of Immovable Property Regulations, 2000

L.N. 269 of 2000

MALTA TRAVEL AND TOURISM SERVICES ACT

(CAP. 409)

Protection of Buyers in Contracts for Time Sharing

of Immovable Property Regulations, 2000

IN exercise of the powers conferred by article 47 of the Malta

Travel and Tourism Services Act, the Minister for Tourism acting on

the recommendation of the Malta Tourism Authority has made the

following regulations:-

1. The title of these regulations is the Protection of Buyers in Citation and

Contracts for Time Sharing of Immovable Property Regulations, 2000 commelK'ement.

and shall come into force on such day as the Minister may by notice in

the Gazette prescribe, provided that different dates may be prescribed

for different provisions of these regulations.

Minimum list of items to be included in the document or contract referred to in

regulations 4, 6, 7 and 8:-

(a) The identities and domiciles ofthe parties, including specificinformation

on the seller's legal status at the time of the conclusion of the contract and the

identity and domicile of the owner.

(b) The exact nature of the right that is the subject of the contract and a

clause setting out the conditions governing the exercise of that right within the

territory of the country or countries in which the property or properties concerned

relates is or are situated and,

(1)

stating whether those conditions have been fulfilled, or

(2) if those conditions have not been fulfilled, stating what conditions

remain to be fulfilled.

(c) When the property has been determined, an accurate description of that

property and its locatIon.

(d)

Where the immovable property is under construction

(1)

the state of completion,

(2) a reasonable estimate of the deadline for completion of the

immovable property,

(3) where it concerns a specific immovable property, the number of

the building permit and the name(s) and full addressees) of the competent

authority or authorities,

(4) the state of completion of the services rendering the immovable

property fully operational (gas, electricity, water and telephone connections),

(5) a guarantee regarding completion of the immovable property or a

guarantee regarding reimbursement of any payment made if the property is

not completed and, where appropriate, the conditions governing the operation

of those guarantees.

(e) The services (lighting, water, maintenance, refuse collection) to which

the buyer has or will have access, and on what conditions.

(f) The common facilities such as swimming pool, sauna, etc., to which

the buyer has or may have access, and where appropriate, on what conditions.

(g) The principles on the basis of which the maintenance of and repairs to

the immovable property and its administration and management will be arranged .

.

(h) The exact period within which the right which is the subject of the

contract may be exercised and, if necessary, its duration; the date on which the

buyer may start to exercise the contractual right.

(i) The price to be paid by the buyer to exercise the contractual obligation;

an estimate of the amount to be paid by the buyer for the use of common facilities

and services; the basis for the calculation of the amount of charges relating to

occupation of the property, the mandatory statutory charges (for example, taxes

and fees) and the administrative overheads (for example, management,

maintenance and repairs).

(j) A clause stating that acquisition will not result in costs, charges or

obligations other than those specified in the contract.

(k) Whether or not it is possible to join a scheme for the exchange or resale

of the contractual rights, and any costs involved should an exchange and, or resale

scheme be organised by the seller or by a third party designated by him in the

contract.

(1) Information on the right to cancel or withdraw from the contract and

indication ofthe person to whom any letter of cancellation, or withdrawal, should

be sent, specifying also the arrangements under which such letters may be sent;

precise indication of the amount and the nature of the costs which the buyer will

be required to defray pursuant to regulation 9 ifhe exercises his right to withdraw;

where appropriate, information on the arrangements for the cancellation of the

credit agreement linked to the contract in the event of cancellation of the contract

or withdrawal from it.

(m)

The date and place of each party's signing of the contract.

1. In these regulations, unless the context otherwise Interpretation.

requires -

"the Act"

means the Malta Travel and Tourism Services

Act;

"authorised officer" means any officer appointed and

authorised in writing by the Authority to exercise the functions

conferred by these regulations on such officers;

"the Authority" means the Malta Tourism Authority;

"buyer" means any natural person who, acting in

transactions covered by these regulations, for purposes which may

be regarded as outside his professional capacity, has the right which

is the subject of a contract transferred to him or for whom the right

which is the subject of the contract is established;

"contract" means any contract or group of contracts

concluded for at least three years under which, directly or

indirectly, on payment of a certain global price, a real property

right or any other right relating to the use of one or more immovable

properties for a specified or specifiable period of the year, of not

less than one week, is established or is the subject of a transfer or

an undertaking to transfer;

"the Director" means the Director of the Enforcement

Directorate of the Malta Tourism Authority;

"immovable property" means any building or part of a

building for use as accommodation to which the right which is the

subject of the contract relates;

"Minister"

means the Minister responsible for tourism;

"Schedule" means a Schedule to these regulations;

"seller" means any natural or legal person who, acting in

transactions covered by these regulations and in the person's

professional capacity, establishes, transfers or undertakes the right

which is the subject of a contract.

