HOME OWNERSHIP (ENCOURAGEMENT) (PURCHASE OF PRIVATE DWELLING-HOUSES SCHEME) REGULATIONS

SUBSIDIARY LEGISLATION 328.04

HOME OWNERSHIP (ENCOURAGEMENT)

(PURCHASE OF PRIVATE DWELLING-HOUSES

SCHEME) REGULATIONS

26th November, 1991

LEGAL NOTICE 180 of 1991, as amended by Legal Notice 424 of 2007.

The title of these regulations is the Home Ownership

(Encouragement) (Purchase of Private Dwelling-Houses Scheme)

Regulations.

(Regulation 2)

Purchase of Private Dwelling-Houses Scheme, 1991

(Scheme H)

1. The title of this Scheme is the Purchase of Private Dwelling-

Houses Scheme, 1991 (Scheme H) and shall apply to applications

for the purchase of dwelling-houses not the property of the

Government by persons to whom this Scheme applies.

2. In this Scheme, unless the context otherwise requires

"aggregate annual income" has the same meaning assigned to it

in clause 5(3);

"applicant" means a person who applies for the purchase of a

private dwelling-house under this Scheme;

"the Authority" means the Housing Authority established by

article 3 of the Housing Authority Act;

"basic year" means the year immediately preceding the year in

which an application under this Scheme is made and with reference

to clause 9(4) it means the year immediately preceding the year in

which a revision under that sub-clause is due;

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

the principal Act;

"dwelling-house" has the same meaning assigned to it in article 2

of the principal Act;

"emphyteuta" includes a sub-emphyteuta;

"Government" means the Government of Malta;

"ordinary residence" does not include a summer residence;

"prescribed" means prescribed by the Authority;

"the principal Act" means the Home Ownership

(Encouragement) Act;

"private dwelling-house" means a dwelling-house which is not

the property of the Government;

"recognised tenant" means a person holding a private dwelling-

house under a title of lease from the lessor and recognised as such

by the lessor.

"tenant" includes sub-tenant.

3. (1) Any person qualified to do so under this Scheme may

make an application on the prescribed form to the Authority

requesting a home purchase assistance grant to purchase a private

dwelling-house occupied by him as his ordinary residence.

(2) A person shall qualify to make an application under this

Scheme where, on the date of the application

(a) the applicant or, in the case of a married couple, the

applicant’s spouse, is a citizen of Malta; and

(b) the applicant and the applicant’s spouse or fiancée/

fiancé are residents of Malta and have been so resident

continuously for not less than twelve consecutive

months immediately preceding the date of the

application; and

(c) subject to the provisions of sub-clauses (6) and (7), the

applicant is a recognised tenant or a temporary or a

perpetual emphyteuta who occupies as his ordinary

residence the private dwelling-house in respect of

which the application is made and, in the case of a

perpetual emphyteuta, who on the contract of transfer

of the premises had bound himself to redeem the

groundrent due and this obligation was undertaken on,

or before, the thirtieth (30th) of June, 1991, and the

said contract was duly registered at the Public Registry

or at the Land Registry, as the case might be, during

the period of time prescribed by law; and

(d) the applicant and the applicant’s spouse or fiancée/

fiancé have continuously occupied the dwelling-house

as aforesaid for a period of not less than one year

immediately preceding the date of the coming into

force of these regulations.

(3) A person shall not qualify to make an application under

this Scheme if the applicant or the applicant’s spouse has already

benefited under

(a) any of the schemes published by Government Notices

Numbers 11 and 12 in the Government Gazette of the

6th January, 1987; or

(b) the scheme published by Government Notice Number

138 in the Government Gazette of the 20th February,

1987; or

(c) any of the schemes published by Government Notices

Numbers 124, 126, 127, 128, 129 and 130 in the

Government Gazette of the 16th February, 1988; or

(d) any of the schemes published by Legal Notices 137,

138, 139 and 140 in the supplement of the Government

Gazette of the 7th September, 1990; or

(e) any assistance under what used to be known as the

"Home Ownership Scheme" or any other assistance for

the encouragement of home ownership by the

Department of Social Housing or by the Land

Department or by the Authority or by any of them

jointly.

