Commercial Property Regulations, 2024

L.N. 131 of 2024

GOVERNMENT LANDS ACT

(CAP. 573)

Grant of a Temporary Emphyteutical Concession to the

Emphyteuta, Tenant or Operator of Government-Owned

Commercial Property Regulations, 2024

IN EXERCISE of the powers conferred by articles 31(g)(L) and

77 of the Government Lands Act, the Minister responsible for the

Lands Authority and the Minister responsible for justice have made the

following regulations:-

(1) The title of these regulations is the Grant of a

Temporary Emphyteutical Concession to the Emphyteuta, Tenant or

Operator of Government-Owned Commercial Property Regulations,

2024. ( 2) The scope of these regulations is to establish the criteria on

the basis of which a temporary emphyteutical concession may be

granted to eligible applicants.

Classes of properties established in the Development Planning S.L. 552.15.

(Use Classes) Order recognised as commercial properties for the

purposes of these regulations

(a)

Class 2B – Non Residential Institutions

(b)

Class 2C – Education

(c) Class 3A – Guest Houses, Palazzini, Boutique

Tourism Accommodation and Hostels

(d)

Class 3B - Hotels

(e)

Class 4A – Financial, Professional & Other Offices

(f)

Class 4B – Retail

(g) Class 4C – Food and Drink Establishments where

no cooking is allowed

(h) Class 4D - Food and Drink Establishments where

cooking is allowed

(i)

Class 5A –Light Industry

(j)

Class 6A – Storage and Distribution

The uses listed hereunder, being in accordance with regulation 4

of the Development Planning (Use Classes) Order shall also be S.L. 552.15.

considered as commercial properties for the purposes of these

regulations

(a)

amusement arcade or centre;

(b)

dance or wedding hall;

(c)

discoteque or similar places of assembly;

(d) taxi business, hire of motor vehicles, public service

garage, sale or display of motor vehicle;

(e)

diving schools and, or acqua lung fillers;

(f)

food takeaways, including pastizzeria;

(g) washing or cleaning of clothes or fabrics in coin or

credit operated machines or on premises at which the goods to be

cleaned are received direct from the public;

(h)

bakery;

(i)

conference or public assembly centre;

(j)

supermarkets;

(k) bingo halls, casino, gaming shops, betting shops

(excluding lotto offices);

(l)

retail outlets selling fire arms.

In these regulations, unless the context otherwise requires

"Act" means the Government Lands Act;

"applicant" means any natural or legal person applying to

the authority to be granted the title of temporary empythuesis in

accordance with the terms of these regulations;

"authority" means the Lands Authority established in

accordance with article 5 of the Lands Authority Act;

"casa bottega" means a single tenement which is being

used for residential and for commercial purposes concurrently;

"commercial property" means the property that, as of the

application submission date, is recognised under one (1) of the

categories listed in the First Schedule;

"Minister" means the Minister or Parliamentary Secretary

under whose portfolio the authority is included;

"operator" means a natural or legal person with an ongoing

operations agreement with a tenant authorising him to operate a

commercial property;

"recognised use" means the use for which the property has

been granted by the authority;

"scheduled properties" means the buildings scheduled as Cap. 552.

Grade 1 and Grade 2 in terms of article 57 of the Development

Planning Act.

FEES

1. All applications shall be subject to an initial and non-

refundable submission fee of one thousand five hundred euro (€1500).

2. Applications for properties with a footprint exceeding an

area of one thousand five hundred square metres (1500m 2 ) shall be

subject to an additional fee of one euro (€1) per square metre, subject

to a minimum additional fee of one thousand five hundred euro

(€1500) and to a maximum of five thousand euro (€5000), and such

additional fee shall be requested and levied upon written confirmation

of the approval of the application.

3. Applications that are withdrawn by the applicant at any

stage of the process shall forfeit all fees paid up to date of withdrawal.

€0.81

(1) Applications shall be submitted to the authority by an Eligibility to

submit an

applicant having any of the following

application.

(a) a valid emphyteutical concession recognised by the

authority;

(b)

a valid commercial lease granted by the authority;

(c) an ongoing operations agreement with a tenant

authorizing him to operate a commercial property and the

declaration specified in sub-regulation (3); or

(d) a valid title of a casa bottega recognised by the

authority prior to the date of entry into force of these regulations

Provided that where the recognised use is not

specified in the concession or lease agreement, and where the

property has been commercially operated for the period specified

in sub-regulation (2), the authority shall have the right to

recognise the use as commercial.

