer of land on the sea shore

Government land situated on the sea shore on which a room or any other

building has been built or which is being used for the siting of a caravan thereon may

be transferred by title of lease for not more than ten years at a rent fixed according to

a valuation made by the Commissioner of Lands and which may in no case be less

than €93.17 annually;

Sohowever that the building together with all improvements made thereon,

other than existing movables, shall revert to Government on the expiration of the

lease without any right of compensation.

Land given by exchange

Government land may be given by exchange with any other land which is

declared as required for a public purpose under Chapter 88 of the Laws of Malta, to

the owner of the land which has been so declared. Provided that when a difference

exists in the value of the two plots of land given by exchange, such difference shall

be balanced with also giving an additional sum of money. Sohowever that the

exchange may not be effected if the value of the government land to be given

exceeds thirty per cent of the value of the expropriated land. Any damages sustained

due to the expropriation of such land shall form part of the value of the same land.

Tale quale transfer for relative compensation

Any plots of land comprised in such Building Development Areas, also

including such plots of land in Building Development Areas which have been

revoked, and which have not been utilized and[or there is apparently no use for them

for a public purpose, may be transferred by title of exchange to the owners of the

rights for relative compensation for each plot of land which is so transferred and for

which an application has been submitted, with money’s worth for each plot of land,

of the rights for compensation regarding the same land, and when the person to

whom the land shall be transferred was not the absolute owner of such land prior to

its expropriation by Government, with money’s worth also of an equivalent amount

for each right of any other compensation relating to such land, free and exempt from

any burden, hypothec or privilege, and also every right for any other interests or

damages which may be due.

The person in whose favour the land is transferred is bound, on the same

deed of transfer, to reconstitute on the land so transferred to such person any

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hypotech, privilege, easement, usufruct, use or any other real right which had existed

on the same land prior to such land being declared a Building Development Area

according to Act I of 1983 and which are presently incumbent on the compensation

rights, until such time as such rights have not been erased by agreement between the

parties prior to the reverse transfer; the person to whom such land is transferred shall

also be obligated to bind itself on the same deed to recognize any right ta’ rural lease

and any other right which was incumbent on such land prior to such land being

declared a Building Development Area in terms of the said Act I of 1983.

The expenses relating to the deed of transfer shall be paid by the

Government of Malta.