(4) A person shall also not qualify to make an application

under this Scheme if he has acquired land from the Government

which had been expropriated by virtue of the provisions of the

Building Development Areas Act.

(5) Notwithstanding the provisions of sub-clause (3), a person

who benefits, or qualifies to benefit, under this Scheme shall not be

disqualified for that reason alone from benefiting, after the coming

into force of these regulations, under the scheme published by

Government Notice Number 124 in the Government Gazette of the

16th February, 1988 or under any other. scheme substituting it.

(6) Where a person is a sub-tenant or sub-emphyteuta that

person shall not qualify to make an application under this Scheme

unless he has reached agreement with all those persons from whom

his title derives.

(7) Without prejudice to the dispositions of sub-clause (8),

where a person occupies a dwelling-house which is the property of

his parents or a dwelling-house which is the property of relatives of

the first generation such person shall not qualify to make an

application under this Scheme.

(8) Where a person occupies and is co-owner of a dwelling

house and this co-ownership has been acquired by that person by

me ans of i nh erit ance , th at p erso n shal l qu al ify to m ak e an

application under this Scheme to buy out the share/e of the other

co-owner/s and thus become the absolute owner of the dwelling-

house he occupies.

(9) Saving the provisions of clause 13, any expenses incurred

by the applicant in connection with his application shall not be

recoverable by the applicant whether or not his application is

successful.

The Scheme entitled Purchase of Private Dwelling-Houses

Scheme, 1991 (Scheme H) in the Schedule to these regulations

shall have effect from the date of the coming into force of these

regulations for the encouragement of home ownership in Malta and

shall lapse one year after that date.

The Home Ownership (Encouragement) (Purchase of

Private Dwelling-Houses Scheme) Regulations, 1990, are by this

annulled.

An applicant who is legally separated from his spouse shall

produce a copy of the final judgement of the competent court

pronouncing separation or a copy of the public deed effecting

separation by mutual consent of the spouses with the authority of

the competent court.

(1) For the purposes of this Scheme, the income of the

applicant shall include

(a) gross gains or profits from any trade, business,

profession or vocation;

(b) gross gains or profits from any employment or office;

(c) gross gains or profits arising from the sale of any

property or from the carrying on or carrying out of any

profit-making undertaking or scheme;

(d) dividends, interests or discounts;

(e) any pension, charge, annuity or annual payment;

(f)

rents, royalties, premiums and any other profits arising

from property;

(g) the value of any produce receivable in respect of the

use of capital, property, seed or stock for the purpose

of husbandry or any share of profits receivable in

respect of such use;

(h) any social benefit or allowance;

(i)

any gains or profits falling under the descriptions in

the foregoing paragraphs of this sub-clause other than

those in paragraphs (a) and (b), made by the

applicant’s spouse or fiancée/ fiancé;

(j)

fifty percent (50%) of the gains or profits falling under

any of the descriptions in paragraphs (a) and (b) made

by the applicant’s spouse or fiancée/fiancé;

(k) any other gains or profits.

(2) Where the applicant, and in the case of a married or

engaged couple, the applicant or his spouse or fiancée/fiancé, or

both, was or were gainfully occupied as provided in subclause

(1)(a) and (b) during only a part of the basic year, the gains or

profits from such gainful occupation for the whole basic year shall

be calculated by projecting the gains or profits made from such

gainful occupation during the said part of the basic year by the

applicant and/or his spouse or fiancée/fiancé, or by both, as the

case may be, for the whole basic year.

(3) The aggregate annual income of the applicant shall be the

income of the applicant determined in accordance with sub-clause

(1) of this clause from which the sum of two thousand and three

hundred and twenty-nine euros and thirty-seven cents (€2,329.37)

shall be deducted.

(1) The applicant shall give all that information regarding

his financial means as he may be required to give by the Authority

and for this purpose the applicant shall authorise the Commissioner

of Inland Revenue, the Director of Social Security and any other

person as may be necessary, to give the Authority any information

concerning the applicant’s income during the basic year.