(2) Where the property is subject to an ongoing operations

agreement between the tenant and the operator, the application shall

include a declaration signed by both parties sworn before a

Commissioner for Oaths, clearly indicating the operator as the

applicant.

These regulations shall not be applicable to the following Applicability.

properties

(a)

kiosks;

(b)

boathouses;

(c)

scheduled properties;

(d) properties which are not fully owned by the

Government and which were not registered accordingly;

(e)

properties originally disposed of by a Special

Resolution of the House of Representatives.

(1) Should an application submitted in terms of these

regulations involve more than one (1) property that originally

consisted of separate tenements disposed of to different emphyteutae

and, or tenants which over time became merged into one (1) tenement

without the authority’s prior consent, those tenements shall be

combined and considered as one (1) for all intents and purposes of

these regulations.

(2) In any case involving more than one (1) tenement in terms

of sub-regulation (1), the applicant shall provide a declaration sworn

before a commissioner for oaths, signed by all the involved

emphyteutae, tenants and, or operators as the case may be, and

attesting to their consensual agreement by clearly declaring which one

of these parties shall be considered by the authority as the applicant.

Every application whereby it is ascertained by the authority

that the conditions prescribed in regulation 5(1) exist and that the

applicant has no valid legal title on the adjacent Government-owned

property, the applicant shall, without prejudice to any other provision

of the Act, be liable to an administrative penalty of five hundred euro

(€500) for every extra square meter that has been occupied illegally

Provided that every such application where it is found that

the property is not duly covered by a valid development permission or

any third party rights are being breached shall be refused

Provided further that the administrative penalty shall not be

applicable to merging of properties covered by a valid title.

The new emphyteutical concession term in accordance with

these regulations shall be for a period of fifty (50) years to be reckoned

from the date of publication of the emphyteutical deed

Provided that when the property subject to the

emphyteutical concession has a footprint exceeding an area of one

thousand five hundred square metres (1500m 2 ), such transfer of

property shall be subject to the provisions of article 31(c) of the Act.

(1) Every valuation in relation to these regulations shall

be in conformity with the provisions of article 79 of the Act.

(2) In all cases, the applicable ground rent shall be of a value

equivalent to two per cent (2%) of the freehold value as determined by

the valuation in accordance with sub-regulation (1).

(3)

In each case, the valuation carried out shall consider the

property market values as of the application submission date, while

taking into consideration the condition of the property, including any

improvements made by the tenant. Any commercial benefits resulting

from external areas, granted on encroachment terms by the

government, shall not be included in the valuation.

The annual ground rent shall be increased every ten (10) Increase in

years at the simple interest rate of ten per cent (10%) computed over ground rent.

the current ground rent.

The fees of the periti and experts in connection with the Expert fees.

valuations required in regulation 8, shall be borne by the applicant and

shall be paid on the date of the signing of the contract.

(1) If the ground rent as computed in regulation 8 results Payment of

as being lower than the ground rent or rent of the former emphyteutical ground-rent

premium.

concession or lease, the higher ground rent or rent rate shall be

retained in the new emphyteutical concession deed.

(2) The ground rent shall become payable one (1) year in

advance from the date of the signing of the deed.

(3) The new emphyteuta shall pay a premium equivalent to one

(1) year ground-rent on the date of signing of the deed.

All arrears due in connection with properties subject to Arrears.

concession shall be paid prior to publication of the deed of the

emphyteutical concession.

(1) Any request for transfer in favour of third parties of an Future transfers.

emphyteutical concession granted under these regulations approved by

the authority, shall be transferred in whole.

(2) Transfers by title of sub-emphyteusis shall not be approved.

Any such transfer shall be deemed null and void and shall be construed

as sufficient legal basis for the termination of the emphyteutical

concession.

(3) Upon transferring the emphyteutical concession to third Laudemium.

parties, a recognition fee (laudemium) equivalent to one (1) year’s

ground rent shall be due to the authority. The transferor shall provide

the authority with a copy of the deed within sixty (60) days from the

effective date of transfer, failing which an administrative penalty of

one hundred euro (€100) per day, in addition to the laudemium, shall

be imposed on the transferor, as long as the failure persists.

(4) (a) The emphyteuta may lease the property to third Lease to third

parties subject to a written authorisation from the authority and subject parties.

to the payment of an administrative fee equivalent to fifty per cent

(50%) of the ground rent determined by the authority in accordance

with regulation 8.

(b) If the emphyteuta leases the property in accordance with

this sub-regulation, a copy of the relative lease agreement shall be sent

to the authority within sixty (60) days, failing which an administrative

penalty of one hundred euro (€100) per day, in addition to the

administrative fee in accordance with paragraph (a), shall be imposed

on the transferor.

