HOME OWNERSHIP (ENCOURAGEMENT) ACT (encouragement)

HOME OWNERSHIP (ENCOURAGEMENT)

CHAPTER 328

HOME OWNERSHIP (ENCOURAGEMENT) ACT

To make provision for the granting of certain incentives for the

encouragement of home ownership.

(28th October, 1988) *

ACT XXVIII of 1988 , as amended by Legal Notice 424 of 200 7.

The short title of this Act is the Home Ownership

(Encouragement) Act.

In this Act, unless the context otherwise requires -

"beneficiary" means the person to whom any of the incentives

referred to in article 3 are granted;

"dwelling-house" has the same meaning assigned to it under the

Housing (Decontrol) Ordinance;

"Housing Authority" means the authority established by article 3

of the Housing Authority Act;

"Housing Secretary" has the same meaning assigned to it by the

Housing Act;

"Minister" means the Minister responsible for housing, and

includes any Parliamentary Secretary with responsibility for

housing; and

"usufruct" has the same meaning assigned to it in article 2 of the

Death and Donation Duty Act † .

The Housing Authority or the Housing Secretary may make

regulations, with the approval of the Minister, providing for

schemes for the encouragement of home ownership in Malta,

whereby persons are encouraged to acquire a dwelling-house for

their own residence by being granted all or any one or more of the

following incentives

(a) relief from the duty chargeable under the Duty on

Documents Act ‡ ;

(b) relief from the duty chargeable under the Death and

Donation Duty Act †;

(c) the right to register the dwelling-house as a

decontrolled dwelling-house under the Housing

(Decontrol) Ordinance.

(1) The grant of any of the incentives under article 3 shall

be made and shall be evidenced by a certificate which shall be

issued by the Housing Authority or the Housing Secretary, as the

case may require.

(2)

Except tor the purposes of article 5(b) a certificate issued

*See Government Notice No. 716 of the 28th October, 1988.

†Repealed by Act XVI of 1993.

‡Repealed by Act XVII of 1993.

HOME OWNERSHIP (ENCOURAGEMENT)

under subarticle (1) shall have effect only if it is annexed to the

deed whereby the dwelling-house to which it refers is acquired.

(3) A certificate issued under subarticle (1) shall contain the

full particulars of the beneficiary, a full description of the dwelling-

house for the acquisition of which the incentives under this Act are

being granted and the specific incentives being granted in

accordance with the scheme.

(4) Without prejudice to any liability under any other law, any

person who forges a certificate purporting to be issued under

subarticle (1), or who shall knowingly make use of such forged

document or of a copy thereof, shall be guilty of an offence and

shall, on conviction, be liable to a fine (multa) of two thousand and

three hundred and twenty-nine euro and thirty-seven cents

(2,329.37) or to imprisonment for a term not exceeding two years

or to both such fine and imprisonment.

A relief from duty under the Duty on Documents Act * , may

consist in all or in any one or more of the following exemptions

from the duties chargeable under the said Act, that is to say

(a) an exemption from the duty chargeable under Title III

of Part III of the said Act, on the deed whereby the

dwelling-house which is being acquired under the

scheme is transferred to the beneficiary;

(b) an exemption from the duty chargeable under Title IV

of Part III of the said Act, on any appraisement or

valuation of the dwelling-house which is being

acquired under the scheme in connection with -

(i) its transfer to the beneficiary;

(ii) the grant of any loan by any bank or other

institution to the beneficiary for the purpose of

the acquisition of such dwelling-house;

(c) an exemption from the duty chargeable under Title V

of Part III of the said Act, on the receipt for the

payment of the price or other consideration for which

the dwelling-house which is being acquired under the

scheme is transferred to the beneficiary;

and where relief has been so granted the duties aforesaid shall, to

the extent of the relief, not be chargeable.

(1) Where relief from duty under the Death and Donation

Duty Act † , is granted, on the death of the beneficiary, and where

the beneficiary is married at the time of the acquisition of the

dwelling-house, also on the death of the beneficiary’s spouse, no

duty shall be payable under the said Act, on account of or in

relation to the dwelling-house acquired under the scheme on any of

the following

(a) on the transmission through devolution by law or

under a testamentary disposition by universal or

*Repealed by Act XVII of 1993.

†Repealed by Act XVI of 1993.

HOME OWNERSHIP (ENCOURAGEMENT)

particular title of the rights of the beneficiary or of the

beneficiary’s spouse over the dwelling-house;

(b) on the transmission causa mortis of the usufruct of the

dwelling-house or share therein, in favour of the

beneficiary or the widow or widower of the

beneficiary; and

(c) on the consolidation of the usufruct referred to in

paragraph (b) hereof with the nuda proprietas of the

dwelling-house on the termination of the usufruct.

(2) The exemption granted under subarticle (1) shall not apply

to any part of the value of such dwelling-house in excess of sixteen

thousand and three hundred and five euro and sixty-one cents

(16,305.61).

Where the right to register the dwelling-house as a

decontrolled dwelling-house under the Housing (Decontrol)

Ordinance, is granted, such dwelling-house shall be capable of

being registered as a decontrolled dwelling-house under and in

accordance with article 3(e) of the said Ordinance.

The Schemes published by Government Notices numbers

127, 128, 129 and 130 in the Government Gazette of the 16th

February, 1988 shall be deemed to be made by regulations made in

virtue of and according to article 3.