Clause required to be included in a contract in terms of subregulation 7.4

"You as the buyer have the right to withdraw or cancel such a contract in accordance

with The Protection of Buyers in Contracts for Time Sharing of Immovable Property

Regulations, 2000. These Regulations provide that a buyer may withdraw, without

giving any reason, from such a contract within ten days from when the parties sign the

contract."

1.

The Director shall have the following functions

3.1.1. to keep under general review, practices or proposed

practices in relation to any of the obligations imposed on any

persons by these regulations;

3.1.2. to carry out investigations of any such practices or

proposed practices where the Director considers that, in the public

interest, such investigations are proper, or where the Authority

requests the Director to carry out such investigations; and

3.1.3. to request persons engaged in or proposing to engage

in such practices as are, or are likely to be, contrary to the

obligations imposed on them by these regulations, to discontinue

or refrain from such practices.

3.2. The Director may delegate the exercise of these or any other

functions under these regulations to any authorised officer.

1. A seller shall provide to any person requesting information

on an immovable property, a document which shall give

4.1.1. a general description of the property;

4.1.2. at least, brief and accurate information on the matters

referred to in items (a) to (g), (i) and (1) in the First Schedule; and

4.1.3. information on how further information about the

property may be obtained.

4.2. Subject to regulation 5 hereof, the infonnation given in a

document referred to in subregulation 4.1 shall be contractually binding

on the parties to any contract entered into in respect of any immovable

property to which it relates.

4.3. Upon the request of the person requesting infonnation on

an immovable property, the document referred to in subregulation 4.1

shall be written in the language or one of the languages of the country

in which the person requesting the infonnation contained in the

document resides, or in the language or one of the languages of the

country of which the person is a national, or in a language which that

person understands.

4.4. Any advertising referring to the immovable property shall

indicate the possibility of obtaining the document referred to in

subregulation 4.1 and from where it may be obtained.

4.5. The seller shall ensure that a period of at least seven

consecutive days in any calendar year is reserved for repairs,

maintenance, cleaning, and other purposes related to the upkeep of the

immovable property. A person who contravenes this regulation shall

be guilty of an offence.

1. Unless the parties expressly agree otherwise, only changes

resulting from circumstances beyond the control of the seller may be

made to the information provided in the document referred to in

subregulation 4.1.

5.2. In order to be included in the tenns of the contract, any

changes to that infonnation shall be communicated to the buyer before

the contract is concluded and shall be expressly mentioned in the

contract.

1.

A contract to which these regulations apply -

6.1.1. shall be in writing,

6.1.2. must include at least the tenns referred to in the First

Schedule,

6.1.3. at the buyer's option, shall be drawn up in the language

or one of the languages of the country where he resides or in the

language or one of the languages of the country of which he is a

national or in a language he understands.

6.2. The seller shall provide the buyer with a certified translation

of the contract in Maltese or in English as the buyer may so request.

1.

The buyer shall have the right -

7.1.1. to withdraw from the contract, without giving any

reason, within ten days of both parties signing the contract, or of

both parties signing a binding preliminary contract,

7.1.2. subject to subregulation 7.2, to cancel the contract

within three months ofthe date of both parties signing the contract,

or of both parties signing a binding preliminary contract, if the

contract does not include the information contained in items (a),

(b), (c), (d)(l) and (2), (h), (i), (k), (1) and (m) in the First Schedule,

and

7.1.3. jf by the end of the three month period referred to in

subregulation 7.1.2, the buyer has not exercised the right to cancel

and the contract does not include the information referred to in

subregulation 7.1.2, - to the w!thdrawal period often working days

commencing on the day following the end of the three month

period.

7.2. Where the information required by subregulation 7.1.2 is

provided within the three months stated in that regulation, then the

withdrawal period referred to in subregulation 7.1.1 shall commence.

7.3. The exercise of the rights under this regulation shall be

without prejudice to any other rights that the buyer may have under any

other law.