(1) The property shall be granted tale quale with the

exclusion of all warranties and, in all cases, it shall be transferred as

subject to any latent defects, in its present state and condition.

(2) The submission of any application in accordance with

these regulations shall automatically render null any other pending

application and, or request for repairs.

(3) The authority reserves the right to conduct random site

inspections as it deems necessary.

(4) Any existing encroachment concessions shall remain

unaffected subject to the authority’s discretion and shall be precluded

from forming part of the new emphyteutical concession.

(5) The new emphyteutical concession shall be subject to, and

shall not prejudice any existing servitudes.

(6) Where the emphyteuta is a company, at least one (1) of the

directors or any person who is not a juridical entity, subject to approval

by Government, shall constitute himself as a guarantor in favour of the

Government, in relation to all the obligations being undertaken by the

emphyteuta in the deed. These obligations inter alia include the

payment of ground rent, damages, expenses, payments and obligations

that may be suffered by the Government directly or indirectly from this

grant.

(7) Any emphyteutical concession granted in accordance with

these regulations, shall not be subject to redemption and conversion to

perpetual emphyteusis.

(8) Following the grant of the emphyteutical concession in

accordance with these regulations, the current title shall cease ipso

jure.

(1) Any application submitted to the authority in

accordance with these regulations shall be considered valid only after

all the necessary requirements listed in the application form have been

satisfied.

(2) The authority shall have the right to request any other

information or documentation which it deems necessary to process the

application.

(3) The authority shall have the right to suspend, and where it

deems necessary deny, any application submitted in accordance with

these regulations where it results that there is a legal challenge in

respect of the property to which the application relates.

(4) Upon submission of any application in accordance with

these regulations, there shall be payable an administrative application

fee in accordance with the Second Schedule

Provided that if an applicant withdraws the application at

any stage of the process prior to finalisation of the application process

and publication of the deed, all fees and expenses incurred by the

Authority shall be borne and paid by the applicant and the applicant

shall not be entitled to any reimbursement of payments effected in

relation to the application

Following the submission of the application in accordance In case of death

with these regulations, there shall be no change in the applicant unless of applicant.

it results from a causa mortis declaration that the rights over that

property which is the subject of the application, have been transferred

to the person who is requesting such change.

(1) In addition to the application submitted to the Declaration.

authority in accordance with these regulations, the applicant shall

provide a declaration signed by him confirming that all the contents of

the application submitted by him are correct, and that no other relevant

facts, information or documentation have been omitted, which if

known by the authority would have led to the rejection of the

application.

(2) No applicant may justify his failure to omit other facts,

information or documentation relevant to the application on the

grounds that the authority already had knowledge of those facts,

information or documentation

Provided that if it results that the applicant has made a false

declaration for the purposes of an application made in accordance with

these regulations, the authority shall

(a) in cases where the authority became aware of such

false declaration prior to the finalisation of the application

process and the publication of the deed, the application shall be

revoked and all fees and expenses shall be paid by the applicant;

or

(b) in cases where the authority became aware of such

false declaration following the finalisation of the application

process and the publication of the deed, the authority shall have

the right to act in accordance with regulation 20(3).

In the case of emphyteutical concessions or leases which

lapse during the application process, an additional payment equivalent

to the ground rent or rent previously paid and duly apportioned pro-

rata for the additional occupancy period shall be paid in full upon

signing of the new emphyteutical deed.

All expenses, including those relating to the valuation

required in accordance with these regulations, and those relating to the

granting of the emphyteutical concession, shall be paid by the

applicant by not later than the date of signing of the emphyteutical

concession.

(1) The authority shall have the right to reject in its sole

discretion any application submitted to it in accordance with these

regulations.

(2) The decision by which the authority denies an application

submitted to it pursuant to these regulations shall be in writing, even if

by electronic means, and shall include the reason which led to the

refusal of the application.

(3) The authority shall have the right to bring any action before

the Civil Court First Hall, requesting the rescission of the

emphyteutical concession, issued on the basis of a false declaration,

incorrect information, or resulting from an error, where in the absence

of such false declaration, incorrect information or error, the authority

would have not granted the emphyteutical concession.

(4) The authority shall not be liable to any form of damage or

compensation in the exercise of its functions in accordance with these

regulations.

An applicant shall have a right of appeal from a decision of

the authority taken pursuant to these regulations under the terms of

article 57 of the Lands Authority Act.