(2) The Authority may require the applicant to sign any

declaration it may consider necessary for the carrying out of this

Scheme and the applicant shall allow the Authority to inspect his

ordinary residence and any other tenement held by him as the

Authority may require.

(1) Where an application under this Scheme has been

approved by the Authority a home purchase assistance grant, the

amount of which shall be determined in accordance with the

following provisions of this clause, shall be paid by the Authority

on the publication of the deed of sale and on behalf of the purchaser

to the seller on account of the price.

(2) Subject to the provisions of sub-clause (5), where the

dwelling-house to be purchased was built and completed for

habitation before the 1st of January, 1939, the amount of the

purchase assistance grant shall be 60% of the agreed price.

(3) Subject to the provisions of sub-clause (5), where the

dwelling-house to be purchased was built and completed for

habitation after the 1st of January, 1939 but before the 1st of

January, 1960, the amount of the purchase assistance grant shall be

40% of the agreed price.

(4) Subject to the provisions of sub-clause (5), where the

dwelling-house to be purchased was built and completed for

habitation on or after the 1st of January, 1960, the amount of the

purchase assistance grant shall be 25% of the agreed price.

(5) Notwithstanding the foregoing provisions of this clause,

the amount of any purchase assistance grant paid under this Scheme

shall in no case exceed the sum of three thousand and seven

hundred and twenty-seven euros (€3,727.00).

(1) In any case where, following the purchase of a private

dwelling-house in pursuance of an application approved by the

Authority under this Scheme, ground rent is payable by the

purchaser, the amount, terms and conditions for the payment of

such ground rent shall be those approved by the Authority and in no

case shall the ground rent payable by the purchaser exceed the

amount of ground rent payable immediately before the publication

of the deed of sale.

(2) Any person whose application under this Scheme has been

approved by the Authority, and where the dwelling-house to be

purchased is subject to the payment of ground rent, shall bind

himself, either before or on the publication of the deed of sale, to

redeem the ground rent so payable in such a way that such person

shall become the absolute owner of the dwelling-house to be

purchased by that person.

(1) Ten percent (10%) of the agreed purchase price shall

be paid on account of the said price by the applicant on the promise

of sale agreement and the balance of the price shall be paid on the

publication of the deed of sale.

(2) The applicant may, after deducting the amount of the home

purchase assistance grant and the aforesaid ten percent (10%)

payment on account, borrow part of the balance of the purchase

amount of the loan shall not exceed the limit laid down in the third

column of Table A annexed to this Scheme according to the

aggregate annual income of the applicant as shown in the first

column of the said Table, and shall be repayable within a maximum

period of twenty-five years from the date of the publication of the

deed of sale or not later than the date on which the applicant

becomes sixty-five years of age, whichever is the earlier

Provided that the amount of the loan which may be

borrowed as aforesaid shall in no case exceed the sum of sixteen

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

(€16,305.61).

(3) Where an applicant has obtained a loan in accordance with

sub-clause (2) the Authority shall subsidise the interests payable on

the loan so that the interests payable by the applicant shall be at the

rate shown in the second column of Table A annexed to this

Scheme according to the aggregate annual income of the applicant

as shown in the first column of the same Table. No subsidy shall be

payable where the aggregate annual income of the applicant for the

basic year exceeds sixteen thousand and three hundred and five

euros and sixty-one cents (€16,305.61).

(4) The rate of interest payable by the applicant as aforesaid

shall be revised by the Authority every two years on the basis of the

aggregate annual income for the basic year and the amount of the

subsidy payable by the Authority shall also be revised accordingly.

The first revision shall be due on the 1st of July, 1993.

(5) The Authority shall ensure that where the aggregate annual

income of the purchaser in any one year is less than three thousand

and nine hundred and fifty-nine euros and ninety-three cents

(€3,959.93) the payment of monthly instalments due in repayment

of any loan as aforesaid shall be suspended for a period of up to

three months which may be extended by further periods of three

months provided that the purchaser shall continue to pay the rate of

interest payable by him under this Scheme.