7.4 Each contract shall include a clause in the form set out in the

Second Schedule to these regulations informing the buyer of his right

to withdraw or cancel a contrat under these regulations. Such information

shall be included with the text of the contract and shall be written in a

bold and prominent print. It shall be the duty of the seller to inform the

buyer of such a right. If such informaion is not included in the contract

and is not brought to the attention of the buyer by the seller, then the

buyer may request that the contract be declared null and void.

1. If the purchaser intends to exercise the rights provided for

in regulation 7, he shall, before the expiry of the relevant deadline,

notify the person whose name and address appear in the contract for

that purpose as required under item (1) in the First Schedule. The

deadline shall be deemed to have been met if the notification is in writing

is sent by registered mail, and is sent before the deadline expires.

1.

If the buyer exercises the right to cancel the contract as Buyer is not

provided for in subregulation 7.1.2, he shall not be required to defray =~:;:::~f

he under regulation 7.

any costs.

1. The acceptance by a seller or his agent of any advance Advanced payments

payment from a buyer before the end of the period during which the :~~g~=:'hen

buyer may, under subregulation 7.1 , withdraw from a contract, shall be right u~r' .

'b' d

regulation 7 eXIsts.

pro h lIte .

10.2. A person who contravenes subregulation 10.1. shall be guilty

of an offence.

1. If the price for the purchase of a real property right or any Credit agreements

. h t 10

. . Immova bl e property re I"

.

s h are to

o th er ng

at10g to ItS use on a time

without penalty if

right u~r .

basis is fully or partly covered by credit granted by -

regulation 7 IS

exercised.

11.1.1 . the seller, or

11.1.2. a third party on the basis of an agreement between

the third party and the seller,

and the buyer exercises the right to cancel or withdraw from the contract

under regulation 7, the credit agreement shall be cancelled without

penalty.

1. Any clause of a contract whereby a buyer renounces to his Contracting out of

er IS fre e d f rom h' IS of

ng ts un d er t h

.

h

i atlOns

'

h b y a se 11'

obligation

ese regu

or, were

responsibilities under these regulations, shall not be binding on the buyer. n:~ations not

blOdmg.

1. Any person who contravenes or fails to comply with these Offences and

regulations, which failure constitutes an offence, shall be liable on penalties.

conviction to a fine (multa) of not less than one hundred liri but not

exceeding one thousand liri, and to a fine (multa) of not less than twenty

five liri and not exceeding fifty liri for every day during which the offence

continues.

13.2. Where an offence under these regulations has been

committed by a body corporate and is proved to have been committed

with the consent or connivance of, or to have been facilitated by any

neglect on the part of any director, manager, secretary or other similar

officer of such body or of any person who was purporting to act in any

such capacity, that person, as well as such body, shall be guilty of an

offence and shall be liable to be proceeded against and punished as if

he were guilty of the first mentioned offence.

1. An authorised officer, may, for the purpose of obtaining

infonnation to enable the Director to perfonn his functions under these

regulations, at all reasonable hours and on production, if required, of

his credentials, exercise the following powers, namely:-

14.1.1. enter any premises at which any business or related

activity is carried on and inspect the premises or search for and

inspect any books, documents or records or otherinfonnation

however so kept relating to the business or activity on those or any

other premises;

14.1.2. require any person who carries on such business or

activity and any person employed in connection therewith to

produce any such book, document or record or other infonnation

however so kept which are in that person's possession or require

such a person to produce in a visible and legible documentary fonn

any infonnation so related which is contained in a computer, and

take copies of it;

14.1.3. inspect and take copies of or extracts from any such

books, documents and records;

14.1.4. seize and detain books, documents and records

which may be required as evidence in proceedings for an offence

under these regulations. In doing so the officer shall infonn the

person from whom they are seized;

14.1 .5. require any such person to give any other infonnation

which the officer may reasonably require in regard to such business

or activity;

14.1.6. summon, at any reasonable time, any person

employed or engaged with the business, to give to the officer any

infonnation which the officer may reasonably require in regard to

such business or activity and to produce to the officer any records

which are in that person's control.

14.2. A person who obstructs or interferes with an authorised

officer in the exercise of the officer's functions under these regulations

or gives to an authorised officer infonnation which is false or misleading

shall be guilty of an offence.

14.3. A person who refuses to comply with any request of an

authorised officer in the exercise of the functions under these regulations

shall be guilty of an offence.

1 If the contract relates to property which is situated in Malta Applicabilityof

and has been agreed to in Malta, then the contract shall be registered by Maltese Law.

Maltese Law and any term or condition to the contrary in the contract

shall be null and void.