(1) Any dwelling-house purchased under this Scheme

shall not be transferred under any title, other than causa mortis, by

the beneficiary unless he complies with the following provisions of

this clause.

(2) Where the transfer is to take place within ten years from

the date of the deed of sale under this Scheme the beneficiary shall,

before the transfer is effected, pay to the Authority and the

financial institution approved by it under this Scheme, as the case

may be, the whole or part of the value of the sum total of any grant,

subsidy and any other benefit under this Scheme as laid down in the

second column of Table B annexed to this Scheme according to the

length of the period that has passed after the date of the deed of sale

with the Authority as shown in the first column of the said Table.

(3) Where the transfer of the dwelling-house purchased under

this Scheme is to take place after ten years from the date of the

publication of the deed of sale, the beneficiary shall not make any

payment as provided in sub-clause (2) but shall give the Authority

one month’s notice of his intention to transfer the said dwelling-

house and the Authority shall thereupon terminate any arrangement

for the subsidy under this Scheme of any interests payable by the

beneficiary.

Relief as provided in article 3(b) of the principal Act is

hereby 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 in respect of

any dwelling-house purchased by a beneficiary under this Scheme

and the provisions of article 6 of that Act shall therefore apply

thereto

Provided that the aforesaid relief shall only apply in

respect of the first sixteen thousand and three hundred and five

euros and sixty-one cents (€16,305.61) of the value of the dwelling

house.

The right is hereby granted to register under the Housing

(Decontrol) Ordinance a dwelling-house purchased by a

beneficiary under this Scheme and the provisions of article 7 of the

principal Act shall therefore apply thereto.

(1) Any application under this Scheme shall be lodged

personally or by registered mail by the applicant with the Authority

and that application shall not be accepted unless accompanied by

the sum of forty-six euros and fifty-nine cents (€46.59) as an

administrative charge which shall be refunded to the applicant on

the deed of sale.

(1) If at any time it results that the applicant has made a

false declaration for the purposes of any application made by him

under the provisions of this Schem e the applicant, without

prejudice to any punishment for which he may have become liable

under any other law, shall be liable to the payment to the Authority

of a penalty equivalent to the amount of any grant, subsidy and any

other benefit received by the applicant under this Scheme.

(2) Any person who has made a false declaration as provided

in sub-clause (1) shall be disqualified for a period of five (5) years

from benefiting from any scheme made with the approval of the

Parliamentary Secretary responsible for housing.

(1) Notwithstanding anything contained in the foregoing

provisions of this Scheme, the Authority shall have the right to

refuse any application.

(2) The Authority shall have the right to request the

revaluation of a tenement by an architect designated by it where the

Authority considers this to be necessary.

TABLE A

(Clause 9)

First Column

Second Column

Third Column

Limit of Loan not

exceeding

Aggregate Annual Income of

€16,305.61, as a

Rate of Interest

Applicant in Euros

percentage of the

balance of purchase

0 - 1,000

0.5%

HOME OWNERSHIP (ENCOURAGEMENT)

(PURCHASE OF PRIVATE DWELLING-HOUSES SCHEME)

1,001 - 1,500

1.0%

1,501 - 2,000

1.5%

2,001 - 2,500

2.0%

2,501 - 3,000

2.5%

3,001 - 3,500

3.0%

3,501 - 4,000

3.5%

4,001 - 4,500

4.0%

4,501 - 5,000

4.5%

5,001 - 5,500

5.0%

5,501 - 6,000

5.5%

6,001 - 6,500

6.0%

6,501 - 7,000

6.5%

7,001 and over

commercial rate

* after deducting the Home Purchase Grant and 10% from the purchase

TABLE B

(Clause 10)

First Column

Second Column

Period in Years after Date of Deed of Sale

Repayment of Grant,

with the Authority

Subsidies, Benefits, etc.

less than 4 ...............................................

100%

4 or more but less than 5 .........................

90%

5 or more but less than 6 .........................

80%

6 or more but less than 7 .........................

70%

7 or more but less than 8 .........................

50%

8 or more but less than 9 .........................

30%

9 or more but less than 10 .......................

10%